Al Etihad Payments (AEP), a subsidiary of the Central Bank of the UAE (CBUAE), has entered into a partnership with Core42 to commence the implementation of Open Finance across the nation.
Open Finance stands as one of the nine initiatives under the CBUAE’s Financial Infrastructure Transformation (FIT) Programme.
Core42, a G42 company, operates as a comprehensive AI enablement solutions provider.
For its Open Finance implementation, AEP has enlisted Ozone API and Raidiam as technology providers within the consortium led by Core42.
This launch aligns with the UAE’s overarching vision to set global benchmarks for the open finance sector, striving to establish the most robust open finance mechanism worldwide.
Open Finance Boosts Customer-Centric Financial Innovation and Integration
Open Finance facilitates innovation in products and services, crucially enabling financial services to adopt a more customer-centric approach and integrate seamlessly within the digital ecosystems of other industries to support and enhance their services.
All entities participating in this sector will fall under the regulatory purview and licensing of the CBUAE.
The Open Finance initiative will kick off with Open Banking, followed by Open Insurance, with plans to extend access to the majority of customers by 2024.
Fatma Al Jabri, Assistant Governor for Financial Crime, Market Conduct, and Consumer Protection at the CBUAE, highlighted that the implementation of Open Finance signifies a significant step forward for the UAE’s financial services industry and its broader financial infrastructure transformation.
“It will expedite the adoption of digital financial services, offering more innovative and secure digital financial products and services within the country.”
Moreover, it will deliver a seamless financial experience, empowering consumers to manage their finances effectively and access a diverse array of financial products,” she stated.
The UAE takes the lead globally in implementing a consolidated trust framework and centralised API hub, facilitating a secure single connection to access the entire banking and insurance markets, with access granted only to third parties regulated by the CBUAE, with customer consent.
This initiative forms a vital component of the CBUAE’s ongoing endeavours to realise its vision and strategic goals, opening up new avenues in the financial services sector and enhancing digital financial inclusion.
Open Finance offers a platform empowering customers to securely and efficiently share their financial product data with third parties or other financial institutions, enabling them to initiate payments and other financial transactions through third parties, as well as obtain quotes for prospective financial services.
