Open Banking’s operational guidelines have been issued by the Central Bank of Nigeria (CBN) to improve efficiency, competition, and accessibility to financial services in the nation.
In a circular sent to all Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), and Payment Service Providers (PSPs) yesterday, the CBN made this public.
By allowing third-party payment service and other financial service providers to access banking transactions and other data from banks and financial institutions, open banking facilitates secure interoperability in the banking industry.
Related News: Insecurity: INEC will hold additional elections in the Doguwa-Tudun Wada Federal Constituency. In a circular signed by Mr. Musa Jimoh, Director, Payments System Management Department, CBN, the apex bank stated: “APC decries Ashiru’s plan to dialogue with bandits. Kaduna PDP candidate promises to negotiate with bandits.” Customers’ permissioned data will be shared between banks and third-party businesses as a result of Nigeria’s adoption of Open Banking, which will make it possible to develop customer-focused products and services.
It also aims to improve Nigeria’s efficiency, competition, and accessibility to financial services.
“While the CBN continues to monitor developments and issue guidance as may be appropriate, all stakeholders are required to ensure strict compliance with the guidelines and all other regulations.
“To be eligible to participate in the Open Banking ecosystem, any organization that possesses customer data that may be exchanged with other entities for the purpose of providing innovative financial services within Nigeria”
“Participants in open banking shall be subject to minimum privacy, operational, customer experience, and risk management standards as prescribed by the Bank,” in addition to adhering to strict security standards when accessing and storing data.