Forecasts indicate that the open banking sector is poised for substantial growth, with projections suggesting a market value of $43 billion by 2026, a significant leap from $7 billion in 2018. The chairman of Saudi Arabia’s Capital Market Authority made this prediction at the Open Banking Hackathon 2024’s closing event in Riyadh.
The chairman highlighted the widespread acceptance and integration of open banking frameworks as a driving force behind this expansion. The hackathon aimed to provide participants with in-depth knowledge of the technology powering open banking services, offering guidance from seasoned experts on how to present their innovative projects.
Open banking practices enable third-party service providers to access consumer banking and financial data through application programming interfaces, fostering a transparent, customer-centric, and competitive financial landscape.
“It is also evidence of the crucial role that open banking plays in shaping the future of financial services, thanks to its ability to enhance transparency, improve the experience of customers, and encourage fair and effective competition between financial institutions,” the chairman was quoted by Al Ekhbariya.
In the presence of financial sector leaders and experts, the chairman also spoke of the hackathon as the first innovative initiative by the financial academy, which aligns with Saudi Arabia’s goal of becoming a global hub for financial technology as part of its Vision 2030.
A 2023 study anticipates an increase in training expenditure from SR788 million ($210 million) in 2023 to around SR1 billion ($266.5 million) by 2026. Concurrently, the number of individuals targeted for training is set to surpass 130,000.
According to the CEO of the financial academy, the hackathon served as a platform for learning the essentials of open finance, including technological infrastructure, regulatory frameworks, and their impact on financial institutions and consumers.
Targeting professionals from the banking, financial services, and fintech sectors in Saudi Arabia, the hackathon also catered to software developers with at least two years of experience in financial services and fintech. Participants were awarded certificates from the financial academy and accredited international entities like the Silicon Valley Innovation Center at the Lebanese American University and UK-based technology company Ozone API.