London Daily

Focus on the big picture.
Thursday, Oct 23, 2025

Digital transformation of Saudi banking sector

Digital transformation of Saudi banking sector

Saudi Arabia’s Cabinet approved licensing for two digital banks in the Kingdom in June, with a total capital of SR4 billion ($1.06 billion).
First, STC Pay will be converted into a local digital bank, STC bank, with a capital of SR2.5 billion ($0.6 billion). Second, a number of companies and investors, led by Abdul Rahman bin Saad Al-Rashed and Sons Co., will establish a local digital bank — Saudi Digital Bank — to conduct banking business in the Kingdom, with a capital of SR1.5 billion.

Minister of Finance Mohammed Al-Jadaan, chairman of the Financial Sector Development Program (FSDP), said that “the Cabinet’s approval reflects the leadership’s keenness to keep pace with the rapid development in the fintech sector and to empower the Kingdom to be among the largest financial hubs in the world.”

For his part, Dr. Fahad Al-Mubarak, governor of the Saudi Central Bank (SAMA), pointed out that digital banks provide services and products exclusively through electronic channels by adopting an innovative and sustainable banking business model to enhance financial inclusion and keep pace with cutting-edge technological developments in the financial sector.

I believe that SAMA’s move toward digital banking is in line with the Kingdom’s Vision 2030 objectives to support growth in the banking sector.

By introducing full-fledged digital banks in the Kingdom, it is also in line with the central bank’s role of keeping pace with the latest technological developments in the banking and financial sectors.

It is worth noting that the Saudi banking sector has witnessed over the past two decades significant advancement and improvement in electronic banking services. This is evidenced by the establishment of Saudi Payments as a wholly owned subsidiary of SAMA, with the mandate to continue SAMA’s legacy of developing a secure, interoperable national payment infrastructure, to serve banks and fintech operators equally, and to offer the required standardization to ensure all providers have a level playing field.

SAMA and Saudi Payments’ efforts to enhance digital payments goes hand in hand with the FSDP, one of the Kingdom’s 13 Vision 2030 Realization Programs’ objectives to increase the share of non-cash transactions from 36 percent in 2019 to 70 percent in 2025 and to enhance financial inclusion in the Kingdom.

SAMA has granted 16 licenses to Saudi fintech companies recently to provide payment services, consumer microfinance, and digital insurance brokerage. Also, the central bank has licensed 32 fintech companies to work under the regulatory sandbox environment, which was designed to test innovative services and products in the Kingdom. This is in addition to the efforts to encourage local banks to provide the best possible services and products through available digital banking channels in accordance with international best practices.

After the first appearance of digital banks in 2015 with British bank Monzo, there are currently more than 400 digital banks worldwide. Challenger Insider reported that the total amount of investment into digital banks globally within the first quarter of 2021 has exceeded $3.7 billion through 42 deals.

Without a doubt, digital financial services in the Kingdom are progressing at a fast pace, as witnessed by the growth of electronic financial transactions in the banking sector, which have exceeded the target set by the FSDP. That non-cash transactions accounted for 36 percent of total transactions in 2019, while the target was set for 28 percent by 2020, is evidence of this.

I believe that granting licenses for two local digital banks to operate in Kingdom will add value to the banking sector and national economy, especially the digital economy. Also, it will enhance financial inclusion and support the central bank’s effort to broaden the scope of digital banking services in the Kingdom.
Newsletter

Related Articles

0:00
0:00
Close
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
×