Customers today want online and app-based transactions to be quick, easy and efficient. Whether paying a telecoms bill, buying goods or services or even trading shares, millennial and Gen Z customers expect the process to be almost instantaneous.
Enter open banking, where third-party service providers can directly input a user's financial details to speed up the process and make it smooth.
The concept of open banking uses a technology called application programming interface (API) to enable third-party providers to access a customer's banking credentials directly through the app or platform being used, without the user themselves having to input sensitive account data. In practice, this means that if an app uses open banking, the transaction can be carried out quickly, easily and efficiently.
Recent statistics published by Juniper Research suggest that the value of open banking transactions will grow from $57 billion globally in 2023 to $300 billion by 2027 – a sizeable market indeed.
Banks across the globe are, although in a nascent stage, gearing up for faster adoption of open banking platforms. This trend is seen equally in conventional and Islamic banking, with lenders working alongside FinTechs to develop APIs and payment gateways that offer the levels of security needed to enable third-party providers to access sensitive financial data.
As with legacy banking, regulatory oversight and infrastructure exist for open banking. A framework for the governance of open banking platforms in the UAE has recently been established, which banks are gearing up to comply with. They are also using payment gateways to enable clients to pay utilities and services bills.
Why open banking?
Today’s customer demands agility when undertaking transactions, and siloed operations can negatively affect an organisation’s ability to meet that demand.
The key objective of integrating open banking is to provide efficient and complete financial services to customers without the need to shuffle between different apps to complete a single transaction. Open banking is used by many service providers, such as telecoms operators, utility providers and online trading platforms, as well as online and app-based retailers.
Beyond streamlining payments, open banking can also be used to amplify the customer experience in other ways. The technology behind the payment capability can be used to analyse data in order to personalise banking services.
Open banking creates opportunities for lenders to vastly improve the customer experience, to expand, and to generate new revenue streams as opportunities to collaborate with more third-party provider partners grow. By partnering with such providers, banks can have considerable impact on their customers’ experiences across more than just payments. In enabling access to data and data-sharing, banks can ensure customers can enjoy speed, convenience and efficiency when undertaking a number of tasks online and in-app.
Open banking and Islamic finance
So, is open banking compatible with Islamic finance? It is indeed. Open banking emphasises transparency, clarity and secure data sharing, as well as detailed disclosure. Islamic banking, with its focus on ethical, transparent financial practices, is poised to be the perfect partner.
Customers must acknowledge that their data will be shared with the third-party providers and agree for their bank to share such data, creating transparency and clarity for all parties. Banks must take every precaution to ensure that all shared data is subject to the highest levels of protection and security. All elements of open banking align with the principles of Islamic finance.
Of course, Islamic banks must also ensure that the third-party providers align with the tenets of Islamic finance. To assure compliance with Sharia principles for customers who wish to use open banking, Islamic banks must make sure all products, services and providers are strictly monitored and approved by Sharia governance units that are supervised by experienced boards comprising eminent scholars.
As with traditional banking, adopting open banking in Islamic finance has potentially far-reaching consequences. Open banking can enhance many products, services and solutions designed for Muslim customers, from Sharia-compliant FinTech and investment apps to those offering fulfilment of Zakat obligations. Furthermore, integrating open banking into Islamic finance can help drive inclusivity in the banking sector, particularly in areas with large unbanked or underbanked populations, which is a key priority for the Islamic finance sector.
With the value of open banking set to increase exponentially in the coming years, it is clear that Islamic banks must join traditional banks in partnering with third-party providers to expand its adoption.
It is a win-win situation for banks and customers. In adopting open banking, we can contribute immensely to the growth of Islamic banking and create far-reaching impact across both our customer base and the Islamic finance ecosystem itself.
Ibrahim Al Mheiri is head of Islamic banking at Mashreq
UAE currency: the story behind the money in your pockets
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Abu Dhabi racecard
5pm: Maiden (Purebred Arabians); Dh80,000; 1,400m.
5.30pm: Maiden (PA); Dh80,00; 1,400m.
6pm: Sheikh Zayed bin Sultan Al Nahyan National Day Cup (PA); Group 3; Dh500,000; 1,600m.
6.30pm: Sheikh Zayed bin Sultan Al Nahyan National Day Cup (Thoroughbred); Listed; Dh380,000; 1,600m
7pm: Wathba Stallions Cup for Private Owners Handicap (PA); Dh70,000; 1,400m.
7.30pm: Handicap (PA); Dh80,000; 1,600m
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
If you go:
The flights: Etihad, Emirates, British Airways and Virgin all fly from the UAE to London from Dh2,700 return, including taxes
The tours: The Tour for Muggles usually runs several times a day, lasts about two-and-a-half hours and costs £14 (Dh67)
Harry Potter and the Cursed Child is on now at the Palace Theatre. Tickets need booking significantly in advance
Entrance to the Harry Potter exhibition at the House of MinaLima is free
The hotel: The grand, 1909-built Strand Palace Hotel is in a handy location near the Theatre District and several of the key Harry Potter filming and inspiration sites. The family rooms are spacious, with sofa beds that can accommodate children, and wooden shutters that keep out the light at night. Rooms cost from £170 (Dh808).
Sri Lanka squad
Dinesh Chandimal, Dimuth Karunaratne, Kaushal Silva, Kusal Mendis, Angelo Mathews, Lahiru Thirimanne, Niroshan Dickwella, Sadeera Samarawickrama, Rangana Herath, Suranga Lakmal, Nuwan Pradeep, Lakshan Sandakan, Vishwa Fernando, Lahiru Kumara, Jeffrey Vandersay, Milinda Siriwardana, Roshen Silva, Akila Dananjaya, Charith Asalanka, Shaminda Eranga and Dhammika Prasad.
More Iraq election coverage:
Crops that could be introduced to the UAE
1: Quinoa
2. Bathua
3. Amaranth
4. Pearl and finger millet
5. Sorghum
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The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
The specs: 2018 Maxus T60
Price, base / as tested: Dh48,000
Engine: 2.4-litre four-cylinder
Power: 136hp @ 1,600rpm
Torque: 360Nm @ 1,600 rpm
Transmission: Five-speed manual
Fuel consumption, combined: 9.1L / 100km
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The more serious side of specialty coffee
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
Herc's Adventures
Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5
Gifts exchanged
- King Charles - replica of President Eisenhower Sword
- Queen Camilla - Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
- Donald Trump - hand-bound leather book with Declaration of Independence
- Melania Trump - personalised Anya Hindmarch handbag
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
The specs
Engine: 3.5-litre twin-turbo V6
Power: 380hp at 5,800rpm
Torque: 530Nm at 1,300-4,500rpm
Transmission: Eight-speed auto
Price: From Dh299,000 ($81,415)
On sale: Now
SPECS
%3Cp%3EEngine%3A%20Supercharged%203.5-litre%20V6%0D%3Cbr%3EPower%3A%20400hp%0D%3Cbr%3ETorque%3A%20430Nm%0D%3Cbr%3EOn%20sale%3A%20Now%0D%3Cbr%3EPrice%3A%20From%20Dh450%2C000%0D%3Cbr%3E%3C%2Fp%3E%0A
'Cheb%20Khaled'
%3Cp%3E%3Cstrong%3EArtist%3A%20%3C%2Fstrong%3EKhaled%3Cbr%3E%3Cstrong%3ELabel%3A%20%3C%2Fstrong%3EBelieve%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
F1 drivers' standings
1. Lewis Hamilton, Mercedes 281
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 222
4. Daniel Ricciardo, Red Bull 177
5. Kimi Raikkonen, Ferrari 138
6. Max Verstappen, Red Bull 93
7. Sergio Perez, Force India 86
8. Esteban Ocon, Force India 56
Best Foreign Language Film nominees
Capernaum (Lebanon)
Cold War (Poland)
Never Look Away (Germany)
Roma (Mexico)
Shoplifters (Japan)
The specs
Engine: 8.0-litre, quad-turbo 16-cylinder
Transmission: 7-speed auto
0-100kmh 2.3 seconds
0-200kmh 5.5 seconds
0-300kmh 11.6 seconds
Power: 1500hp
Torque: 1600Nm
Price: Dh13,400,000
On sale: now
Venom
Director: Ruben Fleischer
Cast: Tom Hardy, Michelle Williams, Riz Ahmed
Rating: 1.5/5
UAE currency: the story behind the money in your pockets
Francesco Totti's bio
Born September 27, 1976
Position Attacking midifelder
Clubs played for (1) - Roma
Total seasons 24
First season 1992/93
Last season 2016/17
Appearances 786
Goals 307
Titles (5) - Serie A 1; Italian Cup 2; Italian Supercup 2
Astroworld
Travis Scott
Grand Hustle/Epic/Cactus Jack
