The Saudi Central Bank (SAMA) has granted permits to two new companies, ‘Lean Technologies’ and ‘Mod5r’ to provide open banking solutions, bringing the total number of permitted Fintech firms operating under its Regulatory Sandbox to 38.
This step completes a series of actions undertaken to achieve a stack of strategic objectives including activating SAMA’s sandbox environment role to the realization of the Kingdom’s Vision 2030 goals through the Financial Sector Development Program (FSDP).
The prominent FSDP is an ambitious program 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.
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 the most innovative and best practices within a predefined timetable.
This phase should contribute to inspire other participants within the sector to start planning and develop innovative new financial products and services based on Open Banking practices.
This is in line with SAMA’s goal of enhancing the Kingdom’s financial stability and supporting its economic development and growth as part of its contribution to the objectives of Saudi Vision 2030.
In March 2022, SAMA issued licenses to three new companies specializing in finance and electronic payments, including Mobily Pay, Lendo and FinZey.