Newsweek - USA (2020-11-27)

SAUDI ARABIA

4

Th e digitalization drive in Saudi Arabia continues to accelerate as increasing
numbers of companies harness the speed and effi ciency of state-of-the-art
hardware and software, with this positive trend most evident in the banking
and fi nancial services industries. Secure and streamlined frameworks have
been designed to match global fi ntech benchmarks, with the Saudi Arabian
Monetary Authority (SAMA) taking the best components of regulations
from world-class fi nancial centers including Singapore and London.
Th rough fully owned subsidiary Saudi Payments, SAMA had a leading
role in the creation of a safe, reliable, low-cost and effi cient system for fi nancial
transactions and card payments made online, through ATMs or in shops and
stores. Guided by the Financial Sector Development Program, the company’s
work is an important conduit for the Vision 2030 goals of a cashless society
and a more transparent monetary environment. Known as mada, the latest
innovative generation of electronic payments aims to boost sales growth with
unprecedented dimensions of fl exibility, speed, security and acceptance, notes
SAMA’s Deputy Governor for Development and Technology Ziad Al-Yousef,
who was previously Saudi Payments’ Managing Director.
“When it comes to benefi ts for individuals or merchants, digital payments
are more secure and convenient, they reach the furthest parts of the kingdom
and they reduce the costs of cash on the economy, which include the costs of
printing, transportation, and securing and insuring physical cash dispensing

operations,” the senior executive explains. “When we started this project three

years ago, 18 percent of Saudi payment transactions were digital and the goal is

to reach 70 percent by 2030. By the end of 2020, we were tasked with reaching

28 percent—but we had already achieved 36 percent by July 2019.

“SAMA mandated Saudi Payments to provide a world-class infrastructure

for fi ntech. Th e platform we are managing for this used to be an exclusive

service for banks, because they were the only businesses that were licensed to

provide payment services. SAMA’s new framework allows for non-banks to

CONTENT FROMCOUNTRY REPORTS

Golden future for fintech revolution

The fusion of finance with cutting-edge technology is a catalyst for change

Abdulaziz M.

Alonaizan

CEO, Bank Albilad

Ziad Al-Yousef

Former MD

Saudi Payments

Rayan Fayez

MD and CEO

Banque Saudi Fransi