Fintech in Somalia: Challenges, Opportunities & Future Prospects

Financial technology (Fintech) integrates technology into financial services to improve their use and delivery to consumers. It has transformed traditional banking, remittances, payments, lending, and financial inclusion globally. Fintech is particularly relevant to developing nations as its innovation facilitates faster, safer, and more accessible financial services.

Somalia presents a unique landscape for Fintech due to its dependence on informal networks and mobile-based solutions to meet financial transaction needs in the face of limited formal banking infrastructure. The growth of Somalia’s Fintech sector has been driven by mobile money services offered by Mobile Network Operators (MNOs), filling a gap left by the lack of traditional banking services. This report examines the challenges and opportunities facing Fintech in Somalia, and explores its potential to enhance financial inclusion and support economic development.