Open banking

The Central Bank of Nigeria (CBN) on Wednesday issued operational guidelines for open banking in Africa's largest economy. This was...

On June 1, 2017, a group of industry veterans, led by Adedeji Olowe, decided that Nigeria needs to lead with payments innovation and formed an open banking working group which ultimately became formalized as Open Banking Nigeria. This draft is what has now become the law for bankers and fintechs supervised by the CBN. Early backers of open banking in Nigeria includes but not limited to Sterling Bank, KPMG, PwC, EY, Paystack, Teamapt, Wallet Africa, and OnePipe. An API Consumer can be a licensed financial institution/service provider, an FMCG or other retailers, Payroll Service Bureau, among others. An API Provider can be a licensed financial institution/service provider, a Fast-Moving Consumer Goods (FMCG) Company or other retailers, Payroll Service Bureau and so on. Open Banking Nigeria is a set of Open Banking APIs designed specifically for the Nigerian financial industry.

The Central Bank of Nigeria has issued operational guidelines for open banking to ensure stability in the nation's financial system.

Open banking enables the sharing of customer-permissioned data between banks and third-party firms. This data includes information about the customer’s transactions, account balances and other relevant information. The circular read, “The Central bank of Nigeria in furtherance of its mandate for the stability of the financial system and pursuant to its role in deepening the financial system, at this moment issues the operational guidelines for open banking in Nigeria.

The Central Bank of Nigeria (CBN) has issued operational guidelines for open banking in the country. Open banking is a financial concept that allows ...

This concept also allows customers to share their banking data with other financial service providers, enabling… Open banking is a financial concept that allows third-party financial service providers to access banking data using APIs with the customer’s explicit consent. Minister of Internal Affairs, Rauf Aregbesola, communicated this to the Board Chairman of Seplat Energy Plc accusing Brown of allegations of racism, and discrimination against Nigerian employees and others.

The operational guidelines to kickstart the scheme were released by the Central Bank of Nigeria (CBN) this week, outlining the rules governing how traditional ...

In fact, January marked five years since open banking became a regulatory requirement under the European Union’s Revised Payment Services Directive (PSD2), compelling retail banks on the continent to allow non-bank third party access to financial data through the use of application programming interfaces (APIs). [PYMNTS Data: Why Consumers Are Trying Digital Wallets](https://www.pymnts.com/study/new-payment-options-digital-wallets-consumer-finance/) Against this backdrop, open banking takes on a different flavor in these markets, where a greater emphasis is placed on access to open APIs that allow the integration of mobile money networks and financial institutions. “The adoption of Open Banking in Nigeria will foster the sharing of customer-permissioned data between banks and third-party firms to enable the building of customer-focused products and services,” The release of the final guideline marks the end of a long journey towards open banking adoption in Nigeria, one which dates back to June 2017, when a group of industry veterans formed a working group to drive the development and adoption of standards governing the system’s use in the West African nation. Open banking is now live in Nigeria, the first country to adopt open banking regulations in the Africa region.

After about six years of consultation and drafting, Nigeria is now the first African country to issue an open banking regulation; it will foster legal data ...

[Regulatory Framework for Open Banking in Nigeria](https://www.cbn.gov.ng/out/2021/psmd/circular%20on%20the%20regulatory%20framework%20on%20open%20banking%20in%20nigeria.pdf?ref=benjamindada-com-modern-tech-media-in-ssa). Later in May 2022, an exposure draft of the [Operational Guidelines for Open Banking in Nigeria](https://www.cbn.gov.ng/Out/2022/CCD/OPERATIONAL%20GUIDELINES%20FOR%20OPEN%20BANKING%20IN%20NIGERIA_APPROVED%20EXPOSURE%20DRAFT.pdf?ref=benjamindada-com-modern-tech-media-in-ssa) was released. In the introduction of the guidelines, the CBN says "open banking applicability includes agency banking, financial inclusion, know your customer (KYC), credit scoring/rating etc. This is personalized scoring of customer data such as income ratings and credit scores. Although sharing banking data is quite important towards the growth of the ecosystem, it does come with attendant risks. At its core, open banking enables access; Access to bank customers and customer data for Fintechs by removing barriers to entry. An API Provider can be a licensed financial institution/service provider, a Fast-Moving Consumer Goods (FMCG) Company or other retailers, Payroll Service Bureau; An API Consumer can be a licensed financial institution/service provider, an FMCG or other retailer, Payroll Service Bureau and This is information on products, services, and segments. It also gives a risk category to each of the categories; The group engaged with banks, fintechs, CBN, and other international stakeholders," Open Banking Nigeria stated. On June 1, 2017, a group of industry veterans, led by Adedeji Olowe, decided that Nigeria needs to lead with payments innovation and

The Central Bank of Nigeria (CBN) has approved operational guidelines on open banking this week, becoming the first country in the African region to adopt ...

Early backers of open banking in Nigeria include Sterling Bank, KPMG, PwC, EY, Paystack, Teamapt, Wallet Africa, and OnePipe. [published guidelines](https://www.cbn.gov.ng/Out/2023/CCD/Operational Guidelines for Open Banking in Nigeria.pdf) CBN stated that open banking is “aimed at enhancing efficiency, competition and access to financial services in Nigeria.” Within the

The advent of open banking has opened up exciting possibilities for fintech innovation. This practice enables banks to share customer data with third-party ...

The open banking regulations will be supported by the Nigeria Data Protection Regulation (NDPR), which was released in 2019, as data privacy is a crucial foundation for open banking. Now that the regulation is in place, the CBN will establish a registry while financial institutions can leverage the regulations to build new financial solutions. However, with the new regulations in place, these service providers can access a more robust set of data and offer more comprehensive solutions to customers. That led to the creation of an industry committee that developed the draft of the open banking regulation in 2022. The guidelines and regulations for open banking provide a framework for how banks and third-party financial institutions handle customer data while ensuring consistency and security across the system. In open banking, data is shared through APIs, and importantly, only with the explicit consent of the customer.