The Central Bank of Nigeria (CBN) has issued operational instructions for open banking in Nigeria. These instructions govern how financial institutions access and manage customer data.
Open banking promotes third-party access to banking data with customer consent, enabling a wider range of products and services. The instructions aim to enhance competition and access to financial services.
An Open Banking Registry will be established as a regulatory oversight tool.
Customer consent is required before data can be accessed for open banking products and services. Adherence to the operational instructions is necessary for the success of open banking.
Open banking enables third-party financial providers to access customer data with explicit customer consent.
This provides access to a wider range of products and services and fosters innovation and competition in the financial industry.
The CBN’s Open Banking Guidelines require the establishment of an Open Banking Registry to enhance transparency and regulatory oversight.
The registry provides means for regulating operators and ensures compliance to promote innovation and competition.
The guidelines mandate explicit customer consent for data access in open banking, prioritizing data protection, privacy, transparency, and accountability.
The consent management framework is crucial for the success of open banking in Nigeria.
Open banking provides numerous benefits, including the sharing of customer-permissioned data, building customer-focused products and services, promoting efficiency and competition in financial services, providing access to a wider range of financial products and services, fostering innovation and collaboration among industry players, improving customer experience through personalized financial products and services, and enhancing financial inclusion by reaching underserved customers.
The director of payment services management department at the CBN, Musa Jimoh, emphasized the importance of adhering strictly to the guidelines and other regulations to ensure the success of the open banking system.
The guidelines are specifically targeted towards banking and other related financial services, as determined and classified by the apex bank within the regulatory framework for open banking in Nigeria.
In conclusion, the operational guidelines issued by the CBN for open banking in Nigeria are a welcome development that will enhance efficiency, competition, and access to financial services.
The guidelines provide a regulatory framework for participants in the open banking ecosystem, and require strict adherence to ensure the success of the initiative.
With the adoption of open banking, customers will have access to a wider range of financial products and services, and financial service providers will be able to build customer-focused products and services.
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