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Campaign ME
22-05-2025
- Business
- Campaign ME
Extend The Ad Network forms new board of directors to accelerate growth and strengthen governance
Extend The Ad Network, a Saudi group specialising in integrated marketing and strategic communications, has announced the formation of its new Board of Directors to lead the group into a new phase of expansion, innovation, and creative leadership. The move aims to enhance the company's competitiveness, boost its readiness for rapid market shifts, and drive innovation in line with the needs of local and regional markets. Get your tickets to the Campaign Breakfast Briefing: Marketing Strategies 2025 on May 29, where top industry leaders will gather to unpack game-changing practices within the world of marketing. The newly appointed board comprises of seasoned leaders with expertise spanning media, regulation, finance, technology, and organisational transformation. It is chaired by Mr. Bandar Mohammed Al-Asiri, with members including Mr. Ahmed Mohammed Al-Enezi, Mr. Adnan Abdullah Al-Khalaf, Mr. Hisham Hassan Atiyah, and Eng. Sami Fahad Al-Rasheed. The Board convened for its inaugural meeting at the company's headquarters in Riyadh, where it approved a set of key governance initiatives, including the launch of a Nomination & Remuneration Committee and an Audit Committee, foundational steps toward more agile and transparent decision-making. This institutional milestone strengthens Extend The Ad Network's strategic footprint in the marketing, communications, and advertising space across the Middle East and North Africa. The company continues to invest in data-driven marketing solutions that harness creative talent and advanced technology to build stronger brand engagement. The board of directors includes: Mr. Bandar Mohammed Asiri – Chairman of the Board Mr. Asiri is a leader in business, governance, and media. He served on the media team for Saudi Vision 2030, was a member of the Shura Council, and chaired the General Commission for Audiovisual Media, Arabsat, and the Media ٌRating Company. He also served on the Board of the General Entertainment Authority. Previously, he held leadership roles at AL-KHALEEJIAH Advertising & Public Relations Company and Almarai. Today, he is Co-Founder and General Manager of Suhail International, and Co-Founder of Mal Media Group and Najla Foods. His institutional and entrepreneurial experience will strategically steer 'Extend' in line with the Kingdom's national development goals. Ahmed Mohammed Alanazi – Board Member A pioneer in fintech and digital transformation, Mr. Alanazi has led initiatives, including the public launch of Barq wallet and the development of STCPay. As CEO of AlBuraq Financial Company and a board member of the Insurance Authority and eFinance Investment Group, he brings financial acumen and a digital-first mindset that will bolster Extend's innovation strategy and tech-enabled service offerings. Adnan Abdullah Al-Khalaf – Board Member With extensive experience across sectors such as retail, telecommunications, sports, and tourism, Mr. Al-Khalaf is a seasoned executive recognised for driving transformation in large organisations. He serves on the boards of the Riyadh Chamber, Al-Saif Agencies, L'azurde Jewelry, and Trophy Commercial, and leads the Quality of Life Office for Administrative Consulting. His strategic versatility and operational insight will help scale Extend's integrated solutions across industries. Hisham Hassan Attia – Board Member A financial strategist with deep roots in the media and human capital sectors, Mr. Attia is the CFO and board member of Al Holoul Al Mutakamela Holding Company. With a career spanning corporate finance roles at Saudi Research and Media Group, Arthur Andersen, and Ernst & Young, his expertise will strengthen Extend's financial governance and support sustainable growth initiatives. Eng. Sami Fahd Al-Rashid – Board Member As a co-founder of Extend and a visionary in marketing and strategic growth, Mr. Al-Rashid brings a legacy of leadership and brand building. His 10 years of experience as Extend's CEO and his involvement in national-level committees, such as the Riyadh Chamber's Advertising and Publicity Committee, underscore his deep industry knowledge. His return to the board signals continuity and creative evolution at Extend. Extend The Ad Network is a Saudi-based firm offering end-to-end marketing and communications services, combining digital capabilities with creative strategy. Its portfolio spans media planning, brand identity, influencer marketing, public relations, content production, and AI-powered solutions.
Yahoo
16-05-2025
- Business
- Yahoo
Saudi Arabia Loan Aggregator Market Report 2025: Retail Digital Payments Hit 70% as Tech Adoption Transforms Saudi Financial Services - Competition, Forecast & Opportunities to 2030
Saudi Arabia's loan aggregator market, valued at USD 43.65M in 2024, is set to reach USD 63.78M by 2030, fueled by digital fintech growth and regulatory support. Key drivers include digital transformation and mobile banking adoption, while challenges remain in data security. Rising demand for Islamic finance and personalized loans enhances market potential. Major players like STC Pay and Lendo lead this evolving market. Saudi Arabian Loan Aggregator Market Dublin, May 16, 2025 (GLOBE NEWSWIRE) -- The "Saudi Arabia Loan Aggregator Market, By Region, Competition, Forecast & Opportunities, 2020-2030F" has been added to offering. The Saudi Arabian loan aggregator market, valued at USD 43.65 million in 2024, is expected to reach USD 63.78 million by 2030, growing at a CAGR of 6.58%. Significant growth is anticipated due to increased digitalization, fintech advancements, and regulatory backing from the Saudi Central Bank (SAMA). Consumers are increasingly using online platforms for seamless loan comparisons, enhancing market competition and transparency. As digital banking and AI-driven financial services become more prominent, user experience and loan accessibility are improving. The collaboration between banks, fintech firms, and aggregators is expected to further propel market expansion by offering personalized loan options and streamlining borrowing processes for individuals and businesses. The Saudi insurance sector also shows robust potential, with a 26.9% increase in Gross Written Premiums (GWP) reported by SAMA in 2022. The Financial Sector Development Program (FSDP) targets an increase in GWP as a share of non-oil GDP to 2.4% by 2025 and 4.3% by 2030, positioning it as a key contributor to the Saudi Arabia loan aggregator market. Key Market Drivers Digital Transformation and Fintech Adoption: Digital banking services have surged, integrating technology-driven solutions to enhance customer experiences. Loan aggregators now leverage AI, big data, and automation to provide tailored loan options, reducing the effort required to find suitable financing. By 2023, digital transactions accounted for 70% of retail payments, indicating a strong shift in consumer behavior and accelerating fintech adoption. Key Market Challenges Data Security and Privacy Concerns: Safeguarding sensitive consumer data remains a primary challenge. Despite SAMA's strict data protection regulations, maintaining robust cybersecurity frameworks is crucial for fintech companies and aggregators. Investments in encryption technologies and compliance with Saudi Arabia's Personal Data Protection Law (PDPL) are essential to building consumer trust. Key Market Trends Expansion of Islamic Finance Loan Aggregators: As a global hub for Islamic finance, Saudi Arabia sees growing demand for Shariah-compliant lending solutions. Loan aggregator platforms are incorporating Islamic finance products, leveraging AI-driven compliance checks and blockchain-based smart contracts, aligning with Saudi Arabia's Vision 2030 initiative. Key Market Players Creative Future for Digital Brokerage Lendo Saudi Arabia Foras Debt Crowdfunding Company Bonoky Digital Debt Crowdfunding Company (Raqamyah) Tamam Financing Co. Saudi Digital Payment Company (STC Pay) Amlak International Finance Company HALA Payments Company Tazapay Pte. Ltd. Report Scope Loan Type: Home Loans Credit Cards Personal Loan Auto Loan Others Mode of Operation: Online Offline Region: Northern & Central Western Southern Eastern Key Attributes: Report Attribute Details No. of Pages 81 Forecast Period 2024 - 2030 Estimated Market Value (USD) in 2024 $43.65 Million Forecasted Market Value (USD) by 2030 $63.78 Million Compound Annual Growth Rate 6.5% Regions Covered Saudi Arabia For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Saudi Arabian Loan Aggregator Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
Yahoo
16-05-2025
- Business
- Yahoo
Saudi Arabia Loan Aggregator Market Report 2025: Retail Digital Payments Hit 70% as Tech Adoption Transforms Saudi Financial Services - Competition, Forecast & Opportunities to 2030
Saudi Arabia's loan aggregator market, valued at USD 43.65M in 2024, is set to reach USD 63.78M by 2030, fueled by digital fintech growth and regulatory support. Key drivers include digital transformation and mobile banking adoption, while challenges remain in data security. Rising demand for Islamic finance and personalized loans enhances market potential. Major players like STC Pay and Lendo lead this evolving market. Saudi Arabian Loan Aggregator Market Dublin, May 16, 2025 (GLOBE NEWSWIRE) -- The "Saudi Arabia Loan Aggregator Market, By Region, Competition, Forecast & Opportunities, 2020-2030F" has been added to offering. The Saudi Arabian loan aggregator market, valued at USD 43.65 million in 2024, is expected to reach USD 63.78 million by 2030, growing at a CAGR of 6.58%. Significant growth is anticipated due to increased digitalization, fintech advancements, and regulatory backing from the Saudi Central Bank (SAMA). Consumers are increasingly using online platforms for seamless loan comparisons, enhancing market competition and transparency. As digital banking and AI-driven financial services become more prominent, user experience and loan accessibility are improving. The collaboration between banks, fintech firms, and aggregators is expected to further propel market expansion by offering personalized loan options and streamlining borrowing processes for individuals and businesses. The Saudi insurance sector also shows robust potential, with a 26.9% increase in Gross Written Premiums (GWP) reported by SAMA in 2022. The Financial Sector Development Program (FSDP) targets an increase in GWP as a share of non-oil GDP to 2.4% by 2025 and 4.3% by 2030, positioning it as a key contributor to the Saudi Arabia loan aggregator market. Key Market Drivers Digital Transformation and Fintech Adoption: Digital banking services have surged, integrating technology-driven solutions to enhance customer experiences. Loan aggregators now leverage AI, big data, and automation to provide tailored loan options, reducing the effort required to find suitable financing. By 2023, digital transactions accounted for 70% of retail payments, indicating a strong shift in consumer behavior and accelerating fintech adoption. Key Market Challenges Data Security and Privacy Concerns: Safeguarding sensitive consumer data remains a primary challenge. Despite SAMA's strict data protection regulations, maintaining robust cybersecurity frameworks is crucial for fintech companies and aggregators. Investments in encryption technologies and compliance with Saudi Arabia's Personal Data Protection Law (PDPL) are essential to building consumer trust. Key Market Trends Expansion of Islamic Finance Loan Aggregators: As a global hub for Islamic finance, Saudi Arabia sees growing demand for Shariah-compliant lending solutions. Loan aggregator platforms are incorporating Islamic finance products, leveraging AI-driven compliance checks and blockchain-based smart contracts, aligning with Saudi Arabia's Vision 2030 initiative. Key Market Players Creative Future for Digital Brokerage Lendo Saudi Arabia Foras Debt Crowdfunding Company Bonoky Digital Debt Crowdfunding Company (Raqamyah) Tamam Financing Co. Saudi Digital Payment Company (STC Pay) Amlak International Finance Company HALA Payments Company Tazapay Pte. Ltd. Report Scope Loan Type: Home Loans Credit Cards Personal Loan Auto Loan Others Mode of Operation: Online Offline Region: Northern & Central Western Southern Eastern Key Attributes: Report Attribute Details No. of Pages 81 Forecast Period 2024 - 2030 Estimated Market Value (USD) in 2024 $43.65 Million Forecasted Market Value (USD) by 2030 $63.78 Million Compound Annual Growth Rate 6.5% Regions Covered Saudi Arabia For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Saudi Arabian Loan Aggregator Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-02-2025
- Business
- Yahoo
Saudi Arabia Loyalty Programs Market Report and Future Growth Dynamics 2025-2029: Competitive Landscape and Regulatory Changes in Saudi Arabia's Loyalty Market
This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of end-use sectors and market segments in Saudi Arabia. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics. Saudi Arabian Loyalty Programs Market Dublin, Feb. 10, 2025 (GLOBE NEWSWIRE) -- The "Saudi Arabia Loyalty Programs Market Intelligence and Future Growth Dynamics - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2025 Update" report has been added to loyalty market in Saudi Arabia is expected to grow by 15.4% on annual basis to reach US$842.5 million in 2025. In value terms, the loyalty market in Saudi Arabia has recorded a CAGR of 17.2% during 2020-2024. Saudi Arabia's loyalty market will continue to grow over the forecast period and is expected to record a CAGR of 13% during 2025-2029 and is expected to increase from US$730.3 million in 2024 to reach US$1.37 billion by 2029. Key InsightsThe loyalty program environment in Saudi Arabia is experiencing a major change, influenced by technological advancements, shifting consumer preferences, and favorable government policies aligned with Vision 2030. Digital loyalty platforms are becoming the cornerstone of customer engagement, fueled by the rise of e-commerce, smartphone penetration, and fintech innovation. The shift toward tiered loyalty programs reflects the growing demand for personalized and value-driven rewards, particularly in retail. Additionally, fintech integration enhances loyalty ecosystems by introducing innovative and seamless rewards systems. Data-driven personalization is emerging as a critical enabler for brands to deliver tailored experiences, while coalition programs are reshaping the loyalty landscape by fostering partnerships across industries. These trends will likely intensify over the next 2-4 years as technology adoption accelerates and consumer expectations evolve. Businesses that embrace these trends and invest in customer-centric, data-driven loyalty solutions will be well-positioned to build stronger, longer-lasting relationships with their customers in Saudi Arabia's dynamic and competitive Adoption of Digital Loyalty Platforms Digital loyalty platforms are becoming increasingly popular in Saudi Arabia, driven by the country's rapid digital transformation. These platforms, including mobile apps and web-based solutions, allow customers to collect and redeem points, access exclusive offers, and engage with brands in real-time. For instance, STC Pay has integrated loyalty features into its digital wallet, enabling users to accumulate points for various transactions. The e-commerce boom in Saudi Arabia, supported by high smartphone penetration and an expanding digital payment ecosystem, has significantly contributed to adopting digital loyalty platforms. Platforms like Noon and Amazon Saudi Arabia have implemented loyalty features such as cashback and discounts for frequent buyers. Additionally, government initiatives under Vision 2030, which emphasize digital transformation and cashless transactions, have created a conducive environment for digital loyalty programs. The tech-savvy younger population, a significant portion of Saudi Arabia's demographic, prefers convenient, tech-driven solutions over traditional loyalty cards. In the coming years, partnerships between loyalty platforms and e-commerce or fintech players are expected to rise, creating integrated ecosystems. Brands will likely adopt Artificial Intelligence (AI) to offer personalized rewards based on consumer behavior. Traditional loyalty programs may phase out as digital solutions dominate the loyalty landscape. Rise of Tiered Loyalty Programs in Retail Retailers in Saudi Arabia are increasingly introducing tiered loyalty programs to engage customers with varying spending capacities. For example, Jarir Bookstore offers a tiered system where frequent shoppers receive higher rewards and better discounts as they progress through membership levels. The retail sector in Saudi Arabia is highly competitive, prompting brands to differentiate themselves by offering tailored rewards to retain customers. Rising incomes and urbanization have led to increased consumer spending, particularly on premium and luxury products, which supports the success of tiered loyalty programs. Additionally, Saudi consumers now expect more value for their loyalty and demand exclusive rewards for higher spending levels. Luxury and premium retail brands will likely adopt tiered loyalty programs to foster long-term customer relationships. Retailers may invest in technology to monitor customer journeys and deliver more targeted rewards. Rather than relying solely on monetary benefits, these programs will increasingly focus on experiential rewards, such as early access to new products or VIP events. Loyalty Integration with Fintech Services Fintech companies in Saudi Arabia are increasingly incorporating loyalty features into their services. For instance, Hala, a Saudi fintech, provides cashback and reward points for transactions made through its platform. The expanding fintech landscape in Saudi Arabia, with over 140 licensed fintech firms in 2024, has created opportunities for loyalty innovation. The government's push for a cashless economy as part of Vision 2030 encourages fintech companies to offer loyalty incentives to drive digital payments. Additionally, Saudi consumers' increasing trust in fintech platforms makes them a suitable channel for loyalty engagement. Fintech loyalty programs are expected to expand beyond cashback to include rewards such as investment benefits, travel perks, and lifestyle advantages. Banks and fintech firms may collaborate to create unified loyalty ecosystems, allowing users to transfer or merge points across platforms. These value-added loyalty features are likely to drive the adoption of digital wallets further. Growing Focus on Data-Driven Personalization Loyalty programs in Saudi Arabia are leveraging data analytics to deliver personalized rewards and offers. Retailers like Danube and Carrefour use customer data to curate tailored discounts and promotions. Adopting advanced analytics tools has enabled companies to better understand customer behavior. Evolving consumer preferences in Saudi Arabia now favor brands that provide relevant and personalized rewards instead of generic offers. Brands will likely use predictive analytics to anticipate customer needs and offer rewards before competitors. Stricter regulations on data privacy may emerge, encouraging companies to adopt transparent practices. Hyper-personalization will dominate loyalty marketing, leading to increased customer engagement and retention. Increased Collaboration Between Brands Coalition loyalty programs are gaining traction in Saudi Arabia as brands partner to offer cross-industry rewards. For instance, Saudia Airlines' Alfursan loyalty program collaborates with hotels, car rentals, and retail stores to provide diverse customer benefits. Saudi consumers demand loyalty programs that offer rewards across multiple industries rather than being limited to a single brand. The cost-sharing model of coalition programs reduces the financial burden of loyalty rewards on individual brands, making them more sustainable. Additionally, the government's heavy investment in tourism has prompted brands in this sector to collaborate to attract and retain both international and domestic travelers. More industries like healthcare and education may join coalition loyalty programs. Collaborative programs are expected to dominate the loyalty landscape, offering greater convenience and diversity to consumers. Competition among coalitions will likely increase, enhancing benefits and seamless redemption options. Competitive Landscape and Regulatory Changes in Saudi Arabia's Loyalty MarketThe competitive landscape in Saudi Arabia's loyalty market is vibrant, with a blend of dominant players and niche-focused startups shaping the industry. The moderately fragmented structure provides opportunities for collaboration, but market entry remains challenging due to regulatory compliance, consumer trust issues, and the need for technological investments. Over the medium term, the market is expected to consolidate, with a focus on innovation and cross-sector partnerships. Regulatory changes, particularly in data privacy and digital payments, will continue to influence the competitive dynamics, ensuring a more transparent and consumer-friendly environment. To succeed in this dynamic market, businesses must remain agile, invest in technology, and align with the evolving regulatory loyalty market in Saudi Arabia is competitive, with a mix of established local players, global companies, and fintech startups vying for market share. Prominent players such as STC Pay, Saudia Airlines' Alfursan program, and Jarir Bookstore's loyalty initiatives dominate specific sectors, including telecom, travel, and retail. At the same time, global brands like Amazon, Saudi Arabia and Carrefour bring international expertise and resources, adding further competition. Fintech startups such as Hala and Geidea are rapidly entering the market with innovative digital loyalty solutions, targeting tech-savvy younger market is moderately fragmented, with different players focusing on specific verticals. While dominant players control significant portions of their respective industries (e.g., telecom, travel, and large retail chains), smaller players in niche markets such as luxury retail, e-commerce, and local service industries are also thriving. This diversity balances a few large players and numerous smaller, specialized companies, fostering collaboration and entrants to the loyalty market in Saudi Arabia face several challenges: Adhering to the Kingdom's strict regulations on data privacy, digital payments, and customer engagement can be barriers to entry. New players can find it challenging to gain customer trust in a market where established brands already dominate, especially in fintech and digital platforms. Sectors like retail and e-commerce already have multiple loyalty programs, making it hard for new entrants to differentiate themselves. Investing in advanced technology for personalization, AI, and data analytics can pose significant financial and operational hurdles for smaller players. Regulatory Changes in the Last 12 Months Several regulatory changes have shaped the competitive landscape of Saudi Arabia's loyalty market: The implementation of the Personal Data Protection Law (PDPL) in March 2023 mandates stricter data privacy compliance for businesses collecting customer information. This regulation has encouraged transparency and increased operational complexities for loyalty program providers. The Saudi Central Bank (SAMA) has introduced guidelines for digital payment platforms, promoting security and consumer protection while fostering innovation in fintech-driven loyalty solutions. Recent updates to e-commerce laws in 2024 require greater transparency in customer transactions, including loyalty rewards and benefits, to protect consumers from deceptive practices. These changes aim to build consumer trust, encourage fair competition, and support the government's broader Vision 2030 digitalization and economic diversification goals. Expected Changes Over the Next 2-4 Years While the market is moderately fragmented, consolidation is expected as larger players acquire smaller firms to expand their customer base and technological capabilities. Fintech companies will continue to grow and diversify their loyalty offerings, intensifying competition, especially in digital wallets and payment-linked loyalty programs. More cross-sector partnerships, particularly between retail, e-commerce, and travel, are expected to provide comprehensive coalition loyalty programs. As data-driven marketing becomes a priority, companies that invest in AI and analytics to deliver hyper-personalized rewards will gain a competitive edge. Stricter regulations on data privacy and transparency may level the playing field, reducing unfair practices and protecting consumers while increasing business operational requirements. Key Attributes: Report Attribute Details No. of Pages 130 Forecast Period 2025 - 2029 Estimated Market Value (USD) in 2025 $0.84 Billion Forecasted Market Value (USD) by 2029 $1.37 Billion Compound Annual Growth Rate 13.0% Regions Covered Saudi Arabia Report ScopeThis report provides in-depth, data-centric analysis of loyalty programs in Saudi Arabia. Below is a summary of key market segments. Saudi Arabia Retail Sector Spend Value Trend Analysis Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators Value Accumulated and Value Redemption Rate of Loyalty programs in Saudi Arabia Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Channel Saudi Arabia Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Online Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Retail Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Accessibility Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type Saudi Arabia Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type Saudi Arabia Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case Saudi Arabia Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner Saudi Arabia Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms Saudi Arabia Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Saudi Arabian Loyalty Programs Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
Yahoo
10-02-2025
- Business
- Yahoo
STC Bank: Success in the making for the Saudi telecoms incumbent?
As the first Saudi telco to be licensed as a digital bank, STC Bank has the manoeuvrability to tap into SMB projects and the tech startup segment in ways that traditional banks in the country have not. From its beta launch in April 2024, STC Bank is now set for commercial launch, having received approval from the Saudi Central Bank. Its forerunner e-wallet service, STC Pay (launched in 2018), will be retained, but customers and businesses alike are now being encouraged to upgrade themselves to full digital banking services. STC Bank has more than 200,000 registered merchants, with more than a tenth of that figure using QR payments, and 8,000 facilitating online payments. For end-2024, STC Bank (and STC Pay) posted revenue growth of 20% (totalling 1.6% of STC Group revenues), whereas gross profit in the same period achieved the highest growth of any segment at 93%. Both its revenue and profit shares are expected to grow substantially over the next few years now that is has its banking license. STC is the first non-bank entity of any type to be licensed as a digital bank in Saudi Arabia. It is not the first regionally, and it most certainly will not be the last. STC Bank, however, is one of the few digital banks in the world that is majority-owned by the telco, which means the company will be more invested in its success. Sitting in the sweet spot between the trinity of telecoms, tech, and fintech, STC will be able to leverage its existing customer relationships, its wealth of telco user data, and analytics on how its business subscribers deploy its B2B solutions, to offer tailored banking services, potentially with quicker turnaround times on financing than conventional banks. It also can be a one-stop shop for SMBs and tech startups requiring finance to deploy next-generation technologies at a small scale. The same can be said for young entrepreneurs – many of whom crave for convenience, service convergence, and saving time to focus on their projects rather than shopping around for the best banking service or attending a conventional bank branch in person. All of these represent a demographic vacuum that STC can rapidly fill. Others in the region and beyond – especially those telcos already offering digital wallet and similar fintech services but not licensed as digital banks, those with minority stakes in digital banks, and other companies sitting on large cash reserves in the Gulf – will be keenly tracking STC Bank's fortunes. Some of the aforementioned operators, like PLDT, have already expressed a desire to boost their shareholdings in their digital banking operations. With its first mover advantage and ability to disrupt the old banking guard in Saudi Arabia, it is a bold move by STC. But with the solid base of customers and merchants it has already built up during beta, it is also hard to see how this venture by the Saudi telco incumbent does not favourably work out for it "STC Bank: Success in the making for the Saudi telecoms incumbent?" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
