Following this expansion, local banks and electronic money institutions are allowed to offer their clients authorised third parties (TPPs), as well as open and secure access to accounts and customer data. This will be provided through an application programming interface (API). By the end of 2023, the institutions of Jordan must develop the technology necessary to become regulatory Open Banking compliant.
This partnership allows banks and financial institutions from the region to comply with Open Banking in 1 month. Since Jordan has a different regulatory approach toward the interaction between banks and third parties, each financial institution will use the services provided by Salt Edge in order to identify and verify the third party. This will make the payment and transaction processes more secure and efficient for both the banks and their clients.
Central Bank of Jordan’s regulation of Open Finance
As Open Banking and Open Finance services grow in popularity around the world, Gulf Cooperation Council (GCC) countries being included, officials from The Central Bank of Jordan (CBJ) are convinced that Open Banking services are needed for the development of an inclusive and digitalised economy.
In December of 2022, CBJ has issued instructions to regulate Open Finance services provided by all banks operating in the Kingdom. Besides financial institutions, the instructions are also directed towards online payment and money transfer companies subject to the bank’s supervision and control.
According to the Central Bank of Jordan Governor, the regulation and the new instructions aim to encourage innovation and competition, while supporting opportunities for transformation towards a digital economy as well. Along with the partnership with Salt Edge, this represents one of the bank’s efforts to keep up with technological developments around the world and the rapid digitalisation of the financial sector and banking sector.
Salt Edge’s expansion strategy
Salt Edge is a Canada-based financial API platform, a PSD2 and Open Banking solution provider, that enables third parties to access bank channels. This works through a unified gateway and develops the necessary technology for the banks to become compliant.
The company has multiple partnerships in 2022, covering numerous geographies.
In December 2022, Salt Edge announced its partnership with fintech company ebankIT The collaboration aimed to help financial services providers in EMEA and Canada gain access to Open Banking features and services. As financial technology advances, new services such as payment systems, improved analytics, cybersecurity solutions, and risk management mechanisms are developed. The partnership was made to assist financial institutions and banks to create customer-first technological products with the Open Banking solutions and technologies.
In November of 2022, Salt Edge announced its expansion to Saudi Arabia to augment banks and FIs with innovative solutions and aid the Kingdom’s path towards digitalisation. The company’s Open Banking Compliance solution helped KSA banks to become compliance in a framework of 3 months. Furthermore, the company has already developed the sandboxes for KSA banks to offer an easy way to show how it starts.
For more information about Salt Edge, please check out their detailed profile in our dedicated, industry-specific Company Database.