Why CBN must initiate open banking regulation – KPMG

Why CBN must initiate open banking regulation - KPMG

Mr Boye Ademola, Partner and Lead, Digital Transformation, KPMG, on Wednesday called on the Central Bank of Nigeria (CBN) to initiate a policy on open banking in Nigeria to transform the sector.

Ademola made the call during a virtual panel discussion on Open Banking Exchange (OBEx) with the theme, “Open Sesame: Unlocking the Future of Financial Innovation through Domestic third Party Providers.”

The inaugural OBEx conference was organised by Business Day, in partnership with Open Technology Foundation (Open Banking Nigeria), a non-governmental organisation.

Open banking grants access to consumer banking, transaction, and other financial data from banks and non-bank financial institutions through the use of application programming interfaces (APIs).

The banking model allows networking of accounts and data across institutions for use by consumers, financial institutions, and third-party service providers.

Ademola said: “It is important over the next year or thereabouts for the regulator to put out regulation around open banking in Nigeria.

“It is really going to be important if you are looking at the 2030 transformation agenda; how do we break this channel of financial inclusion, how do we attract capital, how do we continue to lead on the continent in financial service?

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“I think the Central Bank of Nigeria should lead the conversation. And the minimum we should have is clear guidelines on standardisation, and we should have timelines,” he said.

He urged Nigeria to take a cue from countries like Singapore, UK among others.

The Chief Executive Officer of Trium Limited Mr Adedeji Olowe, said open banking would create a platform that would allow less-fortunate Nigerians have access to good life.

“One thing I will want us to know, especially when it comes to open banking, is for us to see it for the good that it is going to do.

“I do not see it from the fancy fintech stuff, I do not see it from transactions or bragging on Twitter.

“I see it as creating a platform or removing friction that allows less-fortunate Nigerians to have a good life.

“We can allow millions of people in Nigeria to have access to credit and financial services. Doing so will create a better future for young people,” he said.

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