The Saudi Central Bank (SAMA) has initiated the licensing process for fintech companies to offer Open Banking services in the country, indicating a shift from the regulatory sandbox phase to formal operations.

Lean Technologies, an infrastructure provider based in the Middle East and North Africa (MENA), has received the first Major Payment Institution (MPI) license under this new regime, becoming the inaugural licensed Open Banking service provider in Saudi Arabia.

The licensing process comes after SAMA’s successful completion of its regulatory sandbox program. During their participation, Lean Technologies connected over one million bank accounts and facilitated more than one billion transactions, thereby building a robust operational history before receiving full authorization.

Aligning with Saudi Vision 2030

SAMA’s Open Banking initiative is integral to the National Fintech Strategy and supports Saudi Vision 2030, which seeks to establish Saudi Arabia as a global fintech hub. This framework allows for secure sharing of financial data among SAMA-regulated entities with consent, ensuring privacy and information security.

Lean Technologies has partnered with several key Saudi institutions, such as Tabby, Tamara, Abdul Latif Jameel, Sukuk, and Tasheel. Through these collaborations, Lean’s infrastructure was employed to enhance financial solvency assessments in consumer financing products. For instance, the integration of cash-flow data by Tamara into its underwriting process led to a significant 32% increase in approval rates for its consumer financing product.

According to Hisham Al-Falih, CEO and Co-Founder of Lean Technologies, obtaining this license from SAMA signifies the validation of the company’s vision since its inception six years ago. Now poised to expand its reach across thousands of merchants, SMEs, and end-users in Saudi Arabia, the platform is set for broader deployment.