Saudi Arabia’s Open Banking Plan Aims to Advance Digital Innovation
The rise of fintech with a transformation in customer preferences have influenced the finance and banking segment throughout the Middle East and North Africa (MENA) region. This was enhanced more when the UAE government stressed the need for digital transformation to promote digital innovation. The United Arab Emirates (UAE) government has assigned a significant portion of the money to digital innovation and raised several investments from the private sector to make sure that UAE rises as the financial center in the region. This has raised the importance of banking mobile app development companies in Dubai with more business owners realizing the need of promoting digital transformation.
Saudi Arabia’s Open Banking Plan:
- The Saudi Arabian Monetary Authority (SAMA) has announced an open banking policy to advance digital innovation in the financial services industry. Saudi Arabia’s central bank said that the idea is for open banking to be implemented in the first half of 2022. With speeded initiatives in this approach, the goal is to push modern digital technologies and develop advanced financial services and innovations. Open banking, which is employed across several countries promotes the link and approvals via users’ banking data and 3rd party financial platforms. This lets the secured sharing of all types of financial and banking data to let hassle-free money transfer and digital payments. Open banking will head towards direct innovation by upsurging the chances to build the latest services and products by themselves or by partnering with 3rd parties to enhance the value of financial businesses and develop extra profit channels as per policy documents.
- Open banking is an ideal way to leverage user’s data through various financial platforms without the worry of insecurity in employing financial data in advanced digital payment and transfers. It is also helpful for stakeholders to make use of the data linked with financial transactions to strategies and access the latest channels of administering finances. Customers will be gaining from the improved financial services and products ranging from getting all accounts into one dashboard to develop smooth journeys into regular banking tasks. Data are securely shared and customers get a chance to give their approval for accessing 3rd party services giving clear and up-to-date consent.
- Along with offering banking customers in the UAE with an opportunity to safely manage and share financial data, open banking will also help people to tailored services and products. This policy is also targeted to enhance believability among all the stakeholders in any kind of financial rapport. Open banking is predicted to enhance competition in the nation by decreasing the blocks for entry of new players. According to the report document, this initiative is also intended to evolve a financial insertion in the Saudi Arabia region via the development of the latest financial products tailored to precise customer sectors. This strategy aligns with the significance set for the Financial Sector Development Program (FSDP) and Saudi Vision 2030. The focus is mainly on promoting private industry development and encouraging a digital economy. Goals include developing a digital economy and fostering private sector growth to encourage participation by more entrepreneurs.
Has this digitalization impacted the job sector in the Kingdom?
- As per many studies, the job market has been established to be seriously influenced by digital transformation with the average age being below 30 for an employee in the Kingdom. As the stimulus being transformed all-inclusive the hopes of younger employees are also shifting and changing opportunities for the expectation of growing financially. There has been a high increase in the posts of finance managers and planning analysts specific to the profit predictions forming an important segment of strategies in the digital world. There also has been a huge demand for mobile app developers in Riyadh, Dubai, and the entire UAE with increasing fintech companies being set up in UAE.
- The Chairman of UAE Banks Federation, Abdul Aziz Al-Ghurair told that “trends like automation, new payment systems, and branchless banking have hugely changed the way customers bank. This has led to structural reorganization within banks, with fewer brick and mortar outlets, and employees being re-trained and re-deployed. Ultimately, there is an improved and more efficient customer experience”.
- With the shift of a huge number of customers to digital channels, banks have been changing and re-strategizing their sectors. This has made banks employ many skilled professionals who are aware of all the advanced technologies in the industry. There also has been an acquiring of overseas employees via long-term visa planning offering a decade of residency in the country.
- SAMA has the plan of going live during the first half of 2022 and has already researched the acceptance of open banking policy globally by accumulating the opinion of local financial market participants. It is presently assessing the possible influence of open banking on the financial segment of the UAE and is looking to find the most appropriate approach for adopting it in the Kingdom. SAMA says that “Open banking will lead to direct innovation by enhancing opportunities to develop new products and services — either ‘in-house’ or in collaboration with third parties – to increase financial players’ value proposition and create additional revenue streams. Along with offering banking users within the Kingdom how to safely manage and share financial data, open banking also will let common people have easy access to custom products and services.
Final thoughts:
Open Banking Plan Aims is expected to extend competition within the Kingdom by dropping the barriers to entry of new participants. Through the chances of advanced financial products customized to precise customer segments, the initiative is furthermore planned to cause financial inclusion in Saudi Arabia, reliable with the report. If you are a business owner looking to introduce a digital wave or upgrade the existing product by associating with Mobile App development companies in Saudi Arabia, your search ends at Brillmindz Technologies. We are leading App developers in Riyadh, Dubai, and the entire UAE with our experience in developing profitable mobile apps along with uninterrupted service for our beloved clients.
