What is Open Banking and Why Does It Matter in Nigeria
Open banking is a regulatory and technology-driven system that enables individuals to securely share their financial data with third-party providers such as fintech companies or other banks, with explicit consent. It allows people to make payments online with their bank accounts instead of using debit cards, manage multiple bank accounts in one place, access more personalised financial services, and receive tailored financial advice because service providers have a more holistic view of a user’s financial history. At its core, open banking is about giving bank consumers more control over their financial lives, encouraging innovation in financial services, and driving healthy competition in the banking sector.