Embedded Finance and Open Banking Take Centre Stage at Seamless KSA

Attending Seamless KSA 2024 at Riyadh Front, Saudi Arabia was a front-row experience into the energy and ambition driving Saudi Arabia’s fintech, retail and commerce sectors.

Across two packed days, we delved into discussions ranging from open banking advancements to the potential of embedded finance, with an underlying theme of transforming the financial sector in ways that align with the Kingdom’s Vision 2030.

The blend of panel discussions, interviews and casual conversations painted a picture of a country on a determined path to becoming a global fintech leader.

Open banking: vision meets action

One of the event’s key themes was open banking and how it’s taking shape in Saudi Arabia. Panels and conversations highlighted the progress from concept to reality, with new opportunities emerging for expansion and innovation.

Payment initiation and account aggregation were frequently discussed, showing their potential to impact financial services. Interestingly, it appears that although Saudi banks were initially cautious about open banking, many are now recognising it as a valuable opportunity for growth.

A shift began when some banks started working directly with fintechs, resulting in noticeable jumps in transaction volumes. This success is gradually encouraging other banks to approach fintechs as partners instead of competitors, which is creating a more collaborative environment. Standardising APIs and data-sharing practices was also flagged as crucial for further progress.

Embedded finance

Embedded finance was another major point of discussion, with many speakers emphasising its potential to weave financial services into everyday customer experiences. Buy now, pay later (BNPL) was a common example, with the hope that open banking APIs could improve credit assessment for these services.

Future applications for open banking in Saudi Arabia may include better risk assessments for variable income, more efficient government payments, and pre-filled mortgage applications.

Speakers also explored how open banking could help connect financial services to other sectors, like healthcare and family services, opening up broader possibilities for integrated solutions.

Launching fintech in Saudi Arabia

In an interview, Ismail A Amonette, founder and CEO of IBEA, an accounts payable automation solution, shared insights into why his company chose Saudi Arabia as the base for its fintech solution, highlighting the country’s rapid adoption of new technologies and strong market momentum.

Amonette explained that Idea’s solution focuses on automating the supplier payment lifecycle and implementing buyer-centric supply chain financing. His experience underlines Saudi Arabia’s openness to innovative financial solutions, particularly those geared toward small and medium enterprises (SMEs) – a sector that plays a key role in the Saudi economy and Vision 2030 goals.

The Seamless KSA experience

We heard a lot of praise for Seamless KSA in creating a platform where fintech, retail and commerce sectors could connect and share ideas. This multi-sector engagement reflects the wider trend of increasing integration between financial services and other industries within Saudi Arabia.

Alongside the many opportunities, attendees also addressed several challenges. Key among them were the need for ongoing education for both businesses and consumers on the benefits of emerging financial technologies, the critical role of data security and privacy within open banking frameworks, as well as the importance of standardising APIs and data-sharing practices to ensure a consistent and reliable experience.

Looking ahead

Conversations at Seamless KSA highlighted how fast things are changing in Saudi Arabia’s financial scene. With open banking, embedded finance and fresh fintech solutions taking hold, the country could very well make a mark in the global fintech space.

As these innovations continue to grow and link up with different industries, Saudi Arabia seems set on building a vibrant financial ecosystem that aligns with its Vision 2030 goals.