CBB Launches Fintech Platform and Open Banking Framework in Bahrain
CBB, in cooperation with the Bahrain Economic Development Board, Bank ABC, ila Bank, BENEFIT, NBB, and Bahrain Islamic Bank, announced the launch of FinHub 973, the first comprehensive digital fintech lab in the region, regulated by the Central Bank of Bahrain. The new platform will aim to create a collaborative ecosystem in the fintech sector by establishing a gateway for investment opportunities in the region, while fostering innovation and supporting integration between financial institutions and fintech startups. Additionally, CBB launched the Bahrain Open Banking Framework to ensure holistic implementation of open banking services by the industry.
FinHub 973 will be powered by Fintech Galaxy’s FinX22 platform, which is a cloud-based open innovation platform that complies with the best international technical standards. The FinX22 platform will offer an open banking Application Programming Interface (API) sandbox that enables fintech startups to develop, test, and deploy fintech solutions. FinHub 973 will aim to connect financial institutions in Bahrain and the region to fintech firms worldwide. The digital lab will also offer matchmaking and crowdsourcing capabilities, which will help contribute to the design of effective fintech solutions, ultimately spurring disruptive and transformative innovation across the financial services industry.
Bahrain Open Banking Framework includes detailed operational guidelines, security standards, customer experience guidelines, technical open Application Programming Interface (API) specifications, and the overall governance framework needed to protect customer data. These standards follow the comprehensive rules on open banking that were previously issued in December 2018. The framework was developed in collaboration with Deloitte and in consultation with the retail banks and other financial institutions in Bahrain.
Additionally, the Board of Directors of CBB met for the fourth time this year in October 2020. At the meeting, the Board reviewed the topics on the agenda, including the CBB performance report and the latest developments in the financial sector for the third quarter of 2020. The Board was briefed on the measures taken by CBB based on the royal directives from the Cabinet meeting, which was held on September 14, 2020 and wherein all banks were to defer loan payments until the end of the year in a manner that does not affect the liquidity and financial solvency of banks. The Board also viewed presentations prepared by consultants appointed by the CBB on digital transformation in the financial sector and open banking.
Related Links
- Press Release on Fintech Platform
- Press Release on Bahrain Open Banking Framework
- Press Release Board Meeting
Keywords: Middle East and Africa, Bahrain, Banking, Fintech, API, Artificial Intelligence, FinHub 973, Open Banking, Governance, COVID-19, Loan Repayment, CBB
Featured Experts
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
APRA Consults on Reporting Standard for Credit Risk ManagementRelated Articles
ESAs Issue Multiple Regulatory Updates for Financial Sector Entities
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
EBA Finalizes Methodology for Stress Tests, Issues Other Updates
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
OSFI Sets Out Work Priorities and Reporting Updates for Banks
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
APRA Finalizes Changes to Capital Framework, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
BIS Hub and Central Banks Conduct CBDC and DeFI Pilots
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)
