Saudi Arabia’s banking sector is set for a major transformation as Jeel, the digital innovation arm of Riyad Bank, partners with audax Financial Technology. This collaboration aims to redefine the digital banking landscape in the Kingdom, aligning with the ambitious goals of Saudi Vision 2030.
Strategic Partnership Targets Digital Transformation
Jeel and audax are combining their strengths to offer cutting-edge digital solutions. Jeel brings its pioneering technology in digital innovation, while audax, backed by Standard Chartered, provides comprehensive banking technology solutions. Together, they plan to introduce Asia’s first Banking-as-a-Service (BaaS) offering powered by a global bank.
“This partnership is a game-changer for Saudi Arabia’s financial sector. By integrating our technologies, we can offer banks and financial institutions the tools they need to thrive in a digital-first world,” said Ahmed Al-Saleh, CEO of Jeel.
Comprehensive Solutions for a Modern Financial Ecosystem
The collaboration will deliver a suite of solutions tailored for banks, financial institutions, and non-bank entities. The initial focus is on enabling advanced business models such as digital banks, BaaS, super apps, and open banking solutions.
- Digital Banks: Streamlined digital banking platforms that enhance customer experience.
- BaaS: Flexible banking services that allow non-bank entities to offer financial products.
- Super Apps: Integrated applications that combine multiple services for seamless user interactions.
- Open Banking: Secure and transparent data sharing to foster innovation and competition.
These solutions are designed to support the rapid migration from legacy systems, unlocking new digital capabilities and flexible business models for Saudi institutions.
Aligning with Saudi Vision 2030
Saudi Vision 2030 emphasizes the diversification and modernization of the Kingdom’s economy, with a significant focus on the financial sector. The partnership between Jeel and audax is a testament to this vision, aiming to create a more dynamic and competitive banking environment.
“With initiatives like the SAR 300 million fintech-focused fund and the National Technology Development Program, Saudi Arabia is creating a fertile ground for digital innovation,” added Fatima Al-Mutairi, Head of Digital Strategy at audax.
Immediate and Long-Term Benefits for Saudi Institutions
In the short term, banks and financial institutions will benefit from the rapid adoption of digital solutions. This includes the easy integration with third-party vendors and ecosystem players, enabling innovative services such as:
- Open Banking Solutions
- Cards-as-a-Service
- Wallets-as-a-Service
In the long run, the partnership will enable institutions to leverage vast amounts of data across their ecosystems. This can lead to new revenue streams and business lines, including:
- Real-Time Underwriting: Utilizing third-party data for instant credit decisions.
- Cross-Selling Products: Offering contextual and personalized financial products.
- Fee-Based Services: Expanding into areas like KYC-as-a-Service and real-time data provision for consumer and SME-focused companies.
Driving Financial Inclusion and Innovation
Saudi Arabia’s tech-savvy population is driving the demand for innovative banking solutions. The partnership between Jeel and audax is poised to meet this demand, promoting financial inclusion and empowering consumers with more choices and better services.
“This collaboration not only enhances our technological capabilities but also ensures that we are meeting the evolving needs of our customers,” stated Lina Hassan, Chief Innovation Officer at Riyad Bank.
Future Outlook
As Saudi Arabia continues its journey towards a diversified and technologically advanced economy, the Jeel-audax partnership stands out as a pivotal move in the financial sector. By providing comprehensive digital banking solutions, the collaboration is set to position Saudi banks to compete and thrive in a rapidly evolving global financial landscape.
Table: Projected Growth in Saudi Arabia’s Digital Banking Sector
| Year | Projected Market Value (USD Billion) | Key Drivers |
|---|---|---|
| 2024 | 5.2 | Initial implementation of BaaS |
| 2026 | 8.7 | Expansion of digital banking services |
| 2030 | 15.3 | Full integration with Vision 2030 initiatives |
This table highlights the expected growth trajectory of digital banking in Saudi Arabia, driven by strategic partnerships and robust government support.
