Open Banking has gained serious ground in the GCC. Banks are launching developer APIs, regulators are rolling out frameworks, and fintech providers are building tools that make everything from onboarding to payments faster and more secure.
Yet adoption still lags in some corners of the business world. We still see companies requesting paper bank statements for verification. Or waiting days for settlements that could be near-instant.
A big reason for that is misinformation. Plenty of businesses are hesitant to use Open Banking because of outdated assumptions about data, security, complexity, or who it’s really for.
So let’s set the record straight. Here are five of the most common Open Banking myths, and what’s actually true behind them.
The word "open" makes some businesses uneasy, especially when it comes to financial data. But the reality is that Open Banking is often more secure than traditional methods still in use today.
Many companies still share financial information by emailing bank statements or uploading screenshots, methods that are easy to intercept and impossible to track. By contrast, Open Banking relies on encrypted APIs and multi-factor authentication. Data is transferred securely, with strict controls over access and duration.
When using Open Banking services, you authenticate directly with your bank, not a third party. The provider never sees your login credentials, and you control exactly which data is shared and for how long.
Many teams assume that Open Banking requires complex integrations or technical overhead. But most businesses are already using it, whether they realize it or not.
If your accounting platform pulls in live bank transactions, that’s Open Banking. If you’ve used an app that lets you verify income or initiate a payment directly from a bank account, that’s Open Banking too.
From the user’s perspective, connecting a bank account usually takes no more than a secure login and a few confirmation steps. Behind the scenes, regulated APIs handle the data exchange securely and without manual effort.
It’s less about adopting new tools and more about improving the ones you already trust.
This concern often comes from a misunderstanding of how Open Banking providers are regulated.
Unlike tech platforms that monetize personal data, Open Banking providers operate under strict financial regulations. In Europe, GDPR governs data use and consent. In the MENA region similar safeguards apply, such as the SAMA’s Open Banking Framework which lays out clear rules for how data can be accessed, used and protected.
Providers must be licensed, audited, and operate under regulatory supervision. Customer consent is required for every connection, and data can only be used for the specific service approved by the user.
In short: your data stays within your control. It isn’t sold, repurposed, or reused for anything you didn’t agree to.
Small and medium businesses actually stand to gain the most from Open Banking.
For merchants, it enables faster settlements, lower transaction fees, and access to financial insights without the need for custom-built infrastructure. For lenders, it provides real-time access to verified financial data, making it easier to offer credit to SMEs without relying on outdated paperwork or weeks of back-and-forth.
Platforms like Shopify are already using Open Banking to help small businesses reduce payment processing costs and access customer payments more quickly.
On the lending side, the same data infrastructure enables faster credit decisions. By accessing real-time account information, lenders can cut approval times from weeks to minutes, giving SMEs quicker access to capital when it’s needed most.
Open Banking isn’t designed to replace traditional banks. It extends what they can offer. Most banks now support Open Banking frameworks, giving their business clients access to faster payments, real-time data, and integrated services through third-party platforms.
Financial institutions like BBVA and JPMorgan Chase have built their own Open Banking infrastructure to support these capabilities. In GCC, platforms like Thimsa are doing the same – offering real-time analytics and payment insights, all while working directly with your existing bank accounts.
It’s not about switching providers. It’s about doing more with the accounts and partners you already trust.
Many of the concerns holding businesses back from Open Banking are based on outdated ideas.
But the tools, regulations and infrastructure have changed, and so have the possibilities.
Whether you’re offering payments, credit, or financial insights, Open Banking provides the data layer to make those services faster, safer, and more precise.
If your team is trying to make sense of how it all works, our team can help you move forward with a clearer view. Let’s talk about where Open Banking fits into your product or strategy.
