Lean Technologies Achieves Major Payment Institution License from Saudi Central Bank
In a significant advancement for the Kingdom’s financial landscape, Lean Technologies has received the first Major Payment Institution license from the Saudi Central Bank (SAMA) to offer Open Banking services. This license represents a milestone for the Saudi financial sector, marking the transition of Open Banking from SAMA’s regulatory sandbox to a fully operational and licensed commercial activity.
From Sandbox to Systemic Infrastructure
Lean Technologies began its journey as one of the inaugural participants in SAMA’s Regulatory Sandbox. Adhering to rigorous governance standards, the company successfully connected over one million bank accounts and analyzed more than one billion transactions. This accomplishment solidifies its role as a key player in the Open Banking ecosystem within Saudi Arabia.
“When we founded Lean over six years ago, we believed that open, regulated access to financial data would be the foundation for the next generation of Saudi financial services,” stated Hisham Al-Falih, CEO and co-founder of Lean Technologies. He highlighted that receiving this license from SAMA marks a significant validation of their vision. With this licensing, the company is poised to extend its infrastructure to a wide range of merchants, small and medium-sized enterprises (SMEs), and millions of consumers across the Kingdom.
Driving Financial Inclusion and Enhanced Underwriting
Lean’s infrastructure is already powering a diverse array of financial services through strategic partnerships with prominent Saudi institutions, including Tabby, Tamara, Abdul Latif Jameel, Sukuk, and Tasheel. This robust technology facilitates improved Know Your Customer (KYC) practices, refined risk assessment models, and the development of data-driven financial products across various sectors such as Buy Now Pay Later (BNPL), consumer finance, and automotive.
The introduction of this Open Banking framework is particularly impactful for expanding financial access to Saudi Arabia’s growing workforce of non-traditional income earners. By leveraging Lean’s verified, real-time data, lenders are now better equipped to assess the financial viability of freelancers, gig workers, and those with multiple income sources—demographics that traditional credit frameworks have often struggled to serve.
Insights from Industry Leaders
Abdulmajeed Alsukhan, CEO and co-founder of Tamara, emphasized the practical benefits derived from this data access: “Lean has unlocked the full potential of cash-flow data in our underwriting.” He elaborated that with access to comprehensive and verified financial information, they can now responsibly serve customers who were previously challenging to underwrite. This capability has led to an increased credit reach and an impressive 32% rise in approval rates for new consumer financing products, driving sustainable growth.
Looking Ahead to Vision 2030
The successful launch of a licensed Open Banking framework aligns closely with Saudi Arabia’s broader Vision 2030 goals. This milestone underscores SAMA’s methodical approach to fostering financial innovation, striking an essential balance between embracing new technologies and ensuring robust consumer protection and systemic stability.