The Saudi Central Financial institution (SAMA) has printed its plans to go stay with open banking throughout Saudi Arabia by the primary half of 2022.
The central financial institution is now coming into into the design section, which it says will take up the primary half of 2021. Within the second half of this yr, it plans to implement open banking.
In accordance with this timeline, SAMA is assured it could possibly go stay with open banking throughout the dominion by mid-next yr.
SAMA says it has already collected the suggestions from native market contributors forward of the design section.
Advantages for the dominion
SAMA says the expertise could have “a pivotal position” within the kingdom’s monetary sector.
The central financial institution cites “direct innovation”, “competitors”, “monetary inclusion”, and “better effectivity” as the important thing advantages following the 2022 go-live.
The discharge of its open banking roadmap can also be in step with the Saudi Imaginative and prescient 2030, which goals to cut back the area’s dependence on oil, diversify its economic system, and develop public service sectors.
The central financial institution additionally mentions the Monetary Sector Growth Programme (FSDP), which intends to assist personal sector development.
Bahrain was the primary nation within the Center East to undertake open banking rules. Mohammed Aziz, co-founder of Abu Dhabi-based fintech Dapi, instructed FinTech Futures back in May 2020 that Saudi Arabia was transferring “extra aggressively” in the direction of comparable rules inside the subsequent two years.
“The quick drawback is the dearth of connectivity,” he added. Which the likes of SAMA try to alter.
Progress up to now
In 2018, SAMA launched Fintech Saudi. The monetary physique is akin to UK Finance. It offers a voice to the dominion’s fintech ecosystem.
The identical yr, the central financial institution arrange a regulatory sandbox which housed a complete of 32 fintechs in its three-year-long operation.
Then in 2020, SAMA launched licences for non-bank monetary establishments. Thus far, it says it has licensed three fintechs.
Additionally final yr, the central financial institution launched Cost Companies Supplier Regulation (PSPR). SAMA designed it to offer a transparent path for PSPs to acquire licenses. Beneath these, they will present fee providers in Saudi Arabia.
Learn subsequent: Fintech Dapi takes on MENA’s scattered open banking landscape