SAMA launches regulatory sandbox to promote fintech, start-ups

The Saudi Arabian Monetary Authority (SAMA) has begun designing a Sandbox regulatory environment to assess the impact of new technologies on Saudi Arabia’s financial services sector, SAMA said in a statement on Monday.

The sandbox aims to attract financial institutions and financial technology (fintech) companies to provide innovative financial services to start-ups, fintech companies, financial services companies and professional services companies in Saudi Arabia.

SAMA clarified that services and products, which are being tested currently, includes e-wallet services, P2P transfers and purchases through QR Codes as well as direct international transfers through fintechy companies in addition to the aggregators  of Point of sale (POS) devices, SADAD bills, SADAD account and mada online.

SAMA pointed out that the permission to work in the sandbox environment has been granted to 11 local and international banks (to open and update accounts without the need to visit the branches) as well as to 7 companies (to provide various services in the field of digital payments).

SAMA said the step aims to achieve a number of strategic objectives of linking the sandbox environment with the Kingdom's Vision 2030 that aims at promoting economic growth and boosting investment activities by moving into a cashless society and by promoting the principal of financial inclusion.