Saudi Arabia establishes open banking framework
Saudi Arabia wants to grow its fintech sector in line with its diversification plan, but finding the right talent could be a challenge.
The Saudi Central Bank announced the launch of its open banking framework yesterday.
The framework includes laws, guidelines and technical standards for banks and fintech firms offering open banking services in the kingdom. The measure is in line with Saudi Arabia’s Vision 2030 economic diversification initiative, the official Saudi Press Agency reported.
What it means: Open banking is a practice whereby a third party gains access to customers’ financial data to offer more advanced and innovative banking services.
The Saudi Central Bank’s open banking framework includes rules entities must adhere to in order to be able to offer open banking services, customer guidelines and technical specifications. The bank also launched an “open banking lab” where banks and fintech companies can test their services in a simulator.
