Saudi Arabia’s burgeoning fintech scene is one to watch closely. With a population exceeding 35 million, the Kingdom has a vast and increasingly tech-savvy consumer base eager to engage with modern financial services. Popular brands already making strides in the space include STC Pay, a leading digital wallet provider, and Saudi Payments, the nation’s centralised payment system. There’s significant momentum behind this movement, driven by both consumer demand and government backing.
At the heart of Saudi’s fintech revolution is the Saudi Arabian Monetary Authority’s (SAMA) Open Banking Framework, introduced in 2022. This framework is set to reshape how financial services operate, promoting data sharing between banks and third-party providers to drive innovation. By facilitating secure, consumer-consented access to financial data, it opens doors to personalised services, better financial management tools, and increased competition.
SAMA’s Open Banking initiative bears a striking resemblance to the UK and EU frameworks, which have led the global charge since 2018. While the European approach has certainly laid the groundwork, it hasn’t been without challenges. In the UK, adoption has been slower than expected, with some banks reluctant to fully embrace the shift, and consumers slow to engage. Nonetheless, its successes in driving innovation and enabling new entrants, such as Revolut and Starling Bank, cannot be overlooked.
In Saudi Arabia, we can expect a more seamless rollout. With lessons learned from earlier implementations elsewhere, SAMA has the advantage of refining their approach. Additionally, government support and a tech-hungry population should drive quicker adoption.
4 Predictions for Saudi FinTech:
1. STC Pay will continue to dominate, but expect more players like Hala and Tamara to rise.
2. Consumer-centric banking apps will flourish, similar to the rise of Monzo and Starling in the UK.
3. Digital lending and savings platforms will gain traction, supported by open banking data.
4. Expect partnerships between traditional banks and fintechs to flourish, leveraging open banking opportunities.
