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The Open Finance Regulation issued by the Central Bank aims to establish a comprehensive framework for the licensing, supervision, and operation of an Open Finance Framework in the UAE. This will facilitate data sharing and transaction initiation on behalf of users, promoting innovation, competition, and consumer protection in the financial sector.
The Open Finance Framework consists of several key components, including :
- A Trust Framework,
- An API Hub, and
- Common Infrastructural Services.
The Trust Framework ensures that participants in the Open Finance ecosystem act honestly, ethically, and with integrity, contributing to the collective suitability of senior management.It also requires participants to have a record of good financial conduct and the ability to make independent decisions without conflicts of interest.
The API Hub includes an API Manager that aggregates participant APIs, providing a harmonized and standardized API for all underlying APIs integrated within the Regulation. This centralizes access and implementation for participants, streamlining the process of data sharing and transaction initiation.
The Regulation also outlines reporting and analytics platforms for analyzing operational data and key performance indicators across participants.
It also includes administration tools for managing, tracking, and resolving cases and disputes among participants, ensuring a smooth and efficient operation of the Open Finance ecosystem.
The Regulation mandates that Open Finance Providers establish clear terms and conditions with users, including schedules of fees and charges, contact details, and communication channels.
This transparency is crucial for fostering trust and accountability within the Open Finance Framework.
Click link below to access pdf -
Open Finance Regulation, CBUAE
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Contributor
Dr. Abhishek Jajoo is a seasoned executive and entrepreneur with expertise in corporate leadership, Fintech innovation, and ESG strategies. With an MBA in Finance and certifications in Blockchain and Python, he drives both corporate and startup success, guiding organizations towards sustainable practices and responsible business strategies.
