Central Bank of Jordan leads financial technology innovation

Amman: Since His Majesty King Abdullah II's assuming constitutional powers, the Central Bank of Jordan (CBJ) has embarked on a transformative journey, ushering in significant advancements in the financial sector. Embracing financial technology (fintech) and aligning with global standards and regulations, the CBJ has become a catalyst for progress and growth in the fintech realm. Today, the Bank stands at the forefront of a fintech revolution, leveraging international best practices to ensure financial stability, enhance financial infrastructure, and promote digital financial inclusion across the Kingdom. These efforts are a testament to the royal vision for economic modernization, aimed at fostering a resilient, comprehensive, sustainable, and adaptable economy that empowers individuals, entrepreneurs, and institutions alike. CBJ Governor Adel Sharkas reiterated the institution's commitment to maintaining a robust and stable financial system tailored to the demands of the modern era. This commitment serves as the cornerstone of the Bank's vision and strategic objectives. He emphasized that amidst evolving global dynamics and the rapid rise of technology-driven financial services, digital payments have emerged as a key industry, offering unparalleled opportunities for innovation and growth. The Central Bank has responded proactively to royal directives, spearheading the development of digital payment systems, financial technology, and innovation. This has positioned Jordan as a regional pioneer in launching advanced and comprehensive digital payment systems that cater to diverse economic needs. Notably, digital payments have surged from less than 5% to approximately 40% of total transactions in the Kingdom within a remarkably short timeframe, underscoring the Kingdom's rapid embrace of digital finance. Sharkas highlighted the pivotal role of regulatory frameworks in fostering the growth of digital payments. Since September 2016, the Central Bank has implemented measures to separate supervision and oversight fu nctions from operational management within payment, clearing, and settlement systems. This strategic restructuring aims to enhance transparency, mitigate conflicts of interest, and align with international best practices in financial oversight. Moreover, the Central Bank has streamlined licensing procedures for electronic payment system providers, facilitating their entry into the market. As of the end of 2023, five companies have been licensed to offer retail payment and domestic electronic transfer services, while eight licensed exchange companies specialize in managing domestic and cross-border electronic financial transfers. Looking ahead, the Central Bank remains steadfast in its commitment to driving fintech innovation and promoting financial inclusion. With 14 licensed payment service providers offering a wide range of payment solutions, including credit issuance, mobile payments, and electronic money transfers, Jordan is poised to further solidify its position as a fintech leader in the region. So urce: Jordan News Agency