Breaking financial news from Nigeria, as Africa’s biggest economy has taken an interest in operating an opening banking model. First hinted at in a regulation guidelines circular released by the Central Bank of Nigeria (CBN), the open banking model will allow for a more freeform data sharing across the country’s financial systems. The CBN in collaboration with major industry stakeholders has spearheaded the regulatory details if ever a decisive point is reached.
CBN’s Director of the Payment System Management Department Musa Jimoh is the one to sign off the open banking guidelines that were introduced this Monday, disclosing the necessary requirements and principles for data sharing in Nigeria’s payment and financial sectors.
The guidelines reveal acceptable and necessary practices within the open banking module, such as minimum security requirements when storing and accessing client data, risk management strategies for banks and third party financial services providers, and privacy and customer standards. Furthermore, Open Banking Nigeria will be backed up by the Nigeria Data Protection Regulation (NDPR), for insured privacy of data.
In Jimoh’s own words, the open banking initiative will allow the “sharing of customer-permissioned data between banks and third-party firms to enable the building of customer-focused products and services,”, a strong move towards a modernization of the nation’s banking ecosystem.
Open banking is a fairly new practice that is gathering momentum among major global economies, involving the sharing of financial information across banks by using application programming interfaces (APIs) for the purpose of meeting the ever inflating modern consumer financial needs.