8/2/2023 15:10

The relevance of Open Banking in Africa

With the sedimentation of the presence of nBanks in Africa, the question arises: what makes this continent an attractive market for the implementation of open banking solutions? Orlando Costa, CEO of the Portuguese fintech - the first to arrive in African territory with this type of services - brings us the answers. Find out in this article. 

"As a rule, it is quite common for each African country to have a considerable size of banks operating locally, and it is also a frequent practice to have companies working directly with several of these banks," the manager explains to us. 

Orlando Costa's statement clarifies, at the same time, the attractiveness of Africa for the use of Open Banking and the concrete gains that these solutions bring. Given that African companies work with a multiplicity of banking entities, Open Banking will support the managers of these entities in "streamlining payment processes, bringing together useful information for better decision-making, or creating better business conditions," he exemplifies.

These gains become more obvious if we consider that, along with the diversity of banks and, consequently, of accounts, African countries are faced with "differentiated currencies and a daily currency fluctuation that requires a lot of rigor in the daily management of liquidity", emphasizes the CEO, also stressing the "weaknesses of technological infrastructure in various banking entities", as well as the dependence on rigid data structures of these institutions". 

The good news is that the benefits achieved feed new advantages, in a true snowball with positive effects for banks and companies in any sector. The attraction of more and better investments to the African market deserves to be highlighted. Open Banking, Orlando stresses, "is a tool that promotes efficiency, agility, reinforcement of financial literacy, and, inherently, incentives for companies to feel attracted to invest locally as soon as they can use management tools that reduce logistical and linguistic barriers.

With Open Banking being formally introduced in other regions of the world, such as Latin America, it is Africa's turn to take that step with the support of nBanks. The conditions are favorable. The gains promise to be even greater.