The Role of the FinTech Ecosystem in Developing the Financial Sector in the Kingdom of Saudi Arabia

Abstract

This study aims to analyze the development of the FinTech ecosystem in Saudi Arabia by examining the growth of companies operating in this field and the diversification of their activities, reviewing indicators of customer use of selected digital financial services, and identifying the main challenges facing the sector. To achieve these objectives, the study adopts a descriptive-analytical approach based on published official reports and data relating to FinTech and the financial sector in Saudi Arabia. The findings reveal growth in the Saudi FinTech ecosystem, reflected in the increasing number of companies operating in the sector and the diversification of their business activities. Usage indicators also reveal the growing adoption of digital financial services, including Buy Now, Pay Later (BNPL), open banking, and digital savings solutions, alongside increasing reliance on non-cash payment methods. However, the analysis identifies several persistent challenges related to regulatory compliance, access to financing, the recruitment of specialized talent, the development of technological infrastructure, and the strengthening of cybersecurity and data protection. The study concludes that assessing the development of FinTech in Saudi Arabia requires consideration of the ecosystem’s growth, the diversification of its services, the extent of customer adoption, and companies’ capacity to address challenges that may affect the sector’s long-term sustainability.