Qatar aims to develop pioneering open banking ecosystem, says QFC report

03/07/2025 04:31 AST

Doha seeks to develop a pioneering ecosystem that expands open banking capabilities, supported by advanced frameworks and API (application programming interface) platforms, according to a Qatar Financial Centre (QFC) report.

"This will enhance the regulatory environment and support digital banking, crowdfunding, and emerging technologies," QFC said in its Islamic Finance Report.

Highlighting that QNB launched its open banking platform in 2022; it said this platform, the first of its kind in Qatar and one of the first in the region, allows customers, partners, and fintechs to securely access the bank's core systems, enabling a seamless banking experience.

In May 2024, QNB expanded its open banking services to corporate clients, further enhancing its offerings. QNB's partnership with Ooredoo on the Ooredoo Money service exemplifies successful open banking and fintech collaboration.

Open banking is a financial services model that allows third-party service providers to access consumer data from traditional banking systems through APIs. Open banking has the potential to revolutionise the country's financial services sector as it allows new entrants into the market, open up new opportunities for startups and fintechs.

The QFC report said open banking can benefit Islamic banks by enabling personalised, Shariah-compliant financial products and fintech solutions, such as real-time Zakat calculation apps.

By using APIs to aggregate financial data from multiple sources, Islamic banks can offer tailored Shariah-compliant investment portfolios, including products like sukuk and equity funds.

This integration can enhance customer experience and financial inclusion, and drive innovation in Islamic financial products, it said.

Open banking is rapidly transforming the financial landscape in the GCC (Gulf Co-operation Council) region. This trend involves financial institutions granting third-party providers access to consumer-banking transactions, and other financial data through APIs, according to the report.

Open banking securely integrates a bank's core financial services with its partners', facilitating data sharing and payments between organisations.

This integration enables the creation of new financial products and services, enhancing customer experience and fostering innovation the report said.

Leveraging fintech partnerships and open banking initiatives will drive digital transformation and innovation in the Islamic banking sector going forward, while expanding sustainable Islamic banking offerings will support Qatar's decarbonisation and just transition efforts, according to the report.

Further advancing their digital transformation agendas, Islamic banks have begun integrating more advanced technologies such as AI or artificial intelligence, machine learning, and blockchain into their operations.

Banks in Qatar have begun to embrace open banking as a crucial initiative to enhance customer satisfaction. By launching open banking platforms, these institutions are providing an enhanced banking experience to their customers, as well as partners and emerging fintech players in Qatar, a PricewaterhouseCoopers study had said.

Gulf Times