CBN Issues New Guidelines On Open Banking

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The Apex bank of Nigeria, CBN has issued new guidelines, which were released in a circular which was referenced; PSM/DIR/PUB/CIR/001/43 and titled “Issuance of Operational Guidelines for Open Banking in Nigeria, and was dated March 7, 2023.

CBN disclosed that the guidelines would create greater access to customer-focused data sharing between banks and third-party firms.

The document which was signed by the Director of the Payment Services Management Department, Mr. Musa Jimoh, included the guidelines which would further the CBN’s mandate which would ensure stability in the nation’s financial system.

The circular reads like this “The Central bank of Nigeria (CBN) in furtherance of its mandate for the stability of the financial system and pursuant to its role in deepening the financial system hereby issue the Operational Guidelines for Open Banking in Nigeria.

“The adoption of Open Banking in Nigeria will foster customer permission data between banks and third-party firms to enable the building of customer-focused products and services.

“It is also aimed at enhancing efficiency, competition, and access to financial services in Nigeria.

“All stakeholders are required to ensure strict compliance with the guidelines and all other regulations, as the CBN continues to monitor developments and issue guidance as may be appropriate.”.

Open Banking is a practice that enables secured interoperability in the banking system, allowing third-party payment services and other financial service providers to access banking transactions and other data from financial institutions.