The Central Bank of Nigeria has released operational guidelines for open banking, becoming the first African nation to do so. These guidelines allow banks and financial institutions to share consumer data, aiming to boost competition and enhance financial service accessibility. The CBN emphasizes compliance and monitoring, having initiated open banking efforts in 2017.
The Central Bank of Nigeria (CBN) has published operational guidelines for open banking, marking a significant development as the first in Africa. These guidelines specify how Nigerian banks and financial institutions can access and share consumer data. They outline minimum requirements and responsibilities for all participants involved in the open banking ecosystem.
CBN anticipates that these guidelines will enhance competition and increase accessibility to financial and payment services in Nigeria. According to Musa Jimoh, director of the payments system management department, open banking will promote the sharing of customer-permissioned data, allowing banks and third-party firms to create customer-centric products and services.
The commitment to compliance with these guidelines is emphasized as a key expectation for stakeholders. The CBN will monitor adherence and may issue further regulatory guidance as necessary. CBN began implementing open banking initiatives in June 2017, with a foundational regulatory framework introduced in February 2021.
Overall, the operational guidelines released by the CBN are poised to transform the financial landscape in Nigeria through improved data sharing and innovative service offerings, reflecting a significant step toward modernizing the banking sector in the region.
The Central Bank of Nigeria’s new open banking guidelines represent a groundbreaking shift in the African financial landscape. By mandating data-sharing among banks and third-party firms, the CBN aims to enhance competition and foster innovation in service delivery. This initiative reflects the CBN’s strategic vision to modernize Nigeria’s banking system and improve accessibility to financial services for consumers.
Original Source: www.fintechfutures.com
