The Saudi central bank announced that it had completed studying the licensing applications for two local digital banks to conduct banking business in the Kingdom.
Based on the powers granted to the central bank through Banking Control Law, the central bank will submit licensing requests to the higher authorities in accordance with the provisions of the Law. Once the approval is issued, the central bank will engage with the applicants and supervise their establishment and operating arrangements.
Digital banking is in line with the central bank’s role in keeping pace with the latest developments in the financial sector in a digital economy. To that end, 16 Saudi Fintech companies have been licensed in the recent past by the central bank to provide payment services, consumer microfinance and digital insurance brokerage. Besides, the central bank had licensed 32 Fintech companies to work under the Regulatory Sandbox environment, which was designed for testing innovative services and products in the Kingdom. This is in addition to efforts made by the central bank to encourage local banks to provide best possible services and products through available digital banking channels in accordance with the international best practice.
In this context, the central bank will continue to receive banking license applications in the Kingdom for their added value to the banking sector and the economy. The central bank encourages those interested in seeking banking license to visit its website to review guidelines and additional requirements for digital banking licensing.
