The development of open banking frameworks by the Nigeria Data Protection Commission (NDPC), in partnership with the Bill and Melinda Gates Foundation and KPMG, aims to enhance financial inclusion in the country.
During a meeting in Abuja, Vincent Olatunji, the CEO of NDPC, met with Anna Wallace from the Gates Foundation and John Anyanwu from KPMG to discuss the project.
The focus of the collaboration is on creating open banking frameworks that involve granting third-party financial service providers access to bank account information through APIs.
NDPC highlighted the importance of digital identity in the financial sector and open banking, underscoring the need to protect digital identities to build trust and confidence.
Addressing challenges posed by digital lending firms, Olatunji mentioned ongoing efforts with various stakeholders to address transparency issues in data processing.
He also emphasized the necessity for all data controllers to have a Data Protection Officer (DPO) in compliance with legal requirements.
Financial inclusion entails providing essential banking services like savings, credit, and insurance to all individuals in society.
According to the Access to Finance survey, Nigeria’s financial inclusion rate rose from 30% in 2010 to 74% in 2023, leaving around 26% of adults, approximately 28.8 million people, still financially excluded.
Although progress has been made, achieving Nigeria’s target of 95% financial inclusion by 2024 will require significant efforts from the government, financial institutions, and stakeholders.