KPMG has advised Nigerian banks and financial institutions to fast-track their preparedness for the rollout of open banking, expected to launch nationwide in August 2025. The call was made in its latest report, Modernising Core Banking Systems: Navigating Challenges to Achieve Resilient Transformation, released Thursday. The document reflects insights from the 2025 KPMG Core Banking Modernisation Summit and outlines strategic recommendations for financial players navigating the shift to open banking.
Open banking allows customers to authorise their banks to share financial data with third parties—such as fintech firms, neobanks, or other banks—via secure Application Programming Interfaces (APIs), enabling more personalised and customer-centric products.
KPMG described open banking as a “powerful catalyst” driving innovation, collaboration, and financial inclusion in Nigeria’s banking landscape. It noted that open APIs are already being used to power solutions such as virtual accounts, digital card management, payment rail integrations, and merchant gateways, thereby enhancing access and efficiency.
“Open banking is paving the way for financial services innovation through ecosystem collaboration and partnerships,” KPMG stated, warning that traditional institutions must act quickly to modernise their core infrastructure to keep pace with regulatory timelines and evolving customer expectations.
According to the firm, legacy banking systems can no longer meet the demand for speed, flexibility, and digital-first services. It urged banks to rethink their technology strategy in order to remain competitive against emerging digital-native challengers.
KPMG further emphasised that the successful rollout of open banking will depend on banks’ ability to ensure API readiness, adapt operations for third-party service integration, and address data governance and security issues.
Beyond improved customer service, the report highlighted that open banking could deepen financial inclusion by leveraging alternative data sources such as mobile usage and utility payments to better serve underserved communities.
The Central Bank of Nigeria (CBN) had issued a regulatory framework for open banking in 2021 and confirmed plans to officially launch the initiative by August 2025.
