Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East, Africa and South Asia (MEASA) region, has launched the region’s first Open Finance Lab, heralding a new era of finance in the region.
The Open Finance Lab initiative is a six-month programme that will commence on June 28.
A total of four banks and a FinTech company are scheduled to participate in the programme, including Commercial Bank of Dubai (CBD), First Abu Dhabi Bank (FAB), Mashreq Bank, National Bank of Ras Al Khaimah, and Zand. Use cases will be explored and developed from July to November 2022, and the lab will conclude with a demonstration of the impact achieved to government officials and bank executives.
The launch of the region’s first Open Finance Lab follows the recent signing of a Memorandum of Understanding (MoU) between the Central Bank of the UAE (CBUAE) and DIFC Authority to promote the development and growth of the UAE financial technology sector. The initiative supports DIFC’s ongoing efforts to realise the objectives of its 2030 strategy by unlocking strategic opportunities for the UAE and reinforcing DIFC’s leading position as a global financial services hub.
The lab will collaborate with banks, FinTech, regulators and the industry and has the potential to unlock the next wave of growth for the sector and increase consumer protection, financial inclusion, social benefits, and economic opportunities.
In addition, the lab will run business and technical workshops, facilitate industry and regulatory forums on important issues. These include Application Programming Interfaces (APIs) standards and consumer consent management, and educational sessions to promote a greater understanding of how Open Finance data will create more opportunities through the application of emerging technologies, resulting in new data-driven innovations and business models that will enhance the future of the financial system.
Additionally, the DIFC Innovation Hub will host an Open Finance Week in September, creating further opportunities for the industry to engage and share their expertise and respective learnings with each other.
Commenting on the initiative, Arif Amiri, CEO of DIFC Authority, said, "Launching the region's first Open Finance Lab reaffirms DIFC’s commitment to driving the Future of Finance and provides a framework to move the country towards an Open Finance economy. The evolution of data-driven business models that make finance more inclusive, accessible, and competitive can generate significant new opportunities and open the door for a wave of financial innovation in our region and across the globe."