Open banking in Djibouti – Open Banking Nigeria

Djibouti

Overview

The Central Bank of Djibouti (Banque Centrale de Djibouti, BCD) serves as the regulatory authority for the country’s financial institutions. Djibouti’s financial sector has grown significantly over the years and is relatively more advanced, expanding to accommodate increasing competition. The Central Bank oversees 12 active commercial banks, 11 of which are under foreign control, and the sector is marked by a relatively high level of regulation and supervision. Financial inclusion efforts are active, but the landscape is still centered around traditional banking and mobile money services.

Current Status of Open Banking

At present, open banking initiatives have not been formally established in Djibouti. The concept remains in its infancy, and the necessary regulatory frameworks are non-existent. A lack of specific policies and legal frameworks for open banking limits its potential implementation. Despite recorded advancements, Djibouti’s technological infrastructure, including limited internet penetration, remains insufficient for a widespread adoption.

As of recent statistics, only about 26% of the population has access to formal banking services. The rise of mobile banking and digital tools offers a pathway for integrating open banking frameworks to streamline services and increase customer reach.

Future Outlook

The potential of open banking in Djibouti lies in its ability to address key challenges in the financial sector, such as low inclusion rates and a reliance on cash-based transactions. However, this will require a proactive approach from the Central Bank of Djibouti to establish the necessary regulatory framework and drive digital transformation initiatives.

The evolution of open banking in Djibouti will depend on the country’s readiness to invest in technological infrastructure and foster partnerships between banks and other financial service providers. We will continue to monitor developments in this area and provide updates as they arise.