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News

Central Bank of UAE issues new Open Finance regulation

Monday 3 June 2024 13:54 CET | News

Central Bank of UAE (CBUAE) has issued the Open Finance Regulation, set to establish a comprehensive framework to regulate licensing, supervision, and operation of Open Finance.  

 

As per the announcement, the new regulation will come into effect in phases. Seen as a major development in the UAE financial sector, the regulations will influence all categories of CBUAE licensees. 


According to spokespeople from the CBUAE, Open Finance regulation is likely to have a significant impact on the fintech domain in the UAE. The regulation opens up new opportunities for innovative services, mandates high security standards, and boosts competition. This could lead to more consent-driven, data-rich, collaborative, secure and customer-centric digital businesses and service models.  

Central Bank of UAE (CBUAE) has issued the Open Finance Regulation, set to establish a comprehensive framework to regulate licensing, supervision, and operation of Open Finance.

Furthermore, the fact that customers have control over their data and who can access it is a significant step forward in financial services, as it puts the power back in the hands of the consumer. 

Enabling collaborations 

A notable aspect of UAE’s Open Finance Regulation is its comprehensive approach, as it covers both Open Banking and Open Insurance. The new regulations mandate that financial institutions, including banks, insurance companies, and PSPs, allow third-party providers access to financial data. All CBUAE licensees comply with data sharing and service initiation requirements.  

The regulations allow financial institutions to innovate through collaborations across industries. Leveraging functionalities of their partners, they can develop new products and services, expanding the reach to customer segments previously unavailable. For financial institutions, Open Finance unlocks opportunities, where banks can experiment and develop new offerings, ultimately reaching new customer segments and streamlining operations. 

Source: Link


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Keywords: Open Banking, insurance, banking, regulation
Categories: Banking & Fintech
Companies: Central Bank
Countries: United Arab Emirates
This article is part of category

Banking & Fintech

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Central Bank

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