stc Bank starts digital operations

Logo of stc Bank

Telecom giant stc announced on Jan. 28 that it received the Saudi Central Bank’s (SAMA) approval to commence stc Bank’s operations in Saudi Arabia.

The launch of stc’s digital bank represents a significant milestone in the Kingdom’s digital transformation journey and aligns with efforts to enhance the use of digital banking services in the financial sector, the company said in a statement to Tadawul.

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The bank's launch, which serves both individuals and businesses, comes as a culmination of the success achieved by the stc Pay digital wallet in the field of digital financial services.

The bank will offer a variety of financial products and solutions, which will contribute to enhancing banking services, the statement added.

The launch is in line with SAMA’s goals to support economic growth and contribute to the digitalization of the financial sector by enabling financial institutions to drive the growth of the private sector through the expansion and diversification of financial services and products.

According to Argaam data, the bank is 85% owned by stc. Arabian Internet and Communications Services Company (solutions) established stc Bank in 2017 with a capital of SAR 100 million. The bank’s ownership was transferred to stc in 2019, with the capital raised to SAR 400 million by the end of that year.

In 2020, the company was licensed as an electronic wallet by SAMA, and 15% of its shares were sold to Western Union for SAR 750 million.

In 2021, the company was granted a digital banking services license with a capital of SAR 2.5 billion, and SAR 1.55 billion was deposited in an account with the central bank pending final approval.