DOHA, With the majority of the world, including Qatar, seeking to adopt "open banking" as a framework in the financial services industry, this trend dominated the main discussions of the Arab Fintech Forum that concluded in Doha.
Open banking is a new model for providing financial services, allowing customers to access their financial data through unified portals, and use them to provide a wide range of new financial services.
In a session entitled "Open Banking Around the World... What does it mean for Qatar?" , participants discussed the potential benefits and challenges of open banking in Qatar, as well as steps that can be taken to further leverage this emerging industry.
The forum also highlighted Qatar's efforts to strengthen its position as a leading digital hub in the Middle East, and its desire to be the leading destination for fintech and digital-driven companies, recognizing the role of digital technology companies as a key driving force for growth, and thanks to the outstanding digital infrastructure available.
Jones believes that open banking will enable Qatar to attract foreign investment (Al Jazeera)
Digital Transformation
Lauren Jones, Market Development Manager, Open Banking Swap Expert and one of the keynote speakers at the session, said that open banking is a concept that aims to achieve better interaction and collaboration in the financial services sector, as well as allowing individuals and businesses to access banking services easily and enabling developers to build innovative applications that meet the needs of users.
Jones adds, in an interview with Al Jazeera Net, that open banking is found in about 70 countries around the world, and is witnessing many success stories, and in Qatar it is expected that open banking will have a successful application.
Although open banking is still in its early stages in Qatar, the growing interest from the Qatar Central Bank and from the country's financial institutions indicates a clear intention to develop a robust open banking framework and explore its benefits.
In March 2023, the Qatar Central Bank (QCB) unveiled a summary of the FinTech sector strategy, which is based on four strategic pillars, aimed at facilitating the digital transformation of Qatar's financial services ecosystem, attracting foreign direct investment, and enhancing financial literacy skills.
The upcoming regulatory framework will provide guidance for licensing and monitoring external service providers, ensuring the secure sharing of customer data, and obtaining customer consent, she said, noting that through the development of these regulations, Qatar aims to create an open, secure and transparent banking environment that protects customer interests and promotes innovation in the financial sector.
In addition, Jones explains that financial institutions in Qatar will be able to explore opportunities to implement open banking and collaborate with fintech companies to introduce new services and products to their customers.
Part of the attendees of the Open Banking session (Al Jazeera)
Fostering innovation
Lauren Jones expects the first quarter of next year to see the adoption of the open banking system in Qatar after the completion of the necessary regulations, explaining that Qatar will become one of the leading countries in this field within the next two years, and will also be able to attract foreign investments to its financial market, which enhances its role as a strong and advanced financial destination in the region.
For his part, Loay Shanaq, an expert in the field of open banking and electronic payment, stressed the importance of Qatar's move towards adopting open banking during the coming period, and its reflection on citizens and residents by providing advanced and innovative banking services that better meet their needs, and that this system for Qatar means huge opportunities to improve the financial sector and promote innovation and creativity in financial products.
Shanak adds, in a statement to Al Jazeera Net, that open banking services are expected to lead to significant changes in the financial sector, which improves customer experience, enhances innovation and increases competition, as this system allows customers to access their financial data through unified portals, making it easier for them to manage their money and make payments.
Shanaq: Open banking will bring major changes to Qatar's financial sector (Al Jazeera)
Boosting financial prosperity
Shannaq predicted that open banking in Qatar will contribute to increasing economic growth by enhancing the efficiency of the financial sector and providing the best access to finance, as well as its role in creating new jobs in the fintech sector and attracting foreign investment to the country.
Hani Al-Khatib, an expert in the financial technology sector and founder of Web3 Qatar, said that open banking aims to promote prosperity in the financial sector products, and expand its scope after it was limited to banks only, as countries that have adopted open banking are witnessing greater diversity and innovation in financial products compared to traditional ones.
Al-Khatib pointed out, in a statement to Al Jazeera Net, that open banking contributes to achieving better interaction and cooperation in the financial services sector by adopting open-source technologies and protocols and using open APIs, adding that this allows individuals and companies to access banking services easily, and enables developers to build innovative applications that meet the needs of users.
Regarding the open banking system scheduled to be implemented next year, he expressed his wish that the regulations will be conducive to innovation, saying, "We hope that the regulations for open banking will be smooth and allow for increased innovation and promote the creation of opportunities, these regulations must be flexible and give the financial sector sufficient flexibility to adapt to rapid developments in the market."