SAMA to issue regulatory framework for open banking in Q4 2023: Governor

Governor of the Saudi Central Bank (SAMA) Ayman Al-Sayari

Governor of the Saudi Central Bank (SAMA) Ayman Al-Sayari said the regulatory framework for open banking for the payment origination service is slated to be issued in the fourth quarter of 2023.

In a speech delivered on his behalf by Deputy Governor Khaled Al-Zaher at the Union of Arab Banks Conference in Riyadh, Al-Sayari highlighted that this, in turn, will expand the range of innovative financial services available in the market and strengthen the Kingdom’s commitment to benefiting from open banking opportunities.

Moreover, the percentage of adult individuals who actively have a bank account or electronic wallet stood at about 94% by the end of 2022. Fintech has contributed to enabling financial planning and saving for individuals, as well as reducing dependence on cash by developing technical solutions and providing supporting capabilities, he said.

The methodology of implementing the FinTech Strategy aims to make Saudi Arabia as one of the leading countries in this field and Riyadh as the technology hub, by increasing the number of FinTech companies to 525 and contributing to the provision of 18,000 specialized jobs.

The move also aims to raise the cumulative value of venture capital to SAR 12.2 billion and helps the FinTech sector to contribute with SAR 13.3 billion to the gross domestic product (GDP) to achieve the desired economic impact in 2030, Alsayari said.

Alsayari also indicated that, during the past period, the number of Fintech companies rose to 183 by the end of Q2 2023, achieving 80% of the target for 2025, which amounts to 230 companies, thus spurring innovation and creating more than 3,500 jobs.