The world is moving towards an open-data economy, and the banking industry is no exception. Open banking, a trend gaining momentum globally, is poised to revolutionize the way financial data is shared and used. In Nigeria, fintech and banking executives are leading the charge, driven by the country's focus on consumer privacy and data protection.

At its core, open banking allows customers to voluntarily share their financial data with third-party providers, facilitated by technology such as APIs. This shift in power dynamics empowers customers to control who accesses their financial information, potentially reshaping competition and consumer choice in the credit market.

The implications are significant. Fintechs, traditionally at a disadvantage due to limited data, can now access customer bank data, enabling them to offer tailored financial products and level the playing field with traditional banks. This increased competition could lead to better rates for borrowers, but also raises concerns about the potential for fintechs to gain too much of an advantage, ultimately hurting borrowers.

As open banking gains traction, regulators, fintechs, and traditional banks must navigate the complexities of data sharing, customer consent, and competition. One thing is clear: open banking has the potential to transform the lending landscape, and its impact will be felt across the fintech and startup ecosystem.