The banking sector in the United Arab Emirates (UAE) is undergoing a notable transformation as Open Finance begins to play a central role in shaping how financial services are delivered to individuals and businesses. This shift, supported by a regulatory framework from the Central Bank of the UAE (CBUAE), is expected to spur innovation, deliver faster credit access, and unlock a new generation of data-driven services across the financial ecosystem.
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What Is Open Finance and How It Works
Open Finance allows customers — both individuals and businesses — to securely share their financial data with licensed third-party providers under strict consent-based controls. This data sharing goes beyond traditional banking interfaces, enabling features such as account aggregation, seamless payments, personalised financial products, and more accurate credit profiling.
Unlike closed banking models where each bank operates in isolation, Open Finance relies on a regulated ecosystem of banks, fintechs, and technology providers working together. The CBUAE framework includes a trust framework and an Application Programming Interfaces (API) hub that allow secure data sharing and transaction initiation, while maintaining high standards of consumer protection, consent and cyber security.
Faster Access to Credit and Tailored Financial Solutions
One of the biggest benefits of adopting Open Finance in the UAE is faster and smarter access to credit. By enabling lenders to view a customer’s financial activity — with permission — across accounts and institutions, creditworthiness can be evaluated more holistically. This means quicker loan approvals, better risk assessments, and lower friction in onboarding new customers.
For small and medium enterprises (SMEs) in particular, this approach could be transformative. With clearer insights into cash flows and financial patterns, lenders can design credit products that match the unique needs of growing businesses, boosting productivity and supporting the UAE’s broader goal of economic diversification.
Experts say these changes not only help traditional banking customers but also open doors for underserved segments — such as startups and first-time borrowers — by enabling lenders to make faster, data-backed decisions.
Milestones in the UAE’s Open Finance Rollout
The Open Finance initiative in the UAE has already crossed important milestones in its rollout:
- Abu Dhabi Islamic Bank (ADIB) has launched Open Finance services under the national initiative, giving customers greater control over accounts and integrated digital services.
- First Abu Dhabi Bank (FAB) and fintech partner Pay10 went live with Open Finance capabilities for retail customers, enabling regulated data access and seamless connectivity.
- Regulatory approvals and initial infrastructure setups — including licensing fintechs under the Open Finance framework — have laid the foundation for broader nationwide adoption.
- Industry participants, including platforms like Lean Technologies and Tarabut, have secured approvals for participation in the Open Finance ecosystem, further expanding the pool of regulated service providers.
Additionally, the Commercial Bank of Dubai (CBD) has reportedly become the first bank in the UAE to fully implement Open Finance for live operations, integrating multiple licensed third-party providers to enable secure data sharing and payment initiation for customers.
Why This Matters for the UAE’s Financial Future
Open Finance is a cornerstone of the UAE’s broader digital economy strategy, which aims to leverage data, technology and digital services to raise the financial sector’s contribution to national GDP and empower the financial ecosystem.
By opening up customer-permissioned data to a regulated network of banks and fintechs, the system:
- Enhances customer control and financial visibility.
- Encourages competition and innovation among service providers.
- Improves efficiency of credit and payment systems.
- Supports expanded services like savings tools, wealth management insights and personalised financial planning.
The full realisation of Open Finance is expected to transform banking into a more inclusive, fast, and flexible ecosystem in the UAE — benefiting consumers, businesses, and the broader financial marketplace.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
