The Saudi Central Bank (SAMA), as per a press release, has announced the issuance of the second release under the Open Banking Framework, focused on the Payment Initiation Service (PIS).
The new release has been issued as part of SAMA’s efforts to further strengthen the Saudi Arabian Fintech ecosystem. The change is anticipated to enhance overall consumer experience and transaction efficiency and open new opportunities for the Kingdom’s fintech sector to offer expanded products and solutions to customers.
SAMA’s Open Banking Framework consists of a set of guidelines and technical standards based on international best practices to facilitate the provision of open banking services in the Kingdom. This second release of the framework standardizes how participants can offer PIS reliably and securely. The framework also clarifies the responsibilities of all stakeholders involved in the provision of PIS.
SAMA’s Open Banking Program is an initiative under the National Fintech Strategy, one of the pillars of the Financial Sector Development Program (FSDP) under Saudi Vision 2030. The Strategy was approved by the Council of Ministers in 2022 and aims to make the Kingdom a global fintech hub to enhance the economic empowerment of individuals and society.
The PIS, as part of the Open Banking Framework, helps deliver the Strategy by enhancing the efficiency and security of payment services in the Kingdom. Under PIS guidelines, consumers can initiate payment transactions from within third-party applications in a secure manner, and the new release builds on previous guidance covering Account Information Service (AIS).
For more information, please visit the Open Banking Program website at openbanking.sa.
Source: spa.gov.sa