Digital banking drives Saudi Arabia’s financial transformation 
The Saudi Central Bank, or SAMA, announced that it has granted no objection to the new digital bank, D360 Bank, to start its operations in the Kingdom.
This aligns with SAMA’s strategy to support financial sector stability, promote trust, foster economic growth, and enhance competition in Saudi banking.
It highlights the Kingdom’s digital economy’s dynamism and growth potential, and underscores SAMA’s efforts to build a regulatory system that encourages innovation.
This development reflects SAMA’s commitment to ensuring the Saudi banking sector contributes to achieving Saudi Vision 2030 and the nation’s aspirations.
The launch of D360 Bank will also support the Kingdom’s push for digital financial transformation and a digital economy, in line with the Financial Sector Development Program, a key initiative of Saudi Vision 2030.
The program aims to transform Saudi Arabia’s financial industry, focusing on banking, insurance, stock markets, and debt markets, while strengthening financial institutions to improve competitiveness and drive market growth.
Granting a license to D360 Bank to start its operations in Saudi Arabia makes banking more accessible, especially considering that, according to the General Authority for Statistics, 63 percent of the Saudi population is under 30, and 35 percent of non-Saudis are under 35. Their demand for digital services is unprecedented.
SAMA’s efforts to promote digital banking will encourage conventional banks in the Kingdom to invest in technology, and offer a broader range of digital financial products and services, contributing to the stability and growth of the banking system, making it more convenient and efficient.
It is worth noting that D360 Bank is one of three licensed digital banks in the Kingdom, including STC Bank and Vision Bank.
With the licensing of D360 Bank, there are now 37 banks operating in the Kingdom: 11 local banks, three digital banks, and 23 foreign banks.
SAMA also supervises 91 financing companies and 26 digital payment companies.
According to SAMA’s November 2024 statistical bulletin, there are 1,906 bank branches, 505 remittance service centers, 15,130 ATMs, and 1,953,091 POS terminals serving clients.
Saudi banks are working tirelessly to modernize the financial landscape by upgrading their digital banking services to meet the highest international standards.
The advanced financial system in Saudi Arabia, encompassing banking, capital markets, and debt markets, will support the Kingdom’s Vision 2030 goal of increasing non-oil activities to 50 percent of gross domestic product.
The seamless integration of traditional and digital banking services will strengthen the financial system, encouraging traditional banks to invest in technology and offer a broader range of digital financial products and services.
It will also enhance the financial landscape by adopting the latest global technological trends, helping Saudi Arabia keep pace with innovations that drive growth and position it as a leading destination for a modern and advanced banking system.
• Talat Zaki Hafiz is an economist and financial analyst.
X: @TalatHafiz
