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CBN Issues Regulatory Framework for Open Banking

PSB
Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele

OLU OJO PHILIP

To foster the sharing and leveraging of customer-permissioned data by banks with third-party firms, the Central Bank of Nigeria (CBN) has issued the Regulatory Framework for Open Banking.

The framework will also empower third-party firms to build solutions and services that provide efficiency, greater financial transparency and options for account holders.

The CBN agenda will also enhance access to financial services in the country.

According to the apex bank, the objectives of the charter include the provisioning of an enabling regulatory environment for the provision of innovative and customer-centric financial services through the safe utilisation and exchange data and services.

It also defines risk based data access levels and service categorisations towards effective management of risk in the operation of open API and outline baseline requirements and standards for the exchange of data and services among participants in the financial services sector.

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Others objectives include the provision of risk management guidance for operators to leverage data and APIs in the offering of financial services.

The CBN noted that the framework will promote competition in the banking sector and areas as well as enhance access to financial services.

The framework which is specifically for banking and other related financial services, include payments and remittance, collection and disbursement, deposit-taking, credit, personal finance advisory and management.

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Others are treasury management, credit ratings/scoring, mortgage and leasing/hire purchase.

The framework also give insight into data and service access governance, guiding principles for API specifications, roles and responsibilities of participants, CBN, risk management, customer rights and redress mechanism.

Click here for the framework.