The Central Bank of Nigeria has published operational guidelines for open banking, making it the first in Africa to do so. These guidelines will facilitate consumer data sharing between banks and third-party firms, aiming to improve competition and financial services access. Compliance is mandatory for all stakeholders, which the CBN will monitor continuously.
The Central Bank of Nigeria (CBN) has recently published operational guidelines for open banking, marking a significant milestone as the first such initiative in Africa. Released in March 2023, these guidelines detail the methods through which banks and financial institutions can access and share consumer data while establishing the minimum requirements and expectations for all participating entities.
The CBN anticipates that these newly introduced guidelines will enhance competition and broaden access to financial and payment services in Nigeria. Musa Jimoh, the director of the Payments System Management Department, emphasized that the implementation of open banking will facilitate the sharing of customer-approved data between banks and third-party firms, fostering the development of more customer-oriented products and services.
Furthermore, the CBN has mandated that all stakeholders adhere strictly to these guidelines in conjunction with existing regulations. The bank has pledged to continuously monitor sector developments and provide ongoing guidance as necessary. It is noteworthy that the Central Bank began its work on open banking in June 2017, issuing a regulatory framework in February 2021.
The Central Bank of Nigeria’s issuance of open banking guidelines represents a pivotal development for financial services within the region. By enabling data sharing between banks and third parties, these guidelines aim to enhance competition and consumer choice. The CBN’s commitment to compliance monitoring will ensure that stakeholders adhere to the established regulations, promoting a secure and innovative financial environment.
Original Source: www.fintechfutures.com
