Open banking enabler Salt Edge has announced a partnership with the Central Bank of Bahrain (CBB) to boost its tech stack in regard to its Open Banking Framework and requirement for banks to have APIs for corporate accounts. Bahrain is said to be the first Middle Eastern country to mandate Open Banking, adopting a framework in 2020.
Salt Edge notes that banks will be required to obtain customer consent and authentication, licensee disclosures, and reporting API performance by service providers.
Under the new regulations, banks must now allow Account Information Service Providers (AISPs) and Payment Initiation Service Providers (PISPs) access to account information for legal entities after securing their consent. AISPs and PISPs must work with banks to establish standard API specifications and operational guidelines based on Bahrain’s Open Banking Framework.
Salt Edge is collaborating with Spire, a Fintech with a presence in Bahrain, Saudi Arabia, and the United Kingdom. Spire offers open banking solutions, including regulatory compliance,
Aamir Janjua, co-founder and deputy CEO at Spire, said that as the CBB mandates Open Banking for corporate accounts, the Compliance Hub is an essential tool for banks to comply with the rules.
Salt Edge CGO and Head of Business Development and Alliances, Beleuta Alina, said:
“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.”
Salt Edge is an API platform that enables access to bank channels. The company states that it is integrated with over 5,000 financial institutions in 50+ different countries.