1.0 Introduction

From the knowledge gathered from the module notes, technology innovation has bene identified as the single most critical driver for majority of the organisation towards achievement of their competitive advantage. This is since majority of organisations gain upto one third of the sales on products developing within a timeline of 5 years. To affirm this, Tarigan (2018) noted that the technology innovation can be product which assist protection of organisations by development of new products with distinct features. This is with process innovations assisting in harnessing the efficiency of their operations. Hence, from an individual experience working in the banking sector, the technology innovation has been established in 2022 as a strategy for the country baking industry intention of diversifying their financial services sector and becoming international hub for financial technology innovation.

2.0 Identified Technological Innovation

2.1 The Technology

As evidenced in Arab News (2022), the Saudi Open Banking has been established as part of the organisation strategy for modernising the banking sector as part of vision 2030. This innovation has been developed in a three-fold manner which include improvement of the banking and financial sector for supporting private sector, improving and enhancing the capital markets and eventually encouraging people on individual investment and financial planning. The rationale of identifying this as a technological innovation is informed by the module notes which identified that the innovation can be from firms, universities, government funded research, private non-profits and individuals. As evidenced in Qamruzzaman and Jianguo (2018) majority of the successful technological innovations are developed by the government regulators in a banking sector through collaboration with the firms. For this innovation, it is a product of the Saudi Central Bank earlier identified as Saudi Arabian Monetary Authority /SAMA (PWC, 2022). Hence, the outcome of this technological innovation would include the banks rethinking of their strategy from a traditional pipeline optimisation model to a co-creation platform model involving various players in this ecosystem.

2.2 Purpose of the Technology

The core purpose of this technology is transforming the payments in Saudi Arabia. As explained in Entrepreneur (2022) this is by offering the third parties with an access to bank’s systems and customer data for the purpose of creating new products and services. As a result of this, there would be an increased financial inclusion, lowering administrative and operational costs for the financial institutions and different fintech organisations. Part of this would also include enabling organisations with a capacity of acquiring tools and techniques for being competitive in different e-commerce and online services. This is with the overall reliance on cash transactions being substantially reduced. The advantage of use of this technology is equally evident from a global context as Bascand (2020) note that the open banking system embrace of the open banking technology has harnessed the overall financial transparency options available for all account holders. This range from the open data to the application of private data. The third-party providers have particularly been popular in the Saudi Banking sector as they have managed to use them for facilitating their clients with coming up with appropriate application of financial transaction data, making and receiving payments directly from their banks accounts and benefiting from new card-based offerings.

2.3 Foundation of the Technology

Despite of the open banking technology being a newly developed innovation, Omarini (2018) note that its existence could be traced from 1980s…..

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