The Central Bank of Nigeria (CBN) on Tuesday released the regulatory framework for Open Banking, which sets out principles for data sharing across the banking and payments system to promote innovations and broaden the range of financial products and services available to bank customers.
Consequently, open banking recognises the ownership and control of data by customers of financial and non-financial services, and their right to grant authorisations to service providers for the purpose of accessing innovative financial products and services.
This according to the CBN is anticipated to drive competition and improve accessibility to banking and payments services.
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Participants in open banking are expected to adhere strictly to security standards when accessing and storing data, and shall be subject to minimum privacy standards, operational standards, risk management standards and customer experience standards as prescribed by the Central Bank.
Any organisation that has data of customers which may be exchanged with other entities for the purpose of providing innovative financial services within Nigeria is eligible to participate in the Open Banking ecosystem.
The Open Banking operational guidelines provides clear responsibilities and expectations for the various participant categories, ensures consistency and security across the open banking system, stipulates safeguards for financial system stability under an open banking regime, promotes competition and enhances access to banking and other financial services, and outlines minimum requirements for participants.
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