The Central Bank of Nigeria is set to launch Open Banking in 2025 as part of measures to deepen financial inclusion. But what is open banking?
Imagine walking into a store that already knows your preferences, needs, and budget, but only because you gave permission to share that information. That’s the essence of Open Banking.
Open Banking is a technological innovation that allows you to securely share your financial information with trusted providers like banks and FinTechs through Application Programming Interfaces (APIs). With your consent, this enables access to improved financial services, including better loan offers with faster approvals, enhanced investment products, and seamless payments.
Open Banking works through secure connections called APIs, which allow banks and financial institutions to communicate with authorized third parties without compromising your data or privacy.
In this Explainer Series, we explore Nigeria’s current infrastructure, address common misconceptions, and provide recommendations for the successful implementation of the Open Banking framework.
