Two new Fintech start-ups have been granted a permit to operate under Saudi Central Bank (SAMA) regulatory Sandbox. The first start-up is Lean Technologies which is offering data APIs and payment solutions in addition to P2P lending and Buy Now Pay later offerings.
The second Fintech start-up is Mod5R which allows consumers to receive a spectrum of services around their finances by integrating all their bank accounts, as part of open banking solution.
To date 38 entities are operating under SAMA’s regulatory sandbox.
SAMA’s sandbox is working towards the realization of KSA’s Vision 2030 goals under the financial sector development program. SAMA is cooperating with various entities within the financial sector in KSA, including banks and FinTech companies on developing and implementing a high standard network for open banking solutions.
Saudi Arabia plans to triple the number of FinTech companies it has by 2025 (at present it is 82 so by 2025 that would be 230 FinTech entities), and plans to increase digital transactions of all financial dealings to 70 per cent within the next three years.
In terms of VC funding, between January and August of 2021, Saudi Arabia saw 16 venture investments in FinTech with a total deal value of $157.2million, a significant increase from 2020 with $7.8million with seven venture investments and in 2019 with six venture investments totalling $18million.
