Open banking in Etswatini – Open Banking Nigeria

Etswatini

Overview

Eswatini, a landlocked country in Southern Africa, has a financial sector evolving under the oversight of the Central Bank of Eswatini (CBE). For its size, the country has a relatively advanced banking sector. Despite the gradual adoption of digital financial services, open banking frameworks are not yet in place in Eswatini. However, the CBE has shown strong interest in fostering innovation through its ongoing licensing of digital banks and regulatory support for fintech initiatives. The sector comprises major players like Standard Bank, EswatiniBank, and FNB, contributing approximately 15% of the nation’s GDP. Over recent years, financial inclusion efforts have increased, with about 62% of the population now having access to some form of banking service, a marked improvement from earlier statistics.

Central Bank of Eswatini

The Central Bank of Eswatini (CBE) is central to driving financial modernization in the country. In 2024, the CBE issued a call for applications to establish digital banks, a significant step toward financial innovation. These banks are envisioned as primarily digital entities with limited physical infrastructure, designed to enhance access to banking services in underserved rural areas. The regulatory framework emphasizes rigorous compliance standards, including cybersecurity protocols, customer due diligence, and anti-money laundering measures, to maintain financial stability and consumer protection.

The CBE’s recent moves align with its broader mandate to digitize financial services.

Opportunities and Challenges

Open banking could provide the growing fintech landscape with access to consumer data (with consent), enabling them to deliver customized financial products to rural and unbanked populations. As of 2024, Eswatini lacks the necessary regulations for data sharing which is foundational for open banking. The absence of such regulations limits the scope for collaborative bank-fintech activities.

Looking Ahead

While it has yet to become a reality, the growth of digital financial services points towards a possible readiness to embrace such innovation in the coming years. Further updates will be provided as they become available.