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CBN rolls out guidelines for open banking

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In a bid to enhance efficiency, competition, and access to financial services in the country, the Central Bank of Nigeria (CBN) has rolled out guidelines for open banking.

Mr Musa Jimoh, CBN’S Director, Payment System Management Department, said in Abuja on Thursday that open banking will foster the sharing of customer-permissioned data across the nation.

“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.

“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,” he said.

The CBN also categorized and specified roles for participants depending on their services.

“Entities participating in Open banking shall be categorized based on the following roles. Participants shall assume a role depending on the services:
i. API Provider (AP): This refers to a participant that uses API to avail data or service to another participant. An API Provider can be a licensed financial institution/service provider, a Fast-Moving Consumer Goods (FMCG) Company or other retailers, Payroll Service Bureau etc,” the apex bank said.

“ii. API Consumer (AC): This refers to a participant that uses API released by the (API) providers to access data or service. An API Consumer can be a licensed financial institution/service provider, an FMCG or other retailers, Payroll Service Bureau etc.

”iii. Customer: This refers to the data owner that shall be required to provide consent for release of data for the purpose of accessing financial services.

“Each participant shall be identified by its CAC business registration number, which shall be the unique key across the OBR system,” a statement given to Persecondnews explained.

“The OBR shall maintain an API interface, defined within these guidelines, which shall serve as the primary means by which API (Application Programming Interface) providers manage the registration of their API consumers.”

 

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