STC Bank Gains Approval for Digital Expansion

STC Bank, a subsidiary of the state-owned Saudi Telecom Company, has secured regulatory approval from the Saudi Central Bank (SAMA) to officially commence digital banking operations in the Kingdom. This milestone follows the completion of the bank’s pilot phase, initially approved as a beta launch under its former identity, STC Pay, in April.

With SAMA’s endorsement, effective 28 January, STC Bank is poised to introduce a comprehensive suite of digital financial solutions tailored for both individual consumers and businesses. The bank aims to enhance accessibility and convenience in the financial sector by offering a range of services, including payment cards with expense management features, seamless money transfer solutions, and advanced merchant payment systems such as QR payments and payroll services.

A key component of STC Bank’s strategy involves rolling out sharia-compliant financial services, ensuring adherence to Islamic banking principles. The bank’s sharia board has formally approved this initiative, further solidifying its commitment to ethical finance within the Kingdom’s evolving digital banking landscape.

Currently, over 200,000 merchants are registered on STC Bank’s digital platform, demonstrating significant market traction. Existing STC Pay users now have the opportunity to upgrade their digital wallets into fully functional bank accounts without any disruptions to their financial data or transaction histories, marking a seamless transition to comprehensive banking services.

The approval of STC Bank’s full banking licence aligns with SAMA’s broader agenda to drive digital transformation and innovation within Saudi Arabia’s financial ecosystem. This initiative is a key component of the Saudi Vision 2030 strategy, which seeks to diversify the nation’s economy and enhance financial inclusion through technology-driven solutions.

SAMA’s proactive approach to fostering digital banking competition was previously evident in its licensing of Barq, a fintech start-up founded by former STC Pay CEO Ahmed Alenazi. Barq was granted an e-wallet licence last year and has since demonstrated rapid growth, processing over $133 million in transactions within its first three weeks of operation.

Further strengthening the Kingdom’s digital finance ecosystem, SAMA recently partnered with Google to integrate its mobile payment service with the national payments network, mada. This collaboration is expected to bring Google Pay to Saudi Arabia by 2025, reinforcing the nation’s push towards a more connected and technology-driven banking environment.

STC Bank’s entry into the fully licensed digital banking sector marks a significant step forward in Saudi Arabia’s financial evolution. As competition intensifies and digital adoption accelerates, the Kingdom is positioning itself as a regional leader in fintech and financial innovation.