The embedded finance sector in Saudi Arabia is witnessing rapid growth, propelled by technological innovations, strategic alliances, and a supportive regulatory framework. Recent product launches, partnerships, and acquisitions have highlighted the sector’s potential to enhance financial accessibility and customer experiences. As the government champions digital transformation and open banking, Saudi Arabia is set to strengthen its leadership in the MENA region’s embedded finance landscape.
Aligning with Vision 2030, Saudi Arabia is positioning itself as a financial hub where fintechs and traditional institutions collaborate to offer integrated solutions. This fosters competition and drives financial inclusion, benefiting consumers and businesses with cutting-edge services. The sector’s future looks promising, marked by ongoing innovation and digital excellence.
Product Launches and Innovations
- Coop Finance+ Launch: In October 2023, Coop launched a new app with additiv’s support to integrate various financial services, enhancing consumer access.
- Manigo and SurePay Partnership: In September 2023, Manigo teamed up with SurePay to introduce embedded finance solutions tailored for businesses and consumers.
- Funding Souq and Qoyod Collaboration: In March 2024, Funding Souq partnered with Qoyod to embed financing options for SMEs directly into Qoyod’s platform.
- Finshape and Arab National Bank Alliance: In January 2024, Finshape and Arab National Bank joined forces to enhance banking experiences through personalized solutions.
These initiatives reflect the synergy between fintechs and traditional institutions, supporting Saudi Arabia’s Vision 2030 goals for economic diversification and digital transformation.
Key Mergers and Acquisitions
- Hyperpay Acquires Sanad Cash: In July 2023, Hyperpay acquired Sanad Cash to expand its service offerings for businesses.
- Cashin Acquires Cardless: In October 2023, Cashin acquired Cardless to offer digital card services and enhance payment solutions.
- RasMal Acquires Pentugram: In March 2024, RasMal acquired Pentugram to broaden its private capital investment management offerings.
These acquisitions highlight the dynamic nature of Saudi Arabia’s embedded finance sector as companies enhance capabilities through strategic moves.
Regulatory Changes
- Open Banking Framework: The Saudi Central Bank continues to implement the open banking framework to boost competition and innovation by allowing third-party access to bank data.
- Fintech Saudi Initiatives: Fintech Saudi promotes fintech growth by supporting startups and providing regulatory clarity.
- Regulatory Sandbox Expansion: The expanded regulatory sandbox allows fintechs to test new products in a controlled environment, encouraging innovation while ensuring compliance.
These regulatory steps underscore Saudi Arabia’s commitment to building a vibrant fintech ecosystem, aligning with its Vision 2030 goals to become a leading financial hub.
This comprehensive report provides a detailed analysis of the embedded finance industry, covering sectors like lending, insurance, and payments. It offers insights into market opportunities and risks with over 75+ KPIs at the country level.
Reasons to Buy
- Gain an in-depth understanding of embedded finance market dynamics and trends.
- Identify opportunities across various end-use sectors.
- Formulate market-specific strategies by assessing growth segments and industry risks.
- Access insights into embedded lending, insurance, and wealth sectors.
- Understand asset-based finance market size by asset type and end users.
The report forecasts the Saudi Arabian embedded finance market to grow from $4.8 billion in 2024 to $13.1 billion by 2029, with a CAGR of 22.2%.