The Central Bank of Bahrain (CBB) issued a circular on the second phase of the open banking framework in Bahrain. CBB is directing retail banks and financial institutions to implement the requirements for the second phase of the framework by June 30, 2022. CBB had successfully launched the first phase of the open banking framework in May 2020.
The second phase of the framework includes guidelines and standards related to the following services:
- Sharing open data
- Domestic standing orders
- International standing orders
- International future dated payments
- Bulk or batch payment
The open banking framework aims to improve the reach and quality of services offered by retail banks through digital online and mobile channels. This initiative is part of a larger upgrade of the financial sector in Bahrain to remain competitive in the face of demand for connectivity within the financial services ecosystem. The open banking framework will help foster competition and enhance efficiency of the financial system in light of changing consumer trends. The framework includes supporting technical standards such as the application programming interfaces (APIs), customer experience guidelines, cyber-security standards, and other relevant operational standards.
Related Link: Press Release
Keywords: Middle East and Africa, Banking, Open Banking, Regtech, API, CBB
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