Al Etihad Payments (AEP), a subsidiary of the Central Bank of the UAE (CBUAE), has partnered with Core42, to implement Open Finance solutions in the country.
The Open Finance programme will commence with open banking followed by open insurance services. The service will be tested in phases which will provide access to the majority of customers in 2024, the CBUAE said in a press release.
All participants will be under the CBUAE licensing and supervision regulations.
The implementation of this technology was one of the nine initiatives within the CBUAE’s Financial Infrastructure Transformation (FIT) Programme.
“The implementation of Open Finance marks a significant advancement in the UAE’s financial services industry and its financial infrastructure transformation,” said Fatma Al Jabri, Assistant Governor for Financial Crime, Market Conduct and Consumer Protection at the CBUAE. “It will accelerate the adoption of digital financial services, providing more innovative and safer digital financial products and services in the country.”
The UAE is the first country globally to implement a consolidated trust framework and centralised API hub, with the goal of providing a single secure connection to access the whole of the banking and insurance markets, whilst ensuring that access is only granted, with customer consent, to third parties regulated by the CBUAE.
Open Finance provides a platform that allows customers to share the data of their financial products with third parties or other financial institutions, as well as initiate payments and other financial transactions via third parties.
AEP has also engaged with Ozone API and Raidiam as technology providers for the project.
