SBP Wants Fintechs to Have More Access to Banking Data

The State Bank of Pakistan (SBP) has released draft regulations for public consultation, aiming to increase openness in the banking sector for the benefit of innovation and competition. The proposed Open Banking Regulations seek to empower customers by enabling secure, consent-based sharing of their financial data and facilitate business payments through authorized Third-Party Providers (TPPs).

These regulations are designed to enhance digital financial services, making them more efficient and customer-focused. They will facilitate the digitization of business-to-business (B2B) and consumer-to-business (C2B) transactions and allow innovative uses of consent-based financial data. This includes robust credit assessments, better access to financing for small and medium enterprises (SMEs), and the creation of personalized financial products and services.

The draft regulations have been shaped by international best practices and the feedback from the initial cohort of the Regulatory Sandbox on Open Banking. The SBP has incorporated safeguards for data protection, privacy, cybersecurity, fraud prevention, and consumer protection. These measures align with the central bank's goal of developing a more connected, inclusive, and efficient financial ecosystem.

The consultation process is open to all stakeholders, including financial institutions, fintechs, technology providers, consumer groups, academia, and the general public. The SBP invites feedback to refine the proposed framework, which can be submitted via email or post by November 30, 2026. The draft regulations are available on the SBP's website for review.