In its continued efforts at enhancing competition and innovation in the banking system, the Central Bank of Nigeria (CBN) has issued regulatory framework for open banking.
This is also in recognition of the existence of an ecosystem for Application Programming Interface (API) in the banking and payments system.
The regulatory bank is also aware of various efforts in the industry to develop acceptable standards among stakeholders.
Consequently, the Bank in collaboration with industry stakeholders developed Operational Guidelines for Open Banking in line with the provisions of the Regulatory Framework.
“In view of this, the Bank
hereby issues the Operational Guidelines for Open Banking in Nigeria, “ part of the guidelines read.
It further explained that open banking promotes innovations and broadens financial products and services, which involves sharing of customer data and inter-connectivity of systems, therefore, exposing the participants to risks such as cybersecurity, money laundering, regulatory and compliance, contract management, product management among others.
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The bank added that open banking offers benefits and opportunities to the financial sector but is accompanied with risks that could undermine the objectives if not properly managed.
The CBN said the framework 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.
It added, 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.
