The Central Bank of Nigeria has published operational guidelines for open banking, making Nigeria the first in Africa to do so. These guidelines facilitate data sharing among banks and third-party firms to improve financial services. Compliance by all stakeholders is mandatory, as the CBN underscores the importance of monitoring developments in this area.
The Central Bank of Nigeria (CBN) has released operational guidelines for open banking, positioning Nigeria as a pioneer in the African region. These guidelines detail the processes through which banks and financial institutions may access and share consumer data, while specifying minimum requirements and the roles of participants involved.
The CBN notes that these guidelines are expected to enhance competition and broaden access to financial and payment services across Nigeria. Musa Jimoh, the Director of the Payments System Management Department at CBN, emphasizes that open banking will facilitate the exchange of data authorized by customers between banks and third-party providers, which will support the creation of tailored customer products and services.
The central bank highlights the necessity for all stakeholders to adhere strictly to the guidelines and existing regulations. The CBN will continuously monitor the environment and provide guidance as needed. The journey toward open banking in Nigeria began in June 2017, with a regulatory framework established in February 2021.
The Central Bank of Nigeria’s release of open banking guidelines marks a significant milestone for the country and the African financial sector. By promoting data sharing among financial institutions, the CBN aims to enhance customer-focused services and improve market competition. Adhering to these guidelines is essential for all stakeholders to ensure compliance and capitalize on the potential benefits of open banking.
Original Source: www.fintechfutures.com
