The Central Bank of the UAE (CBUAE) has announced a partnership for an initiative called ‘Project Aperta’. This project aims to link open finance infrastructures across various jurisdictions, enhancing cross-border interoperability for financial institutions and businesses within a reliable network.
CBUAE is collaborating with several key entities, including the Bank for International Settlements Innovation Hub Hong Kong Centre, Banco Central do Brasil, the Financial Conduct Authority of the UK, the Hong Kong Monetary Authority, the Global Legal Entity Identifier Foundation, the International Chamber of Commerce Digital Standards Initiative, and the Hong Kong University Standard Chartered Foundation FinTech Academy to launch this network.
Project Aperta serves as a prototype for a trusted network that connects open finance infrastructures across different jurisdictions. Its goal is to reduce the challenges that businesses face in trade finance when seeking financial products, such as letters of credit, trade credit insurance, and supply chain financing from financial institutions.
Focus on SMEs in trade finance
The initial focus of Project Aperta will be on trade finance for small and medium-sized enterprises (SMEs). This initiative aims to facilitate quicker transmission of trade finance data related to shipping, thereby lowering costs and speeding up international trade. Furthermore, the prototype will allow for the cross-border transfer of consumer and business account data, making it easier to open new accounts with banks in other countries.
Accelerating international trade
Khaled Mohamed Balama, governor of the CBUAE, expressed enthusiasm about the partnership, noting that he was excited to collaborate with the Bank for International Settlement Innovation Hub Hong Kong Centre on Project Aperta, which aligns with their goal of fostering innovation in financial services for both businesses and consumers. Additionally, he mentioned that this initiative has the potential to create a trusted and secure network that could accelerate international trade.
Broader access to financial products
Balama also highlighted that a unified, reliable connection between multiple jurisdictions through a digital network, which allows for cross-border data sharing with customer consent, could broaden access to financial products, promote sustainable economic growth, and maintain financial stability. He further reaffirmed the commitment to advancing the financial services sector in the UAE and enhancing its global competitiveness.
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