For years, financial data stayed locked behind bank walls. Businesses had to work around legacy systems and limited tools, whether they were applying for credit, or making payments across borders. It was slow, expensive, and restrictive.
Open Banking is starting to break that cycle. Fintech providers can now access banking data securely – with customer consent – through licensed APIs. This opens doors to faster transactions, more flexible lending, and better visibility over financial operations.
In the GCC, this shift is moving from policy to implementation:
- Saudi Arabia launched its Open Banking Framework in 2022. Account access went live in 2023, and payment initiation is now rolling out.
- UAE passed a broader Open Finance regulation in 2024 and is building a centralized API platform.
-Bahrain, the region’s first mover, has already extended open banking rules to corporate accounts.
As these programs mature, 2025 is expected to be a turning point – when open banking moves from pilot projects to real business impact
This shift isn’t happening in isolation. It’s being driven by clear trends that are already changing how businesses and consumers interact with money.
Open Banking is gaining traction globally, and in 2025, five trends are accelerating its adoption, making it less of a niche innovation and more of a new standard:
Banking is no longer limited to banks. E-commerce sites now offer point-of-sale loans, ride-hailing apps have built-in wallets, and marketplaces are handling their own checkouts. For businesses, embedding financial services means less friction for customers, and new ways to generate revenue. In the GCC, super apps like Careem and STC Pay are already laying the groundwork.
AI is helping financial services adapt in real time. Financial products are becoming personalized and adaptive, while algorithms help tailor offers based on spending behavior and flag unusual activity in real time. In Saudi Arabia, open banking APIs are being combined with AI to automate credit decisions and enhance risk scoring.
For businesses with subscription models, VRPs provide more flexibility than traditional card payments. Customers authorize variable charges ahead of time, which is ideal for fluctuating bills or usage-based plans. As payment initiation goes live in Saudi Arabia and the UAE, this could reshape how businesses handle repeat transactions.
Open Banking is evolving into Open Finance. It’s no longer just about payments and account data. Regulations in the EU, GCC, and beyond are starting to include insurance, pensions, and investments. This opens the door to new services and cross-sector innovation, especially in regulated markets like the UAE.
Younger users expect fast, intuitive mobile experiences. In response, businesses are focusing on biometric checkouts, real-time account linking, and mobile-first design.
As the region’s financial systems modernize, businesses that embrace Open Banking can operate with more precision, speed, and insight.
With access to live financial data, businesses don’t have to rely on outdated statements or wait days for transaction updates. Cash flow tracking becomes easier, and decisions get made faster.
Loan applications no longer need to involve weeks of paperwork. With secure data-sharing, lenders can assess eligibility in real time, helping businesses access funding when it matters most.
- Improved Customer Experience:
Whether it’s verifying a customer’s details, processing a refund, or handling a payment, Open Banking reduces friction. Everything moves faster, with fewer manual steps.
- Lower Transaction Costs:
Direct bank transfers skip the middlemen, meaning fewer fees per transaction. When scaled across thousands of payments, those savings quickly add up.
- Smarter Risk Decisions:
Real-time insights help businesses stay proactive, spotting irregularities, forecasting accurately, and adjusting before problems grow.
Governments across the GCC are actively driving Open Banking adoption, creating regulatory frameworks and launching digital infrastructure projects to support fintech growth.
The Saudi Central Bank (SAMA) launched its Open Banking Framework in 2022, starting with account information services (AIS) and expanding to payment initiation services (PIS) in 2024. Through its Open Banking Lab, SAMA provides a testing environment for banks and fintechs to develop and certify API-based services.
In 2024, the Central Bank of the UAE introduced a broad Open Finance Regulation as part of its Financial Infrastructure Transformation Programme. The regulation mandates data-sharing across banking, insurance, and investment sectors, with a centralized API platform being rolled out by Al Etihad Payments.
Bahrain was the first in the region to implement formal Open Banking rules, launching its framework in 2018 and expanding to corporate accounts in 2024. The Central Bank of Bahrain continues to refine standards while supporting fintech testing through its regulatory sandbox.
These developments signal a coordinated push toward Open Banking as a standard part of financial infrastructure. For businesses, this means greater access to regulated data-sharing tools, and more fintech services built on top of secure, government-backed systems.
Open Banking frameworks are already live in Saudi Arabia, the UAE, and Bahrain. Adoption is progressing, and regulators are moving quickly to expand coverage across sectors. For businesses, this means new tools, partnerships, and operating models are becoming available – whether for payments, lending, or financial planning.
The next step isn’t about rushing in, but about understanding where Open Banking fits into your operations and where it could create the most value.
If you’d like to explore practical use cases or find providers operating in your market, we can help you get started. Get in touch to explore the best solutions for your needs.
