The governor of Saudi Central Bank (Sama), Fahad al-Mubarak, announced that growth in financial technology companies (FinTech) contributed to the provision of crowdfunding and deferred payment activity, amounting to $533 million.
Mubarak noted that the participation of FinTech companies in payments increased the total number of operations in national payment systems to 5 percent by the end of January 2022, compared to 2.5 percent last year.
Speaking at the Financial Technology Center opening in Saudi Arabia, Mubarak indicated that the number of financial technology companies increased from ten in 2018 to 80 companies, with seven in the insurance sector.
According to the governor, the financial technology sector witnessed a remarkable increase in the volume of venture capital investments, with a cumulative value of about SR2.02 billion, through more than 45 investment deals.
Mubarak said in his opening speech that utilizing new technologies and accelerating the growth of financial technology undoubtedly contributed to building and developing new business models and practices.
“We firmly believe in the importance of integration between all parties and the need for concerted efforts to develop this sector under an ambitious national strategy within the Financial Sector Development Program,” said Mubarak.
Meanwhile, CMA Chairman Mohammad al-Kuwaiz explained that the real impact of financial technology on the financial services sector and the entire economy has become tangible.
Kuwaiz explained that Saudi Arabia seeks to become the hub of FinTech, hoping the Financial Technology Center will develop applicable business models for the financial sector and all its beneficiaries.
Fintech Saudi Arabia has officially opened the first of its kind center in the Kingdom, located in King Abdullah Financial District in Riyadh.
The project comes as part of the efforts of the Saudi Central Bank in cooperation with the Capital Markets Authority to stimulate growth in the financial technology sector in the Kingdom.
The Center includes two main sections, with co-working spaces, private offices, meeting rooms, event spaces, and an innovation area that meets all the needs of entrepreneurs and emerging financial technology companies.
The Center will provide entrepreneurs and people with innovative and pioneering ideas to communicate and collaborate to contribute to the development of the financial technology system in Saudi Arabia.