Hormuud Telecom integrates mobile money with Somali banks

Somali telecommunications and mobile operator Hormuud Telecom has announced two new banking partnerships to drive interoperability with its EVC Plus mobile offering.

The operator signed partnerships with MyBank and Agro Bank to enable integration between EVC Plus and their respective banking services.

EVC Plus is Somalia’s largest mobile money platform in a country heavily dependent on digital money services. Local data shows that over 70% of Somalis have a mobile money account, but only about 15% have a traditional bank account.

The announcement was made this week at Hormuud Telecom’s annual Somali Success Stories Conference in Mogadishu, attended by government dignitaries including the Somali Prime Minister and the Somali Minister of Communications and Technology, as well as business leaders.

Hormuud said the banking partnerships would connect the country’s mobile money network with formal banking, advancing efforts to create a more inclusive, accessible and efficient financial ecosystem.

The digital transformation of the Somali financial sector

The partnerships come at a time when Somalia’s financial services sector is evolving after the Central Bank launched the National Payment System (NPS) in 2021, which laid the foundation for integration between banks and mobile money providers and enabled secure, real-time payments Transfers.

Hormuud, Agro Bank and MyBank will use this infrastructure to enable users to transfer funds between their mobile wallets and bank accounts.

“Somalia’s fintech sector is dynamic, growing rapidly and poised to accelerate our country’s economic growth. Its development will ensure that every Somali, no matter where they are, has the financial tools to succeed.” This is what Somalia’s Prime Minister Hamza Abdi Barre said.

“The government is committed to creating a supportive environment that encourages innovation, strengthens partnerships and increases financial security for all,” the Prime Minister added.

The integrations allow EVC Plus users to perform key banking functions and connect with MyBank and Agro Bank customers directly from their phones.

“This type of interoperability is particularly important in underserved rural areas where bank branches are scarce but cell phones are used.” [is] widespread,” Hormuud Telecom said in a statement.

Somalia’s growing fintech sector

Somalia’s fintech ecosystem is growing rapidly, driven by innovations in mobile money.

According to the Somali Central Bank, the country processes over 650 million mobile money transactions worth $8 billion annually.

However, traditionally, mobile money and banking systems have largely operated in silos, limiting users’ ability to fully engage with the financial system.

Ahmed Yusef, CEO of Hormuud Telecom, said the partnerships are an important milestone in Somalia’s financial development.

“By further integrating mobile money into formal banking services, we are turning financial exclusion into an opportunity. Small businesses can access loans, aid recipients can build their financial history, and cross-border transactions become easier for everyone. This is an important step towards a fully connected financial system in Somalia,” Yusef added.

Hormuud believes that interoperability across Somalia’s financial landscape will enable greater participation in the formal economy, strengthen the fintech sector and enable new products and services such as mobile loans, savings accounts and investment opportunities.

By 2025, the integrated system will be expanded to all 13 commercial banks in Somalia.

Talent shortage in the fintech sector

At the conference, data from the Somali Research Association highlighted the rapid development of the fintech sector in Somalia.

The sector currently employs between 7,000 and 10,000 people, with job growth expected to increase by 15-20% by 2027.

However, there is still a talent shortage: 55% of startups and 43% of established companies report difficulty finding qualified candidates for fintech roles.

Hormuud Telecom is Somalia’s largest telecommunications and mobile operator with over 4 million subscribers. The country’s was issued first mobile money license in March 2021.

Hormuud Telecom received the the country’s first frequency license in November 2022 (spectrum was previously unregulated) and the operator has launched its 5G network in March 2024.

Agro Bank is a commercial private bank established in February 2019 with the aim of promoting the growth and development of Somalia’s agricultural sector.

MyBank was founded in 2018 in response to the significant gap between demand and supply of financial services in Somalia.

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