BAKU, Azerbaijan, Dec.12
By Tamilla Mammadova – Trend:
From 2021, the principles of Open Banking will be gradually introduced in Georgia, Trend reports via the National Bank of Georgia (NBG).
According to the National Bank, the first change in this direction will come into force on March 31, 2021, according to individuals. Entrepreneurs will be able to make their banking personal information available on the digital channels of the desired bank.
The National Bank of Georgia and the Georgian Banking Association have developed a framework for introducing new standards on open banking issues. According to NBG, the development of this area will contribute to the emergence of new innovative products and companies in the banking sector.
“It is very important to have a single standard for the development of open banking. Implementing a common standard will greatly facilitate stakeholder integration, which will help financial institutions offer a variety of products to customers, reduce the cost of an existing product, and/or raise consumer awareness. Initially, the first version of Open Banking allows bank customers to provide personal information only through the digital channels of the preferred bank. The service is provided only to individuals and individual entrepreneurs. Clients of commercial banks will use this service from March 31, 2021. At the next stage, it will be possible to attract non-banking institutions and expand their functions, including initiating payments,” the National Bank said in a statement.
The Banking Association itself notes that if the principles of open banking are introduced, the development of fintech companies in Georgia will be stimulated. According to the Banking Association, due to current and future legislative changes, commercial banks will be instructed to provide certain information to third-party providers. A committee on open banking was created with the participation of representatives of commercial banks - a working group that will lead the process of introducing open banking together with the National Bank.
The Open Banking Initiative seeks to create a legal framework that encourages the creation of high-tech financial services while protecting consumers' finances and financial information.
The Open Banking Initiative aims to introduce relatively light rules for third-party providers so that they can make every effort to create new, flexible, and more tailored financial services in line with the interests of customers.
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