The digital revolution within Saudi Arabia’s banking sector has significantly enhanced the nation’s economic landscape, making financial transactions easier for customers, experts told Arab News. The Kingdom, known for its rich history and cultural legacy, is also rapidly advancing in digital technology, particularly in banking.

In recent years, Saudi Arabia’s banking sector has undergone a significant transformation driven by the ambitious Vision 2030 program led by Crown Prince Mohammed bin Salman. This visionary initiative aims to diversify the economy, reduce dependence on oil revenue, and usher the country into a new era of prosperity.

Saudi-based economist Talat Hafiz explained to Arab News how digital transformation has positively impacted the country’s economy. “It has allowed customers to perform financial transactions and conduct business-related transactions in real-time, around the clock, and year-round. This has facilitated doing business in the Kingdom, saving time, effort, and ultimately reducing costs for businesses,” Hafiz said.

Fabrice Franzen, partner at Bain & Co., noted that Saudi Arabia is among the first countries to issue full digital banking licenses without requiring physical branches. “SAMA (Saudi Central Bank) has actively promoted the digital bank model, and three licenses were issued to local investors and companies, which should go live imminently,” Franzen added.

Franzen expects this move to foster healthy competition with traditional banks, driving further innovation and enhancing the customer experience.

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