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STC Bank secures approval to operate as a digital bank in Saudi Arabia

Wednesday 29 January 2025 14:52 CET | News

STC Bank, a subsidiary of the state-owned Saudi Telecom Company (stc Group), has received regulatory clearance to operate as a digital bank in Saudi Arabia.

 

The Saudi Central Bank (SAMA) has issued a ‘no objection’ decision, allowing STC Bank to offer digital banking services in the country. Previously operating as stc pay, a digital wallet provider, the institution is transitioning into a full-service digital bank. This means that customers will be able to open accounts, manage finances online, pay bills, receive salaries, and transfer funds without relying on traditional banking channels.

Founded in October 2018, stc pay became the first fintech company licenced by SAMA. Since then, it has become the region’s biggest digital wallet, giving access to financial services to over 12 million customers through its mobile-first approach.

 

STC Bank, a subsidiary of the state-owned Saudi Telecom Company (stc Group), has received regulatory clearance to operate as a digital bank in Saudi Arabia.

 

Regulatory support for digital banking growth

The approval aligns with SAMA’s broader initiative to advance digital transformation in the financial sector and supports the goals of Saudi Vision 2030, which includes reducing cash transactions in favour of digital payments. 

Saudi Vision 2030 is a government programme launched by Saudi Arabia which aims to achieve the goal of increased diversification economically, socially, and culturally, in line with the vision of Saudi Crown Prince and Prime Minister Mohammed bin Salman. It was first announced on 25 April 2016 by the Saudi government. 

The vision has three main pillars, namely to make the country the ‘heart of the Arab and Islamic worlds’, to become a global investment powerhouse, and to transform the country's location into a hub connecting Afro-Eurasia. Saudi Arabia has been witnessing increased adoption of digital financial services. According to data from Statista, net interest income in the country’s digital banking sector is projected to reach USD 8.25 billion in 2025.


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Keywords: expansion, digital banking, regulation, compliance
Categories: Banking & Fintech
Companies: STC Bank
Countries: Saudi Arabia
This article is part of category

Banking & Fintech

STC Bank

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