The Banking Executive Magazine, Issue 154, October 2021

Saudi Central Bank LAUNCHES CONSULTATION ON INSURANCE FINTECH RULES “I believe that banks must invest in technology in partnership and in relationship with the devel- oper to survive. And we must not forget that the heart of the future of finance is data. Data and AI will be the core differentiator,” he said. Al Ghurair cited a McKinsey re- port that said artificial intelli- gence could unlock $1 trillion of additional value for banks around the world. “Data and AI will sort out the leaders from the followers.” Stressing the urgency for finan- cial institutions to invest in data and AI, and respond to change now, Al Ghurair said: "The finan- cial industry has proven to be agile and innovative in the past. Now is the time to truly embrace the future and be bold in doing so, because banking tomorrow will not look like banking today." Environmental, social, gover- nance Also, with the “democratisation” of the consumers served by banks, players in the industry must consider how their busi- ness will help advance environ- mental, social and governance (ESG) causes. “As consumers increasingly em- brace social and environmental causes, they seek products and brands that align with their val- ues. There is no getting around this. This is the democratisation of consumer.” “They now expect the brands to act responsibly… ESG needs to be embedded into the overall strategy of the organisation.” ISSUE 154 OCTOBER 2021 the BANKING EXECUTIVE 25 The Saudi Central Bank (SAMA) has invited the public to submit feedback on its draft insurance fi- nancial technology rules. The new regulations aim to allow insurance FinTechs to work within a regulatory framework that “keeps pace with developments in the in- surance industry in general, and insurance technology services in particular,” SAMA said in a state- ment. The guidance covers such features as encouraging fair competition, obligations for practitioners, the accuracy and preservation of cus- tomer information as well as other consumer rights. The central bank said its frame- work is designed to “stimulate in- novation." Members of the public have until Nov. 16 to send in feedback on the draft insurance fintech rules, after which SAMA will adopt its final guidance.