Hakbah partners with Tarabut in MENA region

Wednesday 3 January 2024 13:20 CET | News

Saudi-based fintech savings platform Hakbah has partnered with Tarabut, MENA’s Open Banking platform and an investor in the region’s digital transformation.

The partnership aims to improve Hakbah's offering by leveraging Tarabut's Open Banking and connectivity platform to provide faster, easier, and more cost-effective service for Hakbah's

Saudi-based fintech savings platform Hakbah has partnered with Tarabut, MENA’s Open Banking platform and an investor in the region’s digital transformation.


Hakbah, Tarabut partnership for better financial inclusion

The collaboration is expected to simplify and expedite various tasks, enabling streamlined onboarding and stronger protection of data processing for customers. In addition, it reduces the cost of Hakbah's service, cuts data processing time by 40%, and expands the customer offering by 20%. Moreover, according to an official press release, these improvements will be facilitated by Tarabut's open banking connectivity platform and other products, which will help Hakbah deliver tailored solutions that address current and future customer needs. This partnership is consistent with Hakbah's strategy to form partnerships with different important players and offer improved services at an affordable cost.

As per Hakbah, the company aims to further digitise traditional savings habits by aligning its AI-powered technology base underpinning its savings engine with its partners to give it a further competitive edge. Tarabut aligns with Hakbah's vision and projects for future growth, which is to modernise traditional savings and increase financial inclusion in Saudi Arabia by carving a path toward accessible financial services.

Savings groups are a popular and traditional way of saving money in over 60 countries worldwide. Thus, Hakbah’s users prioritise total needs over time and share the pool of money, which is rotated amongst them afterwards. This upgrades traditional savings behaviour, allows saving for purpose, and increases financial literacy. 

The official press release shows that savings are a key objective in ‘Saudi Vision 2030’ and very important to the country’s Financial Sector Development Program, thus Hakbah’s model is expected to tackle the Middle East savings crisis. Moreover, according to the official paper, 70% of Saudi citizens don’t own emergency savings, while the country’s household savings rate averages just 1.6%.

More about Hakbah’s saving platform 

Hakbah is a rapidly growing start-up based in the MENA region, operating in the Household Savings market in Saudi Arabia. Over the past 20 months, the company has experienced a significant increase in revenue and formed important partnerships with major players such as the national airline of Saudi Arabia. Hakbah boasts a customer base of over 500,000 users, with 70% of them being between the ages of 21-35. Additionally, the company has hired a dedicated product and development team.

Through its social savings platform, Hakbah intends to increase financial inclusion in the region and fully integrate with any banking system in less than a week. This includes the digitisation of traditional group savings (Jameya) with the purpose of spending on financial needs. Moreover, the savings platform makes savings accessible especially to the underbanked population. Hakbah’s model tackles the Middle East savings crisis considering that savings are a key strategic objective and critical to the country’s Financial Sector Development Program. 

On this note, at the end of 2023, Hakbah announced its USD 5.1 million Series A funding to accelerate growth and product development. The capital will be reserved to attract and support talents in the region and reinforce Hakbah's platform. Additionally, the company is planning to enter two regional markets shortly, either through a partnership or a strategic alliance.

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Keywords: Open Banking, partnership, online platform, digitalisation, financial services
Categories: Banking & Fintech
Companies: Hakbah, Tarabut
Countries: Middle East, Saudi Arabia
This article is part of category

Banking & Fintech




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