RIYADH: Saudi Central Bank has granted a license to Alannaya Al-Yatmania to conduct finance aggregation services.
This involves gathering and consolidating financial data from various sources — such as bank accounts, credit cards, loans, investments, and other financial platforms — into a single interface, providing consumers with greater visibility and control over their finances.
With this move, the total number of licensed firms offering finance aggregation services in Saudi Arabia rises to five.
These developments align with the Kingdom’s Vision 2030 objectives, which aim to strengthen the digital economy, expand financial inclusion, and increase the share of cashless transactions to 70 percent by 2025.
They also support SAMA’s ongoing efforts to enhance the financial sector, improve transaction efficiency, and promote innovative solutions that drive financial inclusion in Saudi Arabia.
SAMA’s initiatives are in line with the Financial Development Sector strategy, which targets having 525 active fintech companies in the Kingdom by 2030.
Earlier in January, Saudi Arabia’s fintech ecosystem expanded even further when SAMA granted licenses to two new service providers.
Tal Finance was granted authorization to offer debt-based crowdfunding solutions, making it the 12th company in Saudi Arabia to provide such services. This brings the total number of finance companies licensed by SAMA to 62, underscoring the growing prominence of alternative financing solutions in the country.
In a parallel development, SAMA issued a license to Hiberbay Ink Al-Saoudia for IT Systems to deliver e-wallet services, raising the total number of payment service providers in the Kingdom to 27. This move supports the promotion of digital payment solutions and accelerates the nation’s shift toward a cashless economy.
Through these initiatives, the central bank aims to foster financial stability, stimulate economic growth, and position Saudi Arabia as a global fintech leader.
The fintech sector is expected to play a pivotal role in driving foreign investment, projected to account for 20 percent of total foreign inflows. This growth is fueled by Saudi Arabia’s tech-savvy population, which is rapidly adopting consumer fintech innovations like buy-now, pay-later services.
In a December interview with Arab News, Arjun Singh, partner and global head of fintech at Arthur D. Little Middle East, discussed the natural evolution of the Kingdom’s consumer finance landscape, driven by an expanding array of financial products tailored to the diverse needs of its growing market.
He also noted that the Saudi buy-now, pay-later market was expected to grow from $1.4 billion in 2024 to $2.8 billion by 2029, reflecting a compound annual growth rate of over 10 percent.
Source: www.arabnews.com