Saudi Fintech Giant Hakbah Joins Forces with Tarabut for Innovation
Transforming Saudi Arabia’s Savings Landscape
In a groundbreaking move, Hakbah, the renowned Saudi Arabian fintech savings platform, has partnered strategically with Tarabut, the leading open banking platform in the MENA region. This alliance promises to reshape how Saudi Arabians save and invest their hard-earned money.
Unlocking a Wealth of Benefits
🇸🇦 We partnered with @HakbahApp, KSA-based fintech savings platform. Hakbah enables users to save & access funds via social savings, making savings accessible to everyone. Through this partnership, Hakbah will streamline onboarding, & enhance data processing for its customers🤝 pic.twitter.com/w3mS1dO8Hz
This strategic collaboration between Hakbah and Tarabut carries a multitude of advantages for both parties involved. First and foremost, it promises to simplify and expedite various financial tasks, ensuring a smoother and more efficient experience for customers. This includes streamlined onboarding processes and improved data processing, resulting in reduced service costs and a remarkable 40% reduction in data processing time. Additionally, the partnership is set to expand Hakbah’s customer offerings by a significant 20%.
Leaders in Innovation
Naif AbuSaida, the Founder of Hakbah, expressed his excitement about this partnership of industry leaders. He emphasised that the collaboration with Tarabut allows Hakbah to digitise traditional savings habits further and leverage their robust AI-powered technology to maintain a competitive edge. The two entities’ technological and commercial appeals perfectly align with Hakbah’s ambitions for future growth.
Abdulla Almoayed, CEO and Founder of Tarabut, echoed Naif’s enthusiasm, stating that he is inspired by Hakbah’s mission to modernise traditional savings and enhance financial inclusion in Saudi Arabia. He believes this partnership drives a more inclusive and accessible financial future for all.
Hakbah, recognised as one of the fastest-growing start-ups in the MENA region, operates in Saudi Arabia’s lucrative $20.5 billion Household Savings market. Over the past 20 months, the company has seen its revenue skyrocket by an impressive 23 times, a testament to its strategic partnerships, including a collaboration with Flynas, the national airline of Saudi Arabia.
Modernising Traditional Savings Habits
Hakbah’s innovative social savings platform integrates seamlessly with any banking system in less than a week. It focuses on digitising traditional group savings, known as Jameya, a widespread savings behaviour in over 60 countries worldwide. In Jameya groups, members pool their money, which is then rotated amongst them, allowing them to save for various financial needs and increase financial literacy.
Addressing the Savings Crisis
Hakbah’s model is innovative and addresses the pressing issue of the Middle East savings crisis. As Saudi Arabia strives to achieve the objectives of ‘Saudi Vision 2030’ and the Financial Sector Development Program, savings are paramount. Currently, 70% of Saudi citizens lack emergency savings, and the country’s household savings rate averages just 1.6%.
Navigating the Regulatory Landscape
As Hakbah and Tarabut embark on their mission to revolutionise fintech offerings, it’s essential to consider the regulatory landscape governing such partnerships. Saudi Arabia’s financial sector has witnessed a wave of digitisation and innovation driven by ‘Saudi Vision 2030’ and the Financial Sector Development Program. Regulatory bodies, including the Saudi Central Bank (SAMA), are pivotal in overseeing and shaping the evolving fintech landscape.
Reflecting on an incredible year at Tarabut! 🚀 From a rebrand to exciting partnerships, 2023 has been remarkable. Wishing our colleagues, partners & customers Happy Holidays! Here's to a fantastic year behind us and an even brighter future ahead! 🎉 #fintech#openbanking#MENApic.twitter.com/HPYsRkt1VP
Tarabut’s recent achievement of securing AIS (account information services) and PIS (payment initiation services) Category 4 licenses from the Dubai Financial Services Authority (DFSA) underscores its commitment to regulatory standards. This achievement contributes to establishing a robust regulatory framework for open banking services in the MENA region.
A Bright Future Ahead
The partnership between Hakbah and Tarabut signifies a promising collaboration set to redefine the fintech landscape in the region. With a focus on broader financial inclusion and digital transformation initiatives, these industry leaders are poised to lead towards a more accessible and inclusive financial future for all in Saudi Arabia.
