The Central Bank of Nigeria has released open banking guidelines, the first of their kind in Africa, designed to regulate data sharing among financial institutions. This initiative aims to enhance competition and improve access to financial services. Implementation will require strict compliance from all stakeholders, monitored by the CBN.
The Central Bank of Nigeria (CBN) has introduced pivotal operational guidelines for open banking, marking a significant milestone as the first in the African region to do so. Released recently, these guidelines delineate how banks and financial institutions may access and share consumer data, specifying the minimum standards and expectations for all participating entities.
Furthermore, the CBN anticipates that these guidelines will enhance competition and broaden access to financial services across Nigeria. According to Musa Jimoh, director of the payments system management department at the CBN, open banking will promote the sharing of customer-permissioned data between banks and third-party firms, facilitating the creation of customer-centric products and services.
It is imperative that all stakeholders adhere strictly to these guidelines and existing regulations. The CBN will continue to oversee compliance and provide further guidance as necessary for the successful implementation of open banking in Nigeria. The groundwork for this initiative began in June 2017, with an initial regulatory framework established in February 2021.
The Central Bank of Nigeria has taken a foundational step in the evolution of financial services within the region by issuing open banking guidelines. This initiative is expected to foster competition and enhance consumer access to innovative financial products. Compliance with these guidelines will be crucial for the success of open banking in Nigeria, as stakeholders work together to embrace this new paradigm.
Original Source: www.fintechfutures.com
