Saudi Arabia: SAMA Enhances Fintech Ecosystem With New Open Banking Framework Initiative

The Saudi Central Bank (SAMA) has unveiled the second phase of its Open Banking Framework, concentrating on the Payment Initiation Service (PIS). This initiative aims to bolster the Saudi Arabian fintech landscape by improving consumer experience and transaction efficiency. It also seeks to create new opportunities for the Kingdom's fintech sector to offer a broader range of products and solutions.

SAMA’s Open Banking Framework includes guidelines and technical standards derived from global best practices. These standards are designed to facilitate the provision of open banking services within Saudi Arabia. The latest release standardises how participants can securely and reliably offer PIS, ensuring clarity in the responsibilities of all stakeholders involved.

The framework's second release builds upon previous guidance related to Account Information Service (AIS). By doing so, it aims to enhance both the efficiency and security of payment services across the Kingdom. Consumers will now be able to initiate payment transactions securely from third-party applications under these new guidelines.

The Open Banking Program is a key part of the National Fintech Strategy, which falls under the Financial Sector Development Program (FSDP) as part of Saudi Vision 2030. Approved by the Council of Ministers in 2022, this strategy aims to position Saudi Arabia as a global fintech hub, thereby boosting economic empowerment for individuals and society at large.

The Payment Initiation Service (PIS) plays a crucial role in delivering this strategy by enhancing payment service efficiency and security. This initiative aligns with SAMA's broader efforts to strengthen the fintech ecosystem in Saudi Arabia.

For additional details, you can visit the Open Banking Program website at openbanking.sa.

With inputs from SPA