Saudi Arabia is positioning open banking as a catalyst for fintech growth, following the launch of the program and the Cabinet’s May 24 approval of the Kingdom’s financial technology strategy.
The strategy, part of the Vision 2030 Financial Sector Development Program, aims to modernize payments and support the digitalization of at least 70% of financial transactions by 2030, according to the announcement. Open banking is expected to expand digital financial services while reducing the operating costs associated with traditional banking.
Saudi Arabia recorded a 37% increase in active fintech companies in 2021 compared with the previous year, according to a Fintech Saudi report. The initiative, launched by the Saudi Central Bank and the Capital Market Authority in 2018, is designed to support sector growth and build a regional fintech hub.
International investors are also showing interest. The International Finance Corporation, the World Bank Group’s investment arm, said it sees significant promise in Saudi Arabia’s emerging fintech sector and is considering opportunities in the market.
Source: Arab News
