The traditional model of microfinance operates on a foundation of proprietary data, where client information is siloed within individual institutions. This siloed approach creates significant barriers to innovation, preventing financial service providers from gaining a holistic view of a client’s financial life and limiting their ability to offer personalized and relevant products. Open banking, a modern framework built on secure data sharing and Application Programming Interfaces (APIs), is poised to revolutionize the sector. By allowing clients to securely share their financial data with a wider ecosystem of providers, it enables a new wave of services that can improve credit scoring, streamline loan applications, and offer a more comprehensive suite of products.

This course is designed to equip microfinance and digital finance professionals with the strategic and technical understanding needed to harness the power of open banking. You will explore how this framework fosters collaboration between MFIs and FinTechs, unlocks new revenue streams, and ultimately leads to better outcomes for clients. By demystifying the technology and regulatory landscape, this program will enable you to lead your institution's transition toward a more integrated and dynamic digital financial ecosystem that puts the client in control of their own data.

Duration: 5 days

Target Audience:

• Microfinance institution (MFI) managers and executives
• Digital finance and technology specialists
• Product managers and innovators in FinTech
• Professionals in business development and partnerships
• Risk management and credit analysts
• Policy and regulatory advisors
• Researchers in financial inclusion
• Operations and IT staff
• Social entrepreneurs and startup founders

Objectives:

• Master the core concepts of open banking and its relevance to microfinance.
• Understand the key components of an open banking ecosystem.
• Grasp the role of APIs in secure data exchange.
• Identify new business models enabled by open banking.
• Learn to navigate the regulatory and data governance landscape.
• Explore strategies for building a collaborative FinTech partnership.
• Understand the technical and operational requirements for API integration.
• Grasp the importance of a clear and secure client consent model.
• Identify and mitigate risks associated with open data sharing.
• Develop a strategic roadmap for adopting an open banking approach.

Module 1: Foundations of Open Banking

• Defining open banking and its global trends
• The difference between traditional and open financial models
• The business case for open banking in emerging markets
• The role of open banking in financial inclusion
• Key players and stakeholders in the ecosystem

Module 2: The Technology Behind Open Banking

• What is an Application Programming Interface (API)
• The different types of APIs (e.g., account information, payment initiation)
• How APIs facilitate secure communication
• The importance of standardized data formats
• The role of cloud infrastructure and modern technology

Module 3: Data Governance and Security

• The importance of a robust data governance framework
• The principles of data privacy and client consent
• Designing a transparent and secure consent model
• Best practices for data encryption and authentication
• The role of security protocols and standards

Module 4: Regulatory Frameworks

• A comparative overview of open banking regulations globally
• Understanding the difference between mandatory and market-led frameworks
• Key regulatory principles and their implications for MFIs
• The importance of a supportive policy environment
• The role of regulatory sandboxes

Module 5: New Business Models

• How open banking enables new product innovation
• The platform business model for MFIs
• Creating a marketplace of financial services
• Unlocking new revenue streams through data services
• The potential of open banking for credit scoring and lending

Module 6: Open Banking for Lending & Credit Scoring

• The limitations of traditional credit scoring for low-income clients
• Using alternative data from open banking APIs for credit analysis
• The role of real-time transaction data in risk assessment
• Designing dynamic loan products based on client data
• Case studies of open banking-powered lending

Module 7: The FinTech Partnership Ecosystem

• The strategic rationale for partnering with FinTechs
• Identifying and vetting potential partners
• Building a collaborative business and technical relationship
• The importance of a clear partnership agreement
• The FinTech as a service model

Module 8: Operational and Technical Integration

• The requirements for a core banking system upgrade
• The process of integrating APIs with a partner
• Developing an internal API management strategy
• Training staff on new technologies and processes
• Managing the technical and operational change

Module 9: The Client Experience in Open Banking

• Designing a seamless and intuitive user experience
• Providing transparency and control to the client
• The importance of clear communication about data sharing
• Building trust and managing brand reputation
• Using open banking to create personalized services

Module 10: The Future of Open Banking

• The convergence of open banking and open finance
• The role of AI and machine learning in analyzing shared data
• The potential of open banking to serve new client segments
• Future trends and emerging technologies in the ecosystem
• Building a resilient and agile institution for the future

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.a