RIYADH, March 26 (Xinhua) -- The Saudi Central Bank (SAMA) announced on Thursday the start of licensing fintech companies to provide open banking services.
SAMA said the step is aimed at advancing financial inclusion and broadening access to financial services for all segments of society.
Open banking services are a modern financial concept that allows banks and other financial institutions to share customer-permissioned data with third-party providers through secure digital channels. In Saudi Arabia, customers will be able to securely share their financial information with SAMA-supervised entities offering new financial products and services.
SAMA noted that open banking is expected to generate positive effects across the sector by strengthening partnerships between banks and fintech firms, improving financial infrastructure, and enabling better use of customer financial data within a secure regulatory framework that protects privacy and ensures information sharing is subject to customer consent.
SAMA added that the Open Banking Program forms part of the National Fintech Strategy, one of the key initiatives under Saudi Vision 2030, which seeks to position the kingdom as a global fintech hub and promote technology-driven financial innovation to enhance economic empowerment for individuals and society.
