RIYADH: The Saudi Central Bank has granted Creative Future for Digital Brokerage a license to carry out finance aggregation services in the Kingdom.
The Saudi-based company will provide services through its platform that connects financing companies with clients based on credit obligation and solvency to offer them customized finance solutions.
This is part of an initiative by the central bank – also known as SAMA – to entice a new segment of investors and companies that can bring added value to the sector while maintaining full adherence to the regulations and guidelines set by the bank.
“SAMA reiterates its commitment to support the financial sector and FinTech for enhancing operational efficiency to promote financial inclusion for the various segments of the society in the Kingdom,” said a statement on the bank’s website.
The licensing terms fall under SAMA’s Rules of Licensing Finance Support Activities that control and monitor related activities.
The granting of licenses comes after Creative Future for Digital Brokerage successfully passed testing its digital solutions in SAMA’s regulatory sandbox – an experimental environment dedicated to innovative financial products and services in Saudi Arabia.
“Granting licenses to Finance Aggregation Service Providers is a step towards achieving the objectives of the FinTech Strategy in its pursuit to be among the leading countries in FinTech,” SAMA’s website stated.
The bank’s licensing of fintech companies contributes to achieving the objectives of the Financial Development Sector strategy aligned with Vision 2030.
The strategy, published last year, aims to bring the total number of operating fintech companies to 150 by the end of 2023 and to 525 by 2030.
Last month, Riyadh-based fintech firm Raqamyah received a license from SAMA, to offer its debt-based crowdlending solutions to small and medium enterprises.
The bank has been keen to promote financial stability in the Kingdom and drive economic growth through the development of the fintech sector.
The strategy also pointed out that fintech is set to contribute to 20 percent of total foreign investments in the Kingdom.
“The Kingdom's aspirations to become a global leader in the financial technology sector must be supported by a strategy that focuses on managing the financial transformation of the financial sector to achieve a long-term economic impact,” the strategy stated.