The Dubai International Financial Center launched the first of its kind Open Finance Lab initiative in the region, which included a six-month program.
The Dubai International Financial Center, in a statement received by Al Mal, stated that 4 banks and a financial technology company were scheduled to participate in the program, including Commercial Bank of Dubai, First Abu Dhabi Bank, Mashreq Bank, Ras Al Khaimah National Bank and Sand 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 executives of participating banks, according to the statement.
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 in the financial technology sector 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 comprehensive vision of the United Arab Emirates 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, and it will be able to launch the next wave of growth for the sector, improve consumer protection, support financial inclusion initiatives, and enhance 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 specialized in the financial sector to facilitate regulatory issues and the most pressing 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 that 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, AIF Amiri, CEO of the DIFC Authority, said: “The launch of the first of its kind open financial laboratory in the region is a testament to the DIFC’s commitment to lead initiatives that will promoting future of the financial sector to unprecedented heights. , in collaboration with the provision of a framework that will lead the UAE’s path to an open financial economy.
He added: “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 creating important new opportunities and prospects for a wave of financial innovation in the region. and the world is opened. ”
He continued: “The initiative supported by Tarabut Gateway, the first platform specialized in open financing activities based in the UAE and fully licensed by the Dubai Financial Services Authority, is expected to serve as a test of the positive impact of the shows an open financing model for companies and clients. ” and economics, and to play a role in providing decision-makers and regulators with proven practical evidence and reviews issued by sectoral experts. ”
He stressed that participants will receive free guidance from highly reliable technical service providers to support the implementation of use cases.
In turn, Tarabut Portal CEO Abdullah Almoayyed said: “We are proud that the Dubai International Financial Center has chosen us as a partner platform for the first of its kind Open Finance Lab initiative in the region.”
He added: “This support we have received from the Dubai Financial Services Authority and the Central Bank of the UAE is irrefutable evidence of the country’s serious efforts to provide the future of the financial sector and its presence as a leading to strengthen global center in the field of financial technology. “
He continued: “From this point of view, we reaffirm our commitment to contribute to the country’s vision, and we look forward to further cooperation with stakeholders in the sector to advance the open funding process to unprecedented horizons.”
The open funding model includes a dedicated platform that provides financial service providers with a consumer consent form, provides them with data generated by application programming interfaces (APIs), and then collects this data and shares it in a collaborative framework.
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 unlock enhanced 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 empowering technologies. ”
The exempt guidelines define cross-sectoral principles, as well as best practices for financial institutions when enabling technologies to develop or provide innovative products and services, with the aim of ensuring the safe and sound acceptance of these technologies by financial institutions across the UAE. so that emerging risks are managed proactively and appropriately.