Central Bank issues instructions to regulate Open Finance services

AMMAN — The Central Bank of Jordan (CBJ) has issued instructions governing Open Finance services provided by all banks operating in the Kingdom, as well as online payment and money transfer companies subject to the bank's supervision and control.

A CBJ statement released on Sunday said that the guidelines are part of a "new modern concept in financial services models" designed to help customers of banks and payment companies share their financial and banking data with third-party providers using APIs technology in accordance with the laws and instructions in force in this regard, the Jordan News Agency, Petra, reported.

The account information service and the payment initiation service are two examples of open finance services that allow third-party providers to offer customers innovative and competitively priced financial services and products. 

These services also support financial transactions and instant payments and let customers choose the financial products and services that are most appropriate for their needs.

The instructions, according to CBJ Governor Adel Sharkas, will foster innovation and competition and support opportunities for transformation towards an inclusive and advanced digital economy. 

The instructions are part of the bank's ongoing efforts to keep up with technological advancements around the world and the rapid digitisation of the financial and banking sector, he added.

The new instructions will require banks and payment and electronic money transfer companies in the Kingdom to grant third-party providers direct and open access to customer data and accounts via the Application Programming Interface (API) in accordance with contractual arrangements. In addition, they establish detailed work procedures that govern interactions with third-party service providers, define the technical standards that must be adhered to when working with them, and outline a risk assessment, Petra reported.