Open Banking Nigeria

As we approach the implementation of #openbanking in Nigeria, we couldn’t be more excited! But as with any groundbreaking innovation, challenges will arise. To ensure a smooth adoption, we've built a free, open-source #APIGateway that can be adopted by any bank, fintech, or industry player to align their infrastructure with open banking standards. What would have taken years of effort and millions in funding can now be accomplished seamlessly and at minimal cost, thanks to the backing of industry stakeholders like Paystack, Sterling Bank, Lendsqr, Sparkle Nigeria, Flutterwave, OnePipe, KPMG, Dexter Awoyemi and Demilade Odetara, to name a few. There’s only so much we can share in a LinkedIn post. Head over to our blog to discover why we built this, what it aims to achieve, and everything that it is not. Stay tuned as we roll out the gateway’s capabilities in the coming weeks, and feel free to reach out if you require further information.

Will South Africa finally regulate #openbanking in 2025? South Africa has long led the continent in financial infrastructure innovation. However, achieving true #financialinclusion remains a key focus for financial regulators. While interim solutions like screen-scraping have been stopgaps, the focus is now shifting towards more secure, regulated innovations that prioritize consumer consent. Although South Africa hasn't formalized open banking yet, there are clear signals of progress. In June 2023, the Financial Sector Conduct Authority (FSCA South Africa) published a Draft Position Paper on Open Finance, emphasizing the need for a regulatory framework. With industry engagement and extensive research, the final position paper was anticipated in 2024, paving the way for a phased regulatory rollout. This year, we expect these efforts to take a definitive shape. Current practices among South African financial institutions resemble closed data sharing rather than full open banking. Many of the country’s largest banks have established selective partnerships with fintechs. While these bespoke agreements set a good foundation and offer immediate benefits to consumers, they could potentially impact broader financial inclusion and innovation over time. As we look ahead, the question remains: Will 2025 be the year South Africa fully embraces open banking? South African Reserve Bank Capitec Nedbank Ozow RainFin (Pty) Ltd #openfinance Curious to learn more about open banking’s progress in South Africa? Check out our website for more insights! https://lnkd.in/devJnvnw

Did you know #credit doesn't have to be limited to major needs like starting a business or buying a car? It can also cover daily essentials like a ride with Uber or lunch at the office. Access to credit is not just a privilege or a possibility; it’s a current reality for nations who have cracked the code! In India, the Open Credit Enablement Network (#OCEN) is democratizing access to credit, especially for MSMEs. Developed by ProductNation/iSPIRT, OCEN connects lenders, Loan Service Providers (LSPs), and borrowers through standardized APIs, creating a ‘UPI for credit’. Bringing it back home to Nigeria, with our vibrant fintech industry and significant unbanked population, the parallels are clear. With #openbanking on the horizon, it could provide the data that powers OCEN's credit decisions. Imagine a market woman in Yaba using her OPay payment history to secure a microloan, or a small-time exporter in Aba using his GIG Logistics data to qualify for credit. This is the power of embedding credit into everyday transactions, and Nigeria is ripe for it. So, can OCEN work with open banking in Nigeria?  Check out our latest article for what we think! https://lnkd.in/dxhW-Xyt

Zambia is on the cusp of becoming one of Africa's most innovative fintech markets, with over 50 fintech providers offering tailored solutions for both the banked and unbanked populations. Despite this innovation, #openbanking is yet to be formally implemented. The Bank of Zambia (BoZ), the nation’s central regulator, has not introduced specific guidelines for API-driven data sharing. Absa Bank Zambia PLC, a leading bank in Zambia and across Africa, is ahead of the curve, offering payment solutions that enable transactions through third-party platforms. In South Africa, Absa’s partnership with Ozow to launch #AbsaPay showcases how open banking can facilitate secure, cardless transactions. Given the Absa Group's engagement in open banking in other regions, it's plausible that similar initiatives could emerge in Zambia in the future. Also, with rising smartphone usage and a tech-savvy young population, Zambia’s digital sector is flourishing. Startups like Lupiya, and Union54 (YC S21),  are driving innovation with digital payments, lending, and financial management tools, creating a fertile environment for the growth of digital financial services and potential future open banking initiatives. While still in its infancy, the future of open banking in Zambia looks promising, driven by a dynamic fintech ecosystem and a focus on digital transformation. We envision the path being market-driven, with regulators focusing on data security and consumer protection. Watch this space for more exciting developments! https://lnkd.in/d82VmtPi #FintechZambia #FutureOfFinance

Why hasn't #openbanking scaled in Africa? A question on many minds is why open banking hasn't fully scaled in Africa as it has in other regions, despite the advantage of learning from those jurisdictions. Liyi Victor, founder of Gladefinance (Techstars ‘22), offers his insights in a recent article where he shares his vision for open banking in Africa and beyond. As he aptly puts it, "Open banking can only succeed if we build products that offer real value for our unique markets." At its core, open banking is about empowering consumers. However, it will only gain traction if it delivers real value, not just promises on paper. Regulations alone can't drive open banking to success. Several critical elements must come together for open banking to thrive across Africa: #incentives, #collaboration, and more importantly, #trust. Explore the full insights here 👇 https://lnkd.in/dSZj2ndu

Our #2024unwrapped! As we bid farewell to an eventful year, we’re reflecting on 2024 with joy. This year marked significant milestones in our 7-year journey toward #openbanking implementation. A huge thank you to our partners, regulators, and stakeholders for your invaluable contributions. Here’s a quick recap of the amazing articles we shared in 2024.👇 Open banking isn’t a solo endeavor; it thrives on collaboration, trust, and the seamless integration of multiple players, including banks, fintechs, regulators, and end-users. To know more about the important roles they play, check out our articles below: https://lnkd.in/duERmJZM  https://lnkd.in/dAYYkJ7i  https://lnkd.in/dKcTHeYs Security is at the heart of open banking. While we openly preach data sharing, we have also curated insightful thought pieces which outline the necessary steps consumers must take to safeguard their data. https://lnkd.in/drsFxTq5  https://lnkd.in/dp4mH2ME Why did Open Banking Nigeria build an open-source API gateway? The short answer is; to simplify and accelerate the adoption of open banking in Nigeria. For the long answer, check out our article below: https://lnkd.in/dEEXxt3U 2024 was a memorable year because of YOU! 💙 Here’s to an even more successful 2025. 🥂

Open banking has sparked innovation globally, with each country adopting its own approach. The UK and the US, two global leaders, have taken unique but very different approaches, offering valuable lessons for the rest of the world. In the UK, #openbanking emerged from a regulatory initiative by the Competition and Markets Authority (CMA) to boost competition in the banking sector. In contrast, the US has taken a market-driven approach, with the Consumer Financial Protection Bureau’s open banking rule set in place to establish checks, balances, and consistency. While the UK is recognized for its structured frameworks, the US showcases how a hybrid approach can deliver impactful results. Our latest article explores how the US's open banking model outpaces the UK's—from its simplified payment systems to its balance between innovation and regulation.

Those who know, know that at some point in the past, interbank transactions were a nightmare. To put it plainly, Nigerian banks operated in silos, unable—or unwilling—to communicate with one another. In 1993, Nigeria Inter-Bank Settlement System PLC came about to solve this problem by creating a means for banks to communicate. Over time, they became the glue for the entire financial ecosystem. Today, with #openbanking taking shape, NIBSS is front and center. To understand open banking in Nigeria, you must first appreciate the indispensable role NIBSS plays. Open banking might sound like a new, disruptive idea, but it’s built on a foundation NIBSS laid decades ago. We dive deep into this in our latest article. Read it here: https://lnkd.in/dAYYkJ7i

Most business owners in Nigeria are sitting on opportunities they don’t even know exist. And the few that do, seem to think the benefits don’t apply to them.  Open banking isn’t some far-off idea for tech giants or another one of the CBN’s schematics. It’s a real opportunity for business owners ready to use it. Imagine instantly verifying if your customers are creditworthy, accessing their financial data (with their permission), and tailoring your services directly to their needs—all without being a bank yourself. The opportunities are endless! For business owners who are ready to stop being left behind, our latest article talks about how #openbanking gives you an edge in today’s market. https://lnkd.in/dXBnfSqq

Open Banking Nigeria’s API Gateway will help transform existing bank data and transactional APIs into Nigeria's open banking-compliant APIs, reducing complexity for fintechs and banks adopting open banking standards. By doing the heavy lifting, we have simplified the technical burden on financial institutions, ensuring a consistent API structure across the industry But its impact extends far beyond these. Here are 5 key advantages you’ll enjoy once we go live!👇 #openbanking #apigateway