Open Banking Module Summary

Introduction

During November 2018, the Central Bank of Bahrain (CBB) announced the launch of draft rules (25 pages) on open banking. The document is directed toward open banking operators that provide either of the following services:

a)Providers of account information 

b)Providers of payment initiation 

The common factor between both of these regulated services consist of gaining access to customer accounts from electronic wallets, conventional Islamic and retail banks through ‘application program interfaces’ (APIs).

Timeline of open banking developments in Bahrain

April 2018 - Tarabut Gateway joins the regulatory sandbox as first open banking applicant

11 November 2018 - CBB issues open banking draft rules

25 November 2018 - Deadline for feedback on open banking draft rules

11 December 2018 - Tarabut Gateway graduates from regulatory sandbox

Definitions

Application Program Interfaces (API): API consists of a software intermediary that allows two applications to interact.

Account Information Service Providers (AISPs): A CBB-licensed entity that provides online account information services.

Payment Initiation Service Providers (PISPs): A CBB-licensed entity that provides online payment services.