Dubai International Financial Centre (DIFC) has launched the region’s first open finance lab, heralding what it calls “a new era of finance in the region”.
The open finance lab initiative is a six-month programme involving four banks and a fintech company. They include Commercial Bank of Dubai (CBD), First Abu Dhabi Bank (FAB), Mashreq Bank, National Bank of Ras Al Khaimah and Zand.
Use cases will be explored and developed from July to November 2022, and the lab will conclude with a demonstration of the impact achieved to government officials and bank executives.
The launch of the open finance lab follows the signing of a Memorandum of Understanding (MoU) between the Central Bank of the UAE (CBUAE) and DIFC Authority to promote the development and growth of the UAE financial technology sector.
The initiative supports DIFC’s ongoing efforts to realise the objectives of its 2030 strategy by unlocking strategic opportunities for the UAE and reinforcing DIFC’s leading position as a global financial services hub.
The lab will collaborate with banks, fintech players, regulators and the industry, with the potential to unlock the next wave of growth for the sector.
It will also increase consumer protection, financial inclusion, social benefits and economic opportunities.
Importantly, the lab will promote a greater understanding of how the open finance data gathered will create more opportunities through the application of emerging technologies and new data-driven innovations.
The insights and learnings from the use cases and forums will contribute to the development of the sector and future regulations.
The DIFC Innovation Hub will host an Open Finance Week in September, creating further opportunities for the industry to engage and share their expertise and respective learnings with each other.
CEO of DIFC Authority, Arif Amiri, said, “The evolution of data-driven business models that make finance more inclusive, accessible, and competitive can generate significant new opportunities and open the door for a wave of financial innovation in our region and across the globe.”
The initiative will serve as a testbed to showcase the positive impact of open finance on businesses, customers, and the economy, and can help inform policymaking and infrastructure with empirical evidence and industry feedback.
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