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Jordan Takes a Leap Forward in Banking Regulations with Launch of Open Finance Standards
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Jordan’s Payments and Clearing Company (JoPACC) has launched the Jordan Open Finance Standards, in collaboration with the Central Bank of Jordan and a group of banks. This groundbreaking initiative aims to simplify and streamline financial services by developing unified requirements for Application Programming Interfaces (APIs) across various financial services in the banking sector.
Simplifying Financial Services
The new standards aim to reduce the burden on fintech startups and financial institutions by providing a single set of APIs that can be reused across multiple institutions. This will accelerate the launch of innovative fintech solutions and banking products into the market.
Benefits of Standardization
- Reduces integration time and cost required for entities
- Provides a single set of APIs for reuse across multiple institutions
Categories and Services
The Jordan Open Finance Standards comprise four main categories:
1. Account Information Services (AIS)
2. Extended Services (ES)
3. Facilities, Products & Services (FPS)
4. Payment Initiation Service (PIS)
These categories list 16 financial services that can be integrated using the standardized APIs.
Enhanced Security and Collaboration
Some of the services have been designed using the Webhook mechanism, which facilitates automated real-time data transfer between web applications triggered by specific events.
Design Principles
- Collaboration with the market
- Application of global standards for data security and protection
- Customer consent management
Accessible Documents and Digital Sandbox Environment
The initiative’s documents are freely accessible to anyone interested in benefiting from, reviewing, or conducting tests through the Digital Sandbox environment at JOF Digital SandBox.
Expected Outcomes
- Elevate digital financial services in Jordan
- Promote a more efficient and secure financial ecosystem