The Saudi Central Bank (SAMA) has permitted three new FinTech startups to test their innovative solutions in SAMA’s regulatory sandbox.
“XSquare” and “NeotTek” are authorized to launch an Open Banking platform, and “MoneyMoon” is authorized to launch a peer-to-peer lending platform.
With these additions, the total number of FinTech companies currently operating under SAMA’s Regulatory Sandbox increased to 19. Since its launch in 2018, SAMA’s Regulatory Sandbox has permitted 50 FinTechs to test and refine their offerings in a controlled environment.
This trend underscores SAMA’s continued efforts in developing the Saudi FinTech sector and its commitment to promoting financial inclusion and innovation. To view licensed and permitted financial institutions, visit SAMA’s official website.
Recently, SAMA issued the second release under the Open Banking Framework, which focused on the Payment Initiation Service (PIS). The new release has been issued as part of SAMA’s efforts to further strengthen the Saudi Arabian Fintech ecosystem.
The change is anticipated to enhance overall consumer experience and transaction efficiency and open new opportunities for the Kingdom’s fintech sector to offer expanded products and solutions to customers.
SAMA’s Open Banking Framework consists of a set of guidelines and technical standards based on international best practices to facilitate the provision of open banking services in the Kingdom. This second release of the framework standardizes how participants can offer PIS reliably and securely. The framework also clarifies the responsibilities of all stakeholders involved in the provision of PIS.
The PIS, as part of the Open Banking Framework, helps deliver the Strategy by enhancing the efficiency and security of payment services in the Kingdom. Under PIS guidelines, consumers can initiate payment transactions from within third-party applications in a secure manner, and the new release builds on previous guidance covering Account Information Service (AIS).
