As part of its expansion in Saudi Arabia and the developments in open banking, Tarabut Gateway has been selected by four of the kingdom’s banks as a partner including: Riyad Bank, Saudi British Bank (SABB), Alinma Bank and Banque Saudi Fransi (BSF).
The Saudi market is well-positioned for open banking, as the country has prioritised financial sector transformation as part of the Financial Sector Development Program, under the Saudi Vision 2030 plan for economic and social reform.
Within this context, Saudi Arabia has announced its ambition to go cashless, aiming for 70 percent non-cash transactions by 2030.
“We are delighted to have been selected to partner with many of Saudi Arabia’s leading banks. The kingdom is on the cusp of open banking driving rapid innovation and transforming its financial services. The country’s vision is ambitious and achievable, and we look forward to being a core part of the open banking ecosystem,” said Abdulla Almoayed, CEO of Tarabut Gateway.
Classified by the World Bank as a ‘High Income Economy’, with one of the Middle East’s largest populations (35 million), the kingdom has a young, wealthy, digitally savvy population. World Bank data shows it has 98 percent internet penetration, with smartphone penetration amongst 18–75-year-olds at 97 percent.
“SAMA has been a key pillar in the financial sector’s development, and Saudi Arabia’s open banking evolution,” said Emad Kashgari, senior vice president – head of Digital Innovation and Partnership Section at Riyad Bank.
“At Riyad Bank, we aim to continue being at the forefront of innovation and providing customers with enhanced digital offerings and customer experience through open banking adoption,” he added.
From a fintech perspective, the sector’s growth in the Middle East remains on an exponential path. There are around 500 fintechs in the region, and this number is trending upward. The number of fintech startups in Saudi Arabia increased 37 percent to 81 during 2021.
“At Saudi British Bank, we continue to invest in being an active role in developing Saudi Arabia’s financial sector through innovation and customer experience,” said Musaifer AlOsaimi, chief information officer at SABB.
“Additionally, through open banking, we are committed to our role in achieving the Kingdom’s vision, supporting economic growth, and safeguarding financial stability,” he added.
Working closely with regulators, Tarabut Gateway provides the connectivity for data to flow between banks and fintechs and supports the creation of a thriving ecosystem.
“With innovation and customer experience taking precedence in BSF’s business strategy and through our adoption of open banking technology and building an API-based testing sandbox, BSF can stimulate further innovation and collaboration within the fintech space in KSA,” said Michael Cunningham, chief strategy and digital officer at BSF.
