Ugo Aliogo
The
Central Bank of Nigeria (CBN) has stressed the importance of open
banking in the development of the Payment Systems Vision PSV 2030.
The
banking sector regulator said it considers the concept as one of the top
global trends and new
practices in payment that have been deployed in
other countries which must be considered in Nigeria.
Open banking is a system that provides a user with a network of financial institutions’ data through the use of application programming interfaces (APIs). The Open Banking Standard defines how financial data should be created, shared and accessed.
According
to a statement made available to THISDAY by Centric Gateway, the
central bank deemed open banking necessary because of the importance of
having a strategy that is relevant for the Nigerian market domestically,
for regional and global markets where Nigeria plays a role in
international flows.
The
Director of Payment System Management, CBN, Sam Okojere, was quoted in
the statement to have noted that the request for information into the
Payment Systems Vision (PSV) 2030 document, would define the strategic
agenda for the Payments System for the next ten years, “it comes on the
heels of its very successful Payments System Vision PSV2020 that wraps
up at the end of 2019.”
It
added: “Other global payments trends identified for consideration in
Nigeria’s payments strategy in the next 10 years are new payment
methods, digital access, distributed ledger technology, big data and
artificial intelligence, cyber-security, digital identity, as well as
machine learning and robotics process automation.
“This is
because of the critical need for the PSV2030 framework to recognise
swiftly evolving user requirements, technical solutions, regulatory
environments and external threats that typify the industry.”
The CBN
explained that with change in the financial industry driven by rapid
advances in technology, customer expectations and new business models
(including Fintech), the payments industry had evolved over the past few
decades from the early days of electronic payment.
In a
related development, Centric Gateway, a fintech that implemented an Open
Banking gateway for a Nigerian Tier-1 bank, said it has joined Open
Banking initiative—led in Nigeria by the Open Technology Foundation—as a
member, to drive advocacy for a common API standard.
The
Chief Executive Officer, Centric Gateway, Niyi Kolade, noted that as
part of the company’s desire to improve financial technology in Nigeria,
Africa and the world by creating innovative solutions that work for the
market, the collaboration with Open Technology Foundation would help to
not only drive the company’s business objectives, but to also help the
entire payment services industry to better serve the needs of customers
everywhere.
The
statement said Open Technology Foundation (OTF), also known as Open
Banking Nigeria, was established to drive the development and adoption
of Open Banking standards in Nigeria for greater innovation in the
financial ecosystem.
It added
that OTF encourages a system where banks can easily connect with other
APIs in the market to extend their service offerings by introducing
native fintech solutions in a plug-and-play manner.
The
spokesperson for Open Technology Foundation, Ope Adeoye, while speaking
on the new membership expressed delight to have yet another set of
industry players joining the Open Banking Nigeria initiative.
He said:
“It is our conviction that soon enough, Open Banking would grow a tap
root and more industry stakeholders would strongly advocate and practise
it because of its numerous benefits to all across the value chain.
“The
Nigerian market has been ready for Open Banking for a long while, the
benefits of Open Banking far outweigh the risks, which can adequately be
easily mitigated, and that it is impressive the CBN is ready to act to
ensure that regulation this time does not lag excessively behind
innovation.”
No comments :
Post a Comment