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Abu Dhabi wants an open relationship with FinTechs and BanksMENA

Abu Dhabi wants an open relationship with FinTechs and Banks

Financial institutions in the UAE are quickly realizing the potential of acquiring customer data for their businesses — so much so that the Financial Services Regulatory Authority (watchdogs of the Abu Dhabi Global Market) has rolled out a regulatory framework to supervise the use and exchange of customer data between them and third-party providers.

Third-party providers, also known as TPPs, act as intermediaries between consumers and financial institutions — they aggregate consumer data (such as spending habits, credit history, and income) and pass it onto banks and FinTechs. With so much sensitive data at hand, the new framework will regulate TPPs to ensure that consumers’ privacy rights aren’t violated.

why it matters
Ultimately, cooperation between TPPs and financial institutions is what many are hoping will lead to open banking — an inevitability in the gulf region, given that its financial industry is on a maturation trajectory.