Saudi Arabia awards first licence to offer consumer micro-loans in less than 5 mins

  • Date: 04-Jan-2021
  • Source: Arabian Business
  • Sector:Retail
  • Country:Saudi Arabia
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Saudi Arabia awards first licence to offer consumer micro-loans in less than 5 mins

Zain Group has announced that Tamam Financing Company, the fintech subsidiary of its operation in Saudi Arabia, has been officially licensed by the Saudi Central Bank to provide micro-financing services to consumers across the kingdom.

This makes Tamam the first entity in the kingdom and the region to be licensed by a regulator to offer consumer micro-loans via a fully digital customer experience, through a mobile app in just five minutes.

The licensing follows the completion of an 18-month testing period within the central banks's regulatory sandbox.

Saudi central bank said violations related to the ratio individuals were made to pay from their monthly income when obtaining financing

The testing process saw the app and the service vetted for functionality, security, and compatibility with customer user profiles in Saudi Arabia.

Established in 2019, Tamam aims to increase financial inclusion to support Saudi Arabia's Vision 2030. The platform provides individuals requiring financing the opportunity to immediately avail a Shari'a-compliant consumer micro-finance.

The end to-end Shari'a approved process takes less than five minutes from downloading the app to receiving the financing amount based on the user credit profile.

Tamam aims to increase financial inclusion to support Saudi Arabia's Vision 2030

Bader Al-Kharafi, Zain vice-chairman and group CEO as well as