SAMA Grants STC Pay Formal Approval to Transform into Full Digital Bank

The Saudi Central Bank (SAMA) has granted STC Pay formal approval to advance to the next phase of its transformation into STC Bank, a fully licensed digital banking institution.

The regulatory clearance marks the first time a telecommunications company in Saudi Arabia has received approval to operate as a digital bank. STC Bank will leverage the existing subscriber base of Saudi Telecom Company (stc), which exceeds 20 million customers, to build a digital banking platform that could significantly expand financial inclusion in the Kingdom.

SAMA's approval follows STC Pay's earlier beta launch, during which selected users tested upgraded banking services. The progression to full licensing represents a critical milestone in the multi-stage regulatory process that SAMA has established for new digital banking entrants.

The transformation from payment wallet to licensed bank allows STC Bank to offer a broader range of financial products, including savings accounts, lending, and investment services. These capabilities extend well beyond the peer-to-peer transfers and merchant payments that defined STC Pay's original offering.

Saudi Arabia's regulatory approach to digital banking has been deliberately measured, with SAMA requiring applicants to demonstrate operational readiness at each stage before progressing. The framework reflects the regulator's dual objectives of encouraging innovation while maintaining financial stability.

The STC Bank licence is part of a broader opening of Saudi Arabia's financial sector under Vision 2030, which has set ambitious targets for increasing digital payment penetration and reducing the economy's reliance on cash transactions. Several other digital banking licences are expected to follow as SAMA processes additional applications.