STC Bank launches operations in Saudi Arabia after receiving green light from SAMA
STC Bank, a subsidiary of state-owned Saudi Telecom Company, has completed its pilot phase and received clearance from the Saudi Central Bank (SAMA) to launch digital banking services in the Kingdom.
STC Bank has launched operations in Saudi Arabia
In a statement, SAMA says it has granted “no objection” to STC Bank to commence banking operations in the Kingdom, effective 28 January. The central bank previously approved the beta launch of STC Bank, then known as STC Pay, in April.
The new digital bank will leverage the clearance to launch “financial solutions that elevate banking services for individuals and [the] business sector”, according to CEO Nizar Altwaijri.
These currently include payment cards with expense tracking and money transfer services for consumers, as well as merchant accounts and payment solutions, including QR and payroll, for businesses. The firm will also roll out a sharia-compliant financial services suite approved by the bank’s sharia board.
The digital bank’s website claims over 200,000 merchants have registered for these services, while active STC Pay users are now being given the option to upgrade their digital wallets to full bank accounts, with no disruption to existing balances, transaction history or data.
The licencing comes amid SAMA’s recent efforts to promote digital transformation and competitiveness within the Saudi banking sector, in line with the Saudi Vision 2030.
The central bank previously granted an e-wallet licence to Barq, led by former STC Pay CEO Ahmed Alenazi, this time last year, with the start up going on to process over $133 million in money transfers within the first three weeks of its August debut.
Elsewhere, SAMA also inked an agreement with Google last month to integrate its mobile payment service with the national payments network mada, in a move poised to bring Google Pay to the Kingdom “during 2025”.
