Sudan turns to digital banking as war devastates physical bank network

KHARTOUM, Sudan (MNTV) — Sudan’s banking sector has undergone a dramatic transformation since the outbreak of civil war in 2023, with the near-collapse of the country’s physical financial infrastructure accelerating a shift toward mobile payments and digital banking that is now reaching tens of millions of people.

The foundations of electronic banking in Sudan were laid in the early 2000s, when the country’s banks were connected through a national financial information network.

A national payment switch launched in 2006 allowed institutions to link their systems, roll out cash machines and introduce card-based payments at point-of-sale terminals.

But progress was slow. In the years before the war, only between six and ten percent of Sudanese held bank accounts, held back by strict account-opening requirements, poor telecommunications infrastructure and a financial system that remained largely concentrated in major cities.

Over the past decade, however, mobile payment platforms began to change that picture as telecoms companies integrated their services with banks, enabling users to open electronic wallets tied to their phone numbers and carry out everyday transactions — transfers, bill payments, purchases — without ever setting foot in a branch.

More than 100 financial technology firms have since been licensed to operate in Sudan, alongside three telecommunications companies offering financial services. Applications including Kashi, CyberPay and Bravo have accumulated millions of users between them.

The war turbocharged this shift. With cash in short supply and much of the country’s financial infrastructure in ruins, Sudanese increasingly turned to their phones to manage money. By current estimates, more than 600 of the country’s roughly 900 bank branches have been destroyed or forced to shut since the conflict began. In their place, digital platforms have stepped in.

The number of people accessing banking services through apps has climbed to approximately 13.4 million — representing more than 30 percent of the population, a figure that would have seemed unimaginable a decade ago.

Financial authorities say the rapid expansion of digital services has been critical to keeping basic economic activity alive during the conflict, while also drawing significant numbers of previously unbanked citizens into the formal financial system for the first time.

The Central Bank has concentrated efforts on fortifying the country’s payment infrastructure so that transactions between banks and digital platforms can continue even as conventional banking remains severely disrupted.

Analysts describe Sudan’s experience as a striking example of how mobile banking and fintech can function as a financial lifeline during crisis — particularly in developing economies where physical banking networks were already thin before disaster struck.