SAMA says 6 banks, 2 firms have no objection on agent banking

Logo of Saudi Central Bank (SAMA)

Six banks and two companies have received no objection to agent banking activities so far, Al Eqtisadiah newspaper reported, citing Saudi Central Bank (SAMA).

The service was activated by Bank Albilad and Saudi Investment Bank (SAIB), and the transactions volume with bank agents amounted to nearly 70,000 in 1443 AH.

SAMA affirmed that the activity of agent banking is still in the trial phase. It expects expansion of its geographical scope as the activity spreads.

Accordingly, this will enhance and support financial inclusion.

Agents can provide various service, including opening bank accounts; preparing and submitting loan applications and related documents; credit card applications; household labor card and related documents; and requesting letter of guarantee (LG) and related documents.

In March 2019, SAMA published the rules and regulations for banking agency activities, setting the legal framework for providing banking service through agents on behalf of banks.

The regulations aim to promote financial inclusion through expanding the banking services in-line with Vision 2030.