The Imperative Digital Transformation for Saudi Arabia's Traditional Banks

Saudi Arabia's traditional banks are strategically adapting to the evolving financial landscape driven by technological advancements in line with Saudi Arabia’s Vision 2030. With a prominent lineup of banks in the region, including Al Rajhi Bank, Riyad Bank, and Saudi British Bank, these established institutions are looking to quickly and seamlessly modernize their offerings.

The demand for digital banking in the Middle East and North Africa (MENA) region is accelerating, as nearly half of the 400 million population is under 25 years old. As the MENA fintech sector booms, the market for Banking-as-a-Service (BaaS) and embedded finance solutions is estimated to reach $7 trillion by 2030, with year-on-year growth of 26%.

Modernization Challenges for Traditional Banks

Traditional Saudi banks are embracing the opportunities to reinvent their legacy IT systems, processes and siloed data that constrained innovation. As they navigate through their existing core banking infrastructure, they are looking to enhance their agility in swiftly developing and deploying digital capabilities that cater to evolving customer expectations.

These banks also encounter challenges in swiftly adapting to change due to organizational hierarchies and regulatory processes. The resulting slower product development cycles contrast starkly with the nimbleness of fintech startups.

Navigating Digital Disruption

In the midst of this digital evolution, neo-banks, payment service providers, and fintech startups present formidable competition to traditional Saudi banks. Apps like STC Pay, Apple Pay, and Mobily Pay offer users seamless experiences underpinned by cutting-edge technology.

With Saudi regulators advocating open banking standards, bank customers will enjoy the freedom to engage third-party apps for financial management, payments, and product comparisons. This reality places traditional banks' user base and brand loyalty in a competitive position.

Bridging the Digital Divide

To thrive in this transformed landscape, incumbent Saudi banks must pivot from legacy systems to streamlined tech stacks driven by AI, APIs, microservices, and cloud capabilities. They need to develop robust digital banking channels equipped with data-driven functionalities and personalized recommendations that engage customers.

Enabling integration with popular super apps like STC Pay can help retain users within open banking environments. Additionally, forging partnerships or acquiring promising fintech startups could expedite innovation and enhance customer experiences.

Vision 2030 Alignment

Evolving to digital-first business models aligns with Saudi's Vision 2030 goals of modernizing the economy and developing robust financial services to promote economic diversification. Traditional banks have a key role to play in advancing Saudi Arabia's national transformation agenda. Partnering with fintech innovators can catalyze the change.

The NymCard Solution

NymCard offers a cutting-edge banking-as-a-service platform that empowers conventional banks in Saudi Arabia to rapidly launch digital banking services.

With NymCard's modular and API-driven technology, banks can introduce virtual debit/credit cards, multi-currency wallets, loyalty programs, and more without overhauling legacy systems.

Banks also gain access to NymCard's ready-made core processing capabilities for transactions, payments orchestration, dispute management, and compliance checks. This reduces development overhead.

NymCard's developer-friendly APIs and sandbox environment enable banks to test and iterate on digital banking features faster. They can bring integrations with super apps and third-party fintech platforms to market quicker under open banking.

The platform's in-country deployment, global expertise in banking transformation, and end-to-end implementation support can accelerate Saudi banks' digital modernization journeys.

By leveraging NymCard's banking-as-a-service offerings, conventional banks in Saudi Arabia can innovate faster, save costs, and thrive in an increasingly digital-first financial sector.

Visit NymCard at Seamless KSA

To learn more about how NymCard can help your bank fast-track digital transformation, visit the NymCard booth at Seamless KSA. Located at booth #D52, NymCard experts will be on hand from September 4th to September 5th 2023.

Drop by and speak with specialists from NymCard's banking-as-a-service platform to discuss how we can enable your bank to innovate quickly, reduce costs, and deliver exceptional digital experiences in the new era of open banking. Let's shape the future of digital finance in Saudi Arabia - together.