Skip to content

Saudi Arabia approves digital banking licenses for two local firms

Saudi Arabia approves digital banking licenses for two local firms
Jordan Major

According to the announcement issued by the central bank, Saudi Arabia has granted digital banking licenses to two businesses following approval by the Kingdom’s cabinet on Wednesday.

As the Middle East’s use of financial technology grows, STC Pay, established in 2018 by the Kingdom’s largest mobile provider Saudi Telecom, would be transformed into a digital bank known as STC Bank with a capital of SAR2.5 billion ($667 million).

Additionally, a second company, directed by Abdul Rahman bin Saad Al-Rashed & Sons Co., will launch a digital bank known as the Saudi Digital Bank with a capital of SAR1.5 billion ($400 million).

Saudi Telecom will invest an additional 802 million riyals to maintain 85 percent of STC Pay’s share capital, with Western Union (WU.N) contributing 750 million riyals to retain the remaining 15 percent.

Saudi seeks to keep pace with global developments

By growing the digital economy and enabling fintech businesses to expand the private sector, the Saudi Central Bank has been actively involved in promoting innovation and preserving confidence in the financial industry

Minister of Finance Mohammed Al-Jadaan noted the cabinet’s decision demonstrates the leadership’s eagerness to keep up with the fast expansion in the FinTech industry and position the Kingdom as one of the world’s major financial hubs.

In this regard, the central bank has recently approved 16 Saudi fintech businesses to provide payment services, consumer microfinance, and digital insurance brokerage.

Economic diversification

Furthermore, 32 fintech businesses operate under the Kingdom’s regulatory sandbox environment, which the country created to test new services and products.

The Governor of the Saudi Central Bank, Dr. Fahad bin Abdullah Al-Mubarak, pointed out digital banks only provide services and products through electronic channels to increase financial inclusion and stay up to date with cutting-edge technological advancements in the financial industry.

The Saudi Central Bank has been working tirelessly to create and promote banking sector innovation in collaboration with FinTech businesses to enjoy the benefits of the technological revolution for the financial sector and the economy as a whole.

[robinhood]

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.