Home / Knowledge Hub / Events
Saudi Central Bank Launches Open Banking Initiative
Already an established protocol in the UK and Europe, Open Banking allows consenting customers to securely share their data with third parties. Once deployed in KSA in the first half of 2022, it will allow fintechs and other non-banks to create new financial products and services that make customer journeys simpler and more efficient.
A key part of Saudi Vision 2030
Open Banking will be a key component in the development of financial services in Saudi Arabia. It dovetails with the strategic priorities set out in both the Saudi Vision 2030 and the Financial Sector Development Program (FSDP), namely: developing the digital economy and supporting private sector growth in financial services.SAMA has done a lot of work in this area over the last couple of years, including the launch of Fintech Saudi in 2018, establishing a regulatory sandbox, issuing Payment Services Provider (PSP) regulation and launching licenses for financial institutions that aren’t banks.
Benefits of Open Banking
The next and possibly most important step on the digital finance journey is Open Banking. As has already been seen in territories that were the early adopters of the initiative, Open Banking brings a host of benefits to both customers and providers in the financial services industry. These include:- Stimulating innovation by enhancing opportunities to develop new products and services that will increase value proposition and create additional revenue streams;
- Increasing competition, reducing barriers to entry for new participants and providing them with a better understanding of customer needs;
- Improving financial inclusion in Saudi Arabia - Open Banking can expand access to credit for a larger number of people and help improve their financial awareness. This includes helping lower-income customers to reduce excessive expenditures, improving savings behaviors, and encouraging better control of finances;
- Creating greater efficiency in the banking system. Additionally, new technologies may reduce the cost of innovation providing an easy way to partnering with third-party providers.
Launch of Open Banking in Saudi Arabia
SAMA plans to go live with Open Banking during the first half of 2022. In order to meet this challenging deadline, the bank has already analyzed the adoption of Open Banking globally and collected feedback from local financial market participants.Now, SAMA is assessing the potential impact Open Banking may have on the Saudi financial sector and is working to identify the most suitable approach to implementing the initiative in the Kingdom.
Contact an Open Banking lawyer today
With experience working with fintech and financial services clients in other regions, we already have a working understanding of Open Banking. If you would like help with any aspect of this new initiative, please contact one of our experienced Open Banking lawyers today.Authored by Nadim Bardawil, Partner and Jean Abboud Senior Associate
Related Insights
GC Talks Seminar: Oman Labour Law - Common issues and new developments
In the post-pandemic era it has never been more important...
Removing risks and increasing returns in M&A: How insurance provides both
BSA Law Firm and United Insurance Brokers (UIB) are pleased...
International Women's Day 2022 - #BreakTheBias
Celebrate women's achievement. Raise awareness against bias. Take action for...
London Chamber of Commerce: Doing Business in Dubai
We will explore the comprehensive operational support needed to establish,...
Insolvency & Restructuring in the UAE: Practical Considerations for Corporates
Insolvency & Restructuring in the UAE in association with The...
AML Regulations and the Impact on the Insurance Industry
In association with Premium Insurance Magazine, BSA will be hosting...
Emirates Insurance Association: Third Annual Motor Conference
Fair Competition vs Aggressive Competition in Motor Insurance BSA are...
The New Companies Law in the Kingdom of Saudi Arabia: What to Expect.
On June 28, 2022, the Saudi Council of Ministers in the Kingdom of Saudi Arabia (the ‘Kingdom’ or ‘KSA’) approved...
The New Anti-Concealment Law in Saudi Arabia
As part of the Saudi Vision 2030, which aims to reduce the Kingdom of Saudi Arabia's (the "Kingdom") dependence on...
GCC Restructuring & Insolvency Report
The worldwide economic distress caused by the ongoing Covid-19 pandemic has certainly not spared the GCC region. The pandemic has...
Update Saudi Companies Law
Update to the Saudi Companies Law,Reporting of losses in Saudi Companies, Appointment of auditors, and Remote Board of Directors Meetings...
Clarified legal landscape for KSA offers investors potential new playground
Speedier commercial cases, reshaped economic rights for women and local HQ requirements all prove good news for cohesion in the...
Meritas Capability Webinar: The Road to 2030 - An overlook on Saudi Arabia and its business, investment and legal implications
The Road to 2030 - An Overlook on Saudi Arabia and its Business, Investment and Legal Implications Date: Tuesday, March...
Government Relief Measures for KSA during COVID-19
The General Authority for Zakat and Tax (GZAT) in the Kingdom of Saudi Arabia (KSA) has announced a number of...
Saudi Arabia Announces USD 31.9 Billion Stimulus Package to Mitigate the Economic Crisis Caused by the COVID-19 Outbreak
The Saudi Arabian government has recently announced a SAR 120 billion (USD 31.9 billion) financial stimulus package to mitigate the...
KSA – The Premier Hub for Startups in MENA by 2030
Context One of the key strategic aims of Saudi Arabia’s Vision 2030 is to shift its oil-dependent economy to a...
Wave of Transformation in Saudi Arabia
Over the past two years, citizens of the Kingdom of Saudi Arabia (KSA) have witnessed huge legal reforms related to...