Analysis: Open Banking Set to Drive Africa’s Financial Inclusion
The financial sector in Africa has already witnessed tremendous disruption driven by technologies such as mobile banking, which has played a major role in expanding financial inclusion.
The industry is even set for more changes as new innovations come into being. The next phase of transformation looks set to emanate from open banking, an innovation that allows access and control of consumer banking and financial accounts through third-party applications.
Open banking, experts say, commands the potential to reshape the competitive landscape and consumer experience of the banking industry in Africa.
While consumers will be the biggest gainers, banks too will reap significant benefits as they will be able to acquire a set of skills and tools required to build their own ecosystems.
Photo courtesy of CIAT.