Africa’s financial sector is evolving fast. Open banking – the model where banks share customer data securely with third parties via APIs – is starting to take root across the continent. In markets like Nigeria, Kenya and South Africa, fintech innovation is driving financial access at an unprecedented pace.
But this revolution comes with a catch: the same openness that enables inclusion also exposes the financial system to new cybersecurity risks. Unless these risks are addressed head-on, open banking’s promise could be undone by breaches that damage customer trust.
In open banking, trust is currency – and security is what backs it.
Why open banking isn’t just ‘more mobile banking’
Unlike traditional digital banking models that expand services via mobile apps, open banking creates interconnected ecosystems of financial players – banks, fintechs, mobile wallets, credit bureaus, and even e-commerce platforms. These services rely on real-time data sharing between institutions via open APIs.
This model is powerful. It allows a customer’s data to work for them – powering instant credit scoring, multi-bank financial dashboards, and embedded finance across Africa’s growing digital economy.
But every API is a potential gateway for cybercriminals. And every third-party connection is a new dependency in the trust chain.
Securing that chain is now critical.
Africa’s threat landscape is growing – and so are the risks
According to the 2024 African Financial Industry Barometer, published by the Africa Financial Industry Summit (AFIS) and Deloitte, 59% of African financial institutions consider cybercrime a top threat – and South Africa ranks 14th globally in the average cost of a data breach.
Fortinet’s Global Threat Landscape Report 2025 found that the Europe, the Middle East, and Africa (EMEA) region accounts for the second largest share of recorded cybersecurity exploitation attempts in the world – with only the Asia-Pacific region facing more.
The GSMA highlights that open APIs, while vital to digital financial inclusion, also increase the risk of security breaches and personal data misuse. In short: the more connected the system, the greater the attack surface. In a model where third-party apps access bank-grade data, any weak link is a risk to the entire ecosystem.
What makes this even more urgent is that the World Bank estimates that 350 million adults remain unbanked in sub-Saharan Africa, according to the World Bank. As more are brought online through open banking platforms, the stakes grow exponentially.
The five security pillars of open banking success
African banks and fintechs embracing open banking need a cybersecurity foundation built for scale, speed and complexity. Fortinet recommends focusing on five key pillars:
- API security:
APIs are now the front door to sensitive financial data. Secure them with AI-powered web application firewalls (WAFs), bot detection, and real-time traffic inspection. Fortinet’s FortiWeb WAF is purpose-built for this. - Zero Trust access:
In an open banking model, trust should never be assumed. Zero Trust architectures validate every connection, user and device – continuously. - Third-party risk management:
Every fintech integration must include rigorous due diligence, monitoring, and compliance tracking. Security maturity varies widely across players, thus oversight is non-negotiable. - Data privacy and consent governance:
With multiple players handling sensitive personal data, customer consent must be strictly enforced, and visibility across data flows maintained. This is also critical for compliance with emerging local privacy laws. - Cloud-native security:
Most open banking services run on hybrid or multi-cloud infrastructure. Security must follow the workload – with threat protection, monitoring and compliance baked in from the edge to the core.
Fortinet’s Security Fabric enables financial institutions to achieve this with an integrated platform for secure data sharing, threat prevention, and continuous compliance.
Don’t let regulation alone set the bar
Regulators in Kenya, Nigeria and South Africa are steadily developing open banking guidelines and licensing structures. But regulation alone can’t secure an ecosystem. Proactive institutions must aim higher than the legal minimum, because reputational damage travels faster than regulatory enforcement.
Leading banks are already building in advanced security protocols like OAuth 2.0 and OpenID Connect, while adopting real-time fraud detection powered by machine learning. These early movers are creating competitive advantage through trust.
Inclusion needs trust – and trust needs security
Open banking has the power to transform financial inclusion in Africa. It enables innovation, reduces costs, and expands access to underserved communities. But it can only succeed if users believe their data is protected, their consent respected, and their services resilient.
Security is not a bolt-on to open banking. It’s the reason customers will engage at all.
To find out how Fortinet is supporting secure open banking across Africa, visit our financial services solutions hub.
