Another day, another money gist from the Nigerian financial streets. This time, open banking is about to enter the chat in August, and it’s easier than it sounds.
Remember when your banks used to be like, “Our data, our rules.” Even fintechs were begging, “Can we at least look at your statement?” Well, the CBN just flipped that switch. With open banking, you, yes, you, are now the gatekeeper of your own financial story.
Think of it like this: Instead of banks hiding your spending patterns like receipts stuffed in a wallet, open banking uses a standardized API (a shared digital language). You can say: “Bank A, let B finance app see my spending… but only for groceries.” It’s like sharing your Netflix password, but you choose the TV show.
Here’s how Open Banking will play out in real life:
Applying for a loan: Instead of carrying five years of bank statements in a nylon file, the lender can pull it directly (with your permission). Even better: lending fintechs can use your transaction history and spending patterns to actually assess your creditworthiness and help build that much-needed credit score for Nigerians.
Budgeting: Your app can finally see all your bank and wallet data in one place, instead of you doing Excel gymnastics.
Switching banks: Open banking means the new bank can set you up without all the “fill this form” stress.
New financial products? Banks and fintechs can design personalised products that fit you like tailored Ankara, because now they have real data to back it.
And the CBN didn’t just say “Oya, go and do.” They also revised their approach after banks pushed back against letting the Nigerian Interbank Settlement System (NIBSS) centralise everything. Instead, they created independent committees to oversee and safeguard open banking run by bankers and financial institution representatives, not directly by CBN. In short: the CBN built the clubhouse, but our fintech aunties and bank uncles are running the show.
No cause for alarm! It doesn’t mean random apps will suddenly have access to your money. Security is baked into the system. The whole point is giving you control and reducing wahala.
And here’s the sweet bragging rights: once Nigeria launches in August, we will officially be the first country in Africa to implement open banking.
Why is it a big deal? Because this is Nigeria’s step into the financial future. Abroad, open banking already powers smooth stuff like Apple Pay, and those fancy budgeting apps that tell you, “you’ve spent ₦30k on shawarma this month, calm down.” Now, Naija is not just catching up, we’re setting pace.
As we step deeper into August, a new era is about to unfold… where your money apps actually work together to serve you even better.
Are you excited?