CBN Gives Operational Guidelines On Open Banking

The Central Bank of Nigeria, CBN, on Wednesday issued operational guidelines for open banking in Nigeria amid the new Naira notes cash crunch.

The guidelines establish principles for data sharing across banking and payment systems.

In the guidelines, the apex bank shall provide and maintain an Open Banking Registry to give regulatory oversight on participants, regulate operators and enhance transparency within the open banking ecosystem.

It also stipulates Consent Management, whereby consent of bank customers is required before their data can be acquired for open banking products and services, among others.

Mr Musa Jimoh, CBN’s Director, Payment System Management Department, stated that the guidelines were in furtherance of the bank’s mandate to stabilise the financial system.

He said, “The adoption of open banking in Nigeria will foster the sharing of customer-permissioned data between banks and third-party firms to enable the building of customer-focused products and services.

“It’s also aimed at enhancing efficiency, competition, and access to financial services.’’