The era of Fintech is just Beginning

Fintech is one sector that has grown by leaps and bounds in the last few years. Every year, the industry showcases immense growth in investments and new Fintechs forming. Especially in the case of Saudi Arabia, the Fintech sector has been massively progressing. So much so, that every year feels like the year of Fintech. And if numbers are to be considered, it sure looks like 2023 is going to be the biggest year of Fintech so far.?

Fintech in Saudi Arabia

KSA is one of the top countries in the Middle East when it comes to encouraging and investing in the Fintech industry. Saudi has set financial sector goals that are in line with Vision 2030. With the approval of the Financial Sector Development Program by the Saudi Cabinet, the Fintech goals detailed in Vision 2030 are already halfway there.

The Development program aspires to create 18,000 jobs in the Fintech Sector by 2030. The overall contribution of the Fintech sector to GDP is aspired to grow to 3.5 billion USD and venture capital investments are forecasted to reach 3.2 billion USD.

With such massive figures making the rounds, the Fintech sector surely seems to be the center of attention in the Saudi economy.?

Looking Back at 2022

The year 2022 was surely a big one for the fintech sector of Saudi. A lot of times Fintech achievements and investments made the headlines.?

• 2022 saw a large jump in SAMA’s regulated environment sandbox numbers. The sandbox licensed more than a dozen Fintechs while accepting over 80 in the pipeline. SAMA also introduced several innovation programs that led to an acceleration of the Fintech ecosystem as a whole.?
• The number of new Fintechs in the Kingdom also took a massive leap in 2022. As much as 79% growth was seen as compared to the last year while 147 companies held active status in Riyadh.?
• The focus on digital transformation in the country was also on point. KSA licensed a third digital bank in February last year, accelerating the focus on growing digitization.?
• Looking back at the investment surge last year, the funding numbers stood at a huge 400 million USD, while closing 20 deals with Saudi-based startups. This number shows a leap of 11% over the last year’s figures.?

(Reference: Arab News)

2023 is the year of Fintech

The plans of the Kingdom for 2023 make it evident that in 2023 too, the world will see a massive Fintech development in Saudi Arabia. The goals of the Kingdom have slowly started to come true. SAMA very recently announced the launch of an open banking lab. SAMA has issued the regulatory framework for open banking and announced that by the end of the first quarter of 2023, all banks and financial institutions of Saudi will be ready to launch the same.?

This will enable third-party developers to link applications and services to financial institutions by creating data transparency. This will bring about a Fintech revolution in the country with more and more overseas players making their way here. Large Fintechs from UAE and other Middle Eastern countries have started making their way to the Kingdom and 2023 sure looks like the year Saudi’s Fintech landscape will see a big boost.?

Acknowledgment from regional and global players and their interest in setting camp in Saudi shows the remarkable goal that Kingdom has achieved. More and more Fintechs, employment opportunities, and financial programs have made their way to Saudi and the day is not far away when Saudi Vision 2030 will have surpassed the set goals and Saudi Arabia will become the leading player in the Fintech world.

A word from Lamaa?

Lamaa is proud to be a part of this Fintech Revolution of KSA. Saudi Vision 2030 is the perfect blueprint that will take the nation to newer heights and the rightful focus on the Fintech sector and initiatives launched is paving way for more and more SMEs to grow and develop. Lamaa supports Vision 2030 and hopes to help Saudi-Made SMEs through our innovative Fintech products. Currently, Dynamic Discounting has helped a lot of local SMEs to get a grip on their cashflows and working capital and Lamaa plans to launch even more innovative solutions in 2023 to further this support.?

To learn more about our products and services please log on to www.lamaa.sa