Cansen Ergun (DefineX): ‘Open finance is reshaping the financial services sector’
The financial services sector in the Middle East is going through a major transformation as open finance and digital ecosystems alter traditional banking models, says Cansen Ergun, managing director at DefineX.
Financial institutions are moving away from historical, isolated competition and are instead building interconnected systems to drive growth and financial inclusion across the region. Ergun notes that the regional strategy for financial institutions has fundamentally changed.
The market is witnessing a clear transition toward integrated networks rather than independent operations. This evolution is enabling financial firms to discover new ways to generate revenue.
“Well, nowadays the motto is collaboration is the new disruption,” says Ergun. “Banks and technology providers in the Middle East are collaborating to build sovereign architectures, resilient systems and the right infrastructure for ethical AI.”
This collaborative approach allows traditional banks to work closely with technology vendors and fintech companies. By making use of software-as-a-service platforms, these institutions can better serve emerging market segments, including SMEs, digital-first consumers, and corporate clients.
Beyond traditional banking
The impact of open finance extends well outside the boundaries of standard banking. Significant progress is occurring in areas such as commerce payments and supply chain financing, which is forcing the creation of a more inclusive regional financial system.
This transformation requires financial institutions to update their technological foundations. To participate effectively, organizations must ensure their platforms and application programming interfaces, commonly known as APIs, are fully prepared to connect with external partners, including non-financial entities.
“Indeed, Middle East financial institutions are boldly and actively reshaping financial services through open finance,” Ergun says.
In one project, DefineX helped a financial client with API-first platform to replace a custom legacy middleware, which helped the organization with better scalability and less dependency on specialized development. The result is a system free of previous bottlenecks, improved operational resilience, and a scalable foundation for future digital growth.
Advancing financial inclusion
One of the most notable outcomes of this technological shift is the expansion of credit and financial literacy to underserved populations. Regional initiatives are successfully targeting segments of the population that previously lacked access to robust banking tools.
“I find it very impressive that through open finance, credit finance is being extended to underserved communities, driving financial inclusion and financial literacy,” Ergun says.
In the UAE, for example, digital wallet solutions now offer cost-effective options for remittances, specifically addressing the needs of blue-collar workers. These systems have expanded to offer democratized wealth management, investments, and savings programs that help improve financial literacy for families.
“In the end, this is all redefining the game, creating new revenue streams for banks,” adds Ergun.
The evolution of AI
The regional deployment of AI is also maturing. Instead of remaining limited to experimental projects, particularly in the UAE, the technology is transitioning into targeted and strictly governed use cases.
As open finance continues to mature, the ability of financial institutions to look outside their traditional borders and collaborate with diverse ecosystems will remain the primary driver of modernization in the Middle East.
