Saudi Central Bank launches Open Banking Lab Saudi Central Bank launches Open Banking Lab
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Saudi Central Bank launches Open Banking Lab

Saudi Central Bank launches Open Banking Lab

The bank is tracking the development of banks and fintechs to ensure their readiness to launch open banking services in Q1 2023

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Saudi Arabia's central bank launches open banking lab

Saudi Central Bank (SAMA) has launched the Open Banking Lab based on the Open Banking Framework issued by SAMA in November 2022.

The lab will provide banks and fintechs with a technical testing environment to enable them to develop, test, and certify their open banking services to ensure compatibility with the Open Banking Framework.

The implementation of open banking services is one of the initiatives of the Fintech Strategy, one of the pillars of the Financial Sector Development Program (FSDP) under Saudi Vision 2030.

The Fintech Strategy was approved by the Council of Ministers in May 2022 and aims to make the kingdom a global fintech hub.

The Open Banking Framework includes a comprehensive set of legislation, regulatory guidelines and technical standards based on international best practices to enable banks and fintechs to provide open banking services in the kingdom.

The first version of the open banking services focused on the Account Information Service, and the second version will focus on the Payment Initiation Service.

Saudi Central Bank is also tracking the development of banks and fintechs to ensure their readiness to launch open banking services within the first quarter of 2023.

In recent news, SAMA announced the launch of Basel III Final Reforms’ official implementation by Saudi Banks from January 1. This is in line with the internationally agreed timeline set by the Basel Committee on Banking Supervision (BCBS), the global standard-setter for the prudential regulation of banks.

Subsequently, SAMA has updated the prudential framework for Saudi banks’ capital risks to align with these reforms as part of its commitment to fulfil the expectations from Saudi Arabia as a member of the G20, and as a continuation of its endeavor to making the kingdom one of the leading countries in applying international standards.

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