Nigerian Central Bank Unveils Open Banking Guidelines – Africa Bitcoin News
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The Nigerian Central Bank recently unveiled open banking guidelines as a part of its effort to promote innovation in the country’s financial sector. The move is expected to enhance competition among market players, promote innovation in financial services, and improve financial inclusion.
Open banking is a new concept that enables financial institutions to share customer data with third-party service providers. This will enable new entrants to the market to develop innovative financial products and services, delivering better solutions that meet the needs of consumers.
The Nigerian Central Bank guidelines were first published in November 2020, and they outline the principles and standards that financial institutions must adhere to when sharing customer data. The guidelines also provide criteria for the selection of third-party providers and address issues such as data security, customer protection, and privacy.
The guidelines will allow improved customer experience and convenience. Banks will be able to collaborate with fintech companies, which will create a new range of customer-centric financial products and services.
For instance, customers using e-commerce platforms can use open banking to share personal data that will enable banks and payment service providers to improve their payment processes. This will lead to faster and more efficient transactions with reduced cost.
There’s a greater level of competition among financial institutions, and they will have to strive to provide innovative solutions to their customers to remain relevant in the market. Open banking will also help enhance financial inclusion for the unbanked population by delivering more affordable financial services through digital channels.
In conclusion, the Nigerian Central Bank’s open banking guidelines mark an important milestone in the country’s financial sector. They pave the way for more innovative financial products and services and have the potential to improve financial inclusion, foster competition and drive economic growth. It is a significant move and is expected to transform the Nigerian financial services sector for the better.
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