The Saudi Central Bank launches the second version of the Open Banking Framework to enhance payment initiation services
The Saudi Central Bank (SAMA) has announced the release of the second version of the Open Banking Framework, focusing on payment initiation services. This move is part of the Central Bank’s continuous efforts to strengthen the financial technology ecosystem in Saudi Arabia. The goal is to enhance customer experience, improve transaction efficiency, and create new opportunities in the sector to deliver expanded products and solutions to customers.
Open Banking Framework: Global Standards for Advanced Services
The Open Banking Framework includes a set of guidelines and technical standards aligned with global best practices. This framework aims to enable banks and fintech companies to offer innovative and reliable open banking services in the Kingdom. The new version will allow these entities to provide payment initiation services securely and efficiently, outlining the responsibilities and obligations for all relevant parties involved.
What is a Payment Initiation Service?
The payment initiation service is one of the core services offered by open banking. This service allows customers of fintech companies, both individuals and businesses, to initiate payments directly from their bank accounts to beneficiary accounts in a secure and seamless manner. Additionally, it offers customers multiple options to manage their bank accounts and improve their overall financial experience.
The Role of Open Banking in Achieving Saudi Vision 2030
The Open Banking initiative is part of the National Fintech Strategy, which is a key pillar of the Financial Sector Development Program under Saudi Vision 2030. The strategy aims to position the Kingdom as a global fintech hub, with a focus on fostering innovation in financial services through technology to promote economic empowerment for individuals and businesses.
The strategy was approved by the Saudi Council of Ministers in 2022, and the payment initiation service is expected to play a significant role in achieving the goals of this strategy. The service will help enhance the security and efficiency of payment services and enable safe and reliable third-party payment initiation through various applications.
A New Phase for Open Banking
This version of the Open Banking Framework marks a significant step forward following the launch of the Account Information Service in the initial phase. It is expected to drive further innovation in the payments sector, empowering more financial institutions to provide advanced banking solutions.
For more information about the Open Banking Framework and its services, visit the official program website: openbanking.sa.
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