Hormuud Telecom integrates mobile money service with Somali banks

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

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 nation which is extremely dependent on digital money services. Local data shows that over 70% of Somalis have a mobile money account but only around 15% have a traditional bank account.

The announcement was made at Hormuud Telecom's annual Somali Success Stories Conference in Mogadishu this week which was 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 will connect the country's mobile money network with formal banking, advancing efforts to create a more inclusive, accessible and efficient financial ecosystem.

Somalia's financial sector digital transformation

The partnerships come at a time when Somalia's financial services sector is evolving, following the launch of the National Payment System (NPS) by the Central Bank in 2021 which laid the groundwork for integration between banks and mobile money providers, enabling real-time, secure transfers.

Hormuud, Agro Bank and MyBank will leverage this infrastructure to allow users to move money between their mobile wallets and bank accounts.

"Somalia's fintech sector is a dynamic, rapidly growing, and ready to accelerate our nation's economic growth. Its development will ensure every Somali, no matter where they are, have the financial tools to succeed," Somalia's Prime Minister Hamza Abdi Barre said.

"The government is fully committed to creating a supportive environment that fuels innovation, strengthens partnerships, and enhances financial security for all," the Prime Minister added.

Somalia's Prime Minister Hamza Abdi Barre speaking at Hormuud Telecom's 2024 Somali Success Stories Conference. (Source: Hormuud Telecom)

Through the integrations, EVC Plus users can perform essential banking functions and connect to 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 mobile phone usage [is] widespread," Hormuud Telecom said in a statement.

Somalia's growing fintech sector

Somalia's fintech ecosystem has been expanding rapidly, driven by mobile money innovations.

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

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

Hormuud Telecom's CEO Ahmed Yusef said the partnerships were a major milestone in Somalia's financial evolution.

"By further integrating mobile money with formal banking services, we're turning financial exclusion into opportunity. Small businesses can access credit, aid beneficiaries can build financial histories, and cross-border transactions become easier for everyone. This is an important step towards a fully interconnected financial system in Somalia," Yusef added.

Hormuud believes 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.

It plans to expand the integrated system to all 13 commercial banks in Somalia by 2025. 

Fintech sector talent shortage

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 projected to rise by 15%-20% by 2027.

However, a talent shortage persists, with 55% of startups and 43% of established companies reporting difficulties in finding qualified candidates for fintech-related positions.

Hormuud Telecom is Somalia's biggest telecommunications and mobile money provider, with over 4 million subscribers. It was issued the country's first mobile money license in March 2021.

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

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

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

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