CestaSoft Solutions has developed a custom SMS and USSD infrastructure platform designed to strengthen control over mobile banking communications while reducing reliance on third-party aggregators. CestaSoft is a technology provider specialising in enterprise solutions for financial institutions across Africa.
SMS and USSD technologies are critical components of digital banking across the continent. SMS is widely used for one-time passwords (OTPs), transaction notifications and customer alerts, while USSD provides menu-based banking services that are accessible on both smartphones and feature phones.
Many fintech organisations across Africa have historically relied on external aggregators to deliver these services. However, this model has increasingly created operational challenges related to regulatory compliance, cost management and service visibility. In one instance, a customer’s SMS provider experienced regulatory compliance issues, highlighting the risks associated with relying on third-party intermediaries to manage critical communication channels.
Aggregator services typically charge additional fees per SMS message and USSD session, which can significantly increase operational costs as transaction volumes grow. In addition, the use of intermediaries often limits visibility into message delivery performance, routing decisions and system errors.
To address these challenges, CestaSoft implemented two platforms, the first component is a Mobile Services Platform (MSP), which functions as the SMS gateway. The platform connects directly to mobile network operators’ SMS centres and consolidates all outbound messaging into a single internally managed system.
The SMS platform supports several types of communication, including OTPs generated by digital banking platforms, transactional account alerts and bulk marketing messages. The gateway also includes automated error-handling capabilities that reprocess failed messages, improving delivery reliability for time-sensitive communications such as authentication codes and transaction notifications.
In addition to the SMS platform, CestaSoft deployed an in-house USSD gateway that enables the organisation to deliver mobile banking services without relying on external aggregators.
USSD remains one of the most widely used banking channels across Africa, particularly among customers using feature phones without internet access. Through a dedicated USSD short code, customers can access services such as balance enquiries, mini statements, fund transfers and account management through simple menu-driven interactions.
By hosting the gateway internally, the organisation now has direct control over session management, service availability and service menu design. The combined platforms create a unified communications layer that improves service reliability while giving technology teams greater operational oversight.
Direct integration with mobile network operators also supports regulatory compliance requirements and eliminates the risks associated with third-party routing of sensitive financial communications.
The deployment is expected to improve delivery rates for critical messages such as OTPs and transaction alerts, while enabling the organisation to scale messaging and mobile banking services more efficiently. USSD services will also continue to play an important role in expanding financial inclusion by providing digital banking access to customers without smartphones.
According to CestaSoft Solutions, the project highlights how financial institutions can strengthen their digital infrastructure by bringing key communications platforms under their direct control, while improving cost efficiency, reliability and regulatory compliance.
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