Nigeria’s most innovative Fintech firms are adopting Open Banking Application Programming Interface (API) standards in order to transform the financial services in Nigeria.
These Fintechs are Kinexus, Paystack and Wallet.ng.
Representative of Open Banking Nigeria, Ope Adeoye, made this disclosure as these Fintech innovators declared that their respective organisations would integrate Open Banking technology into their solutions, which are used by thousands of merchants and reach millions of online payers monthly.
Adeoye in a statement said that it is “impressive how new Fintech companies like Kinexus, Wallet.ng, and Paystack are setting the pace and challenging the corporate culture that does not support Open Banking practices, despite its immense benefits for banks and other financial service providers. This, indeed, is the route to take into the future desired for the industry.”
He added that Wallet.ng is an innovative firm and “the company understands the importance of collaborations and interfacing with the developer community via an Open API”.
While Wallet.ng provides access to its modern infrastructure and fast-growing customer base, it works with the customers on advanced and futuristic solutions to help transform “how people access financial services.”
According to Adeoye, the four organizations have backed the Open Banking initiative in Nigeria since its early days.
While Kinexus has participated in the review of the original API specifications of Open Banking Nigeria, Paystack has an active role in the group. Wallet.ng, on the other hand, would be providing APIs and data for developers and innovators to build on before the close of the second quarter in 2018.
CEO of Paystack, Shola Akinlade, explained that the “transformation of online payments is made possible with the development of easy-to-integrate payment APIs. We believe that making APIs more accessible will make it easier for more players in the banking and financial services sectors to build innovative tools that better meet customers’ needs.”
He maintained that with Open Banking, financial institutions and solutions providers and Fintech companies would be properly integrated, while consumers would “enjoy more personalized financial services” in a way that guarantees security and privacy.
Akinlade shared that the financial services in Nigeria has so much potential, as such, Open Banking standards “are an important path towards unleashing that potential.”
Kinexus, which is focused on building the new digital economy, is a leader in API gateway, API management and API portal system. Its Open Banking API solution simplifies and accelerates the process of delivering open banking by providing secure, ready-to-use APIs along with the computing infrastructure to support internal and external innovation.
Paystack, the first Y Combinator-backed Fintech in Nigeria, powers 15% to 20% of all online payments in the country for over 8,000 businesses. It has raised investments from Tencent, Comcast Ventures, and Ventures Platform.
Open Banking Nigeria is a not-for-profit organisations that drives the Open Banking initiative in Nigeria to extend non-partisan and non-financial API standards for financial services in the country. It advocates for open APIs to deliver innovation and choice to customers, businesses, fintechs and banks.