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CBN To Embrace Open Banking System by THEWRITERSMIND: 6:28am On Apr 28, 2018
As the banking system moves to deliver quality services to consumers in the 21st century driven by new technological advancements, the Central Bank of Nigeria (CBN) has declared its interest in Open Banking System (OBS) which grants bank customers easy access to their data and opening the financial system to applications and other services.

This was disclosed by the deputy director, Banking and Payment System, CBN, Mr. Musa Itopa Jimoh who represented the apex while speaking on ‘How regulations will impact consumers bahaviour in open banking era’ at the Ennovators Breakfast Series in Lagos, a forum that attracted many industry stakeholders and organized by eMaginations. Jimoh said that “CBN is looking at how to raise the standard for all banks and fintechs to plug in.” According to Jimoh, open banking system will have great impacts on the banking system customers, noting that banks that will drive the economy are those with quality data and that uses it creatively. Open banking system is operational in Europe as Second Payment Services Directive (PSD2). Similar other implementations are ongoing in Hong Kong and Australia, and new digital finance ecosystem such as WeChat and Alipay are emerging in China based on data sharing capabilities.

The apex bank deputy director also disclosed that “CBN is working behind the scene to create Payment Service Directive (PSD3).” Highlighting the benefit, he said the banks will be able to ensure the customers based on available data, which allows the banks to understanding the behaviour of the customers. One of the restriction to financial inclusion is high cost of service.’’ According to him, “banks are sitting on huge amount of data but they are not doing anything about it.

Banks have the data of all the drivers in Nigeria since all drivers renew their license in the banks. Disruption will happen in the banking system which will make bank customers to demand for certain service and banks will be forced to offer the service.” Jimoh said that a bank can use data to determine customers’ behaviour in order to understand what kind of service to offer to them. “That the banks should be able to indemnify the customers based on available data, which allows the banks to understanding the behaviour of the customers,” he said, adding that the banks need to come up with a standard for open APIs.

He said that one of the deterrents to financial inclusion is high cost of service, stating that the CBN is looking at how to raise the standard for all banks and fintechs to plug in, adding that data privacy and confidentiality is also very important. He assured that the before the year ends, the apex bank will see how to engender open banking initiative. In a related development, a group of top banking industry professionals and FinTech companies in Nigeria have established Open Banking Nigeria with the goals to promote, develop and implement a common standard for Application Programming Interfaces (APIs).

A statement from the organisation started that underwriting models are emerging from access to alternative source of data like mobile phone usage in East Africa. In the United States, large banks are striking data sharing deal with individual partners in a departure from aggregator model. While stressing the mission of the organisation, Ayodeji Olowe, spokesperson for Open Banking Nigeria, said the objective is to rally the industry to adopt the open banking model so that the industry can improve customer experience, “develop new revenue streams, and build a sustainable service model for traditionally underserved markets.”

He said Open Banking Nigeria will rally the industry to develop processes and governance underpinning the technical connections. “We will assist banks and Fintechs alike to position themselves for success in a new environment and to anticipate the likely customer impacts,” he added.

https://www.financialwatchngr.com/2018/04/28/cbn-to-embrace-open-banking-system/
Re: CBN To Embrace Open Banking System by omoadeleye(m): 10:55am On Apr 28, 2018
grin grin ;DFTC OOO.... SINCE ALL THESE YEARS, FTC AT LAST.... grin grin grin grin


NA CBN PROBLEM BE THAT


grin cheesy cheesy cheesy
Re: CBN To Embrace Open Banking System by Myka(m): 10:56am On Apr 28, 2018
cool
Re: CBN To Embrace Open Banking System by ojodombe(m): 10:56am On Apr 28, 2018
Thank God for technology



FTC
Re: CBN To Embrace Open Banking System by Slimcase: 10:58am On Apr 28, 2018
ojodombe:
Thank God for technology



FTC

Joseph the Dreamer

2 Likes

Re: CBN To Embrace Open Banking System by Tellemall: 10:58am On Apr 28, 2018
Finally Nigeria moves forward.
Re: CBN To Embrace Open Banking System by Headlesschicken(m): 10:59am On Apr 28, 2018
undecided If only i could understand what dix sh!t x all about...

14 Likes 2 Shares

Re: CBN To Embrace Open Banking System by Aliyeous(m): 10:59am On Apr 28, 2018
expantiate more
Re: CBN To Embrace Open Banking System by edoman2016: 11:03am On Apr 28, 2018
The way Nigerian banks are innovative in adoption of modern technology is impressive. That's the reason most Nigerian banks are very profitable and expanding to other African countries.

8 Likes

Re: CBN To Embrace Open Banking System by JONNYSPUTE(m): 11:05am On Apr 28, 2018
Hmmmm. No be for mouth o.
Re: CBN To Embrace Open Banking System by 1x2x3: 11:05am On Apr 28, 2018
Abeg who fit explain?
Re: CBN To Embrace Open Banking System by 1x2x3: 11:05am On Apr 28, 2018
In layman's term?
Re: CBN To Embrace Open Banking System by JAZES(m): 11:05am On Apr 28, 2018
Nice move by cbn....it's long overdue

1 Like

Re: CBN To Embrace Open Banking System by Swissdist(f): 11:08am On Apr 28, 2018
shocked
Re: CBN To Embrace Open Banking System by Nobody: 11:10am On Apr 28, 2018
1x2x3:
In layman's term?
1.e if you dey bank with Access, you fit waka enta GT to make deposit over the counter...

You grab?

27 Likes 1 Share

Re: CBN To Embrace Open Banking System by andsboy29: 11:11am On Apr 28, 2018
It's great to hear this
Re: CBN To Embrace Open Banking System by CyberEBOLA(m): 11:11am On Apr 28, 2018
The day extremely expert hackers will have time for nigeria banks ehn...

2 Likes

Re: CBN To Embrace Open Banking System by Zamad(m): 11:11am On Apr 28, 2018
WE AF HEAR
Re: CBN To Embrace Open Banking System by 1x2x3: 11:13am On Apr 28, 2018
olatunji21:

1.e if you dey bank with Access, you fit waka enta GT to make deposit over the counter...

You grab?

Making sense.

2 Likes

Re: CBN To Embrace Open Banking System by valentineuwakwe(m): 11:14am On Apr 28, 2018
will it work here in nigeria? even mobile money transfers and ATM issues are still giving us problems here....

2 Likes

Re: CBN To Embrace Open Banking System by ZarahBuhari: 11:15am On Apr 28, 2018
CyberEBOLA:
The day extremely expert hackers will have time for nigeria banks ehn...
The real hackers are the poliTHIEVEScians
Re: CBN To Embrace Open Banking System by 1x2x3: 11:17am On Apr 28, 2018
CyberEBOLA:
The day extremely expert hackers will have time for nigeria banks ehn...

Nigerian banks are not as easy as you think to hack besides getting into an intranet system no be beans.

1 Like

Re: CBN To Embrace Open Banking System by WilliamsNedd: 11:19am On Apr 28, 2018
Hmmm
Re: CBN To Embrace Open Banking System by Nobody: 11:23am On Apr 28, 2018
Seriously, I just dey try to understand dey deceive myself, I no understand daiiim.
Re: CBN To Embrace Open Banking System by Jethrolite(m): 11:41am On Apr 28, 2018
saeedowolab:
Seriously, I just dey try to understand dey deceive myself, I no understand daiiim.
When you no sabi spell dime how you go understand.

This news is not for the layman anyways, it is a B2B news for entrepreneurs and innovators who have been pushing for this to happen.

1 Like

Re: CBN To Embrace Open Banking System by unitysheart(m): 11:56am On Apr 28, 2018
Confused fellows
Re: CBN To Embrace Open Banking System by Ayodeb(m): 12:14pm On Apr 28, 2018
This Open Banking System will be meaningful if it will incorporate cryptocurrencies. Anything short of that is still backward.
Re: CBN To Embrace Open Banking System by stilldoingokay(f): 12:38pm On Apr 28, 2018
Headlesschicken:
undecided If only i could understand what dix sh!t x all about...



though am the only one cause I only understand open marriage not open banking
Re: CBN To Embrace Open Banking System by Alexbond(m): 12:48pm On Apr 28, 2018
Despite their unnecessary charges which makes me nut most times, Nigeria banking industry is a frontier when it comes to service delivery and innovation...I give it to them�

1 Like

Re: CBN To Embrace Open Banking System by Nobody: 2:36pm On Apr 28, 2018
Nigeria that can not protect data privacy wants to freely and easily hand over all our data to enemies...
.
Nice move Nigeria.
Who needs big brother cams when your data is easy to obtain?
.
China Russia America etc will have free access to our precious data....
.
Nigeria is a Zoo.
Re: CBN To Embrace Open Banking System by bigtt76(f): 4:36pm On Apr 28, 2018
Another way of telling us they will soon start regulating it via one of their numerous and useless policies grin grin grin


THEWRITERSMIND:
As the banking system moves to deliver quality services to consumers in the 21st century driven by new technological advancements, the Central Bank of Nigeria (CBN) has declared its interest in Open Banking System (OBS) which grants bank customers easy access to their data and opening the financial system to applications and other services.

This was disclosed by the deputy director, Banking and Payment System, CBN, Mr. Musa Itopa Jimoh who represented the apex while speaking on ‘How regulations will impact consumers bahaviour in open banking era’ at the Ennovators Breakfast Series in Lagos, a forum that attracted many industry stakeholders and organized by eMaginations. Jimoh said that “CBN is looking at how to raise the standard for all banks and fintechs to plug in.” According to Jimoh, open banking system will have great impacts on the banking system customers, noting that banks that will drive the economy are those with quality data and that uses it creatively. Open banking system is operational in Europe as Second Payment Services Directive (PSD2). Similar other implementations are ongoing in Hong Kong and Australia, and new digital finance ecosystem such as WeChat and Alipay are emerging in China based on data sharing capabilities.

The apex bank deputy director also disclosed that “CBN is working behind the scene to create Payment Service Directive (PSD3).” Highlighting the benefit, he said the banks will be able to ensure the customers based on available data, which allows the banks to understanding the behaviour of the customers. One of the restriction to financial inclusion is high cost of service.’’ According to him, “banks are sitting on huge amount of data but they are not doing anything about it.

Banks have the data of all the drivers in Nigeria since all drivers renew their license in the banks. Disruption will happen in the banking system which will make bank customers to demand for certain service and banks will be forced to offer the service.” Jimoh said that a bank can use data to determine customers’ behaviour in order to understand what kind of service to offer to them. “That the banks should be able to indemnify the customers based on available data, which allows the banks to understanding the behaviour of the customers,” he said, adding that the banks need to come up with a standard for open APIs.

He said that one of the deterrents to financial inclusion is high cost of service, stating that the CBN is looking at how to raise the standard for all banks and fintechs to plug in, adding that data privacy and confidentiality is also very important. He assured that the before the year ends, the apex bank will see how to engender open banking initiative. In a related development, a group of top banking industry professionals and FinTech companies in Nigeria have established Open Banking Nigeria with the goals to promote, develop and implement a common standard for Application Programming Interfaces (APIs).

A statement from the organisation started that underwriting models are emerging from access to alternative source of data like mobile phone usage in East Africa. In the United States, large banks are striking data sharing deal with individual partners in a departure from aggregator model. While stressing the mission of the organisation, Ayodeji Olowe, spokesperson for Open Banking Nigeria, said the objective is to rally the industry to adopt the open banking model so that the industry can improve customer experience, “develop new revenue streams, and build a sustainable service model for traditionally underserved markets.”

He said Open Banking Nigeria will rally the industry to develop processes and governance underpinning the technical connections. “We will assist banks and Fintechs alike to position themselves for success in a new environment and to anticipate the likely customer impacts,” he added.

https://www.financialwatchngr.com/2018/04/28/cbn-to-embrace-open-banking-system/

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