Inside Africa

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How Entrepreneurs can Leverage Open Banking APIs in Africa

October 19, 2025

How Entrepreneurs can Leverage Open Banking APIs in Africa

In 2018, when Nigeria’s fintech ecosystem was still finding its rhythm, few could have predicted how quickly Africa would embrace digital finance.

Mobile money had already taken root in East Africa, but something deeper was brewing, a quiet shift toward openness. Today, Open Banking has become one of the most transformative forces reshaping the continent’s financial landscape.

Across Africa, a new wave of startups and developers is tapping into open banking APIs, the invisible rails that let financial data flow securely between institutions.

These APIs are not just pieces of code; they’re bridges connecting old banks to new ideas, and giving entrepreneurs unprecedented access to the financial system.

But what does this mean for the average entrepreneur in Africa? How can founders, whether in fintech, e-commerce, or logistics, actually use these APIs to build better products, reach more customers, and unlock growth?

This article explores how entrepreneurs can leverage open banking APIs in Africa, what opportunities exist across key markets, and what challenges still stand in the way.

Open banking and why it matters

To understand the opportunity, it’s worth unpacking what “open banking” really means in an African context.

At its core, open banking is about giving customers control over their financial data. Instead of banks keeping all that information locked away, APIs (Application Programming Interfaces) allow third parties, with the user’s permission, to access certain data securely. This could include items such as transaction history, income verification, or credit scores.

Globally, open banking took off after the UK and EU passed regulations mandating data sharing in 2018.

In Africa, the movement is being driven less by regulation and more by innovation. Local fintechs are building infrastructure that traditional institutions can plug into, creating a continent-wide experiment in financial connectivity.

In Nigeria, companies like Mono, Okra, and Stitch are pioneering this space, helping startups connect users’ bank accounts for payments, lending, or onboarding.

In Kenya, Cellulant and PesaLink are integrating banking APIs to improve payments across borders. South Africa’s Nedbank and Absa are already exposing APIs for developers, a signal that even legacy institutions see the value of openness.

Why open banking is a game changer for entrepreneurs

For entrepreneurs, open banking APIs remove one of the biggest barriers to innovation in finance: access to data.

Previously, a startup wanting to verify a customer’s income or creditworthiness would need to partner with a bank, a process that could take months.

Now, with APIs, they can do that in seconds. The implications are enormous.

Open banking is enabling a new generation of businesses, from digital lenders to personal finance apps, insurance platforms, and SME tools, to build products that were previously impossible in Africa’s fragmented financial landscape.

Faster innovation, lower costs

Open APIs eliminate the need to build everything from scratch. Entrepreneurs can integrate ready-made financial services, such as account verification, KYC, payments, or credit scoring, directly into their products.

This reduces development costs, speeds up time to market, and levels the playing field for smaller startups that can’t afford traditional infrastructure.

Building customer-centric products

More importantly, open banking allows founders to design around user needs, not institutional limits.

For example, an SME financing app in Lagos can use a customer’s transaction data (with consent) to assess loan eligibility without traditional collateral.

A ride-hailing platform in Nairobi can instantly pay drivers using embedded APIs linked to mobile wallets.

This shift toward personalization and real-time service is what makes open banking such a powerful equalizer. It allows entrepreneurs to compete on creativity, not capital.

Key use cases across Africa

Across the continent, open banking is already showing how data-sharing can create real economic value.

1. Digital lending and credit scoring

Access to credit remains one of Africa’s biggest challenges. More than 60% of adults on the continent still lack formal credit histories. But open banking APIs are helping to fill that gap.

Startups like Carbon, FairMoney, and Branch are using financial data from user-permissioned APIs to build alternative credit profiles. Instead of relying on traditional bureau scores, they analyze bank transactions, spending patterns, and mobile money activity to evaluate risk.

This model not only widens access to loans but also reduces default rates by providing a clearer picture of financial behavior.

2. Seamless payments and collections

Payments are another major frontier. Entrepreneurs running online businesses often face issues with fragmented payment systems across Africa’s borders. Open APIs are helping unify these systems.

Platforms like Stitch, Flutterwave, and Paystack use open banking rails to connect bank accounts directly to apps, enabling instant account-to-account payments.

For e-commerce founders, this means fewer failed transactions, faster settlements, and improved trust among customers.

In Ghana, Zeepay and Hubtel are building similar integrations that connect traditional banks with mobile wallets, making it easier for merchants to collect payments regardless of network or provider.

3. Financial management and analytics

Beyond payments, entrepreneurs are using APIs to power smarter financial tools. Open banking enables aggregation, pulling data from multiple bank accounts into one dashboard.

This allows founders to build apps that help individuals or SMEs visualize cash flow, track expenses, and plan budgets.

For example, a small business owner can now use a simple accounting app connected via API to reconcile bank transactions in real time, replacing tedious manual processes.

The role of regulation and collaboration

While the promise of open banking in Africa is enormous, its success depends heavily on regulation and cooperation among stakeholders.

Countries like Nigeria are taking the lead. In 2021, the Central Bank of Nigeria (CBN) released its open banking framework, the first of its kind in Africa.

It sets the stage for standardized APIs, consumer protection rules, and a regulated ecosystem for third-party providers.

Kenya, South Africa, and Egypt are exploring similar guidelines, though progress remains uneven. In most markets, open banking is still a voluntary movement led by innovators rather than governments.

That said, collaboration between banks and fintechs is improving. Many legacy banks now view open APIs not as a threat but as a new distribution channel.

Some, like Access Bank and FirstBank, have launched developer portals, encouraging startups to build on their infrastructure.

Challenges on the road to adoption

Despite the progress, open banking in Africa is far from mainstream. Entrepreneurs still face several structural and practical barriers.

Infrastructure and standardization gaps

Unlike Europe, where regulations enforce API standards, Africa’s ecosystem is still fragmented. Each bank or fintech tends to design APIs differently, creating integration headaches for developers. Without standardized data formats, interoperability remains a challenge, especially for startups trying to scale across multiple countries.

Consumer trust and awareness

Many customers are still skeptical about sharing their financial data, even with consent. Decades of privacy concerns, fraud, and weak enforcement mechanisms have made people cautious. Entrepreneurs building open banking products must therefore invest heavily in education, transparency, and security assurances.

Cost and access to APIs

While open banking is meant to promote openness, not all APIs are free or easily accessible. Some banks charge high fees for API access, or limit usage to select partners. This creates a gatekeeping effect that can hinder innovation among smaller startups.

Data protection and security

Data is the lifeblood of open banking, and its biggest vulnerability. Without robust cybersecurity frameworks and enforcement, breaches could erode trust quickly. Countries like Nigeria and Kenya have data protection laws, but implementation varies. Entrepreneurs must be proactive in adopting international security standards such as ISO 27001 or PCI DSS to safeguard user data.

Emerging opportunities

For those willing to navigate these challenges, the upside is huge. Africa’s open banking movement is still in its infancy — meaning the field is wide open for innovation.

Entrepreneurs can build embedded finance solutions that integrate payments, savings, and lending directly into non-financial products. Imagine a logistics platform where truck drivers can access instant fuel loans, or a real estate app that lets users prequalify for mortgages through bank data APIs.

There’s also growing potential in cross-border open finance, where APIs connect users’ financial data across countries. With the African Continental Free Trade Area (AfCFTA) pushing for regional integration, such models could underpin the next wave of pan-African fintech innovation.

The future of open banking in Africa

The next few years will determine whether open banking becomes a niche fintech tool or a foundational part of Africa’s financial infrastructure.

The trends are promising. Investment in African fintech surpassed $2 billion in 2023, and open banking startups attracted a growing share of that funding. V

enture firms are increasingly betting on API-first businesses that can plug into multiple industries.

But beyond capital, the real story lies in collaboration. The most successful entrepreneurs will be those who don’t just build APIs, but create ecosystems around them.

Platforms that empower other developers, enable interoperability, and advocate for consumer-first innovation will shape the continent’s financial future.

As one fintech founder in Lagos recently put it, “Open banking isn’t just a technology shift. It’s a mindset shift, from owning data to sharing opportunity.”

Conclusion

For African entrepreneurs, the open banking revolution is both a challenge and an invitation. It demands technical skill, regulatory awareness, and above all, trust, but it also offers the chance to rewrite how finance works for millions.

Those who act early will be the ones defining the infrastructure of tomorrow.

Whether it’s through smarter lending, seamless payments, or new forms of financial inclusion, open banking APIs give entrepreneurs the keys to unlock possibilities once reserved for banks.

So, if you’re building in Africa’s digital economy, now is the time to explore the rails of open finance, to experiment, collaborate, and innovate boldly.

Because the future of banking on the continent may not belong to banks at all, but to those who know how to build with openness at the core.

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