SAMA says digital banks offer competitive services, focus on retail, SMEs

Logo of Saudi Central Bank

The Saudi Central Bank (SAMA) said digital banks provide competitive products and services primarily through electronic channels such as the Internet and mobile applications.

These services and products meet the market's financial needs and unserved sectors through an innovative and sustainable banking business model in a unified, secured, and reliable environment, the central bank said in a statement.

The digital banks mainly focus on individuals and small and medium enterprises (SMEs) in the medium to long term. 

Digital banks have a sufficient capital base that enables a competitive environment within the banking sector to adopt innovation and the latest technologies, which leads to stimulating growth and providing stability to the Saudi economy.

SAMA pointed out that digital banks aim to keep pace with the latest developments in the financial and technical sector and strive to achieve the objectives of the Financial Sector Development Program (FSDP) and Vision 2030 by developing the digital economy.

The Cabinet approved on June 22, the Minister of Finance to issue necessary licenses for two digital banks.

stc pay will be converted into a local digital bank - STC bank - with a capital of SAR 2.5 billion, while several companies and investors, led by Abdul Rahman bin Saad Al Rashed and Sons Company, will establish Saudi Digital Bank, with a capital of SAR 1.5 billion.