Open Banking (OB) is defined as the sharing and leveraging of customer-permissioned data by banks with third-party financial service providers (TPPs), who in Bahrain, are licensed as Account Information Service Providers (AISPs) or as Payment Initiation Service Providers (PISPs) depending on the nature of services they provide using the access that they get to customer data based on his explicit consent. Customers gain access to new range of innovative services that can help them manage their money better based on customer consent given to banks and other firms holding customer accounts share account information with licensed AISPs/PISPs providers.Open Banking will allow AISPs and PISPs to obtain access to the user/customer permissioned banking, transaction, and other financial data from ASPSPs (conventional retail bank licensees and Islamic retail bank licensees) through the use of application programming interfaces (APIs).

By offering greater customer control over data and broader access beyond traditional banking services, Bahrain’s Open Banking initiative not only has the potential to create a more competitive and innovative financial services industry, but also promises to create a new data sharing and data analytics infrastructure, which will form the basis of a much richer range of services, experience and products across Bahrain’s digital economy as a whole.
With the rising importance of data in today’s digital economy, securely enabling users/customers to share their personal financial data with trusted third parties has the potential to deliver improvements and new value in financial services—from digital advice to financial automation and innovative product development.

Bahrain’s Open Banking initiative will enhance the experience of the users/customers, enable them to view all their account information in one place, help them budget their financial needs, find customised products and services suited to serve their requirements and find new ways to make the most of their finances. This will also provide an additional medium for the users/customers to make quick, easy and direct payments from their accounts. Bahrain’s Open Banking initiative will transform the way the users/customers access their account information and compare their products and services and get a better deal suited to their needs.

The Central Banking of Bahrain (CBB) in consultation with the industry is implementing Bahrain OBF in Bahrain. The CBB endeavors to maintain a leading position in the MENA region with regards to regulatory frameworks that promote digitalization and the increased adoption of innovative solutions in financial services. The issuance of rules relevant to “Open Banking” is one of several such initiatives designed to support and promote innovation. Bahrain OBF aims to ensure a higher degree of consistency in the implementation of these rules by providing a common set of technical and customer experience standards across the Open Banking participants.

The users/customers and accredited entities that are a part of the Open Banking ecosystem are the key participants.

• Users/Customers: All eligible users/customers will be entitled to exercise the right to access and share their data with third party financial service providers. The users/customers who have enabled online or mobile banking services for their accounts are eligible to avail Open Banking services.

• Accredited Entity: All eligible entities accredited by Central Bank of Bahrain to practice Open Banking which include Account Information Service Providers (AISPs) and Payment Initiation Service Providers (PISPs).

• Account Services Payment Service Providers (ASPSPs): All retail banks holding customer accounts. In the future, other licensees may also participate in open banking.

The user/customer is always in control. They can choose which services they use, and which providers they will allow to access their information. The user/customer will also decide for how long they will allow the AISP/PISP to access their information.