The Regulatory Framework of Digitalisation in The Saudi Arabian Banking Sector and The Adaption of Fintech Regulations.

Abstract

In an attempt to establish more efficient and solid digital banking sector, many banks have made a transition in the Kingdom of Saudi Arabia to adapting digital technology services to their banks in the recent years as a part of the financial sector development programme which took part of the Saudi Vision of 2030. Moreover, this digital transformation, poses a number of challenges including regulatory conflicts against the current legal framework. The current project examines issues that are related to regulatory framework associated with digitalisation of the banking sector and risks incurred in embracing such transformation. This was carried out based an analysis of the rules and regulations published by the Saudi Central bank, as the main regulator for the Saudi banking sector and financial technology practice. This paper concludes that the current legal framework for digitalisation of financial services has an adverse impact for the transition as it is still needing more reforms to establish a solid legal system that will adapt to the everchanging nature of the financial sector.