Al Etihad Partners with Core42 to Advance Open Finance in UAE

The Central Bank of the UAE (CBUAE) has embarked on a transformational journey for its financial infrastructure. As part of its Financial Infrastructure Transformation (FIT) Programme, one of nine initiatives is to establish global standards for the open finance sector in the UAE. To this end, Al Etihad Payments (AEP), a subsidiary of CBUAE, has joined forces with Core42, a G42 company and renowned provider of full-spectrum AI enablement solutions. 
 
This initiative aligns perfectly with CBUAE's vision and strategic objectives, as it paves the way for new opportunities within the financial services sector while promoting digital financial inclusion. Open finance serves as an empowering platform that permits customers in the UAE to securely share their financial product data with third-party entities or other financial institutions. 
 
Furthermore, this innovative approach allows customers to initiate payments and execute various other transactions via third parties. It also provides them access to quotes for potential future financial services. 
 
Remarkably, the UAE stands among the first countries worldwide that have successfully implemented a consolidated trust framework along with a centralized API hub. This facilitates secure single-point access across banking and insurance markets while ensuring that only those third parties regulated by CBUAE can gain access upon customer consent. 
 
Open finance fosters innovation in products and services, besides making them more customer-centric by seamlessly integrating them into other industries' digital ecosystems, thereby enhancing their service offerings too. All participants will operate under the licensing regulations set forth by CBUAE. 
  
To kickstart this initiative, open banking will be introduced, followed by open insurance, which is expected to reach most consumers by 2024. 
 
In addition to partnering with Core42, AEP has enlisted Ozone API and Raidiam as technology providers within its consortium focused on implementing open finance. 
 
Fatma Al Jabri, Assistant Governor responsible for Financial Crime Prevention, Market Conduct, and Consumer Protection at CBUAE, expressed her views, stating: "Implementing open finance marks significant progress in the UAE's financial services industry and its transformation of the financial infrastructure. It will expedite the adoption of digital financial services, providing more innovative and safer digital products and services in our country." 
 
She further added, "It places consumers at the helm by giving them control over their finances while ensuring efficient access to a diverse range of financial products." 
 
The signing ceremony was attended by Khaled Mohamed Balama, Governor of CBUAE. The agreement was signed between Fatma Al Jabri, representing CBUAE and AEP, and Kiril Evtimov, CEO of Core42. 
 
This landmark partnership signifies an important milestone for open finance in the UAE as it sets out on a path towards achieving global standards under the stewardship of CBUAE through collaborations with leading technology providers like Core42, Ozone API, and Raidiam.