Open banking creates new avenues for finance in UAE

Open banking has the potential to revolutionise the financial ecosystem by fostering collaboration between traditional banks and fintech companies, an expert said.

- Somshankar Bandyopadhyay

"For SMEs, it opens up access to a wider range of financial products tailored to their needs, such as instant loans, dynamic cash flow management tools, and competitive lending rates. It also creates a more inclusive financial environment, enabling SMEs with limited credit histories to leverage transactional data to secure better financing options. Furthermore, open banking encourages innovation, with fintechs developing apps and platforms that simplify dayto-day financial tasks for SMEs, from budgeting to expense tracking," Ayman Kaouri, co-founder & regional director - Middle East, Scope Solutions, told Khaleej Times in an interview.

Open banking is a system that allows banks to securely share customer financial data with authorised companies, provided the customer consents. This sharing enables innovative services, such as personalised budgeting tools, bank transaction feeds and competitive loan offers, while ensuring customers remain in control of their data.