Open banking in Mozambique – Open Banking Nigeria

Mozambique

Overview

Mozambique’s financial sector regulated by the Bank of Mozambique (BoM), is experiencing a digital transformation with a focus on enhancing financial inclusion and modernizing payment systems. Despite this transformation, the full benefits of open banking is yet to be explored. However, the concept is gaining traction as key stakeholders in its financial landscape recognize its potential to drive innovation, competition, and financial inclusion.

The Central Bank has prioritized improving financial literacy and the digital payment infrastructure. Although open banking is not yet a priority, there are key developments which provide a strong foundation for its possible adoption.

Key initiatives and developments

SIMO National Switch: SIMO connects all commercial banks and mobile money platforms, including M-Pesa, mKesh, and E-Mola, enabling interoperability between banks and mobile wallets. This infrastructure supports real-time transfers, contactless technology for cards and POS terminals and seamless transactions enhancing security and user convenience.
National Financial Inclusion Strategy: Mozambique’s National Financial Inclusion Strategy (2016–2022) was a key initiative aimed at expanding access to formal financial services for underserved populations. The strategy emphasized digital financial solutions and sought to foster collaboration between financial institutions, fintechs, and mobile money operators. A mid-term review highlighted progress in mobile money adoption and digital payments but also identified challenges in infrastructure, trust, and awareness that need further attention to fully achieve the strategy’s goals. Key pillars included:
- - Expanding Access Points: Promoting mobile money and agent banking to reach remote areas, ensuring that financial services were available to people without access to traditional bank branches.
  - Digital Payment Ecosystems: Encouraging the use of mobile and electronic payments to reduce reliance on cash transactions, a goal supported by platforms like SIMO.
  - Consumer Protection and Financial Literacy: Strengthening regulatory frameworks and implementing programs to educate consumers about financial products and services.
  - Gender-Inclusive Finance: Recognizing the barriers faced by women, the strategy emphasized solutions to bridge gender gaps in financial inclusion.

The Path Forward

SIMO’s interoperable infrastructure makes Mozambique well-positioned to adopt open banking, as it enables seamless cross-platform transactions and real-time payment solutions. However, for the concept to become a reality, it would take regulatory readiness and early investments in digital connectivity and financial literacy.

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