Open Banking Framework: A Comparative Study of Evolving Law in the Kingdom of Saudi Arabia and the United States of America

Abstract

Open banking is reshaping the financial sector by enabling third-party access to consumer financial data and; fostering innovation while raising regulatory challenges. This study compares the legal frameworks that governs open banking in the Kingdom of Saudi Arabia (KSA) and the United States (US), focusing on consumer protection, data privacy, and compliance. KSA adopts a centralized regulatory model under the Saudi Central Bank (SAMA), ensuring uniform compliance, while the US follows a fragmented, market-driven approach with multiple regulators. Through a comparative legal analysis, the study identifies key differences, regulatory gaps, and areas for improvement in transparency, dispute resolution, and responsible data-sharing practices. The findings of this dissertation highlight the need for balanced regulatory frameworks that promote financial innovation while safeguarding consumer rights. This research provides insights for policymakers and industry stakeholders that; advocate for legal reforms that enhance security, efficiency, and consumer trust in open banking ecosystems.