In London or Sydney, open banking was about breaking up bank monopolies. In Africa, it’s about building the pipes. Basic ones. The kind that lets people send money, access credit, or even check a bank balance without friction.
Here, open banking isn’t just a policy play, it’s a workaround. A way to fill gaps that have slowed down everything from small business lending to digital payments. Because the truth is, most financial systems across the continent weren’t built to talk to each other. They weren’t even built to scale.
But that’s starting to change. A few countries are moving from endless roadmaps and pilot programs to actual frameworks and functioning APIs. Nigeria is ahead. Others are watching closely. Everyone’s talking about potential, but in 2025, the real question is: who’s actually building?
But first, what is Open banking and how does it work?
What is open banking?
Open banking is all about giving people control over their own financial information. It lets customers choose to share their banking data with trusted third parties, like fintech apps, lenders, or budgeting tools. So they can get better, more tailored services. The way this happens is through something called APIs, which are basically the digital bridges that let systems talk to each other. Without APIs, every new connection between a bank and a service provider would need to be built from scratch. That’s like trying to connect two phones with a different charger for each call. It’s messy, slow, and expensive.
What open banking does is bring order to that chaos. It sets a common standard for how these APIs should work. Instead of each bank using its own custom setup, everyone uses the same playbook. That means a fintech in Lagos or Kigali can plug into multiple banks without writing completely different code for each one.
The big shift here isn’t just technical, it’s about power. Customers get to decide who can use their data and for what. And when banks and apps speak the same language, it becomes easier, faster, and safer to build smart products that actually help people manage money, access credit, and save better.
As Adedeji Olowe, CEO of Lendsqr and Pioneer Trustee of Open Banking Nigeria, puts it: “Open banking isn’t a specific technology. It’s the standardisation of APIs. It’s about everybody in the finance ecosystem speaking the same API language.”
Also read: BVN is great, but here are 5 ways CBN can make it better
Open banking in Nigeria
Despite economic ups and downs, shifting regulations, and outdated systems, Nigeria has achieved something many thought was out of reach. The country has moved open banking from an idea to a working infrastructure. It all began in 2017 with the Open Banking Nigeria initiative, a grassroots movement led by fintech experts, and Industry lenders who recognized the need for shared standards. Over time, this group formed a close partnership with the Central Bank of Nigeria (CBN), which led to the official launch of the Open Banking Implementation Framework. If everything stays on track, Nigeria’s first live APIs should be ready by the third quarter of 2025.
Unlike in many countries where regulators stay hands-off, the CBN has been deeply involved — reviewing drafts, helping create frameworks, and coordinating the rollout. The system they’ve built is decentralized, allowing any regulated entity, whether a bank or fintech, to act as both API provider and consumer. On the technical side, challenges are handled with a practical solution: an Open Banking API Gateway (AKA The Middleware) that takes the inconsistent legacy APIs and converts them into a consistent, developer-friendly format. Nigeria’s success isn’t about having better technology or more funding. It’s about persistence. When systems didn’t exist, they built them. When regulators hesitated, the industry kept pushing forward. It’s this messy, determined approach that has put Nigeria ahead.
Open banking in Ghana
The Bank of Ghana (BoG), as the main regulator, has taken important steps to promote digital finance. Its National Payment Systems Strategic Plan (2019-2024) set the stage for open banking by outlining goals for infrastructure development and stakeholder collaboration. A key early move was the launch of a regulatory sandbox in 2021, allowing fintechs to test new financial products in a controlled environment and encouraging partnerships between banks and fintech companies.
Building on this foundation, the BoG published a draft Open Banking Directive in late 2024. This document introduced API standards, data protection rules, and customer consent requirements. It also proposed the creation of an Open Data Exchange platform to help coordinate compliance across the ecosystem. These developments tie into Ghana’s wider digital finance agenda, which includes the FinTech Innovation Fund and preparations for launching the e-Cedi, Ghana’s Central Bank Digital Currency, expected in 2025.
Several key players are central to this journey. GhIPSS, a subsidiary of the Bank of Ghana, manages interoperable payment systems and is positioned to support secure data sharing in an open banking environment. Financial institutions, from big banks like Standard Chartered and Ecobank to fast-growing fintech startups, are preparing to leverage open banking to deliver more personalized financial services, especially to the large unbanked population.
Despite the positive signs and clear intent, open banking in Ghana remains in early stages. As of mid-2025, there are no live open banking APIs or firm timelines for full rollout. Progress has been steady but slow, and the missing piece is actual implementation and tested infrastructure. Consumer trust and financial literacy remain challenges, along with the need for a comprehensive, enforceable regulatory framework that balances innovation with security.
Looking ahead, Ghana’s foundation is solid, and the regulatory and industry players seem committed. The regulatory sandbox and strategic planning have laid groundwork, and the draft directive marks important progress. The hope is that these efforts soon translate into live systems and real benefits for Ghanaian consumers and businesses alike.
Open banking in Kenya
Kenya is moving forward with open banking mostly through a top-down approach, with the Central Bank of Kenya (CBK) setting the tone. Their 2021–2025 National Payments System Vision and Strategy lays out a plan for secure and interoperable APIs to connect banks, fintechs, and other players in the payments space.
They’ve looked at countries like the UK and South Africa to shape their approach. The idea is to create a system where financial institutions can safely share data with third-party providers, all while keeping consumer privacy protected under the 2019 Data Protection Act. The end goal is to give customers better, more tailored financial products.
CBK is working on regulations that will cover data sharing rules, consumer protection, and how different players can participate. But so far, Kenya doesn’t have live open banking APIs yet, the technical and regulatory groundwork is still being laid. They’re trying to balance encouraging innovation with managing risks, so progress is steady but careful.
A few groups are pushing things forward, like the Open Finance Initiative; a collaboration between Financial Sector Deepening Kenya, the Kenya Bankers Association, and the Association of Fintechs in Kenya. They’re focused on research, policies, and helping different financial players work together. Payment platforms like PesaLink will also play a big role in connecting banks and fintechs.
The bottom line is, Kenya has a solid plan and a clear direction, but it’s still building the foundation. The CBK is working closely with banks, fintechs, and other stakeholders to finalize the rules. The hope is to have open banking fully up and running by mid-2025. But there’s some worry that if the regulators don’t move fast enough, Kenya could lose ground to other countries already ahead in digital finance.
Also read: What you need to know about Nigeria’s Open Banking
Open banking in South Africa
The regulatory framework for open banking in South Africa is still evolving. The South African Reserve Bank (SARB) introduced draft principles in 2020 encouraging banks to share customer data via APIs, but these guidelines have yet to become formal law. Meanwhile, major banks such as Nedbank, Investec, Capitec, FNB, and Standard Bank have proactively embraced open banking by creating API marketplaces and partnering with fintech companies to roll out innovative financial services. The Financial Sector Conduct Authority (FSCA) has taken the lead in developing a comprehensive regulatory framework that expands beyond banking to encompass insurers, pension funds, home loan providers, and consumer credit companies, ushering in a broader open finance ecosystem.
In 2023, the FSCA published a Draft Position Paper on Open Finance outlining a phased approach to regulation. The plan starts with voluntary adoption and gradually moves to a mandatory regime, emphasizing informed consent, data protection, risk management, and consumer education. An Open Finance Advisory Group is expected to be established to ensure ongoing collaboration with key stakeholders. This expanded approach reflects a vision for a more integrated financial sector where data sharing drives better products and services across multiple financial industries.
Key players in this evolving ecosystem include the SARB, which oversees monetary policy and initially set the tone for open banking principles, and the FSCA, which is finalizing the rules to govern market conduct and data sharing. The Intergovernmental Fintech Working Group (IFWG), together with SARB, manages the Innovation Hub; a sandbox environment where fintech companies can safely test new products. Meanwhile, several banks and fintech firms are already moving ahead with open banking initiatives, launching platforms and services that leverage shared data to meet diverse consumer needs.
South Africa also benefits from complementary innovations like PayShap, its Rapid Payments Program, which supports real-time payments and further integrates banks and fintechs. Investments in open banking infrastructure, including support for startups such as TrueID, signal confidence in the sector’s growth. Despite these advances, challenges remain chiefly the absence of finalized regulations that unify and standardize open banking practices. However, the phased regulatory approach by the FSCA aims to address these gaps while fostering innovation and protecting consumers.
Looking ahead, South Africa is on track to formalize its open finance framework between 2024 and 2026, with the FSCA’s phased rollout set to introduce clear standards and protections. This will mark a significant step forward in creating a secure, consumer-centric financial ecosystem that integrates banking, insurance, credit, and other financial services.
Open banking in Egypt
Egypt is taking a careful, regulation-first approach to open banking, focusing on building a strong foundation before rolling out new services. The Central Bank of Egypt (CBE) is leading the charge, working on a formal framework that fits within the country’s broader digital transformation goals. This framework aims to boost financial inclusion, foster competition, and encourage innovation, all while keeping consumer protection front and center. The Egyptian Banks Company: a partnership between the CBE, Ministry of Finance, and major national banks, is helping to shape these regulations and test them in a controlled environment through the central bank’s regulatory sandbox.
A key part of this groundwork is Egypt’s 2020 Data Protection Law, which emphasizes customer consent and aligns with international privacy standards. While the full open banking framework is still being developed, progress is visible through initiatives like InstaPay, an instant payments app from the CBE, and new rules supporting real-time transfers via the Instant Payments Network (IPN). Leading banks such as Banque Misr, the National Bank of Egypt (NBE), and Commercial International Bank (CIB) are gearing up by developing their API capabilities. Meanwhile, Egypt’s fintech scene featuring players like Fawry, valU, and PayMob, is ready to build on these developments to create new financial products, especially aimed at the large unbanked population.
Collaborations like the Nclude Fund and partnerships with Mastercard’s MDI program show growing momentum in the fintech sector. Although open banking hasn’t officially launched yet, Egypt’s methodical approach is setting the stage for a safer, more inclusive, and innovative financial ecosystem. As Akram Abdou, founder of the Egyptian startup Underlie, puts it: “The next generation of banking in Egypt is an open-finance ecosystem.” It’s clear the country is preparing for a significant shift in how financial services will operate going forward.
Also read: How to use BankOne with Lendsqr as a core banking
Open banking in Ethiopia
Ethiopia is just beginning to open its financial sector to broader changes and competition, signaling early steps toward open banking. In December 2024, the country passed landmark legislation allowing foreign banks to operate within its previously closed economy. This move, which permits foreign institutions to establish branches or subsidiaries with ownership stakes capped at 40%, marks a significant shift towards liberalizing the banking industry. Although there are currently no formal open banking regulations in place, this legislative change suggests Ethiopia is preparing to modernize its banking sector, with open APIs and interoperable infrastructure likely to play an important role as foreign banks introduce international standards and practices.
With a population exceeding 120 million, Ethiopia has seen rapid economic growth driven mainly by agriculture and infrastructure development. The government has demonstrated a strong commitment to digital transformation as part of its broader economic reforms, yet open banking remains a concept still in its infancy. The fintech ecosystem has begun to grow thanks to regulatory changes such as the National Bank of Ethiopia’s 2020 directive that allowed non-banking institutions, including mobile network operators, to offer digital financial services. This has enabled fintech players like BelCash International, which provides open API solutions through its “HelloCash” platform, supporting services such as agency and mobile banking.
Further developments point toward an expanding digital finance sector, particularly with increased foreign involvement. Safaricom’s local arm, Safaricom Telecommunications Ethiopia, has introduced mobile money services and plans to launch M-Pesa in the country, part of a larger strategy to liberalize Ethiopia’s financial and telecom sectors. These moves lay the groundwork for a future that could embrace data-sharing principles and open banking frameworks.
The potential benefits of open banking in Ethiopia are considerable. It could drive enhanced financial inclusion by allowing fintech companies to access customer data (with consent) to develop tailored products for the large unbanked population. Open banking could also simplify digital payments by integrating diverse services into a single platform, making it easier for consumers to manage their finances. Moreover, it aligns with Ethiopia’s national digital transformation goals by fostering fintech innovation and increasing competition.
However, several challenges remain. Ethiopia lacks a dedicated regulatory framework to manage data sharing, API standards, and consumer protections, which are critical elements for safe and effective open banking. Additionally, many banks still operate on legacy systems that may require significant upgrades to support open banking technologies.
As the country continues on its modernization path, the financial ecosystem is expected to evolve, with open banking poised to become an integral part of Ethiopia’s digital economy.
Open banking in Malawi
Malawi is just beginning to engage with the concept of open banking, but for now, it remains more of a theoretical idea than an active practice. The country’s national payments strategy includes a mention of open banking, yet there are no formal frameworks, pilot projects, or regulatory initiatives currently underway. This situation reflects a broader trend seen in many African countries, where open banking is recognized for its potential but has yet to move beyond the planning stages.
The financial sector in Malawi, regulated by the Reserve Bank of Malawi (RBM), is undergoing important transformation focused on expanding access to banking and promoting digital financial inclusion. Efforts such as the Financial Sector Technical Assistance Project (FSTAP) have helped raise the proportion of banked adults from 17% in 2011 to nearly 39% by 2018. Despite these gains, Malawi has not yet established specific regulations or initiatives dedicated to open banking.
Some private sector developments hint at progress on this front. For instance, NBS Bank has launched an Open Banking platform that connects third-party providers through APIs, enabling more customer-focused financial services. This move aligns with global open banking trends emphasizing interoperability and personalized solutions, suggesting that Malawi’s financial ecosystem is slowly warming up to the idea.
Moreover, the long-term Malawi 2063 Vision highlights digital transformation as a key driver of economic growth and inclusive development. This vision underlines the role of financial technology in reducing poverty and improving equitable access to financial services nationwide.While formal open banking frameworks remain absent, these strategic initiatives collectively create a foundation conducive to new layers of growth in Malawi’s financial sector.
The way forward
Despite the growing recognition of open banking’s potential across Africa, much of the continent remains stuck in early stages. Full of plans, strategies, and promise, but limited in real-world execution. This gap matters deeply because Africa isn’t short on ideation; it’s short on delivery. In a region where reliable interbank transfers are still unavailable in half the countries, open banking is less a luxury and more a necessity. A vital tool to scale financial inclusion where traditional banking infrastructure has long fallen short.
Without standardized APIs and secure, consent-based data sharing, developers waste precious time rebuilding the same integrations bank by bank. Fintech startups burn out trying to navigate fragmented systems, while millions of users remain invisible behind closed data silos. Open banking flips this script by freeing financial data and placing them in total control of the consumers.
The clear lesson from Nigeria’s journey is that progress comes not from perfection, but from persistence. After nearly a decade of collaboration, setbacks, and adjustments, Nigeria now boasts Africa’s most functional open banking framework, which is proof that success is possible with patience and commitment. Rather than reinventing the wheel, other countries would do well to follow Nigeria’s example by adopting proven standards and prioritizing execution over endless discussion.
For Africa to realize the promise of open banking, it needs less talk and more action. It needs regulators, banks, and fintechs to build the infrastructure that makes data sharing smooth and secure. It needs leadership willing to embrace practical solutions instead of chasing theoretical ideals.
