How open finance in UAE banks is driving faster credit and new services

UAE banking sector is entering a new phase of digital transformation as open finance begins to roll out, allowing individuals and businesses to securely share and initiate services such as payments through regulated third-party providers, all within a strict, consent-based framework. 

Jamal Saleh, Director General of UAE Banks Federation (UBF), said open finance marks a “quantum leap” in how financial services are delivered, positioning the UAE at the forefront of global innovation. 

“As the world enters a new era driven by data, digitalisation, and customer-centric innovation, open finance presents a promising opportunity for the UAE to further consolidate and extend its leadership,” Saleh told Gulf News.

What it means for bank customers

Under open finance, customers – both individuals and businesses – can choose to share their financial information securely with licensed institutions and fintechs. This enables services such as account aggregation, faster payments, tailored financial products and more accurate credit assessments, while maintaining high standards of security and trust.

“Open finance enables individuals and businesses to securely share their financial data, with their consent, across a broader ecosystem of regulated financial institutions and service providers. This shift empowers customers, unleashes innovation, and enhances competition,” Saleh noted.

Faster access to credit, personalised solutions

For individual consumers and small and medium enterprises (SMEs), open finance is expected to translate into faster access to credit, personalised financial solutions, and smarter decision-making, as banks and service providers gain a more holistic and permission-based bird’s eye view of customers’ financial profiles. 

Enhanced data sharing will allow financial institutions to better assess risk, shorten approval timelines and design financing solutions that are aligned to SME needs. 

“SMEs are projected to grow more with open finance, which will support entrepreneurship, boost productivity and align with UAE’s economic diversification strategy,” Saleh underlined.

CBUAE framework strengthens trust

The rollout is anchored in Central Bank of the UAE (CBUAE)’s open finance framework, which governs licensing, supervision and operations. The framework includes a trust framework, an Application Programming Interfaces (API) hub, and shared infrastructure that enable secure data sharing and transaction initiation on behalf of users. 

“Built on strong governance, clear consent frameworks, and advanced cybersecurity standards, open finance framework strengthens confidence in the financial system,” Saleh noted.

ADIB rollout marks milestone

This week, Abu Dhabi Islamic Bank (ADIB) rolled out open finance services, marking a key milestone under AlTareq – CBUAE’s national open finance initiative. 

The move gives ADIB customers greater visibility and control over their finances, enabling them to manage accounts across institutions, initiate payments through trusted third-party platforms and access more integrated digital banking services.

Banking sector, fintechs to collaborate

Saleh pointed out that UBF is working closely with CBUAE, banks, fintechs, and technology providers to expand open finance capabilities across payments, savings, wealth management, and insurance. 

“UAE banking sector has been a leader in digital innovation, investing heavily in artificial intelligence-driven services and advanced risk management. Open finance will expand the ecosystem, foster responsible competition, and enhance innovation,” Saleh said, while noting that open finance also supports trade and investment flows by improving cross-border interoperability and aligns with UAE’s digital economy strategy, which aims to raise digital economy’s contribution to the GDP to over 20 per cent.