The new entrants are Open Banking solutions providers. The new additions bring the total number of permitted fintech companies operating under the central bank’s Regulatory Sandbox to 38.
This step completes a series of actions to conquer a stack of strategic objectives, including activating SAMA's sandbox environment role to realise the Kingdom's Vision 2030 goals through the Financial Sector Development Programme (FSDP). The prominent FSDP is a reportedly ambitious programme that aims at promoting economic growth, savings and investment activities, and financial inclusion. The permit came concurrently with the Council of Ministers' decision in the second quarter of 2022, which provides for the adoption of the Fintech Strategy containing the supreme directive order for the Kingdom of Saudi Arabia to be among the leading countries in the field of fintech, according to an official press release.
It is worth noting that SAMA is currently working – alongside other participants in the financial sector including banks and fintech companies – on developing and implementing an integrated high standard network to carry on Open Banking Solutions in the Kingdom with innovative and best practices within a predefined timetable. This phase should contribute to inspiring other participants within the sector to start planning and developing innovative new financial products and services based on Open Banking practices. More information is available on the SAMA website, the official press release concludes.
In January 2022, Saudi financial technology startup Lean Technologies raised USD 33 million in its series A funding round led by Sequoia Capital India. The fintech provides a platform that allows its clients to integrate with their customer's bank accounts to retrieve relevant information or initiate bank transfers. The proprietary technology is used by several financial players in the region, across different verticals including remittances, cryptocurrency, and investment.
The Saudi Ministry of Finance launched its FinTech Strategy Implementation Plan in June 2022. The plan aims to make the kingdom a hub for fintech. The endeavour is part of Saudi Arabia’s Vision 2030 initiative, which promotes economic diversification and reduced dependence on oil. The sector is growing in the country, according to Al-Monitor.
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