SAMA says STC bank capital is SAR 2.5 bln, Saudi Digital Bank SAR 1.5 bln

Logo of Saudi Central Bank (SAMA)

The Saudi Central Bank (SAMA) said that the Cabinet approved the license for two local digital banks.

First, stc pay will be converted into a local digital bank - STC bank - with a capital of SAR 2.5 billion (STC bank). Second, several companies and investors, led by Abdul Rahman bin Saad Al Rashed and Sons Company, will establish Saudi Digital Bank to conduct banking business in the Kingdom, with a capital of SAR 1.5 billion.

Saudi Minister of Finance and Chairman of the Financial Sector Development Program (FSDP) Mohammed Al-Jadaan noted that the Cabinet's approval reflects the leadership's keenness to keep pace with the rapid development in the FinTech sector and empower the Kingdom to be among the largest financial hubs in the world.

He added that the FSDP, one of the Vision 2030 realization programs, seeks to keep pace with global developments in financial services and FinTech during 2021-2025 to underpin economic diversification.

SAMA's Governor Fahad bin Abdullah Al-Mubarak clarified that with the approval of the Council of Ministers, the apex bank will recommence its work to finalize technical and operational requirements for the two banks to start their banking activities in the Kingdom.

The governor drew attention to the fact that digital banks are subject to supervision and controls applied currently to commercial banks operating in the Kingdom, with an increased focus on aspects of technology, cyber security, anti-money laundering, tracking terrorist financing, as well as operational risks.

Al-Mubarak pointed out that digital banks provide services and products exclusively through electronic channels by adopting an innovative and sustainable banking business model to enhance financial inclusion and keep pace with cutting edge technological developments in the financial sector.

SAMA has been actively engaged in supporting innovation and maintaining confidence in the financial sector by developing the digital economy and enabling FinTech companies to support the growth of the private sector.

The Cabinet approved on June 22, the Minister of Finance to issue necessary licenses for STC bank and Saudi Digital Bank.