The Saudi Arabian Central Bank (SAMA) has granted licenses to four new Fintech companies to offer open banking services in its Regulatory Sandbox.
With the addition of Spare Arabian Financial Company, Istishraf Al-Bayanat for Financial Technology, Sanam Aliliddikhar for Information Technology, and Wally Global Arabia, the number of companies operating under the Central Bank’s Regulatory Sandbox has risen from 38 to 42. Fifteen of these companies have progressed to full permits and licensing by SAMA.
The Saudi Central Bank launched the Regulatory Sandbox initiative in 2018 to facilitate the involvement of regional, local, and international Fintech companies and institutions looking to cash in on new and existing technologies to offer inventive financial products and services to the Saudi market.
With this evolution, participants will have the opportunity to apply to the Regulatory Sandbox whenever they are ready. In addition, the initiative allows participants to use their preferred business concept/model and not be restricted to a particular one determined for the group.
SAMA has recently restructured its Regulatory Sandbox Framework. The new framework (an ‘Always Open Approach’) implements improved flexibility by allowing financial institutions, as well as international and local startups, to apply anytime during the year and provide more cutting-edge business concepts to their clients.
Furthermore, the Bank has been partnering with market participants, including Fintechs and banks, to grow a unified platform for open banking in line with international best technical and regulatory practices.
