03/07/2024 Finance and investment | Central Bank of the UAE
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The Central Bank of the UAE (CBUAE) has issued the Open Finance
Regulation to ensure the soundness and efficiency of open finance services,
encourage innovation, enhance competitiveness, achieve consumers' interests and
reinforce the UAE's status as a leading financial technology hub.
According to the regulation, which is part of the CBUAE's Financial
Infrastructure Transformation programme, the participation in the open finance
framework is mandatory, by all financial institutions, which are subject to the
supervision of the CBUAE, with respect to the products and services within
their scope.
The licensed financial institutions (LFIs) as data holders and
service owners are required to provide participants in the Open Finance
Framework with access to customer data and the ability to initiate transactions
on accounts and products, in all cases subject to the express consent of users
to provide services in line with their needs.
The Open Finance Framework facilitates LFIs to access and utilise
consumer's financial data to create personalised experiences and tailor
offerings to consumers' needs. Consumers can consolidate their financial
information, through the enablement of seamless data sharing across platforms.
The regulation consists of a Trust Framework, an Application Planning
Interface (API) Hub and Common Infrastructural
Services, which provide Open Finance access for the cross-sectoral sharing of
data and the initiation of transactions, on behalf of users. The Open Finance
Platform grants the Financial Service Providers a consumer consent model for
sharing their financial data with trusted third parties within an integrated
business system.
For more
information on the Regulation, please visit the following link: https://rulebook.centralbank.ae/en
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