The Financial Sector Development Program (FSDP) launched the FinTech Strategy Implementation Plan, aimed to situate the Kingdom among the leading countries in the field of FinTech, with Riyadh becoming a global FinTech hub. The strategy also aims at enhancing the economic empowerment for individuals and communities.
Minister of Finance and Chairman of FSDP Committee, Mohammed Al-Jadaan pointed out that the strategy will contribute to realizing the strategic objectives of Saudi Vision 2030 .
It will be achieved by enhancing ease of doing business, increasing private sector’s contribution to economy, attracting foreign direct investment, developing the digital economy, nurturing and supporting innovation and entrepreneurship culture, increasing SME contribution to the economy, and developing the e-government, in addition to realizing the 22 indirect objectives.
The minister explained that the strategy contributes to enhancing innovation in the financial services sector by attracting key players in FinTech. The strategy seeks to increase the number of FinTech companies operating in the Kingdom from 82 to 230 by 2025. In addition, it aims to increase the share of non-cash transactions (digital transactions) to 70% by 2025.
Al-Jadaan states that innovation offered by the FinTech sector in the Kingdom through developing technology-based financial services and solutions will contribute to enabling many sectors including retail, hospitality, real estate, investment, transportation, and healthcare.
Innovation in these sectors will contribute to increasing assets under management to reach 50% by 2030, aiming at the utilization of artificial intelligence in the financial services sector.
He added that the Kingdom ranked 36th out of 63 countries in 2021 World Digital Competitiveness Index, the second among G20 countries in 2021 the Digital Competitiveness Report, and the 41st out of 132 countries in the Global Talent Competitiveness Index 2021.
The FinTech Strategy is a new pillar in FSDP; one of the Kingdom’s Vision 2030 Realization Programs. FSDP’s objective is to create a diversified and effective financial services sector to support the development of the national economy, diversify its sources of income, and stimulate savings, finance, and investment.
The program will achieve this ambition by enabling financial institutions to support private sector growth, ensuring the formation of an advanced capital market.