“Banks sit on a trove of customer data that fintechs can only dream of. Years of financial information, habits, purchasing choices, destinations, demography. At the same time, traditional banks are a dour, methodical business.”
With over 70 million customers, Nigerian banks sit on a ton of data, yet none of this data has exactly made banking easier for customers. Loans are difficult to come by and many bank customers do not feel like the banks care about their business.
Enter Open Banking:
an initiative that will see banks share customer bank data with fintechs and other third parties. Giving third-party providers access to customer transaction data so they can create new and interesting products.
For instance, a fintech company can take data from banks and create a product for entrepreneurs that saves them money on transactions.
Open banking has exciting opportunities for everyone including the banks who are often accused of being run like bureaucracies. There’s a huge revenue opportunity for them to monetise the data they share and like we’ve seen with GTB’s plans with HabariPay, it will force them to innovate and compete.
Read why Open Banking is a big deal here.