Tarabut secures $50 million in strategic financing

Tarabut, a major open banking platform in the Middle East, has secured $50 million in new funding. While the company operates in Saudi Arabia, the UAE, and Bahrain, this move signals a massive global shift in how consumer financing works. For retailers, open banking is the 'pipes' that connect your customer's bank account directly to your financing tools. This funding will accelerate the development of real-time credit scoring and instant loan approvals at the point of sale. Instead of customers filling out long applications and waiting for manual checks, open banking allows lenders to see verified income and spending habits instantly. For an operator, this means higher conversion rates and lower fraud. As these infrastructure players grow, the technology becomes cheaper and more accessible for mid-sized merchants. Expect to see more 'Pay-by-Bank' options appearing in checkout flows. These tools bypass traditional credit card networks, often resulting in lower transaction fees for the merchant and instant liquidity. Even if you aren't operating in the Middle East, this investment highlights the banking industry's commitment to moving away from credit scores and toward real-time data for consumer lending.

Source: Finextra — Lending

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