The Central Bank of Nigeria has introduced open banking operational guidelines, pioneering in Africa. These regulations govern data sharing among banks and financial institutions, aiming to enhance competition and access to financial services. Compliance is mandatory, with ongoing monitoring by the CBN to ensure adherence.
On March 13, 2023, the Central Bank of Nigeria (CBN) released operational guidelines for open banking, becoming the first in Africa to establish such a framework. These guidelines detail protocols for banks and financial institutions regarding access to and sharing of consumer data, setting minimum standards and responsibilities for participants. The CBN aims to enhance competition and broaden access to financial services in Nigeria through these regulations.
According to Musa Jimoh, Director of the Payments System Management Department at the CBN, “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.” Compliance with these guidelines is mandatory for all stakeholders as the CBN will continue to monitor progress and provide further guidance as necessary.
The journey towards open banking began in June 2017, with an initial regulatory framework introduced in February 2021, laying the foundation for these recent advancements. This initiative is expected to significantly transform the financial landscape in Nigeria by promoting innovation and improving customer experiences in banking and payment processes.
The Central Bank of Nigeria’s publication of open banking guidelines marks a significant milestone in the financial sector, enhancing competition and accessibility. The emphasis on sharing customer data will facilitate the creation of innovative banking solutions tailored to consumer needs. With these developments, the CBN demonstrates its commitment to fostering a robust and consumer-oriented financial environment.
Original Source: www.fintechfutures.com
