By offering bank-to-bank X-as-a-Service solutions to the industry, the bank is tapping government support to improve financial sector competitiveness, resilience
In Saudi Arabia’s financial sector, the government’s Vision 2030 blueprint has been spurring digital transformation and innovation in digital banking solutions, among other national unity objectives.
In the short term, institutions in Saudi Arabia will benefit from rapid migration from legacy systems, unlocking new digital capabilities and flexible business models. Through easy integration with third-party vendors and ecosystem players, clients will be able to offer innovative services such as open banking solutions and Banking-as-a-Service (BaaS) use cases such as Cards-as-a-Service and Wallets-as-a-Service. This flexibility positions them to compete with digital-native challengers, drive customer acquisition, and improve operational efficiency.
In the longer term, one bank there has leveraged technology to create new revenue streams and business lines, including real-time underwriting through third-party data access; cross-selling of financial products through contextual offers; and expanding into fee-based services such as KYC-as-a-Service and real-time data provision to consumer and SME-focused firms.
Amid a surge in the use of digital wallets (from 315,000 users in 2018 to over 17m by 2022) and real-time payment options, Riyad Bank is riding the technology cycle to improve banking models in the system by powering what is reportedly Asia’s first BaaS offering by a global bank.
Starting with an initial focus on enabling advanced business models such as digital banks/BaaS/super apps, and open banking solutions, the bank’s digital innovation arm, Jeel, will be providing comprehensive solutions for banks, financial institutions and non-bank entities in Saudi Arabia. Its CEO, George Harrak, said that the bank’s offerings “can accelerate the digital transformation of our customers, including banks, financial institutions and non-bank entities, and provide them with the tools they need to thrive in an increasingly competitive market.”
According to Kelvin Tan, CEO, audax Financial Technology (sic),the incumbent technology partner: “By working with Jeel, we aim to accelerate the pace at which Saudi institutions can modernize and scale their digital offerings, ensuring they remain competitive in the evolving business landscape… to launch cutting-edge solutions quickly and efficiently, creating new revenue streams and improving operational resilience.”
