As I move into a new chapter beyond just the fintech space, I can’t help but reflect on the transformative potential of open banking, especially in emerging markets like Africa. My journey in fintech has left me with a deep appreciation for the power of open banking to reshape financial solutions and drive inclusion.
Although I’m setting my sights on a wider horizon, my passion for open banking — and the lessons I’ve learnt along the way — compel me to share these insights, particularly about the importance of collaboration, trust, and incentives in driving meaningful adoption.
Open banking isn’t just about technology or compliance; it’s about redefining the relationship between institutions and consumers, building products that truly serve people’s needs, and ultimately creating a more inclusive financial future.
Even as I step back from day-to-day involvement into a wider role, I look forward to continuing this conversation and sharing my perspective on what could make open banking successful across Africa and beyond.
Discovering open banking: My journey
I learnt about open banking a few years ago when Adedeji Olowe began gathering a team to drive the Open Banking Nigeria vision forward. In 2019 or 2020, I was eager to reach out to him to learn more and get involved. But at the time, I was fully occupied building a payment gateway product (Gladepay) for Glade Inc., which became a success, powering payments for local and international merchants, including airlines.
Since then, I’ve been deeply invested in learning about open banking from strategic and technical perspectives. I’ve read great books on open banking from visionary authors like Brett King’s Bank 4.0: Banking Everywhere, Never at a Bank, and articles and whitepapers on open banking by other great leaders like Markos Zachariadis, Chris Michael, and Eyal Sivan.
I’ve immersed myself in conferences and discussions with industry experts. More recently, I’ve had the privilege of working with open banking technologies in fractional roles with global payment companies, witnessing how these solutions reach millions of users across various jurisdictions, solving their problems and improving lives.
Throughout this journey, one question remains: What would a successful open banking framework look like for Africa? Especially in Nigeria, where my roots run deep, aside from the GTBank, which is frustrating me, holding to my money for more than a week and refusing to release it, but I digress. I’ve had countless discussions on the opportunities and challenges unique to our markets. We have a unique chance to learn from other jurisdictions while creating solutions tailored to our landscape.
Learning from other markets
One natural question is why open banking hasn’t scaled in Africa like in the UK, US, Singapore, Australia, Brazil, and Japan. Let’s acknowledge that open banking implementation hasn’t been flawless, even in those regions. Many systems took years and cost millions of USD to establish, and they still face challenges. Africa has the benefit of learning from those jurisdictions, but our solutions must fit our specific context and our uniqueness.
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One key lesson is the balance between regulation and incentive. Globally, compliance often pushes companies to do just enough to meet regulatory requirements without fully investing in innovation. Africa’s open banking efforts could benefit from a policy-driven approach that emphasises incentives.
Regulation is essential, but incentives can encourage creativity and adoption in ways that strict rules alone can’t. Now that the CBN has issued a regulatory framework for open banking in Nigeria and other African countries are considering similar steps, we should focus on making these policies effective through positive reinforcement. For open banking to thrive, banks, fintechs, regulators, and the government need to be on board — not just because they’re required to, but because they see the opportunity.
The need for collaboration
Open banking will only succeed if we foster true collaboration. Banks shouldn’t see this as just another compliance burden. Instead, it’s a unique opportunity to work alongside fintechs and innovators to reshape the future of finance. Collaboration is essential from the outset, aligning interests and ensuring all players are invested in the initiative’s success.
Building trust: The foundation of open banking
Trust is the bedrock of any successful open banking ecosystem. Banks need assurance that liability frameworks, accreditation, and dispute processes are fair and well-defined. Fintechs need confidence that the system will be inclusive, transparent, and unbiased.
Establishing clear standards and communicating them effectively is critical for building this trust. Combining incentives, collaboration, and trust sets the foundation for Nigeria and Africa's thriving open banking ecosystem.
At the core: The consumer
At its heart, open banking is about empowering consumers. It should move us beyond outdated methods like credential sharing toward secure APIs. For consumers, this means a safer, more seamless experience. But they’ll only embrace open banking if it provides real value — if it simplifies their financial lives.
Consumer education is key here, but it doesn’t need to be complicated.
Most consumers won’t ask for “open banking” by name; they’ll just want solutions that work. We’ve spent years encouraging consumers to use bank transfers and mobile money over card payments. Similarly, education about open banking will be crucial, but the best “education” is a great product. If we build products people love, they’ll adopt open banking without needing a lesson on the backend.
Lessons, challenges, and opportunities
Open banking is a journey. There will be obstacles, but each one brings opportunities. Recently, I’ve seen a positive shift, with more organisations building secure APIs and establishing standards. This is our chance to take the lessons learnt in other jurisdictions and apply them to accelerate open banking in Africa.
Incentives, collaboration, and trust are the pillars that can propel us forward — not just in banking but toward a more open data ecosystem. Imagine a world where consumers can securely share their data across healthcare, insurance, and identity sectors — all sectors — with their consent. This vision goes beyond banking, creating a foundation for more interconnected and inclusive services across the continent.
Innovating for Africa
Open banking can only succeed if we build products that offer real value for our unique markets. I recently spoke with a fintech founder whose company had to scale back in the Nigerian, Ghanaian, and Kenyan markets because they couldn’t rely on inconsistent data sources. Their innovative product worked in other regions, but the lack of reliable data infrastructure in Nigeria and other African markets held them back.
Why should we let outdated systems stifle innovation? Many banking systems weren’t built with APIs in mind, but this can — and should — change. I see enormous potential if we can bridge this gap. Many fintechs are already experimenting in sandbox environments, laying the groundwork to make open banking a reality.
We’ve spent enough time in frameworks and sandboxes. Now it’s time for action. Regulators, governments, banks, and fintechs need to come together to make open banking a reality for African consumers. Together, we can deliver the financial experience our people deserve.
