To make banking transactions simple and open for customers, financial institutions have been urged to allow customers own and have access to their transactional data for any benefit they may want to use it for.
Making this assertion, Managing Director, Trium Networks Limited, Adedeji Olowe explained that customers’ transactional data with financial institutions belong to the customers which they must be allowed to have access to.
“It’s based on the fact that if customers own the data, they should be able to have access to it, use it to apply for loan and for whatsoever they may want.
“When open banking is available, customers will take the data, add it to other things they’re doing in life and make meaningful insight out of it.”
He added that financial inclusion is difficult to achieve because of the high cost of transaction.
“With open banking, financial institutions, NGOs and others will connect directly to the banks without any intermediaries and make transactions seamlessly”, he said
Olowe pointed that what the open banking group is out to achieve in Nigeria is to request the bank’s stakeholders not to expect innovation from government but to design it together.
He also said that more collaborative approaches must be fostered to allow open banking to work, “it is something that must be done because the Central Bank of Nigeria [CBN] did not come out to say that everyone must have electronic banking or mobile app, we believe every bank will see the benefits and go ahead and implement it”, he said.
He cited the examples of Europe and United Kingdom where the governments came up with a directive that those institutions must open their data not specify that it must be done.
“In the UK, they applied the rule to nine biggest banks that they should implement it in order to have a standard API”