Parallelly, their own versions of Open Banking UK standards were born and adopted in the UK and Switzerland.
As the financial world watched, the Open Banking ripple soon became a tidal wave. As of 2021, open banking has become a global phenomenon, with at least 87% of countries having some form of Open Banking standards. In Europe alone, there are at least 470 Third-Party Providers (TPPs) – online services providers authorized to access data using open banking frameworks, according to Open Banking Europe.
The leading jurisdictions in Open Banking include the United Kingdom (UK), Australia, and the European Union (EU). Countries like the United States or New Zealand are considered ‘Beginners.’ These are countries and jurisdictions with little or no progress on regulation or standards.
Bahrain paved the way and adopted the Open Banking framework locally in the Middle East. It is also advocating that other countries in the Middle East start using the framework to enable banks to benefit from fintech digitization. In Saudi Arabia, Saudi Central Bank (SAMA) has announced that they will go live with their own open banking policy with directives that will be enforced starting mid-2022. The UAE is also on its way. Financial software provider, Finastra, found that nearly nine out of ten institutions in the UAE plan to enable open banking in the next 12 months. The Central Bank of UAE and state regulators have voiced their support, and the federation’s government has announced its interest in supporting digital banking investments. As reported by HID Global, the Dubai Financial Authority (DFSA) started granting open banking licenses in 2020.
Meanwhile, Israel, India and China are also registering Open APIs and evolving standards.