AEP has also engaged with Ozone API and Raidiam as technology providers within the consortium led by Core42 for its Open Finance implementation

Al Etihad Payments (AEP), a subsidiary of the Central Bank of the UAE (CBUAE), signed a partnership with Core42 to kick off implementation of Open Finance in the country.

Open Finance is one of the nine initiatives within the CBUAE’s Financial Infrastructure Transformation (FIT) Programme.

Core42, a G42 company, is a full-spectrum AI enablement solutions provider.

AEP has also engaged with Ozone API and Raidiam as technology providers within the consortium led by Core42 for its Open Finance implementation.

The launch comes within the framework of supporting the comprehensive vision of the UAE to establish global standards for the open finance sector, and continuing to build on successful experiences to provide the strongest open finance mechanism in the world.

Open Finance enables product and service innovation, and most importantly, 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 in the segment will be under the CBUAE licensing and supervision regulations.

The Open Finance will commence with Open Banking, followed by Open Insurance, in phases which will provide access to the majority of customers in 2024.

Fatma Al Jabri, Assistant Governor for Financial Crime, Market Conduct and 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,” she said.

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

This initiative is also an essential part of the CBUAE’s ongoing efforts to achieve its vision and strategic objectives, by providing new opportunities in the financial services sector including enhancing digital financial inclusion.

Open Finance provides a platform that gives customers the power and capability to securely and efficiently share the data of their financial products with third parties or other financial institutions.

It also allows customers to initiate payments and other financial transactions via third parties, in addition to obtaining quotes for potential financial services.