The Saudi cabinet approves the licencing of a new digital bank

The digital bank is backed by a consortium of individual and corporate investors led by Derayah Financial Company.

Saudi Arabia recently licenced two other local digital banks as officials work to develop the financial sector under Crown Prince Mohammed bin Salman’s economic diversification plan.

In 2021, Saudi Central Bank (SAMA) Governor Fahd Al-Mubarak has announced that the kingdom will grant operating license to more digital banks. The governor drew attention to the fact that digital banks are subject to supervision and controls applied currently to commercial banks operating in the kingdom, with a focus on aspects of technology, cybersecurity, combating money laundering, and tracking down terrorist funding.

Saudi Arabia was a relatively slow adopter of digital banking and electronic payments, but that’s accelerated since the pandemic pushed more businesses and consumers online.