The Saudi Central Bank (SAMA) has unveiled its new open banking framework as the country prepares to launch open banking services early next year.
In order to allow banks and fintechs to offer open banking services in Saudi Arabia as early as Q1 2023, a comprehensive set of legislation, regulatory rules, and technical standards based on international best practises are included in the framework.
The action is a component of the nation's "fintech strategy" and wider Open Banking Programme. A strategy to establish Saudi Arabia as a "global fintech hub" was approved by the government in May of this year. It is also a foundational element of the nation's Financial Sector Development Programme (FSDP), which was created in accordance with the Saudi Vision 2030 strategy plan to strengthen and diversify the economy of the country.
According to SAMA, "Open banking has a positive effect on the industry by enhancing the relationship between banks and fintechs." Additionally, it strengthens the financial system and ensures that customers will have better access to their financial information.
According to the central bank, "a number of fintechs" are now able to offer open banking services as a part of the SAMA Regulatory Sandbox.
SAMA continues, "This step was taken concurrently with the Open Banking Programme in order to test certain novel business models and identify the legislative and technical constraints that were taken into account while building the Open Banking Framework.
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