Today, Open Banking in Saudi Arabia is still in the first phase: Aggregation. This means apps can, with user consent, view bank account data from multiple banks in one place.
They can read: Balances, Transactions, Expenses, and Account Details.
However, they cannot execute any financial transactions. You cannot transfer, deduct, pay bills, or set up Standing Orders. It is strictly a Read-Only phase.
This phase is crucial as it lays the foundation for Open Finance. Without clear, unified, and stable data, you cannot move to transaction execution.
Next Step: Payment Initiation
Here, apps can, with specific permissions, execute financial transactions on behalf of the client under full SAMA supervision, such as:
- Transfer between accounts.
- Bill payments.
- Service purchases.
- Subscription management.
- Direct bank deductions instead of cards.
This phase will open the door to entirely new products like: Wallets linked directly to bank accounts, cardless subscriptions, instant financing solutions, and payment systems rivaling traditional cards.
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We are just at the beginning with Aggregation. But the path is clear, and what is coming is much bigger than just displaying balances.
KEYWORDS
#Fintech#OpenBanking#SAMA
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