Open Banking Market Projected to Reach $43 Billion by 2026, CMA Chairman Reveals

The Chairman of the Capital Market Authority (CMA) and the Financial Academy (FA) Board of Trustees, Mohammed El-Kuwaiz, recently highlighted the anticipated growth in the open banking market, projecting an increase from $7 billion in 2018 to approximately $43 billion by 2026. This forecast was shared at the conclusion of the Open Banking Hackathon, which took place from February 4 to 19. El-Kuwaiz emphasized the global acceptance and integration of open banking, underscoring its significant potential for innovation within financial services.

El-Kuwaiz also pointed out the crucial role of open banking in shaping the future of financial services, noting its ability to improve transparency, enhance customer experience, and encourage fair competition among financial institutions. He praised the Open Banking Hackathon as the Financial Academy's inaugural innovative initiative after revealing its new strategy. The event is designed to provide a knowledge-based and professional development experience, offering practical exposure to financial technology.

Furthermore, El-Kuwaiz discussed the development of specialized national capabilities in future technologies as a strategic move to position the Kingdom as a global hub for financial technology. This aligns with Saudi Vision 2030's Financial Sector Development Program. A study conducted in 2023 on training in the financial sector forecasted an increase in market value from SAR788 million to approximately SAR1 billion by 2026. It also predicted a surge in individuals seeking training and professional certifications, with expectations exceeding 130,000.

According to El-Kuwaiz, 75% of organizations have expressed their readiness to invest in human capital, recognizing its vital role in advancing the financial sector and achieving Saudi Vision 2030 objectives. The FA has unveiled a new three-year strategy aimed at becoming the preferred choice for entities in the financial sector looking to develop and enhance their human resources. The academy seeks to offer localized professional training and skill development, providing exceptional training facilities for all beneficiaries.

The Open Banking Hackathon attracted leaders and experts from the Kingdom's financial sector. FA CEO Mana Al-Khamsan mentioned that participants received intensive specialized training, expert guidance, and certificates from both the FA and internationally recognized institutions. The hackathon focused on Open Banking services and technologies, aiming to equip participants with knowledge and skills for tomorrow's financial landscape.

At the hackathon's closing ceremony, thirty talented young men and women from the Kingdom submitted their projects. The judging committee presented the projects evaluated, and the winner of this edition's hackathon was announced. The FA leverages its resources to deliver high-level initiatives and products that contribute towards achieving Saudi Vision 2030 objectives. The academy aims to advance the financial sector through a comprehensive strategy while adhering to global standards of innovation in financial services.