At some point, you’ve linked your bank to at least one third-party finance app. Mid-transaction, a wall of dense text appeared on your phone — the Terms of Service — along with a prompt to click “Allow.” You clicked. Then you moved on. And you forgot.

Here’s what you didn’t know: that permission probably didn’t expire. The app may still be inside your financial data right now.

This entire possibility is driven by something called Open Banking.

What is Open Banking, really?

Open Banking is a system that lets you authorise your bank to share your financial information with other apps and services. The keyword is authorise. This event can only happen with your permission via a secure technical connection called an API.

Think of it like a restaurant. You’re at the table. The kitchen holds everything: your money, your transaction history, and your spending patterns. You can’t go to the kitchen, and the kitchen can’t come to you. An API is the waiter: it takes your order to the kitchen, brings back exactly what you requested, and nothing else comes out unless you asked for it.

In August 2025, the Central Bank of Nigeria officially launched its Open Banking framework, making Nigeria the first African country to formalise this system. That means the ecosystem is now regulated and expanding. More apps will connect to more banks, and more data will flow. More people will click “Allow” and forget.

When you grant access, an app can verify your income without you having to upload 12 months of bank statements. A savings product can automate deductions based on your actual spending. A loan app can assess your creditworthiness in minutes. 

But what you’re sharing to make all of this possible is significant: your account balance, your transaction history, and your income patterns. Together, they form a detailed profile of your financial life.

Before Open Banking, only your bank held that profile. Now, several apps can. Some of which you’ve already forgotten about.

Anechile Okoaye, Product Delivery Lead at Credit Direct, describes the risk with a metaphor that sticks: “Exes are tricky. They know just enough about you to hurt you. They have access to your old habits, your weak spots, and your secrets. Now, imagine that in the digital finance world.”

The metaphor makes sense. Every transaction is a secret. Every consent checkbox or API you engage with is an “ex” who now holds that secret.  The loan app you used once in 2022 and never returned to may still have read access to your account. The savings app whose founders sold the company? The new owners may have inherited your data. 

“In Open Banking, access is permissioned, but if mismanaged, the consequences can be dramatic,” Okoaye said.

How your data becomes a money problem

Here’s a possible event that an access and data mishap can unwittingly enable:

An app you connected to your bank is breached or has weak security. Your transaction history is now accessible to someone you never agreed to share it with. That data contains everything a fraudster needs: your income patterns, your regular transfers, what you spend on rent, and when your account is likely to have money in it.

Armed with this information, they craft a credible-looking phishing message. Or they impersonate you when contacting your bank. Or they sell the data to someone who does either of those things. Your account is drained. Sometimes the money comes back. Often it doesn’t.

The good news is that this is largely preventable. “Consent is the superhero of Open Banking,” Okoaye said. “Without it, nothing moves.” 

Under Nigeria’s framework, consent is supposed to be explicit (you choose who gets access), granular (which data, for what purpose, for how long), revocable (you can withdraw at any time), and transparent (you always know what’s being shared and why). “Think of it as the ultimate ex-proofing system. No shady ex — or app — can sneak in unless you let them.”

The CBN’s rules require all third-party providers to register, log every access to your data, and face real penalties for unauthorised use. That’s meaningful protection. But it only covers licensed and registered. 

What you can do to protect yourself

According to Okoaye, there are a few things you can do to monitor how your financial data is accessed and used. First, be clear about the permissions you grant when allowing an app access to your financial data. While it’s easy to click “Allow All,” you should resist the urge to do so. Specify what the app can see. 

When connecting new apps in future, look for time-limited permissions — some apps only need temporary access.  When you can, set expiration dates for all permissions. An app insisting on permanent, unlimited access to your account data is asking for more than the service requires. 

For apps you still use, check how much access they have, the data they’re using, how often this data is used and for what purposes.  If an app has more access than it needs to function, that’s worth investigating.

Open Banking is not going away; more data is flowing between more financial institutions. The convenience it enables is real, and for people who’ve been excluded from traditional financial services, the access it creates matters. But convenience without a sense of security can leave you with an ex who still has your keys. 

Regulation exists to protect your data and your money. Go a step further: Check your permissions. Revoke what you don’t need. Treat your financial data like the asset it is.