Maximizing potential emerging from Open Banking regulations in the ME
- Published
- 5 min reading
Bahrain is already leading the open banking arena, launching the framework in 2020. Now, KSA and UAE are also quickly catching up.
Open banking aims to provide third parties with access to a bank’s systems and customer data. This improves convenience by aggregating multiple accounts from different banks in one place. It also supports innovation because more players can create new products and services by gaining access to these systems with open application programming interfaces (APIs).
This type of policy significantly reduces the barriers to entry for startups and supports their innovative and disruptive potential. It also demonstrates the country's commitment to diversifying its financial services sector, a key objective of Saudi Vision 2030 and a step toward making the country a regional and global fintech hub. This would vastly increase the number of fintech companies operating in the Kingdom and create thousands of new jobs.
To make the most of the opportunities the open banking revolution offers, it is good to consider incorporating a modern platform that will give flexibility and control to navigate the exciting world of fintech and various additional external services. This approach can empower financial institutions with advanced cloud-agnostic technology based on microservices without the necessity of completely rebuilding existing solutions. The ability to plug the platform into existing working environments (like the current transaction banking system) is essential. Rebuilding systems takes a lot of time that can be saved and used to bring new value to customers instead.
An excellent example is Comarch Open Platform, a central navigation point that delivers a seamless experience for end-users and covers plenty of essential functionalities – starting from the highest level of security across all internal and external services, including aspects like user behavioral analysis to detect unusual activity quickly. Utilizing a carefully designed integration hub and API gateway highly improves the connectivity and communication between various elements of the ecosystem – starting from the internal front and backend systems (which often are a little bit outdated) through external accounts (AIS/TPP) to partners, fintech or data sources (public databases, quotations, etc.). However, these additives wouldn’t be functional without proper data aggregation. Intuitive, well-organized navigation through all value-added services is a must to avoid confusion among users. There needs to be an editable dashboard welcoming users with the most essential information from the whole ecosystem and allowing us to adjust it to everyone’s individual needs – by choosing which elements should be presented and hiding the ones that are not currently necessary.
A good platform should also allow for high customization and extensibility. Low-code and no-code tools can give institutions another competitive edge to introduce new functionalities and products at an unparalleled pace. With Comarch Open Platform, business users can add new forms, workflows, or marketing campaigns without any technical knowledge, thanks to intuitive visual creators. This unlocks the potential for business managers not to be so dependent on tight IT deadlines and can help to focus more on addressing customers' needs.
As more GCC countries adopt open banking regulations, cross-border collaboration can enhance regional financial integration and strengthen the Middle East’s role as a global hub for financial operations fueled by innovations and investments.
From that perspective, having the best possible foundation in the world of connectivity and data flowing in all directions can be essential. Keeping track of all of this with APIs and aggregating vast amounts of data in an accessible way opens the door to the effective application of AI. Without having these basics, well-prepared AI can be a tough nut to crack.
Open banking can allow financial institutions to gain more clients and increase profits. However, to maximize this opportunity, they may need to choose the right platform. Comarch Open Platform is just what you need to give you a proper competitive edge.
Business Solutions Consultant
