Fidelity Bank Signs MoU with OTF to adopt open banking

Fidelity Bank Plc has signed a memorandum of understanding with the Open Technology Foundation (OTF) for the adoption of a standard Application Programming Interface (API) for its operations as a financial institution.

According to the report by the bank, it states that the move was consistent with its commitment to the adoption of innovative digital technology to drive its retail strategy, reduce cost and improving its revenue and returns.

Open Banking is a system that provides a user with a network of financial institutions’ data through the use of application programming interfaces (APIs).

The Open Banking Nigeria Standard defines how financial data and services should be created, shared and accessed. By relying on networks instead of centralisation, open banking helps customers to securely share their financial data with other financial institutions.

Commenting on the partnership, Fidelity Bank’s CEO, Nnamdi Okonkwo said, “As a digitally innovative and forward-thinking bank, we believe in the importance of investing in digital technologies and its significant contributions to shaping the future of banking globally”.

Okonkwo stated further that, the partnership with the Open Technology Foundation for the adoption of a standard, industry-wide API is a step in the right direction and is in alignment with our commitment to digital innovation, for the satisfaction of our customers,” he explained further.

The Open Technology Foundation was established to analyse the need of the industry for a common API standard among banks and other financial institutions, develop the common API standards, provide a sandbox and other testing tools for certification, promote the adoption of an Open Banking standard with stakeholders across Nigeria, and to enable further innovation in the financial services industry.