Overview
Madagascar’s financial system is relatively underdeveloped, marked by low banking penetration and a heavy reliance on cash transactions. The financial sector is regulated by the Central Bank of Madagascar (Banque Centrale de Madagascar) and comprises 11 commercial banks (9 of which are foreign-owned), microfinance institutions, and mobile money operators. Efforts to promote financial inclusion have primarily focused on the expansion of mobile money services, which have experienced exponential growth. Platforms such as Mvola, Airtel Money, and Orange Money now serve about one-third of Madagascar’s population. These services have emerged as pivotal in bridging the financial inclusion gap, offering basic financial tools to underserved populations.
Current Status of Open Banking
As of 2024, Madagascar has not introduced open banking frameworks. The concept is still in its infancy, with no established regulatory mandates to facilitate its development. However, the country’s thriving mobile money sector and ongoing digital finance projects provide a foundation for potential future implementation of open banking principles.
Key Developments: Madagascar’s Mobile Money Boom
Mobile money has become a cornerstone of Madagascar’s financial inclusion strategy, enabling over 70% of the adult population to access financial services through mobile wallets. With more than 10 million mobile money accounts, these platforms far outnumber traditional bank accounts in the country. Between 2016 and 2020, mobile money transactions have more than doubled in value, reaching an impressive $639 million.
Looking Ahead
While open banking remains a future prospect, Madagascar’s financial sector is showing signs of gradual evolution. The continued growth of mobile money services is likely to serve as a stepping stone for broader financial innovation. Future progress will depend on:
Open Banking Nigeria (Open Technology Foundation) is a non-profit backed by a group of industry experts across banking, fintech, risk management, and more to drive and launch the open banking standard in Nigeria.
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