Dubai, UAE – The Arab Open Banking is expected to experience 25% annual growth over the next five years, a report by the Arab Monetary Fund (AMF) predicted.
The AMF will support Arab central banks in adopting effective frameworks for Open Banking and Finance initiatives.
The report, titled “Guidelines for an Effective Open Banking/Finance Adoption,” was developed in collaboration with the Arab Regional Fintech Working Group (WG), 10 Arab Central Banks, and the regional Open Banking firm Fintech Galaxy. It delves into the landscape of Open Banking and Finance in the Arab region, highlighting key developments and challenges in various Arab countries, including Jordan, UAE, Bahrain, Saudi Arabia, Iraq, Oman, Palestine, Kuwait, Egypt, and Morocco.
The report also explores global regulatory frameworks, best practices, requirements for adoption, deployment challenges, and lessons learned from global experiences. It emphasizes the need for a comprehensive regulatory framework, covering aspects such as data sharing, consent mechanisms, data security, identification of regulated Third Party Providers (TPPs), and more.
The report suggests incorporating relevant frameworks and enabling the market to leverage the potential of Open Banking and APIs. This can lead to the deployment of various financial services, including account aggregation, credit scoring, digital identity verification, digital lending, and more.
It underlines the importance of consultation and dialogue with stakeholders when developing Open Banking regulations, providing a step-by-step guide for establishing successful Open Banking and Finance frameworks, emphasizing the need for customization according to each country’s unique conditions and regulatory environment.
“Prepared in partnership with Fintech Galaxy and Central Banks from various Arab countries, this guideline offers a roadmap that everyone can learn from and grow with as it simplifies complex concepts and helps fast-track Open Banking adoption across the region,” Mirna Sleiman, Founder and CEO of Fintech Galaxy, said. “The collaborative approach aims to share best practices, present new opportunities and create value to all parties.”