Saudi Central Bank launches Open Banking Lab
The lab is launched as per the Open Banking Framework issued by SAMA in November 2022.
The Saudi Central Bank announced the launch of the Open Banking Lab as per the Open Banking Framework issued by Saudi Arabian Monetary Agency in November 2022.
This Open Banking Lab would accelerate the development of open banking services in the country, according to a statement. The lab will provide banks and fintech companies with a technical testing environment to help them develop, test, and certify their open banking services to ensure compatibility with the Open Banking Framework.
The Open Banking Framework which was released in November 2022, includes a comprehensive set of legislation, regulatory guidelines, and technical standards based on international best practices. In its first version the focus was on Account Information Service (AIS), while the second version will take into account Payment Initiation Service (PIS).
What is the benefit of Open Banking?
Open banking could enable consumers of financial institutions to securely share financial data with a third-party provider, which in turn provides new and innovative financial services as well as products for this consumer base.
The implementation of open banking services is one of the initiatives of The Fintech Strategy—a pillar of the Financial Sector Development Program (FSDP) under Saudi Vision 2030. The Fintech Strategy was approved by the Council of Ministers in May 2022 with the aim to make Saudi Arabia a global Fintech hub.
Edited by Akanksha Sarma
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