Al Baraka Islamic Bank Becomes the First Bank in Bahrain to Achieve Open Banking Compliance

Al Baraka Islamic Bank has become the first bank in Bahrain to achieve compliance with the Central Bank of Bahrain's Open Banking Framework for corporate APIs, enabling secure financial data sharing for its corporate clients.

The compliance milestone means that Al Baraka's corporate customers can now authorise third-party fintech providers to access their financial data through standardised APIs. This capability enables corporate clients to use account aggregation services, automated reconciliation tools, and data-driven financial management applications that connect directly to their Al Baraka banking data.

The CBB's Open Banking Framework, which became mandatory in September 2024, requires all licensed banks and finance companies in Bahrain to provide API access to authorised providers. Al Baraka's achievement of compliance ahead of many competitors positions the Islamic bank as an early mover in Bahrain's open banking ecosystem.

Corporate open banking is particularly valuable for businesses that operate accounts across multiple banks and need consolidated visibility of their financial position. The standardised APIs enable third-party platforms to aggregate data from multiple banking relationships, providing treasurers and finance teams with a unified view of cash positions, transactions, and payment obligations.

Al Baraka Islamic Bank, part of the Bahrain-based Al Baraka Banking Group, has been investing in its digital capabilities as part of a broader modernisation programme. The open banking compliance demonstrates that Islamic banks can adopt modern digital infrastructure while maintaining Sharia-compliant banking operations.

Other Bahraini banks are expected to achieve compliance progressively as the CBB's framework implementation timeline advances.