Is Africa ready for Open Banking?

Apple recently launched the iPhone Wallet feature in beta in the United Kingdom (UK) and whilst this news went under the radar it could turn out to be a huge deal. iPhone Wallet is based on the UK’s Open Banking API - a way of banking which many are claiming to be the next financial technology (FinTech) revolution…

Open banking is a system where banks allow third parties, such as FinTech startups, to access their clients’ data and offer services using APIs. The UK and European countries are adopting Open Banking or PSD2 (Second Payment Services Directive), essentially mandating banks to release their data in standardised formats for easy sharing online. Why?

“People are paying too much for their overdrafts; money is sat in current accounts not earning interest; there's not enough switching.”

Imran Gulamhuseinwala - head of Open Banking Limited

The feeling was that there wasn’t enough competition in the banking sector and whilst banks were encouraged to confront this issue, they didn’t. EU and UK regulators then stepped up and pushed the regulation.