Open Banking solutions provider Salt Edge and fintech Spire have begun working together as the Central Bank of Bahrain (CBB) mandates all licensed banks to expose APIs for corporate accounts.
The CBB’s latest updates to its Open Banking Framework also require obtaining customer consent and authentication, licensee disclosures, and reporting API performance by service providers, according to Salt Edge.
Under the new regulations issued by the central bank, Bahraini banks are required to allow account information service providers (AISPs) and payment initiation service providers (PISPs) access to account information for legal entities, after securing their consent.
Meanwhile, AISPs and PISPs must collaborate with banks to establish standard API specifications and operational guidelines, based on the country’s existing Open Banking Framework.
It is expected that the release of corporate banking APIs will allow TPPs to develop new products and services, such as financial management tools, automated payment solutions, and data-driven insights which, in turn, will give SMEs in Bahrain easier access to funding.
Spire, which has a presence Bahrain, Saudi Arabia and the UK, offers several Open Banking solutions, including regulatory compliance, consultancy, AIS and PIS.
Aamir Janjua, co-founder and deputy chief executive officer of Spire, said: “By helping banks to extend Open Banking to corporate accounts, we’re empowering businesses to streamline operations, improve financial management, and unlock new growth opportunities.
“This is a significant step towards a more inclusive and innovative financial ecosystem in the Kingdom of Bahrain. Our Open Banking Compliance Hub is a strategic solution for Bahraini banks.”
Bahrain became the first country in the Middle East to implement Open Banking, when it launched its Open Banking Framework in October 2020.
“By automating compliance processes and providing real-time insights, our platform empowers banks to navigate the complex regulatory environment with confidence,” Janjua added.
“As the CBB mandates Open Banking for corporate accounts, the Compliance Hub becomes an essential tool for banks to ensure adherence to the latest regulations and drive innovation in the market.”
Alina Beleuta, chief growth officer, head of business development and alliances at Salt Edge, said: “Salt Edge is happy to join Spire in enabling Bahraini banks with globally proven Open Banking solutions.
“Adding corporate accounts to the scope of mandated APIs unlocks important Open Banking use cases for ERPs, corporate lending, invoicing, and investment, ensuring more financial inclusivity for driving segments of the economy like SMEs.”
Further reading: Ebury works with Salt Edge to extend Open Banking to EU, UK customers
