CBN warns Banks, Fintechs on Cybersecurity risks in Open Banking

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The Central Bank of Nigeria (CBN) has cautioned Nigerian banks and fintechs to prioritize cybersecurity as they transition into open banking. According to Mr. Musa Jimoh, Director of Payments System Policy at the CBN, “Security, privacy, and consumer protection are very vital to a successful open banking implementation.”

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Speaking at the Q2 Regulators Forum of FintechNGR, Jimoh emphasized the need for financial institutions to invest heavily in cybersecurity, given the risks associated with sharing customer data. “There have been so many cases of data breach around the world, and open banking should not be a door, an open door for cybercriminals to come in,” he warned.

Jimoh urged banks and fintechs to ensure airtight security around their APIs, payment infrastructure, and customer data. “We need to make it unbreakable and very, very hard for criminals to crack,” he said. He also stressed the importance of sensitizing customers about potential security risks, particularly phishing scams.

“The customer must be well informed to know what he or she has granted,” Jimoh added. “We shouldn’t bring customers to grant something that they never knew was what they were granting.” The CBN official emphasized the need for transparency and clear communication to protect customers’ interests in the open banking framework

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