HIS EXCELLENCY DR. ABDULRAHMAN BIN ABDULLAH AL-HAMIDI, DIRECTOR GENERAL AND CHAIRMAN OF THE BOARD OF DIRECTORS OF THE ARAB MONETARY FUND GIVES A SPEECH ON THE OCCASION OF THE OPENING OF A WORKSHOP ON OPEN BANKING OPERATIONS AND THE ACCOMPANYING REGULATORY

[claud39]

am simply giving you a comment, do not forget that Iraq participates in the movement of the Arab monetary fund, such as in particular banking operations opened during the years 2020 and 2021. In the Kingdom of Bahrain, in the United Arab Emirates and in the Kingdom from Saudi Arabia.
They are doing the same procedure now !!
This is as I mention I am not a guru, only someone who follows the news by sharing on the forum !!

  good evening to all !!

Claud (Moose)





HIS EXCELLENCY DR. ABDULRAHMAN BIN ABDULLAH AL-HAMIDI, DIRECTOR GENERAL AND CHAIRMAN OF THE BOARD OF DIRECTORS OF THE ARAB MONETARY FUND GIVES A SPEECH ON THE OCCASION OF THE OPENING OF A WORKSHOP ON OPEN BANKING OPERATIONS AND THE ACCOMPANYING REGULATORY FRAMEWORK
 2021-05-27

Significant growth in the open banking market

The importance of open banking services in promoting competition, reducing transaction costs, encouraging innovation and access to financial services, and contributing to the generation of new business models.

The need to adopt a legislative and regulatory framework that reflects recent trends and helps hedge risks

The importance of the document of regulatory principles for open banking operations issued by the Fund

Praise the efforts made by a number of Arab countries in developing regulatory frameworks for open banking operations

Call for a future vision for the development of open finance services within the framework of the digital financial services system in the Arab countries

 

His Excellency Dr. Abdulrahman bin Abdullah Al-Hamidi, Director General and Chairman of the Board of Directors of the Arab Monetary Fund, delivered a speech at the opening of a workshop on open banking operations and the accompanying regulatory framework, which was organized by the fund "remotely" as part of its efforts and initiative to support digital financial transformation and the development of the modern financial technology industry. In Arab Countries. A number of concerned technicians from Arab countries participated in the workshop from the ministries of finance, central banks, money market and stock exchange authorities, bank unions, companies and providers of modern financial technology services in the Arab countries. A number of international financial institutions and central banks also participated in the workshop, such as the Consultative Group to Assist the Poor, the Global MasterCard Company, the Institute of International Finance, the Brazilian Central Bank, the British Financial Advising Authority, and the Financial Advising Authority in South Africa.

His Excellency indicated that the market for open banking operations, whether banking services or money market services and payments, has witnessed remarkable growth in recent times, indicating in this regard that the growth rate for this market has reached 24 per cent annually, reaching about $ 43.1 billion after five years 2026, compared to about $ 7.3 billion in 2018, explaining that this growth is driven by the growth of the modern technology industry and digital service providers, and the opportunities to stimulate innovation provided by a number of regulatory environments in an effort to enhance financial inclusion.

His Excellency the Director General, Chairman of the Board of Directors of the Arab Monetary Fund, explained that the first step in the requirements for the transition to open banking operations is the adoption of a clear legislative and regulatory framework by the supervisory authorities that takes into account recent trends in this regard, which would help facilitate innovation opportunities. On the one hand, in open banking services and operations and encouraging their growth opportunities to support digital financial transformation to enhance financial inclusion, on the one hand, and on the other hand, helps supervisory authorities to hedge the risks that may arise from them.

His Excellency Al-Hamidi pointed out that, given the importance of the topic, the Arab Monetary Fund recently issued a document of regulatory principles for open banking operations, which provides a set of regulatory principles, addressing the importance of enabling use cases before the full launch of the open banking system, and the need for an integrated plan to build the regulatory framework and enable technologies. Permit-based access prior to widespread adoption of the infrastructure, as well as the pursuit of early adoption of industry standards for regulated entities. His Excellency noted that the principles included, the call to ensure the application of strong frameworks for the management and protection of data by service providers, the importance of adopting frameworks to protect financial services consumers and the environmental and societal responsibility of service providers for open banking operations, in addition to adopting the graduation to reflect the national strategic goals and use cases, and finally aspects of expanding Scope and oversight of non-bank service providers.

On the other hand, His Excellency praised the efforts made in a number of Arab countries in recent years in terms of developing the regulatory frameworks for open banking operations, referring in this context to the important legislative and regulatory developments that a number of Arab countries have witnessed related to open banking operations during the years 2020 and 2021 in particular. In the Kingdom of Bahrain, the United Arab Emirates, and the Kingdom of Saudi Arabia.

In the same context, H.E. 2020 to support digital transformation, within the framework of the regional working group for modern financial technologies, and the activities of the Financial Inclusion Initiative for the Arab Region.

His Excellency touched upon the fund, through a set of modern financial technologies, to issue a set of guides and guidelines, including issues of digital identity, KYC rules in Arab countries, electronic safety of financial infrastructure in Arab countries, building national strategies for modern financial technologies, and financing guidelines. The alternative for Arab countries, and more recently, open banking operations. His Excellency also indicated that the fund had launched a "regulatory guide on modern financial technologies in the Arab countries", which aimed to introduce the modern financial technology industry in the Arab countries, and to ensure the regulatory frameworks for the manufacture of these technologies and the legislation related to them. 

Finally, His Excellency Dr. Al-Hamidi noted the interest of the Arab Monetary Fund in building a societal culture that is aware of the opportunities and risks in financial services, especially for young people, noting that the fund has launched a number of booklets for young people with the aim of contributing to awareness efforts about financial issues and services, including awareness of digital transformation and modern technologies. And financial inclusion.

In conclusion, His Excellency affirmed that the Arab Monetary Fund will spare no effort or means to contribute to supporting the endeavors of our Arab countries in promoting the development of the modern financial technology industry, in a way that contributes to the access of all segments of society to digital financial services and the development of innovative services that meet the needs of various groups, looking forward to That today's workshop contribute to achieving the desired objectives in this regard.

 

The following is the full text of the speech: 
 

Ladies and Gentlemen,
May God bless your time with all the best wherever you are,


 

First of all, I hope that you and your family are well and safe.

I am pleased to welcome you at the opening of the workshop on “ Open Banking Operations and the accompanying Regulatory Framework”  organized by the Arab Monetary Fund through visual communication technology as part of its efforts and initiative to support digital financial transformation and the development of the modern financial technology industry in Arab countries.

Allow me at the outset to express my sincere thanks and appreciation for the honorable attendance of the workshop in which the concerned technicians from our Arab countries are participating, including ministries of finance, central banks, capital market authorities, stock exchanges, bank unions, companies and providers of modern financial technology services in Arab countries. I would also like to thank the regional and international financial institutions for their kindness to participate with us today.

Thanks are also extended to all members of the Modern Financial Technologies Working Group in the Arab countries for their distinguished efforts and activities, as the group was able to issue many working papers and guiding principles useful in the various requirements of building an environment conducive to and stimulating the growth of the modern financial technology industry in the Arab countries, including open finance topics. And open banking operations. Also, on this occasion, I would like to thank the experts and speakers from the global financial institutions and central banks who were keen to participate today to present their views and experiences on the trends of open banking operations and the requirements for developing these operations and services in the Arab region, and in particular thanks to the colleagues and colleagues in the Consultative Group to Help the Poor ( CGAP), MasterCard Worldwide, the Institute of International Finance (IIF), the Central Bank of Brazil, the British Financial Advising Authority, and the Financial Advising Authority of South Africa.

Ladies and Gentlemen,

The open banking operations market is witnessing remarkable growth in recent times, whether banking services or money market services and payments, where the growth rate of the market is estimated at 24 percent annually, reaching about $ 43.1 billion after five years in 2026, compared to about $ 7.3 billion. In 2018. This growth is undoubtedly driven by the growth of the modern technology industry and digital service providers, and the opportunities to stimulate innovation provided by a number of regulatory environments in an effort to enhance financial inclusion.

From here comes the importance of arranging the workshop within the framework of keenness to keep abreast of developments and promoting innovation in the field of financial technologies through open banking services and processes, and the importance of this in supporting financial inclusion and the shift towards innovative digital financial services. Promote competition in providing financial and banking services and products, reduce transaction costs, encourage innovation and access to financial services, in addition to contributing to the generation of business models and new use cases.

Perhaps the first step in the requirements for the transition to open banking operations is the adoption of a clear legislative and regulatory framework by the supervisory authorities that takes into account recent trends in this regard, in order to help facilitate opportunities for innovation in services and open banking operations and encourage growth opportunities in a way that serves support for digital financial transformation On the one hand, to enhance financial inclusion, and on the other hand, helps supervisory authorities to hedge the risks that may arise from them.

In this context and in view of the importance of the issue, the Arab Monetary Fund issued last week the document organizing principles for open banking. The document introduces a set of regulatory principles, addressing the importance of enabling use cases prior to the full launch of the open banking system, the need for an integrated plan to build the regulatory framework, enabling authorization-based access technologies prior to the widespread adoption of the infrastructure, and the pursuit of early adoption of industry standards for regulated entities. The principles also included the call to ensure the application of strong frameworks for managing and protecting data by service providers, the importance of adopting frameworks to protect consumers of financial services and the environmental and societal responsibility of providers of services for open banking operations, as well as the adoption of gradations to reflect national strategic goals and use cases, and finally aspects of expanding the scope and imposing Control over non-bank service providers.

In this context, it is appropriate for Arab supervisory authorities to take into account, when designing frameworks for open banking operations, the importance of supporting innovation and enabling use cases to allow the continuous development of legislation to be in line with existing services or services in the process of development, while encouraging early cooperation with service providers. Especially with regard to specifications and standards. An alternative plan must be adopted for the delay in implementation, including the availability of infrastructure components and ensuring effective protection for consumers of financial and banking services.

Realizing the importance of open banking operations, a number of Arab countries have worked in recent years to develop regulatory frameworks for open banking operations, as some Arab countries have witnessed important legislative and regulatory developments related to open banking operations during the years 2020 and 2021, specifically in the Kingdom of Bahrain, the United Arab Emirates and the Kingdom. Saudi Arabia, while other countries began to think about preparing to start providing these services.

The most prominent of these developments were the licensing of financial service providers and the issuance of the open banking operations framework. The Kingdom of Bahrain was a pioneer among the Arab countries in issuing the framework for open banking operations in October 2020. The framework included detailed operational guidelines, security standards and guidelines, customer experience guidelines, technical specifications for the open application management interface, in addition to the comprehensive governance framework needed to protect customer data. In January 2021, the Central Bank of Saudi Arabia issued a policy paper for open banking operations, specifying a three-stage plan to launch and start operating open banking services in 2022.

Today's workshop represents an opportunity to learn about the pioneering experiences in the Arab region and around the world, and how to benefit from them in our Arab countries. We are pleased that today's workshop addresses the requirements for building the legislative and regulatory framework for open banking operations, and we look forward to dialogue about it. We also look forward to enhancing cooperation opportunities with all regional and international institutions, in a way that contributes to supporting the efforts of the supervisory authorities in the Arab region in this field.

We also hope that the workshop will provide a future vision for the development of open finance services within the framework of the digital financial services system and recent trends in the modern financial technology industry, benefiting in this context from the experiences of a number of Arab and non-Arab countries.

Ladies and Gentlemen,

The Arab Monetary Fund pays great attention to the topics of modern financial technologies and their applications, in recognition of the great opportunities that these technologies offer in light of the repercussions of the Corona pandemic. The Fund's activity to support digital transformation during 2020 witnessed a great momentum within the framework of the regional working group for modern financial technologies and the activities of the Financial Inclusion Initiative for the Arab Region.

In the context of enhancing dialogue on digital financial transformation, the Fund organized, during the year 2020, a large number of "remote" meetings and workshops for experts on the applications of modern financial technologies in the Arab countries. The meetings discussed a number of important topics, including the role of the modern financial technology industry in the aftermath of the pandemic, the challenges of digitally enrolling customers, digital identity, and the electronic KYC rules. The meetings also focused on ways to confront electronic threats and exchange information about them. The meetings paid attention to discussing the safety of applications for open banking operations, the opportunities available and the related challenges, as well as the opportunities that modern financial technologies can provide to central banks. On the other hand, they discussed the topic of supervisory and supervisory technical solutions to support the supervisory and supervisory authorities in the Arab countries, and how to benefit from these solutions in the performance of their tasks.

Also, in the field of supporting digital financial transformation, the fund was keen to support the efforts of Arab countries in strengthening the regulations in support of the use of modern financial technologies and providing the appropriate infrastructure to support the transition to digital financial services. In September 2020, the fund issued a vision document on the “framework for digital financial transformation in Arab countries". The document aimed to support the efforts of Arab countries in terms of digital financial transformation and the development of digital services, as it dealt with the requirements and steps of digital financial transformation in the Arab countries, and presented an integrated vision for the transition to digital financial services and the requirements of policies and technologies to build an environment conducive to its development in the Arab countries. The fund is currently working on the basis of the axes of action included in the document, to build partnerships with various regional and international financial institutions and global development agencies to support the endeavors of digital financial transformation in the Arab countries. 

In the same context, the Fund has worked, through a group of modern financial technologies, to issue a set of guides and guiding principles, which included issues of digital identity, KYC rules in Arab countries, electronic safety of financial infrastructure in Arab countries, building national strategies for modern financial technologies, and financing guidelines. The alternative for Arab countries, and more recently, open banking operations. The fund also launched a regulatory guide on "Modern Financial Technologies in the Arab Countries". The guide aims to introduce the modern financial technology industry in the Arab countries, and includes the regulatory frameworks for the industry of these technologies and the legislation associated with them. The guide included regulatory and supervisory provisions and procedures, licensing requirements for companies, and sectoral distribution of licensed companies.   

The Fund will continue its efforts to support the endeavors of the supervisory authorities in the Arab countries, and to contribute to awareness-raising efforts, capacity-building, and the creation of platforms for dialogue, expertise and knowledge transfer.

Ladies and Gentlemen,

Allow me to acknowledge on this occasion the Fund’s interest in building a societal culture that is aware of the opportunities and risks in financial services, especially for young people. Therefore, the Arab Monetary Fund has launched a number of booklets for young people with the aim of contributing to awareness efforts about financial issues and services, including awareness of digital transformation. And modern technologies and financial inclusion, we hope that these handbooks will contribute to achieving their intended purpose.

Before concluding, I would like to emphasize on this occasion that the Arab Monetary Fund will spare no effort or means to contribute to supporting the endeavors of our Arab countries in promoting the development of the modern financial technology industry, in a way that contributes to the access of all groups of society to digital financial services and the development of innovative services that meet the needs of these various The groups, looking forward that today's workshop will contribute to achieving the desired objectives in this regard.

Finally, I do not miss on this occasion, except that I reiterate my thanks and gratitude to the country of the headquarters of the Arab Monetary Fund, the United Arab Emirates, for the great facilities it provides that contribute to the success of the fund in its pursuit of its goals.

Thank you for your presence, and we look forward to welcoming you to Abu Dhabi at recent events.

Peace, mercy and blessings of God.




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