Image Credit: Supplied

Abu Dhabi: Al Etihad Payments (AEP), a subsidiary of the Central Bank of the UAE (CBUAE), has signed a partnership with Core42, a G42 company and full-spectrum AI enablement solutions provider, to launch Open Finance within the UAE, one of the nine initiatives within the CBUAE’s Financial Infrastructure Transformation (FIT) Programme.

The UAE is the first country to implement a consolidated trust framework and centralised API hub. This will enable a single secure connection to access the whole of the banking and insurance markets while ensuring that access is only granted, with customer consent, to third parties regulated by the CBUAE.

Open Finance provides a platform that gives customers the power and capability to securely and efficiently share their financial product data with third parties or other financial institutions. It also allows customers to initiate payments and other financial transactions via third parties and obtain quotes for potential financial services.

Open Finance allows financial services to become more customer-centric and ‘embedded’—seamlessly combined within other industries’ digital ecosystems to support and enable their services. All participants will be covered by the CBUAE licensing and supervision regulations. Open Finance will commence with Open Banking, followed by Open Insurance, in phases that will provide access to most customers in 2024.

AEP has also engaged with Ozone API and Raidiam as technology providers within the consortium led by Core 42 for its Open Finance Implementation.

Fatma Al Jabri, Assistant Governor for Financial Crime, Market Conduct & Consumer Protection at the CBUAE, said: “The implementation of Open Finance marks a significant advancement in the UAE’s financial services industry and its financial infrastructure transformation. It will accelerate the adoption of digital financial services, providing more innovative and safer digital financial products and services in the country. In addition, it will provide a seamless financial experience, ensuring consumers have control over their finances and efficient access to a diverse range of financial products.”