The Central Bank of Nigeria has issued operational guidelines for open banking, the first in Africa, to enhance data access and sharing among financial institutions. This move is aimed at driving competition and improving payments services, emphasizing strict compliance from all stakeholders.
The Central Bank of Nigeria (CBN) has recently announced the release of its operational guidelines for open banking, marking a significant milestone as the first in the African region to do so. This initiative, which began in June 2017, aims to facilitate the access and sharing of consumer data among banks and financial institutions in Nigeria.
The newly established guidelines delineate the minimum requirements, responsibilities, and expectations for participants in the open banking ecosystem. The CBN anticipates that these measures will enhance competition and broaden access to financial and payment services across the nation.
Musa Jimoh, the Director of the Payments System Management Department at CBN, stated that “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.” He emphasized that all stakeholders must adhere strictly to these guidelines and regulatory standards, as the CBN will continue to monitor compliance and provide further guidance as necessary.
The Central Bank of Nigeria’s publication of open banking guidelines represents a pioneering step towards modernizing the financial landscape in Africa. By promoting data sharing among financial institutions, the CBN aims to enhance service offerings while ensuring stakeholder compliance. This initiative is set to foster competition and improve consumer access to financial services, which is essential for economic growth.
Original Source: www.fintechfutures.com
