Nigeria, Africa’s largest economy, has become the first country on the continent to issue operational guidelines on open banking. The Central Bank of Nigeria (CBN) in circular published earlier this week announced that it had developed open banking regulations in partnership with industry stakeholders.
Open banking is a new practice that involves banks sharing financial information with third-party providers (APIs) through application programming interfaces to promote the development of innovative products to meet consumer needs. The concept is gaining traction around the world.
The new directive on open banking was released via a circular signed by Musa Jimoh, director of the payment system management department at the CBN. The circular was aimed at depository banks, mobile money operators and payment service providers in the country. The guidelines set out the principles for sharing data between Nigeria’s banking and payment systems.
The document prescribes minimum security standards that industry stakeholders must follow when accessing and storing customer data. It also indicates the minimum privacy, operation, customer experience and risk management
Risk management
One of the terms most commonly used by brokers, risk management refers to the practice of identifying potential risks in advance. Most often, this also involves analyzing risks and taking precautionary measures to mitigate and prevent those risks. Such efforts are essential for brokers and venues in the financial sector, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment in almost all asset classes,
One of the terms most commonly used by brokers, risk management refers to the practice of identifying potential risks in advance. Most often, this also involves analyzing risks and taking precautionary measures to mitigate and prevent those risks. Such efforts are essential for brokers and venues in the financial sector, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment in almost all asset classes,
Read this term standards to be followed by banks and their third-party providers under the country’s open banking regime.
Nigeria’s apex banking authority in the circular noted that the guidelines aim to “improve efficiency, competition and access to financial services in Nigeria”.
“The adoption of Open Banking in Nigeria will promote the sharing of customer-authorized data between banks and third-party companies to enable the creation of customer-centric products and services,” Jimoh explained in the circular.
The Path to Open Banking Regulation in Nigeria
Open bank regulation
Regulation
Like any other high net worth industry, the financial services industry is tightly regulated to help combat illicit behavior and manipulation. Each asset class has its own set of protocols in place to combat their respective forms of abuse. In the foreign exchange space, regulation is assumed by the authorities of several jurisdictions, although it ultimately lacks a binding international order. Who are the main industry regulators? Regulators such as the UK Financial Conduct Authority (
Like any other high net worth industry, the financial services industry is tightly regulated to help combat illicit behavior and manipulation. Each asset class has its own set of protocols in place to combat their respective forms of abuse. In the foreign exchange space, regulation is assumed by the authorities of several jurisdictions, although it ultimately lacks a binding international order. Who are the main industry regulators? Regulators such as the UK Financial Conduct Authority (
Read this term in Nigeria dates back to 2017 when a group of industry players formed the Open Banking Nigeria band. However, the CBN first declared interest in an open banking system in 2018 when Jimoh noted that the banking authority was “studying how to raise the standard for all banks and fintech to go online.”
Three years later, the CBN published a regulatory framework for open banking in Nigeria. The framework was then developed into draft operational guidelines in May 2022.
Commenting on the new regulations, Open Banking Nigeria noted that the guidelines will be backed by the Nigeria Data Protection Regulation (NDPR) which was issued in 2009. “Data privacy is a fundamental pillar of open banking,” wrote the group in a blog post.
Nigeria, Africa’s largest economy, has become the first country on the continent to issue operational guidelines on open banking. The Central Bank of Nigeria (CBN) in circular published earlier this week announced that it had developed open banking regulations in partnership with industry stakeholders.
Open banking is a new practice that involves banks sharing financial information with third-party providers (APIs) through application programming interfaces to promote the development of innovative products to meet consumer needs. The concept is gaining traction around the world.
The new directive on open banking was released via a circular signed by Musa Jimoh, director of the payment system management department at the CBN. The circular was aimed at depository banks, mobile money operators and payment service providers in the country. The guidelines set out the principles for sharing data between Nigeria’s banking and payment systems.
The document prescribes minimum security standards that industry stakeholders must follow when accessing and storing customer data. It also indicates the minimum privacy, operation, customer experience and risk management
Risk management
One of the terms most commonly used by brokers, risk management refers to the practice of identifying potential risks in advance. Most often, this also involves analyzing risks and taking precautionary measures to mitigate and prevent those risks. Such efforts are essential for brokers and venues in the financial sector, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment in almost all asset classes,
One of the terms most commonly used by brokers, risk management refers to the practice of identifying potential risks in advance. Most often, this also involves analyzing risks and taking precautionary measures to mitigate and prevent those risks. Such efforts are essential for brokers and venues in the financial sector, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment in almost all asset classes,
Read this term standards to be followed by banks and their third-party providers under the country’s open banking regime.
Nigeria’s apex banking authority in the circular noted that the guidelines aim to “improve efficiency, competition and access to financial services in Nigeria”.
“The adoption of Open Banking in Nigeria will promote the sharing of customer-authorized data between banks and third-party companies to enable the creation of customer-centric products and services,” Jimoh explained in the circular.
The Path to Open Banking Regulation in Nigeria
Open bank regulation
Regulation
Like any other high net worth industry, the financial services industry is tightly regulated to help combat illicit behavior and manipulation. Each asset class has its own set of protocols in place to combat their respective forms of abuse. In the foreign exchange space, regulation is assumed by the authorities of several jurisdictions, although it ultimately lacks a binding international order. Who are the main industry regulators? Regulators such as the UK Financial Conduct Authority (
Like any other high net worth industry, the financial services industry is tightly regulated to help combat illicit behavior and manipulation. Each asset class has its own set of protocols in place to combat their respective forms of abuse. In the foreign exchange space, regulation is assumed by the authorities of several jurisdictions, although it ultimately lacks a binding international order. Who are the main industry regulators? Regulators such as the UK Financial Conduct Authority (
Read this term in Nigeria dates back to 2017 when a group of industry players formed the Open Banking Nigeria band. However, the CBN first declared interest in an open banking system in 2018 when Jimoh noted that the banking authority was “studying how to raise the standard for all banks and fintech to go online.”
Three years later, the CBN published a regulatory framework for open banking in Nigeria. The framework was then developed into draft operational guidelines in May 2022.
Commenting on the new regulations, Open Banking Nigeria noted that the guidelines will be backed by the Nigeria Data Protection Regulation (NDPR) which was issued in 2009. “Data privacy is a fundamental pillar of open banking,” wrote the group in a blog post.
