SAMA begins licensing fintechs for open banking services

The Saudi Central Bank (SAMA) launched licensing for fintech companies to offer open banking services, following the completion of the regulatory sandbox requirements and procedures.

In a statement, SAMA said open banking is an innovative concept in the financial sector that enables customers to securely share their financial data with entities regulated by the central bank to access new and innovative financial products and services.

It added that open banking will have a positive impact on the sector by strengthening collaboration between banks and fintech firms, enhancing infrastructure, and enabling more effective use of customer financial data. This will be within a secure regulatory framework that safeguards data privacy and builds trust through customer consent.

SAMA noted that the move is part of its efforts to support and develop the financial sector, improve the efficiency and flexibility of transactions, and promote innovation in financial services in a safe and reliable manner, with the aim of enhancing financial inclusion and broadening access to financial services across all segments of society.

The central bank added that the open banking program is part of the National FinTech Strategy under Saudi Vision 2030, which aims to position the Kingdom as a global fintech hub and make technology-driven financial innovation a key pillar of economic empowerment.