The Central Financial institution of the UAE (CBUAE) has issued the Open Finance Regulation, a significant factor of its monetary infrastructure transformation programme.
This regulation goals to make sure the soundness and effectivity of open finance companies, promote innovation, improve competitiveness and bolster the UAE’s standing as a monetary expertise hub.
The brand new regulation mandates that every one monetary establishments supervised by the CBUAE should take part within the open finance framework regarding their merchandise in addition to companies.
Licensed monetary establishments (LFIs), as knowledge holders and repair homeowners, should present entry to buyer knowledge and the flexibility to provoke transactions, contingent on the specific consent of customers. This provision additionally goals to align companies with shopper wants.
The regulation
The framework is designed to facilitate LFIs in accessing and utilising shopper monetary knowledge to create personalised experiences and tailor-made choices. This regulation additionally allows customers to consolidate their monetary data by seamless knowledge sharing throughout platforms.
The regulation encompasses a belief framework, an utility programming interface (API) hub, in addition to a typical infrastructural companies. These parts collectively assist the cross-sectoral sharing of knowledge and the initiation of transactions on behalf of customers. The open finance platform additionally features a shopper consent mannequin for sharing monetary knowledge with trusted third events inside an built-in enterprise system.
H.E. Khaled Mohamed Balama, governor of the CBUAE, stated: “The introduction of open finance regulation establishes international requirements for open finance and accelerates the adoption of digital monetary companies. This
initiative allows licensed monetary establishments to harness shopper monetary knowledge.
“Alternatively, it empowers customers to acquire the very best monetary options, which is able to drive competitors and innovation. We’ll proceed our efforts to develop the monetary companies sector within the UAE and assist its competitiveness globally.”
The regulation, printed within the Official Gazette, may also come into impact in phases, as notified by the CBUAE.
