After 19 years of civil war, insecurity, fragility, and economic decline as a result of the state’s collapse in 1991, the Somali transitional government reopened the central bank of Somalia to contribute to the country’s stability and economic development, as well as to regulate and boost the country’s finance sector and facilitate economic growth. As we all know, technological improvements in recent years have changed the global financial scene. Financial organizations are likewise utilizing technology to reach out to their clients. The launch of the SOMQR Code standard is a significant achievement for the CBS, and it is a sign of the progress that Somalia is making in rebuilding its financial services infrastructure. The CBS has made a number of other important achievements in recent years, including the launch of a national payments system and the adoption of International Bank Account Numbers (IBAN). These achievements are helping to lay the foundation for a more inclusive and prosperous economy in Somalia. We will explore in this blog post how QR codes are changing the way we do financial transactions in Somalia, as well as the significant benefits they provide to both businesses and individuals.
Somalia’s Central Bank is embracing the digital revolution by leveraging the power of SOMQR codes. SOMQR codes are becoming a game changer for the nation’s financial institutions due to their potential to speed transactions, improve security, and increase financial inclusion.
Additionally, SOMQR codes provide a quick and easy approach to conducting financial transactions. Customers, for example, can pay at merchants by scanning a QR code displayed at the point of sale with their smartphones. This eliminates the need for physical currency or card swiping, lowering transaction times and improving overall efficiency.
Furthermore, SOMQR codes play a significant role in encouraging financial inclusion by reaching out to the unbanked population. For example, mobile money providers in Somalia have used QR codes to provide financial services to those who do not have regular bank accounts. Users can deposit or withdraw funds, transfer money, or make payments by scanning a SOMQR code, giving them greater control over their accounts. This digital inclusion delivers financial services to disadvantaged communities, promoting economic growth and reducing disparities.
However, the adoption of SOMQR codes helps to strengthen the Somali economy in a variety of ways. Businesses can boost their financial status and expand their consumer base by making transactions faster and more secure. Small retailers and entrepreneurs, for example, can accept digital payments via SOMQR codes, attracting a broader range of customers and stimulating economic activity. Furthermore, the data generated by SOMQR code transactions might provide useful insights to the Central Bank for economic planning and policymaking, resulting in more informed decisions that encourage economic growth.
Furthermore, the implementation of SOMQR codes involves collaboration among financial institutions, technological businesses, and regulatory organizations. Collaborations between banks and mobile network providers, for example, have resulted in the incorporation of SOMQR code payment systems into mobile money platforms. By implementing the SOMQR code, the Central Bank of Somalia encourages partnerships that drive financial sector growth, improve consumer experiences, and position the country at the forefront of digital transformation.
The Governor of the CBS, Abdirahman Mohamed Abdullahi, said that the launch of the SOMQR Code Standard is a “significant step forward for Somalia’s financial sector.” He said that the standard will “make it easier and more convenient for people to make payments, and it will help to reduce the use of cash.” In this point, the Chairman of the Somali Bankers Association, Ahmed Shirwac, acknowledged the collaborative efforts of the central bank & private banks in bringing about the launch of SOMQR code.
To sum up, as the Central Bank of Somalia embraces the digital revolution, the use of SOMQR codes emerges as a revolutionary tool in the financial sector. SOMQR codes revolutionize financial transactions by providing convenience, security, and financial inclusion, benefiting both businesses and individuals. By leveraging the potential of QR codes, Somalia’s Central Bank is spearheading the modernization of the country’s financial infrastructure.
Samira Abdulkadir, Assistance Editor, SBR
Photo credit: @CBS
