SAMA issues ‘open banking policy’ to enable customers to securely share data

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The Saudi Central Bank (SAMA) issued today, Jan. 10, 2021, an “open banking policy” that enables customers to securely share their data with third parties.

The policy opens the door to create and provide new financial services as “open banking” plays a pivotal role in further developing the Kingdom’s financial sector, the central bank said in a statement.

The initiative falls in line with strategic priorities set in the Vision 2030 and the Financial Sector Development Program (FSDP). These priorities include developing a digital economy, enabling financial intermediaries to support private sector growth through open financial services to new players.

This policy allows all parties to benefit from data related to financial transactions, and to support innovative methods of managing funds, in order to enhance financial inclusion plans. The policy also includes the main objectives of implementing open banking in the Kingdom, and its positive effects on the financial sector.

Open banking will enhance confidence in customers and market participants from banks, financial technology companies, other financial entities, and stakeholders, the statement said.

The policy is envisaged to increase competition, reduce barriers to entry for new participants and provide them with a better understanding of customer needs. This will help participants to design and offer bespoke choices to customers and more competitive price.

Through the initiative, SAMA is nurturing the rise of digital technologies and their impact on the new financial services enabled by them, as well as building the regulatory framework needed to adopt these initiatives.

For more details, see the attached file: