Saudi Arabia’s banking sector is undergoing to profound transformation, driven by the rise of new digital players. In recent months, the country has seen the debut of its first digital-only banks, marking a significant milestone in the nation’s financial landscape and ushering in a new era of convenience and innovation for customers.

In December 2024, D360 Bank became the first-ever licensed digital bank to begin operations in the country after receiving permission by the Saudi Central Bank (SAMA).

D360 Bank is a local Shariah-compliant digital bank established through a partnership between companies and investors led by Derayah Financial and the Public Investment Fund. The bank targets individuals seeking more flexible and efficient banking experiences, offering services including personal and business accounts, bill payments, payment cards, and money transfers.

Following D360 Bank’s debut, the two remaining licensed digital banks, Vision Bank and STC Bank, gained SAMA’s approval in January 2025 and commenced operations.

Formerly known as Saudi Digital Bank, Vision Bank aims to leverage innovation and technology to deliver user-friendly banking solutions. The bank’s initial offerings, introduced in January 2025 in pilot phase, include Murabaha deposits, payment cards, internal money transfers within the Kingdom, in addition to bill payments, available to a select group of customers.

STC Bank, launched by the Saudi Telecom Company (STC), seeks to establish itself as the premier digital bank in the country, offering a variety of financial products and services designed to cater to both personal and business banking needs, including personal and business accounts, local and international transfers, and payment cards.

STC Bank evolved from STC Pay, a popular e-wallet service launched in 2018, after receiving SAMA’s approval in 2024 to transition into a digital bank. STC Bank began full banking operations in early 2025 after a nine-month beta launch.

Evolving consumer demand drives digital banking adoption in Saudi Arabia

The advent of digital banks in Saudi Arabia aligns with growing consumer demand for online financial services. A 2024 survey of more than 1,200 Saudi retail banking customers conducted by Capco found that 81% of respondents accessed banking services using mobile apps, with 36% using desktop PCs or laptops and 30% via a bank branch, reflecting shifting preferences towards digital channels.

Saudi consumers are also showing interest in called “super-apps”, or all-in-one digital platforms. 82% of respondents expressed interest in a banking app that integrates financial services with the non-financial services they use in daily life such as ride hailing and e-commerce. In particular, four in ten (41%) would find such an app “extremely attractive”.

Another key trend shaping banking preferences is personalization. The survey found that 84% of respondents want apps that provide personalized insights into their finances, including how their finances might be improved. Furthermore, 67% would “probably” or “definitely” share more personal data, such as social media profiles or wearables data, to unlock personalized products and services.

These evolving consumer preferences are reflected in the rapid success of D360 Bank, which has gained remarkable traction in a relatively short period of time. In less than two months after its launch, the bank said that it had already attracted more than 600,000 customers, making it one of the fastest growing digital banks in the world in terms of customer acquisition, D360 Bank told Al-Eqtisadiah on February 02, 2025.

It is now focusing on developing digital financing products using data analytics and artificial intelligence (AI) to attract customers, and plans to differentiate by offering travel cards with no hidden fees, instant international transfers with low exchange rates and fees, and free domestic transfers, among key solutions.

Recent fintech developments in Saudi Arabia

Besides efforts to welcome digital-only banks, Saudi Arabia has taken significant steps to advance fintech innovation over the past year. These efforts include regulatory enhancements, participation in central bank digital currency (CBDC) initiatives, and welcoming new fintech startups into its regulatory sandbox.

In June 2024, SAMA joined the Bank for International Settlements’ (BIS) mBridge project as a participant in the minimum viable product (MVP) platform. The MVP platform, a multi-wholesale CBDC system, aims to facilitate cross-border payments between commercial banks in different jurisdictions, improving international transactions and trade.

In September 2024, SAMA launched Phase 2 of its Open Banking Framework, focusing on Payment Initiation Services (PIS). This second release of the framework standardizes how participants can offer PIS reliably and securely. It also clarifies the responsibilities of all stakeholders involved in the provision of PIS. SAMA’s Open Banking Framework is a set of guidelines and technical standards designed to facilitate and secure the provision of open banking services in the country.

In November 2024, SAMA issued the E-Wallet Rules, a set of regulations governing electronic wallets, including client identity verification and account opening. These rules aim to protect market participants and support electronic money institutions in providing innovative services.

SAMA also expanded its regulatory sandbox in 2024, welcoming fintech startups such as XSquare and NeotTek, which launched open banking platforms, and MoneyMoon, which introduced a peer-to-peer (P2P) lending platform. In February 2025, four other fintech startups joined the sandbox, underscoring SAMA’s continued efforts in the development of the domestic fintech landscape and its commitment to promoting financial innovation.

The Saudi government’s fintech efforts have allowed the country to expand its fintech sector rapidly. By 2024, Saudi Arabia was home to 226 fintech companies, up from 60 in 2020 and exceeding the government’s fintech targets for the year.

This growth was supported by a surge in digital payments. In 2023, the share of retail consumer electronic payments reached 70% of total retail payments, up from 62% in 2022. National payment systems processed 10.8 billion transactions in 2023, marking a 24% increase from to 8.7 billion transactions in 2022.

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