Most business owners in Nigeria are sitting on opportunities they don’t even know exist. While everyone is busy talking about “scaling up” or finding the next big import deal, there’s a quiet revolution happening right under our noses—open banking.
The funny thing is, the very people it could help the most are the ones who seem to think it doesn’t concern them.
Open banking isn’t some far-off idea for tech bros or a project reserved for CBN to brag about. It’s a real opportunity for any business owner who’s ready to use it. Imagine being able to instantly verify if your customers are creditworthy, access their financial data (with their permission), and tailor your services directly to their needs—all without being a bank yourself.
And in a market where most SMEs are struggling to even get loans or verify a potential client’s credibility, this changes everything.
The real question isn’t whether open banking can help your business. It’s whether you’ll be the business owner who finally stops running on old assumptions and taps into what’s actually available. Because while many will sit and watch, complaining about how nothing works in Nigeria, a few will leverage open banking and change the game entirely.
If you’re ready to stop being left behind, let’s talk about how open banking can actually give you an edge in today’s market.
1. Gain better insights into customer behavior
Understanding your customers is the key to running a successful business, and open banking can help you do that on a whole new level. Imagine having access to actual data that shows how and where your customers spend their money—this isn’t guesswork anymore, it’s fact.
With open banking, businesses can access customer data with their consent, which means you can see what they buy, how often they buy, and what they value most.
If you’re running a retail shop, you could see that a group of customers frequently buys certain products, which means you can create targeted discounts or bundles to keep them coming back. If you’re offering a service, you can use these insights to understand what additional services might interest your customers and market to them more effectively.
The more you understand your customers, the more you can meet their needs—and open banking gives you that insight directly from their banking data.
2. Easier credit and financing options
Accessing credit as a business owner in Nigeria has always been tough. Banks often look at small businesses with suspicion, mainly because they don’t have enough data to determine if giving you a loan is a good idea. With open banking, that changes.
Instead of spending weeks trying to gather financial statements, open banking allows you to share your financial history directly from your bank. This gives lenders a much clearer picture of your cash flow and spending habits, which makes it easier for them to approve your loan.
For example, applying for a loan to expand your inventory. Instead of providing stacks of paperwork, open banking lets the bank access your financial information in real-time. They can see that you have a steady income and good financial discipline, making it more likely they’ll approve your loan.
Not only does this save time, but it also increases your chances of getting that much-needed financing to grow your business.
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3. Faster customer verification for payments
If you’re in a business that involves large transactions or credit sales, verifying customer payments can be a huge problem. With traditional methods, you might spend days waiting for checks to clear or figuring out if a customer’s bank account is legitimate. Open banking solves this issue by allowing you to verify customer bank accounts instantly.
Imagine you run a car dealership and a customer wants to pay through a bank transfer. Instead of waiting to confirm if the funds are genuine or if the account information is accurate, you can use open banking to verify everything in real-time.
This means you avoid fraudulent transactions, reduce delays, and provide a smoother experience for both you and your customers. It adds a layer of security and efficiency that can make your business stand out.
4. Seamless payment solutions
Payments are at the heart of any business, and open banking is changing how payments work in Nigeria. With traditional card payments, there are often high fees and long processing times, which can eat into your profits. Open banking allows customers to pay you directly from their bank account, bypassing card networks and their associated fees.
For a small business, this means lower transaction costs and faster payments. Imagine a customer paying for your product online—they can now do so directly from their bank account, which means the payment is processed faster and at a lower cost to you.
This is especially important for high-value transactions where card fees can become significant. It’s about making the payment process as smooth as possible for customers while maximizing what you keep in your pocket.
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5. Assess the creditworthiness of your customers
For businesses that sell on credit—whether you’re a wholesaler providing goods to retailers or a service provider offering installment payments—open banking helps you assess your customer’s creditworthiness. Traditionally, it’s a guessing game, and often you end up with customers who can’t pay back what they owe.
With open banking, you can ask for your customer’s consent to access their financial data. This data can give you a clear picture of their spending habits, cash flow, and general financial health.
6. Create personalized product offerings
No two customers are the same, and in Nigeria’s diverse market, personalization can set you apart from your competition. Open banking allows you to create more personalized products based on the insights you gather from your customers’ data. This means you’re not just offering generic products—you’re providing what individual customers actually want and need.
This kind of personalization builds loyalty—customers are more likely to stick with a brand that understands their needs and rewards their loyalty. With open banking, you have the data you need to do exactly that, leading to better customer satisfaction and increased repeat business.
Featured read: 3 things that are sometimes mistaken for open banking but not
7. Build trust with transparent services
Trust is everything in business, especially in Nigeria, where skepticism around financial services is high. Open banking offers a new level of transparency that can help you build that trust. When customers know how their data is being used, that their permissions are respected, and that they’re in control, they’re more likely to trust your business.
For instance, using open banking allows you to be completely transparent about payment processes. If a customer wants to know how payment is being handled, you can show them exactly what’s happening in real-time.
You can also be open about what data you’re accessing and why, helping them understand that everything is done with their consent and for their benefit. This level of transparency is uncommon, and offering it can help you stand out in a market where many businesses still operate with opaque practices.
8. Collaborate with fintech companies to expand service offerings
You don’t need to reinvent the wheel to benefit from open banking—you can collaborate with fintechs that are already doing innovative work. Through partnerships, you can add value to your business without developing everything from scratch. For instance, if you own an e-commerce platform, you could integrate with a fintech that offers credit at checkout, allowing your customers to pay over time.
These collaborations mean you can offer more services—like installment payments, loyalty programs, or even savings plans—without the headache of building the technology yourself. It’s a win-win that also positions your business as modern and customer-centric.
Are you ready to transform your business?
Open banking has the potential to fundamentally change the way businesses operate in Nigeria. From offering better insights into customer behavior and improving payment solutions to automating bookkeeping and collaborating with fintech companies, the opportunities are endless for business owners willing to embrace the change.
The real question is: will you tap into these opportunities or watch from the sidelines while others leverage open banking to grow?
