Prospects and legal considerations for open banking in Africa

Abstract

This research examined the potential and legal implications of Open Banking in Africa by utilising selected jurisdictions such as Nigeria, United Kingdom, and Australia which have Open Banking frameworks and South Africa as a developing Open Banking jurisdiction as cardinal points and case studies. This study was motivated by the fact that the adoption of Open Banking is generally low across African countries, and this presents itself as a barrier to the growth of Fintech on the continent. This research is significant because it addresses the numerous legal, regulatory, and institutional issues that are critical for establishing a strong Open Banking regime from an African perspective. The key arguments in the thesis were that (1) A regulatory model of Open Banking should be adopted by African Countries as it better attends to the peculiarities of the African Continent (2) There should be a dedicated sub-unit within the regulator devoted to addressing regulating the significant risks of Open Banking (3) There should be a cross-border approach to Open Banking in Africa that is not limited by data localisation. This thesis engaged in analysis and interpretation of legislation in the United Kingdom, Nigeria and Australia and literature leading to recommendations to strengthen the Open Banking eco-system. In addition, this thesis includes a Model Law that African countries can use to establish their Open Banking scheme.