SAMA issues second release of Open Banking Framework

The Saudi Central Bank (SAMA) headquarter

The Saudi Central Bank (SAMA) issued the second release under the Open Banking Framework, focused on the Payment Initiation Service (PIS), as part of the efforts to strengthen the Saudi Arabian Fintech ecosystem.

The framework aims to enhance overall consumer experience and transaction efficiency and open new opportunities for the Fintech sector to offer expanded products and solutions to customers.

The Open Banking Framework includes a set of instructions and technical standards in based on international best practices to facilitate the provision of open banking services in Saudi Arabia.

This second release of the framework standardizes how participants can offer PIS in a reliable and secure manner. The framework also clarifies the responsibilities of all stakeholders involved in the provision of PIS.

Under PIS guidelines, individual and institutional clients of Fintech companies can create payment transactions directly from their bank accounts to beneficiaries’ accounts securely.

Moreover, this service will enable clients to better manage their bank accounts, and will provide them with multiple innovative options to conduct their financial transactions.

The Open Banking Framework is one of the initiatives of the National Fintech Strategy, one of the pillars of the Financial Sector Development Program under Saudi Vision 2030.

Approved by the Council of Ministers in 2022, the strategy aims to make the Kingdom a global center for Fintech. In addition, the framework aims for technology-based innovation in financial services to be the core, enhancing the economic empowerment of the individual and society.