Saudi Central Bank approves fintech companies Lean Technologies, Mod5r

Saudi financial authorities Tuesday granted regulatory approval for two new fintech companies to operate. 

The Saudi Central Bank said that Lean Technologies and Mod5r can now provide open banking solutions in the kingdom. There are currently 38 financial technology companies operating under the bank’s regulation with the addition of the two firms, according to a press release. 

Lean Technologies develops software for fintech companies in the Middle East. Mod5r works on providing people in Saudi Arabia the necessary tools to access fintech services, such as online saving and investment programs. 

Why it matters: The Saudi Ministry of Finance launched its FinTech Strategy Implementation Plan in June. The plan aims to make the kingdom a hub for fintech. The endeavor is part of Saudi Arabia’s Vision 2030 initiative, which promotes economic diversification and reduced dependence on oil. 

The sector is growing in the country. Last week, the Saudi-based fintech firm CASHIN signed an agreement with the Saudi National Bank to help small- and mid-sized businesses with financial transactions, for example. 

Know more: Saudi entities are investing in a variety of futuristic technologies per the Vision 2030 initiative, including cloud services, blockchain and the metaverse, among others. Venture capital investments in Saudi startups rose more than 200% during the first half of the year.