Saudi Central Bank Launches Innovation Lab to Accelerate Development of Open Banking

The Saudi Central Bank (SAMA) has launched an open banking innovation lab to accelerate the development and adoption of open banking in the Kingdom.

The Open Banking Lab will provide fintechs and banks with a technical testing environment, allowing them to develop, test and certify their open banking initiatives and ensure their compatibility with the country's Open Banking Framework.

The framework includes a comprehensive set of legislation, regulatory guidelines and technical standards based on international best practices to enable banks and fintechs to provide open banking services in Saudi Arabia as early as Q1 2023.

Announcing the framework in November, SAMA said: "Open banking creates a positive impact in the industry by strengthening the partnership between banks and fintechs.

"It also improves the financial infrastructure and guarantees better use of financial data for customers."

The Open Banking Lab and Open Banking Framework are major planks in the country's Open Banking Program and wider "fintech strategy", designed to make Saudi Arabia a "global fintech hub".

Saudi Central Bank said it is tracking the development of banks and fintechs to ensure their readiness to launch open banking services within Q1 2023.