The modern world is connected with APIs and Nigerian banks are no different. All Nigerian banks, from commercial banks to merchant banks use technologies and API integrations to run their businesses. Any time you use your card to do a transaction at a corner shop, or use a bank’s mobile app to transfer money, there are many APIs talking to each other to ensure your funds get their instantly.

Unfortunately, while all the banks offer the same services, they do these with their APIs in wildly different ways. This means as simple as getting a bank account balance is, a fintech building an innovative app that connects to all banks would integrate into each using a different method.

Imagine integrating into 23 different banks using 23 different approaches.

The various approaches to APIs for banking integration leads to a lot of frictions, delays, frustration with the end result being lack of innovation or getting something simple done takes time and cost unreasonable amount of money.

This problem, not unique to Nigeria, is what has led to the standardization of APIs for banking which is globally known as open banking, a concept that is incredibly simple but powerful.

Open Technology Foundation (OTF), popularly known as Open Banking Nigeria (OBN) is at the forefront of Open banking in Nigeria. The not-for-profit organization was set up by veterans of the Nigerian banking and fintech industries in 2017 with the overarching objective of boosting the nation’s economy through the reduction of barriers to innovation and financial inclusion.