Experts stated that: “The Open Banking Policy that is given approval by the Saudi Central Bank (SAMA) during Sunday is all forecasted to put the Territory’s Financial Technology (FinTech) firms across the territory due to their advanced as well as varied services.”
In an official statement stated by SAMA that this strategy would enable the Banking clients to robustly maintain their bank accounts as well as sharing their information with the third parties. Clients will also get direct admittance to personalized their financial products as well as services from within the same podium as well as appreciate smoother daily banking happenings.
A prior Saudi’s Banker, Fadhel Al-Buainain, stated that it is already an acknowledged fact that only the client as well as the Banks have all the permits for the confidential banking data. Following the execution of the new strategy, however, a third party can also have admittance to such data if the client grants it permission. In this way, clients will be able to firmly manage their bank accounts and share financial data.
Digital services will progress as they establish a noteworthy part of the strategy for evolving the finance sector, he explained, demonstrating that new financial establishments will be able to bid their services to clients, especially in the private sector. The data available to the credit and investment segments will also be boosted.
Al-Buainain, who is a member of the Saudi Financial Association noted that: “the overall rivalry between the Financial or Banking institutions will become a lot sterner once the policy has been executed. Institutions will compete over offering innovative financial products to attract more customers. Besides, customers can combine all bank accounts onto a single platform.”
“FinTech companies will take advantage of the most from the strategy because of their distressed necessity for financial data, which help them make comprehensive financing decisions. This in itself will upsurge the benefits that the digital sector will reap from the policy at a time when the finance sector needs a lot of digital development to keep pace with digitization,” Al-Buainain pointed out.
The strategy will also progress confidence among all stakeholders in an economic rapport, whether banks or fintech companies.
Dr. Abdullah Baeshen, a financial advisor, stated that the banking sector has witnessed major advances in terms of infrastructure and technology and is scrutinized closely by SAMA.
“The new open-banking policy will enable customers to use data easily and perform swift financial transactions through their bank accounts — the backbone of any industrial or commercial transaction and even in the stock exchange markets. In only a short amount of time, fintech paved the way for a major industry to emerge and become a centre of attraction in stock exchange markets,” explained Baeshen, who is the chairman of Team One Financial Consultants.
The new policy will mature the financial sector and benefit global banks penetrate the market, he said, noting that piracy, hacking and other electronic crimes endure to pose risks for accounts and might lead clients to be sceptical about a bank’s aptitude to shield its clients’ private information.
The Saudi Central Bank stated that the strategy would enable bank clients to tightly manage their bank accounts and stake their data with third parties.