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Financial Institutions to benefit from secure data exchange as CARMA joins Open Banking Nigeria to drive financial inclusion

CARMA has partnered with Open Banking Nigeria, a non-profit coalition of industry stakeholders advocating for the adoption of common API standards within the Nigerian financial sector. Through this partnership, CARMA aims to accelerate the use of real-time peer-to-peer data sharing between financial institutions, fintech, digital financial services, telcos, insurance, and non-financial sectors to help expand financial services access to the unbanked and underserved populations in Nigeria.

The banking and fintech sector in Nigeria has been seeing exponential growth and the sector has seen huge strides in digital transformation, yet, a vast majority of Nigerian adults remain unbanked and underserved with no access to any formal or informal financial services/products. In 2010, the Central Bank of Nigeria (CBN) set a target to reach 80 percent financial inclusion by 2020, however, according to CBN this target was not met.

The adoption of digitization and innovative technologies in Nigeria’s financial space have helped it become a financial hub in the region. Open Banking Nigeria will help the financial sector create new business models to reach customers that were previously excluded from the formal financial sector and consumers who do not have full access to a range of banking services to meet their needs due to a lack of bank transaction history.

CARMA is supporting Open Banking Nigeria by setting up an API-based data marketplace to provide secure data exchange across institutions. Customer data contributed and shared through the marketplace by different industries will help lenders and merchants make better credit decisions and build products to reach consumers who have no access to traditional bank accounts. This would help impact the growth of financial inclusion while promoting equitable distribution of credit and financial services for the unbanked and underserved population in Nigeria.

Ted Martynov, CEO CARMA, said: “We are excited to be part of Open Banking Nigeria. The established framework is critical for building an ethical and transparent process for data sharing services between financial institutions, fintech, and other business communities. CARMA is ready to play a pivotal role to provide the initiative with our best expertise and knowledge by providing alternative data solutions to expand the ecosystems availability of API based services”

“We are glad to be joining the emerging Open Banking community in Nigeria to promote and deliver innovative solutions that open up financial and economic opportunities for the underserved in Nigeria. This will provide lenders and fintech access to non-traditional data for credit assessment while monetizing customer data in a secure and compliant way.” said Femi Oluyide, Nigeria Country Manager CARMA. This partnership highlights CARMA’s commitment to enabling the financial sector to reach Nigeria’s population that is underserved and locked out of the financial ecosystem due to lack of access to services.