Newsonline reports that the Central Bank of Nigeria has issued the regulatory framework for Open Banking in Nigeria in its efforts to enhance data sharing across the banking and payments system to promote innovations and broaden the range of financial products and services available to bank customers.
This was disclosed in a recently released circular titled ‘Operational guidelines for open banking in Nigeria’.
Open banking is a banking practice in which third-party financial service providers are given open access to customer banking, transaction and other financial data from banks and non-bank financial institutions via application programming interfaces (APIs).
According to the CBN, the Regulatory Framework for Open Banking in Nigeria established 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.
The CBN stated that the guideline to data in the financial sector would enable customers to access innovative financial products and services. “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 to access innovative financial products and services. This is anticipated to drive competition and improve access to banking and payments services,” the apex bank stated.
CBN added, “Participants in open banking shall 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 Bank.”
The CBN stated that the open banking proposition allows any organisation that has data of customers which may be exchanged with other entities to provide innovative financial services within Nigeria, to be eligible to participate in the Open Banking ecosystem.
The Central Bank of Nigeria (CBN) has removed the data which provided a fresh loan of N3.8…
The outgoing Commissioner of Police in Anambra State, Aderemi Adeoye, says he is now going fully…
Prospective international students coming to Ontario in Canada for studies may find it difficult to obtain admission…
The Lagos State Command of the Nigerian Correctional Service (NCoS) has issued a clarification regarding…
The Minister of Works, Sen. Dave Umahi, on Saturday in Lagos, flagged off the demolition…
Sola Adeyemo, a socio-commentator and public affairs analyst, has called on Nigerians to support President Bola…