Open Banking in Jordan

Jordan has established itself as an early adopter of open banking in the Levant region. The Central Bank of Jordan (CBJ) published its Open Banking Framework in 2022, setting out the regulatory requirements, technical standards, and governance model for open banking services in the Kingdom.

The framework covers account information services, payment initiation, and product data sharing. It establishes licensing requirements for third-party providers and mandates consent-based data access through standardized APIs. The CBJ has drawn on international best practices, particularly from the UK and Bahrain, in designing its framework.

Jordan's open banking initiative is part of a broader digital transformation strategy in the financial sector. The country has seen growing fintech activity, supported by organizations like the Jordan Payments and Clearing Company (JoPACC) and the CBJ's regulatory sandbox. The mobile money ecosystem, including services like JoMoPay, has laid groundwork for digital financial services adoption.

With 83% internet penetration and a growing youth population with high smartphone usage, Jordan has a receptive market for open banking services. The framework is expected to drive innovation in personal financial management, digital lending, and payment services, supporting the government's goals for financial inclusion and economic modernization.

Jordan's experience demonstrates that smaller economies in the Middle East and North Africa region can effectively implement open banking frameworks with appropriate regulatory leadership and international cooperation.