The Saudi Central Bank, known as SAMA, granted STC Bank full approval to launch its digital banking operations in January 2025, making it the first fully licensed digital bank in the Kingdom of Saudi Arabia.
STC Bank, 85% owned by Saudi Telecom Company (stc) with Western Union holding 15%, operates as a subsidiary of stc. The bank was established under SAMA's digital banking framework. The full approval moves STC Bank from a licensed-but-restricted status into a fully operational digital lender.
SAMA'S DIGITAL BANKING FRAMEWORK
SAMA's digital banking regulatory framework, introduced in the early 2020s, was designed to create a licensing pathway for technology-led financial institutions that do not operate traditional branch networks. The framework sets out requirements for capital adequacy, governance, cybersecurity, consumer protection and anti-money laundering compliance — adapted to reflect the operational characteristics of institutions that serve customers entirely through digital channels.
The full approval authorises STC Bank to offer retail digital banking services to customers in the kingdom. The approval followed a nine-month beta period after SAMA approved the transition of STC Pay into STC Bank in April 2024.