Open Banking
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Open Banking
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Open Banking is a banking practice to enable customers of financial institutions to share their financial data securely with Third-Party Providers permitted by the Saudi Central Bank, which in turn provide new and innovative financial services and products for customers, ranging from bringing all accounts into a single dashboard to creating smoother journeys into daily banking activities. Data are securely shared, and customers have a choice to consent to give access to Third-Party Providers providing explicit and informed consent. Examples of Open Banking services are Personal Finance Management (PFM) platforms, Enterprise Finance Management (EFM) platforms, Credit Risk Assessment, EStatement as a Service, and Letter of Guarantee as a Service.
Overview:
Open Banking offers innovative and customized financial services and products, as well as increasing the efficiency of the banking system, such as: • View of customer’s consolidated financial data across multiple payment accounts • Enabling the customer to monitor his financial behavior by viewing the transactions executed on his bank accounts • Provides various new investments technology options through permitted Third Party Providers (TPPs)
How to use Open Banking:
- You must have an active Riyad Bank account.
- You must be onboarded through a permitted third-party provider.
- You must give an explicit consent through the TPP to grant access to your account information.
Permitted Third Party Providers (TPPs):
You can learn more about the permitted Third Party Providers (TPPs) that are currently in the market through the below link:List of Integrated Third-Party Providers (TPPs) with Riyad Bank:
- Drahim
- Malaa
Frequently Asked Questions
Is Open Banking Safe?
Yes, Open Banking APIs allow for secure data transfer, and you will always need to authorize Third-Party Providers to access your financial data. Any Third-Party Provider must obtain regulatory approvals and official registration with the Saudi Central Bank and adhere to the Open Banking Framework, Technical Standards, implementing cybersecurity protocols, and banking information security measures.
What are the benefits and advantages of Open Banking?
Open Banking has many benefits, some of which include: encourage innovation and increase competition in the financial sector to offer tailored and innovative financial products and services to customers, strengthening partnerships between banks and fintechs, improving the financial sector's infrastructure, increasing financial awareness, enhancing customer banking experience, and lastly, secured and easy access to customers' financial data.
What data is shared?
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Third-Party Providers must disclose the required data, the purpose of the request and the duration of the retention of the data, which may include:
- Account name, number, and account balance.
- Incoming and outgoing transactions, details of each transaction on your statement and your account balance after each transaction.
What does Open Banking consent mean?
The customer allows their financial data to be shared with Third-Party Providers. Banks provide access to customer financial data through APIs, and this data can only be shared after obtaining explicit and informed consent from the customer. You will review the data you will share and the duration granted to the Third-Party Providers at the consent stage. The customer can also cancel their consent and stop the access to their data at any time.
How can I consent to Open Banking services?
After setting up your account with the Third-Party Provider app, you will be redirected to Riyad Bank Online (Riyad Online) to go through the normal log in process, and then provide your consent to share your account information.
Who are the Third-Party Providers?
Third-Party Providers are companies permitted by the Saudi Central Bank to offer Open Banking products or services under the full supervision of the Saudi Central Bank. Examples include Personal Finance Management, Enterprise Financial Management, etc.
Are Open Banking services free?
Access to the Open Banking services is free, but the Third-Party Providers can apply some fees to provide the services to their customers.
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