About Open Banking

 

Open Banking is a technological innovation that enables customers to securely share their data with third parties. In recent years, several fintech companies have emerged, presenting new business models that would benefit from access to customers’ data. This opens the door to create and offer new financial services.

 

Open Banking represents an opportunity for stakeholders to leverage on the data associated with financial transactions to imagine and access new ways of managing money. On the other hand, customers will benefit from better financial products and services, ranging from bringing all accounts into a single dashboard to creating smoother journeys into daily banking activities. Data are securely shared, and customers have a choice to consent to give access to third-party providers providing explicit and informed consent.

 

Open Banking will enhance trust both in customers and market participants, namely banks, fintech companies, other financial players, and their stakeholders, all of which have a pivotal role to play in this journey towards innovation and financial inclusion.

 

Open banking is a regulated banking practice that provides third-party financial service providers open access to consumer banking, transaction, and other financial data from banks and non-bank financial institutions through the use of application programming interfaces (APIs). Open banking will allow the networking of accounts and data across institutions for use by consumers, financial institutions, and third-party service providers. Open banking is becoming a major source of innovation that is poised to reshape the banking industry in KSA.