RIYADH: Saudi Arabia’s financial sector is set to benefit from enhanced data protection measures following the signing of two agreements between the Saudi Data and Artificial Intelligence Authority and the Saudi Central Bank.
The agreements, signed on Feb. 5 and 6, aim to bolster the implementation of personal data protection laws across financial institutions, enhancing regulatory oversight and ensuring compliance with national data governance standards.
The first memorandum of understanding focuses on enforcing personal data protection laws and their executive regulations within the financial sector.
It seeks to strengthen supervision of financial institutions’ adherence to data protection requirements, thereby supporting the Kingdom’s broader digital economy goals.
The move comes as Saudi Arabia accelerates its financial technology transformation, with a goal to raise non-cash transactions to 80 percent of total payments by 2030, up from 62 percent today.
The first agreement was signed by Abdulaziz Al-Anazi, director of the General Department of Risk and Compliance at SDAIA, and Marwan Al-Lahedan, executive director of Operational Sustainability Oversight at SAMA.
According to the agreement, the initiative will also promote collaboration in monitoring mechanisms, fostering an environment of secure and efficient data management.
The second MoU, finalized on Feb. 6, will enhance the governance framework for data within the financial sector. This agreement will help advance Saudi Arabia’s digital infrastructure, creating a regulatory environment that supports data protection across the financial landscape.
Both agreements were signed in the presence of high-level representatives, including Khaled Al-Dhaher, deputy governor for supervision and technology at SAMA, and Rayed Al-Rayedi, head of the National Data Management Office at SDAIA.
The effort underscores the Kingdom’s commitment to strengthening its regulatory ecosystem to protect personal data and foster innovation in the financial industry.
The surge in technological upgrades within financial institutions and the entry of new fintech startups underscore the need for rigorous data protection protocols to secure consumer information and prevent fraud.
According to the World Bank, fraud in the financial sector leads to substantial global losses. In 2023, online fraud resulted in approximately $485.6 billion in losses worldwide.
The increasing sophistication of fraudulent schemes poses substantial challenges to financial institutions and their clients.
Fraudsters use advanced techniques, including phishing, identity theft, and cyberattacks, to exploit vulnerabilities within financial systems. This not only leads to direct financial losses but also erodes consumer trust in financial services.
