In a bid to offer personalised financial products and services tailored to customer needs, Saudi Arabia has granted open banking certifications to two fintech companies, as announced by the Saudi Central Bank (SAMA). Umg Alholol Trading Co. and Drahim App have been given permission to test their open banking solutions in SAMA’s regulatory sandbox. This brings the total number of firms operating under the central bank’s sandbox to 45, with 18 of them having successfully graduated and obtained licenses to offer their solutions to consumers.
Tarabut Gateway, a regulated open banking platform based in Dubai, has also received open banking certification from SAMA, enabling the company to expand its operations in Saudi Arabia. Abdullah Almoayed, CEO and founder of Tarabut Gateway, expressed his commitment to providing innovative and personalised financial services to consumers in the Kingdom. He highlighted the challenges faced by small and medium enterprises (SMEs) in Saudi Arabia, particularly regarding cash-flow management and access to funding. Through open banking-enabled financial services and products, Tarabut Gateway aims to assist SMEs in accessing the necessary funding.
These developments and initiatives align with the objectives of the Financial Sector Development Program, as Saudi Arabia strives to become a leading nation in financial technology. The central bank has been actively working towards increasing fintech adoption to enhance the efficiency and flexibility of financial transactions, while also promoting financial inclusion across various segments of society. As part of these efforts, SAMA has granted permission to Spotii and Madfu to provide consumer finance through the buy now, pay later (BNPL) platform. This move is expected to introduce more flexible payment options for Saudi shoppers, with the entry of two additional BNPL companies into the consumer finance market.
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