The Central Bank of Somalia (CBS) has launched a Quick Response (QR) Code standard to drive the growth of the financial services sector. The launch is the latest sign that Somalia is attempting to rebuild its financial services infrastructure, which has been hindered by years of conflict.

The CBS has introduced a national payments system to drive interoperability among the 13 lenders in the country as well as adopted International Bank Account Numbers (IBAN) to reduce operational risks for banks.
Mobile network operators are also providing a respite through mobile money services, which account for two-thirds of payments made in the country. Despite these efforts, only 10% of Somalis held accounts in formal financial institutions in 2021 and only 2.8% had savings at a formal financial institution.

It is yet to be seen how successful the QR code standard will be in driving digital payments in the country, given the low levels of internet and smartphone penetration. The government should continue to build solutions that digitise payment systems to further drive the growth of the financial services sector.