- The launch of the Open Finance Lab is in line with the Dubai International Financial Center 2030 strategy, following a memorandum of understanding recently signed by the Center with the Central Bank of the United Arab Emirates in support of efforts to develop and prosper the financial technology. sector in the United Arab Emirates.
- The initiative will educate and involve banks, regulators and the financial sector to demonstrate the positive benefits of the open financing model for the economy.
- The initiative reaffirms the commitment of the United Arab Emirates to consolidate its position as a global capital of financial services, and a leading center for financial technology and innovation in the region.
Dubai United Arab EmiratesThe Dubai International Financial Center (DIFC), the leading global financial center in the Middle East, Africa and South Asia region, today launched the region’s first Open Finance Lab initiative, ushering in a new era of finance in the region.
The laboratory represents a six-month program starting from June 28, 2022. Four banks and a financial technology company are scheduled to participate in the program, including Commercial Bank of Dubai, First Abu Dhabi Bank, Mashreq Bank, Ras Al Khaimah National Bank and Zand Company. While the use cases will be investigated and developed between July and November 2022, the laboratory will close by emphasizing the impact of its program on government officials and managers of participating banks.
The launch of the Open Finance Lab, the first of its kind in the region, follows the recently signed Memorandum of Understanding between the Central Bank of the UAE and the Dubai International Financial Center Authority in support of efforts to develop financial technology and to prosper. sector in the UAE. This initiative is an essential part of the Dubai International Financial Center’s ongoing efforts to achieve the vision and goals of its 2030 strategy, by providing new strategic opportunities and the centre’s leading position as a global center for the financial services sector. to consolidate.
In view of the UAE’s comprehensive vision to establish global standards for the open financial sector, the laboratory will serve as an umbrella platform for the efforts of banks, fintech companies, regulators and stakeholders in the financial sector. It will be able to trigger the next wave of growth for the sector, improve consumer protection, support financial inclusion initiatives and improve social benefits and economic opportunities.
In addition, the laboratory will be responsible for managing in-depth and specialized workshops in the commercial and technical fields, and organizing forums specializing in the financial sector and regulatory issues and facilitating the most urgent salient issues. This includes API standards; management of consumer approvals; And educational sessions aimed at improving mechanisms for creating open financial data amidst the search for more opportunities by adopting emerging technologies, which will ensure the unleashing of new data-based innovations, and the development of business models what the future of the financial system. The insights and knowledge gained from use cases and forums will contribute to the development of the financial sector and regulation.
The Innovation Hub at the Dubai International Financial Center will also host the Open Finance Week in September 2022, creating more promising opportunities for financial sector stakeholders to engage in inspiring discussions and exchange experiences and knowledge.
Commenting on the launch of this initiative, he said: Arif Amiri, CEO of the Dubai International Financial Center Authority: “The launch of the open financial laboratory, the first of its kind in the region, is a testament to the commitment of the Dubai International Financial Center to lead initiatives that will advance the future of the financial sector to unprecedented heights, in collaboration providing a framework that will lead the UAE’s path to transition to an open financial economy. There is no doubt that the development of data-driven business models will inevitably make financing processes more inclusive, competitive and easily accessible, which means that important new opportunities are created and that open up prospects for a wave of financial innovation in the region and the world. ”
The initiative, supported by Tarabut Gateway, the first platform that specializes in UAE-based open financial activities and is fully licensed by the Dubai Financial Services Authority, is expected to serve as a test of the positive impact of the open funding model. on companies, customers and the economy, and that It plays a role in providing decision makers and regulators with proven practical evidence and reviews issued by industry experts. Participants will also receive free guidance from highly trusted technical service providers to support the implementation of use cases.
On the other hand, he said Abdullah Almoayyed, CEO of Tarabut PortalWe are proud that the Dubai International Financial Center has chosen us as a partner platform in the first of its kind Open Finance Lab initiative in the region. This support we received from the Dubai Financial Services Authority and the Central Bank of the United Arab Emirates. is compelling evidence of the seriousness of the country’s efforts to foresee the future of the financial sector and improve its presence As a leading global center in the field of financial technology, we reaffirm our commitment to contribute to the country’s vision, and we look forward to further collaboration with stakeholders in the sector to advance the process of open funding to unprecedented horizons. ”
The open funding model includes a dedicated platform that provides financial service providers with a consumer consent form, which provides them with data generated by APIs (APIs), and then collect this data and share it within the framework of a collaborative work system. The principle adopted by this model is that financial data created and provided by individuals to obtain financial services, such as mortgages, savings, insurance or consumer credit, on their consent, can be shared with trusted third parties, and thus this individuals of products and services and customized experiences, which unleash improved information security and operational efficiency.
In November 2021, the Central Bank of the UAE, the Dubai Financial Services Authority of the Dubai International Financial Center, the Financial Services Regulatory Authority of the Abu Dhabi Global Market and the Securities and Commodities Authority announced the issuance of “Guidelines for Financial Institutions Adopt Enabling Technologies. ” Intersectoral principles launched, as well as best practices for financial institutions in adopting empowering technologies to develop or provide innovative products and services, with the aim of promoting the safe and sound acceptance of these technologies by financial institutions across the UAE , so that the risks arising from the acceptance of activities are innovatively proactively and appropriately managed.
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About the Dubai International Financial Center
The Dubai International Financial Center is one of the most prominent financial centers in the world and the leading financial center in the Middle East, Africa and South Asia, comprising more than 72 countries with a population of almost 3 billion people, and ‘ an estimated GDP of $ 7.7 trillion.
The DIFC has a record of more than 18 years in promoting trade and investment flows across the Middle East, Africa and South Asia, and serves as a bridge connecting the region’s rapidly growing markets to the economies of Asia. , Europe and the Americas via Dubai.
The center offers an ideal and integrated work environment that combines a global and independent regulatory body, an effective legal system based on the principles of English common law, in addition to a vibrant business community, with a workforce of almost 30,000 professionals of more as 3,600 active and registered companies, making it the largest and most A Variety of leading human skills in the region.
The center’s vision is to lead the future of the financial sector through advanced technology, improve innovation and build partnerships, and it is today a leading future global center for the financial sector and innovation, providing the most comprehensive environment for the financial technology sector and venture capital in the region, including the provision of effective licensing solutions, a targeted legislative system and programs Innovation Accelerators and financing services for growth-stage start-ups.
The Dubai International Financial Center offers a variety of retail options, international restaurants, other art galleries, apartments, luxury hotels and public spaces. The center continues with its leadership position as one of the most prominent destinations for business and lifestyle in Dubai.
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Dubai International Financial Center Authority
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