Open banking in Namibia – Open Banking Nigeria

Namibia

Namibia’s Path Towards Open Banking

In November 2024, Namibia’s central bank, the Bank of Namibia (BoN) partnered with Konsentus to develop API standards that will support the implementation of open banking. This collaboration aims to enhance the regulatory framework and operational capabilities for open banking.

This initiative aligns with the National Payment System Vision 2021-2025, which recognized open banking as a key driver for consumer-focused, innovative payment solutions.

Key Drivers of Open Banking

Open banking was first identified as a key enabler of consumer-focused, innovative payment solutions in the country’s National Payment System Vision 2021-2025. This vision outlined the strategic direction for modernizing Namibia’s payment systems.

In October 2022, the Bank of Namibia released its first Position Paper on the Feasibility of Open Banking within the Namibian Financial Sector to create standards that would facilitate the adoption of open banking through a regulatory-led approach. This document outlined the potential benefits and challenges of open banking in Namibia, proposing implementation to begin in March 2024.

The Stakeholders in Namibia’s Open Banking Journey

The Central Bank: The Bank of Namibia (BoN) is leading the initiative to create a regulatory framework for open banking, focusing on creating the API standards and setting the framework for data-sharing protocols.
Konsentus
Konsentus is a global provider of open banking advisory services and centralised technology infrastructure. In March 2023, the BoN engaged Konsentus to develop the nation’s technical standards and guidelines for open banking, including rules for data sharing and consumer education initiatives.
Payments Association of Namibia (PAN):
PAN is the the principal self-regulatory body for the Namibian payments industry. In March 2023, PAN established the Open Banking Forum (OBF) to facilitate collaboration among banks, non-bank financial institutions, and regulators.
Open Banking Forum (OBF): Established by the Payments Association of Namibia (PAN), the Open Banking Forum (OBF) is a coalition of banks, non-bank financial institutions, payment institutions, and domestic regulators in Namibia all of which contribute to the strategic direction of open banking in the country.

Current Status

Namibia is in its early stages of open banking development with significant efforts underway to establish a regulatory framework and technical API standards for data sharing.

Looking Ahead

Open banking in Namibia is on the cusp of significant development, propelled by the central bank’s strategic partnership with Konsentu and its clear regulatory vision. While challenges exist as in many other countries, the opportunities for innovation and financial inclusion present a promising outlook for the future of the financial sector in Namibia.

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