Name
Global FinTech Guide
Country _ Name
Saudi Arabia
SectionTitle
Online banking services
Body
FinTechs belonging to this area offer traditional banking services in a modern way, usually through online services or mobile applications as well as ancillary services – e.g. enabling customers to manage their giro- or custody-accounts online and in real time or offering e-wallet services. Keywords in this context are also API-Banking or Banking as a Service (BaaS)/ Bank as a Platform (BaaP).

API-Banking:

API stands for application programming interface and is offered to access data banks and to extract and insert information. API-Banking consequently means the access to data banks of banks to offer new and innovative banking applications.

Through these services FinTechs offer services with new functions, e.g. enabling customers to manage their accounts online and in real time.

BaaS – Bank as a Service/BaaP – Bank as a Platform:
 
The API-based Bank as a Service platform has a full banking licence, but merely serves as the back end for standalone independent FinTechs, which “use” the licence and the back end of the bank to offer new financial services, launch additional financial products or expand into additional markets.

Introduction

Attitude of the country towards online-banking services

Saudi Arabia has been proactive in its approach to embracing financial innovation, particularly through the launch of the Open Banking Program. The program, driven by the Saudi Central Bank (SAMA), includes the Open Banking Framework (OBF), which serves as a comprehensive set of regulations, guidelines, and technical standards to enable both banks and FinTechs to offer open banking services. In addition, the Open Banking Lab provides a technical testing environment for these institutions to develop, test, and certify their open banking services, ensuring compatibility with the framework.


Legal affairs

Obligations and requirements to provide online-banking services described above

The Saudi Open Banking Framework referenced above, issued by SAMA, outlines several key requirements for to create a secure, transparent, and innovative open banking ecosystem in Saudi Arabia. This includes:

  • Technical Standards: The OBF outlines technical standards and specifications for APIs, data formats, and security protocols to ensure interoperability and security.
  • Regulatory Oversight: Firms must comply with the regulatory guidelines set forth by SAMA, including licensing requirements, risk management, and data protection.
  • Testing and Certification: Participants must undergo testing and certification through the Open Banking Lab to ensure compliance with the framework's requirements.

Additional comments regarding the legal situation for online-banking services or what FinTech’s must be aware of in this business area

N/A


Economic conditions

Market size for online-banking services and biggest companies in this business area
At a recent FinTech Hackathon, the Chairman of the Saudi Capital Market Authority shared a forecast that the size of the Saudi Open Banking Market is expected grow to USD 43 billion by 2026. The firms currently leading this booming market include: STC Pay, National Commercial Bank, Al Rajhi Bank, and the Saudi Awwal Bank.  

Additional comments regarding the economic situation for online-banking services or what FinTech’s must be aware of in this business area

N/A

Authors

Close

Choose country