RIYADH: In an effort to promote innovative financial services, Saudi Central Bank, which is also known as SAMA, has issued a new license to Loan, a fintech company, to provide consumer microfinance solutions in the Kingdom.
With the new licensee, there are now six authorized companies offering consumer microfinance solutions in the Kingdom.
According to SAMA, this decision reflects its endeavor to support the finance sector, increase the efficiency of financial transactions, and promote innovative solutions for financial inclusion in Saudi Arabia.
The bank added in its statement that it emphasizes the importance of dealing exclusively with authorized financial institutions.
Licensing will also contribute to attracting a new segment of investors and companies that can bring added value to the finance sector.
The bank added that the step complies with its role in promoting financial stability and supporting economic growth in order to achieve the goals of Saudi Vision 2030.
In July, SAMA licensed Fas Finance Co. to provide consumer microfinance solutions.
The Shariah-complaint digital consumer finance company, which trades under the umbrella of Fas Labs, is a jointly owned venture by Arabian Centres Co. and Fawaz Abdulaziz Alhokair Co.
Fas Labs currently owns 65 percent of Fas Finance while Egypt’s buy now, pay later platform valU owns the remaining 35 percent after a deal that was signed in June 2022.
Fas Labs first received preliminary approval to establish the digital consumer company in January 2022.
