CBUAE Introduces Open Finance Regulation to Boost Innovation and Competitiveness

UAE, 28 June, 2024 :  The Central Bank of the UAE (CBUAE) has issued the Open Finance Regulation to enhance the soundness and efficiency of open finance services, promote innovation, and boost competitiveness. This move aims to reinforce the UAE’s status as a leading financial technology hub.

Part of the CBUAE’s Financial Infrastructure Transformation programme, the regulation mandates participation from all financial institutions under CBUAE supervision. These institutions, as data holders, must provide access to customer data and transaction initiation, subject to user consent.

The Open Finance Framework allows licensed financial institutions (LFIs) to utilize consumer financial data to create personalized services. Consumers can consolidate financial information with seamless data sharing across platforms.

Key components of the regulation include a Trust Framework, an API Hub, and Common Infrastructural Services, enabling cross-sectoral data sharing and transaction initiation. The platform provides a consumer consent model for sharing financial data with trusted third parties.

H.E. Khaled Mohamed Balama, Governor of CBUAE, stated that the regulation establishes global standards for open finance, accelerates digital financial service adoption, and empowers consumers with better financial solutions, driving competition and innovation.

The regulation, published in the Official Gazette, will be implemented in phases. It also amends the Retail Payment Services and Card Schemes Regulation. 

Source : www.centralbank.ae