Sudan: Bankak Digital Payment Disruption Causes Widespread Outages

• Intermittent outages affecting Bankak and Fawry services are disrupting Sudan's digital payments and increasing demand for cash.
• The disruptions impact daily transactions, purchases, and utility payments, leading some traders to refuse non-cash payments.
• Experts highlight a lack of communication between platforms and call for stronger infrastructure to support electronic payments.
• Concerns include duplicate transactions and balance discrepancies, with calls for transparent communication and clear reconciliation systems from banks.
• A national interoperable payment system, led by the Central Bank of Sudan, is proposed to connect platforms and ensure resilience, citing Kenya's mobile money as a model.

The widespread Bank of Khartoum Bankak problems and other service interruptions have also severely undermined public confidence in digital banking.

Sudan's financial landscape is currently grappling with widespread disruption due to intermittent outages affecting key electronic payment services. The Bank of Khartoum's Bankak application, a primary digital transfer platform, along with Faisal Islamic Bank's Fawry service, have experienced network failures, preventing customers from completing essential transactions. This ongoing Sudan Bankak digital payment disruption has led to a noticeable increase in demand for physical cash, according to insights from bankers and technology experts.

Journalist Ayman Mahmoud highlighted the significant reliance of many Sudanese citizens on Bankak for their daily and commercial financial activities. Despite its widespread use, the service continues to face considerable challenges in processing transfers. This has forced users to adapt their behavior, with many now attempting transactions during off-peak hours, such as early mornings or late evenings, when network pressure is typically lower. The impact of these Sudan electronic payment issues extends across various aspects of daily life, affecting purchases, utility bill payments, and even transport ticket acquisitions, prompting some users to explore alternative financial applications.

Abdullatif Ali Ibrahim, a banking expert, affirmed Bankak's position as Sudan's leading digital transfer platform, even as other institutions like Omdurman National Bank and Al Nile Bank offer their own services, including Fawry. Ibrahim underscored a persistent problem with communication between these disparate platforms, advocating for the development of stronger infrastructure to adequately support electronic payments. He noted that electronic transfers have proven invaluable during the ongoing conflict, mitigating major problems and reducing citizens' reliance on cash transactions.

While Abdullatif Ali Ibrahim ruled out a direct correlation between the Bankak outages and the dollar exchange rate, he acknowledged that the interruptions to electronic transfers, purchases, and broader market activity have an indirect effect on the demand for foreign currency. This situation has evolved into a significant economic problem, impacting livelihoods and traders across the country. Some traders, facing unreliable digital payment options, have resorted to refusing sales unless customers can pay in cash, further exacerbating the challenges.

The widespread Bank of Khartoum Bankak problems and other service interruptions have also severely undermined public confidence in digital banking. Retired police Major General Dr. Essam El Din Abbas, an information technology and data analysis consultant, observed that several banking applications suffered serious disruptions between late August and early September. He criticized the silence from banks during these periods, which he believes left customers vulnerable to rumors and eroded trust in the nascent digital financial ecosystem.

Abbas also raised critical concerns about operational integrity, pointing to instances of duplicate transactions, deductions occurring without completed transfers, and discrepancies between account balances. He stressed the urgent need for clear systems to reconcile failed transactions and called for major outages to be formally recognized as operational incidents. This would necessitate banks assessing the full impact of such events, activating robust response plans, and communicating transparently and proactively with their customer base.

In response to the persistent Fawry service outages Sudan and other digital payment challenges, Dr. Essam El Din Abbas has strongly advocated for a fundamental shift towards an interconnected payment system. He argued against the current model where platforms like Bankak and Fawry operate as "isolated islands," emphasizing the necessity for a national interoperable payment system. Such a system would enable seamless transfers between various banks, digital wallets, and other financial institutions, regardless of the specific platform being used.

Abbas asserted that the Central Bank of Sudan should take the lead in orchestrating this crucial organizational and technical transformation. He cited Kenya's successful mobile money system as a prime example, where interoperability allows funds to be transferred effortlessly across different networks. Sudan, he suggested, should strive for a similar framework that ensures continuity of operations even if an individual application experiences a failure.

To achieve this vision, Abbas outlined five critical priorities for the Central Bank of Sudan payment system: establishing true interoperability, implementing a national payment gateway, developing robust disaster recovery protocols, creating clear rules for managing outages and customer communication, and enforcing strong cybersecurity standards. These measures are seen as essential steps to rebuild Sudan digital banking confidence and ensure the resilience of the nation's financial infrastructure.

Lawyers advising clients in Sudan should assess increased operational risks from digital payment disruptions and monitor Central Bank of Sudan initiatives for payment system interoperability, transparency, and outage management. Compliance officers must review business continuity plans and potential consumer protection exposures.

Source: Original reporting via Radio Dabanga