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Introduction to Fintech and Banking System
Session Objectives
- ✓Understanding what Fintech is and its scope
- ✓Learning the evolution from traditional to digital finance
- ✓Understanding traditional banking system and its challenges
- ✓Exploring the Saudi Fintech ecosystem
Session Content
1
What is Fintech?
Definition and Scope
- •Fintech definition
- •Main sectors: Payments, Lending, Wealth Management, Digital Banking, Insurtech, Investment Tech, Blockchain
Historical Evolution
- •Fintech 1.0 (1866-1967): Traditional infrastructure
- •Fintech 2.0 (1967-2008): Digitization - ATM, Online Banking
- •Fintech 3.0 (2008-Now): Digital revolution - Smartphones, APIs, Digital Banks
- •Evolution in Saudi Arabia (2017-2026)
Market Size and Growth
- •Global Fintech market: $312 billion
- •Saudi market: 82+ licensed companies
- •Digital transactions: 1.2 trillion SAR
- •Digital wallet users: 15+ million
2
Traditional Banking System in Saudi Arabia
Saudi Banking Structure
- •Saudi Central Bank (SAMA)
- •Capital Market Authority (CMA)
- •Banks: 24 banks (13 local + 11 foreign)
- •Payment systems: MADA, SADAD, SARIE
Technical Infrastructure of Traditional Banks
- •Core Banking Systems (Temenos, Oracle, SAP)
- •Siloed subsystems
- •Problems: Legacy systems, integration difficulty, slow, high cost
Traditional Model Challenges
- •Branch operation cost: 2-4 million SAR/year
- •Account opening: 1-3 days
- •New product launch: 12-24 months
- •Practical example: Getting a loan (2-4 weeks vs 10-15 minutes)
3
Saudi Fintech Ecosystem
Vision 2030 and Digital Transformation
- •Raise non-cash transactions to 70%
- •Increase financial sector contribution to 12%
- •Raise financial inclusion to 80%
- •Initiatives: Fintech Saudi, SAMA Fintech Lab, Accelerator Program
Saudi Companies Map
- •Payments: STC Pay, Hala, urpay, Paylink
- •BNPL: Tamara, Tabby, Spotii
- •Lending: Lendo, Mada, Qoyod
- •Insurtech: Tameeni, Salama, Najm
- •Wealthtech: Wahed, Derayah, Scopeer
- •Infrastructure: Lean Technologies, Geidea, Rewaa
Current vs Future Model
- •From controlling bank to open ecosystem
- •From product-focus to customer-focus
- •From complex transactions to seamless experience
- •From fixed hours to 24/7 availability
4
Future of Saudi Financial Sector
Main Trends
- •Open Banking
- •Embedded Finance
- •Super Apps
- •AI-Powered Finance
Resources & Links
📚Resources
- •SAMA Fintech Report 2023
- •Vision 2030 - Financial Sector
- •The Saudi Fintech Ecosystem - Fintech Saudi