Arab Financial Services (AFS) and Brankas are thrilled to unveil an illuminating white paper that offers a comprehensive exploration of the future of financial services in the MENA region, with a primary focus on Open Banking and Open Finance. Titled “The Future of Financial Services and Trust in the MENA Region,” this white paper serves as a beacon guiding the financial industry through the transformative landscape of Open Banking and beyond.
Some key insights from the white paper:
- Global Impact of Open Banking: As of August 2023, over 65 nations have embraced Open Finance, driving financial innovation worldwide.
- MENA Region’s Open Banking Momentum: The MENA region is poised for an Open Banking breakout period in 2023-2025, with countries like Bahrain, Saudi Arabia, and the UAE taking the lead.
- Evolution from Open Banking to Open Finance: Countries like Australia, India, Brazil, and the UK are extending the data sharing mandate to non-banking sectors, ushering in Open Finance and Open Economy.
- Opportunities for Financial Institutions:Â Open Banking offers various pathways for banks to innovate and drive digital transformation while addressing readiness levels.
- Collaboration for Maximum Impact:Â The success of Open Banking hinges on industry-wide collaboration, with key players including data aggregators, payment processors, cybersecurity firms, and identity verification entities.
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The white paper reveals compelling monetization strategies for open banking, including premium APIs such as Emirates NBD’s top API banking service, BaaS APIs that enable brands like Banque Saudi Fransi to provide financial services, and cutting-edge marketplaces like Mashreq Bank’s partnership with fintechs and startups.
“To truly harness the transformative power of open banking, banks must evolve beyond just ticking the regulatory boxes. The real journey begins when we shift our focus from mere compliance to leading the charge in innovation, embracing new paradigms, and adapting to the dynamic contours of a rapidly changing financial landscape. It’s about proactively shaping the future, not just responding to it.” Todd Schweitzer, CEO – Brankas
Trust is paramount in Open Banking. The white paper delves into the crucial levers for building a trust-centric Open Banking ecosystem, encompassing authentication, API security, privacy standards, and more. The MENA region emerged as a beacon of trust in the financial sector in the Statista survey from 2023. Among the 32 nations surveyed, the Kingdom of Saudi Arabia (KSA), Qatar, and the United Arab Emirates (UAE) clinched noteworthy ranks, standing 5th, 7th, and 10th, respectively. Such rankings not only underscore the intrinsic faith customers in these countries place in their financial institutions but also spotlight the profound relationship and rapport banks have cultivated with their clientele over the years.
“Open banking isn’t just a technological trend; it’s the bedrock of tomorrow’s B2B financial landscape in MENA. From the seamless integration of payroll systems and the effortless management of supplier invoices to the swift execution of employee reimbursements, the opportunities open banking brings to the fore are transformative. As financial industry leaders, our vision should be centered on not just adapting, but reshaping the financial contours of tomorrow.” Samer Soliman, CEO – Arab Financial Services
The white paper is a great resource for financial institutions, FinTech innovators, and industry professionals looking to navigate the dynamic and evolving landscape of Open Banking and Open Finance in the MENA region.
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