Saudi Arabia’s Digital-Only Banks Debut with Swift Customer Adoption

Saudi Arabia’s banking sector is in the midst of a remarkable transformation, driven by the emergence of digital-only banks that are reshaping the financial landscape. In December 2024, D360 Bank became the country’s first licensed digital bank, authorised by the Saudi Central Bank (SAMA). This milestone marked the beginning of a new era in Saudi banking, offering customers unprecedented convenience and innovation. D360 Bank, a Shariah-compliant institution backed by Derayah Financial and the Public Investment Fund, caters to individuals and businesses with services like personal accounts, bill payments, and money transfers.

Hot on its heels, Vision Bank and STC Bank received SAMA’s approval in January 2025. Vision Bank, leveraging cutting-edge technology, launched pilot services including Murabaha deposits and payment cards. Meanwhile, STC Bank, evolving from the popular STC Pay e-wallet, aims to become the nation’s leading digital bank, offering a wide range of personal and business banking solutions. These developments reflect a broader shift in consumer behaviour, with a 2024 Capco survey revealing that 81% of Saudi retail banking customers prefer mobile apps for financial services. Additionally, 82% expressed interest in “super-apps” that integrate banking with everyday services like ride-hailing and e-commerce.

Personalisation is another key trend, with 84% of respondents desiring apps that offer tailored financial insights. D360 Bank’s rapid success underscores this demand, attracting over 600,000 customers within two months of its launch. The bank now plans to leverage data analytics and AI to develop innovative products, such as travel cards with no hidden fees and low-cost international transfers.

Saudi Arabia’s fintech advancements extend beyond digital banks. In 2024, SAMA joined the Bank for International Settlements’ mBridge project to enhance cross-border payments and launched Phase 2 of its Open Banking Framework to standardise payment initiation services. The introduction of E-Wallet Rules further bolstered the regulatory environment, while the expansion of SAMA’s regulatory sandbox welcomed fintech startups like XSquare and MoneyMoon.

These efforts have propelled Saudi Arabia’s fintech sector to new heights, with the number of fintech companies soaring from 60 in 2020 to 226 in 2024. Digital payments have also surged, accounting for 70% of retail transactions in 2023. As Saudi Arabia continues to embrace financial innovation, its banking sector is poised to lead the region in delivering cutting-edge, customer-centric solutions.