CBN issues operational guidelines on open banking

The Central Bank of Nigeria (CBN) has issued operational guidelines for open banking in the country.

Open banking is a financial concept that allows third-party financial service providers to access banking data using APIs with the customer’s explicit consent.

This concept also allows customers to share their banking data with other financial service providers, enabling them to access a broader range of products and services.

CBN director of payment services management department, Musa Jimoh, in a memo said the guidelines aims to promote stability in Nigeria’s financial system.

“The Central bank of Nigeria in furtherance of its mandate for the stability of the financial system and pursuant to its role in deepening the financial system, at this moment issues the operational guidelines for open banking in Nigeria,” Jimoh said.

“The adoption of Open Banking in Nigeria will foster customer permissioned data between banks and third-party firms to enable the building of customer-focused products and services.

“It also aims to enhance efficiency, competition and access to financial services in Nigeria.

“All stakeholders are required to ensure strict compliance with the guidelines and all other regulations, as the CBN continues to monitor developments and issue guidance as may be appropriate.”