Mastercard’s regional business manager for West Africa, Ebehijie Momoh, said the Central Bank of Nigeria’s (CBN) financial inclusion initiative will lead to open banking in Nigeria.
According to her, open banking sets the standard for connectivity between banks, FinTechs and bank customers.
Momoh advised the CBN to continue to prioritize its financial inclusion strategies that would bring new clients into the financial space, ensuring that open banking will lead to connectivity through certain application programming interfaces ( API), provided by Mastercard to enable financial transactions. much easier and safer.
Momoh, who shared his perspective with THISDAY, during a recent webinar, said: âThe bottom line is that financial inclusion must be a priority in order to connect everyone to the digital economy which will help drive banking operations opened in Nigeria.
âThe financial inclusion initiative should include microcredit and microinsurance. The digital technologies implemented by Mastercard allow end users to connect and access banking services in a simpler and more secure manner. âThe APIs provided by Mastercard are one of the ways to improve connectivity for the onboarding processes that will attract new customers to the digital space. “
This, she said, would allow end users to have access to relevant technological tools that would help them meet their own financial needs.
She explained that in open banking, integration would become much easier using APIs, as APIs would allow individuals and organizations to easily connect and access digital financial services.
Speaking about Mastercard’s mission for an open bank, Momoh said, âOur mission at Mastercard is to help create an efficient system for easy payment. The effect of COVID-19 has altered the transactional behavior of customers, leading to an explosion in e-commerce and online transactions. âAs a leader in the open banking ecosystem, Mastercard aims to showcase its open banking capabilities and infrastructure. Mastercard has Open Banking Connect, Open Banking Protect and Open Banking Resolve, to address all of these issues.
According to her, Mastercard started investing very early in open banking and launched a set of solutions for open banking, after having acquired a major player in open banking in the United States of America.
âMastercard is currently positioning its open banking solutions to meet the needs of its key markets such as Nigeria. Our platform connects third-party service providers such as banks, FinTechs, and bank customers, âshe said.
She added that Mastercard will continue to champion open banking in multiple markets, including Nigeria, to connect and help financial service providers connect with a single, universal connection for financial institutions.
By giving details of open banking, Momoh said, Mastercard could help all service providers connect to the ecosystem, through an application programming interface, without each party connecting separately, thus reducing costs. . Open banking protects against data loss during financial transactions and prevents fraud by providing immediate verification of third party registration and certification and Mastercard provides this verification.
Again, open banking helps resolve disputes and helps expedite transactions, bringing satisfaction and confidence to end consumers, Momoh said.
She further explained that financial inclusion is about attracting more customers to the financial space and that open banking would further help banks establish connectivity between banks and service providers like FinTech, using APIs. to connect to rural areas and onboard new customers. close the existing financial inclusion gap.