The Saudi Central Bank (SAMA) recently announced that it granted STC Bank, a licensed digital bank, no objection to commencing its banking operations in Saudi Arabia. The central bank said this launch aligns with its strategy to promote digital transformation and competitiveness within the banking sector while safeguarding monetary and financial stability.
“SAMA remains committed to strengthening the banking sector’s resilience, enhancing its attractiveness, and increasing its contributions to achieving Saudi Vision 2030 and its national aspirations, including by enabling entrepreneurs and financial institutions to provide innovative financial services to the Saudi markets,” the central bank said in a statement.
Saudi Arabia advances digital transformation journey
The launch of STC Bank represents a significant milestone in the Kingdom’s digital transformation journey and towards the adoption of digital banking services within the financial sector.
“The digital bank’s launch, which serves both individuals and businesses, is a result of the success achieved by its predecessor, the digital wallet, stc pay,” said the company in a statement on the Saudi Exchange.
STC Bank will provide several financial products and solutions that will contribute to elevating banking services.
The launch of the bank falls in line with the central bank’s objective to support economic growth and promote the digitization of the financial sector by enabling financial institutions to support private sector growth by enhancing the reach and variety of financial services and products.
SAMA facilitates fintech growth
The approval of STC Bank follows a major step SAMA took in April last year when it gave stc pay formal approval to move to the next phase of its transformation journey into STC Bank. The beta launch was limited to preselected customers and was a preparation for a full public launch.
STC Bank aims to provide Sharia-compliant banking services and financial solutions whilst ensuring “the utmost security and customer protection through the utilization of cutting-edge financial technologies,” adding that the bank will be “a significant addition to the Saudi banking sector” by offering traditional banking services through a customer-centric digital approach, the central bank said.
Founded in October 2018, stc pay became the first fintech company licensed by SAMA. Since then, it has become the region’s biggest digital wallet, giving access to financial services to over 12 million customers through its mobile-first approach.
In December 2024, SAMA also approved the operation of D360 Bank, a digital financial institution.
