Reimagining banking in Saudi Arabia: Innovation, agility, and trust in a Vision-driven economy
As Saudi Arabia accelerates its transformation under Vision 2030, the Kingdom’s banking sector stands at a pivotal moment. Innovation, agility, trust, and transformation are no longer abstract goals: they are strategic imperatives. The future of banking in Saudi Arabia is unfolding now, shaped by regulatory reform, customer expectations, and technological disruption.
These insights were collated from our latest event, the Saudi Arabia Reimagine Banking Forum, held in Riyadh on October 29, 2025. The forum brought together industry leaders, regulators, and innovators to explore how financial institutions in the Kingdom can adapt, evolve, and thrive in a rapidly changing landscape.
Banking today in Saudi Arabia: Balancing innovation with compliance
Saudi banks are navigating a delicate balance, driving innovation while maintaining compliance and resilience. The Saudi Central Bank (SAMA) plays a critical role in this journey, fostering innovation through initiatives like the Open Banking Framework and the Regulatory Sandbox, while ensuring robust consumer protection and cybersecurity standards(1)
SAMA’s recent updates to the Banking Control Law mark a significant shift, expanding the definition of banking and granting SAMA greater licensing authority(2). This regulatory agility enables banks to experiment with Banking-as-a-Service (BaaS) and Embedded Finance, delivering integrated experiences across telecom, retail, and e-commerce platforms.
The recommended approach is incremental: test, refine, and scale. Innovation must be secure and customer-centric. With over 75% of the adult population banked(3) and digital adoption rising, banks must orchestrate ecosystems that deliver seamless, lifestyle-integrated services.
Banking tomorrow: Agility, differentiation, and lifestyle integration
Saudi Arabia’s financial future is agile, embedded, and customer-first. Under Vision 2030’s Financial Sector Development Program (FSDP), the Kingdom is building a diversified, innovation-driven financial ecosystem, with fintechs, digital banks, and partnerships driving transformation(4).
The risk of banking becoming a utility is real. As Bill Gates said, “Banking is necessary, banks are not”. To stay relevant, Saudi banks must evolve into lifestyle platforms, offering real-time payments, instant onboarding, and embedded services across apps and platforms like STC Pay, Tamara, and Careem(5)
Regulators are supportive. SAMA’s sandbox has enabled over 50 fintech pilots(6), accelerating time-to-market for innovations like BNPL, peer-to-peer lending, and on-demand insurance. But technology adoption must move faster. The prediction: more banking than ever before, delivered by multiple players, with customers caring less about who their “bank” is, and more about how it serves them.
Practical AI in Saudi Banking: Ethics, trust, and human collaboration
Artificial Intelligence is reshaping Saudi banking from fraud detection to personalized services. But with great power comes great responsibility. AI must be guided by ethics, transparency, and human oversight. SAMA’s regulatory frameworks emphasize secure data sharing, bias mitigation, and customer consent, ensuring AI empowers rather than replaces humans(7).
Generative AI is already enhancing customer service, summarizing conversations, and improving agent responses. But sensitive tasks, like collections or credit decisions still require human judgment. The right mindset views AI as an enabler, not a threat.
Strategic recommendations for Saudi banks and fintechs
To thrive in 2026 and beyond, financial institutions in the Kingdom should:
- Embed customer-centricity into every product and service.A
- Accelerate adoption of proven technologies like BaaS, embedded finance, and AI.
- Build trust through transparency, ethical AI, and secure data practices.
- Leverage ecosystems and partnerships to scale innovation.
- Redefine the role of banks in a utility-driven, digital-first landscape.
Transformation is not optional, it’s essential for relevance, resilience, and alignment with Vision 2030.
Ready to lead the future of banking in Saudi Arabia?
Book a consultation with our experts and explore how Finastra Essence can help you deliver customer-centric innovation, securely, at scale, and in full alignment with the Kingdom’s transformation goals.
