Saudi Arabia Retail Banking Market

Market Overview:

Saudi Arabia retail banking market size reached USD 19.4 Billion in 2024. The market is projected to reach USD 33.5 Billion by 2033, exhibiting a growth rate (CAGR) of 6.3% during 2025-2033. The increasing technological advancements, such as online and mobile banking, digital payments, and fintech innovations, which have altered customer expectations, forcing traditional banks to adapt and invest in digital infrastructure, are primarily driving the market.

Retail banking refers to the segment of the banking industry that provides financial services directly to individuals and small businesses. It encompasses a variety of services, including savings and checking accounts, personal loans, mortgages, credit cards, and basic investment products. Retail banks serve as a convenient and accessible platform for customers to manage their day-to-day financial needs. Key features of retail banking include branch networks, ATM access, online and mobile banking platforms, and customer-centric services. These banks focus on building relationships with individual customers, understanding their financial goals, and offering tailored solutions to meet their needs. They also play a crucial role in promoting financial literacy and offering educational resources to help customers make informed financial decisions. Retail banking institutions generate revenue through various means, such as interest on loans and credit card fees, and they provide a crucial foundation for economic growth by facilitating savings, lending, and payment transactions for individuals and small businesses in the local community.

Saudi Arabia Retail Banking Market Trends:

Growing adoption of e-payments

Rising adoption of e-payments is positively influencing the market in Saudi Arabia. According to the SAMA, in 2024, e-payments accounted for 79% of all retail transactions in Saudi Arabia, an increase from 70% in 2023. Banks are expanding their digital infrastructure to provide easy, safe, and user-friendly platforms for bill settling, fund transfers, and payments as more individuals and organizations are moving towards cashless transactions. The growing use of contactless cards and mobile wallets is encouraging banks to enhance and develop their service offerings. Additionally, this transition is giving banks the opportunity to connect with previously unbanked groups and collect useful client information for tailored financial services. Because e-payments eliminate the need for physical branches, operating expenses are reduced and productivity is increased.

Increasing demand for personal loans and mortgages

Rising demand for personal loans and mortgages is propelling the market growth. As more citizens are seeking financing for home purchases, education, travel, and consumer goods, banks are seeing increased opportunities to offer tailored loan solutions. The government’s support for home ownership, along with affordable housing schemes, is driving the demand for mortgages. Young professionals and middle-income families are especially active in seeking credit to support their lifestyle goals. Banks are responding by streamlining loan approval processes and offering competitive interest rates and digital application platforms. Increasing retail lending is strengthening banks’ revenue streams and deepening customer relationships. As per the Saudi Central Bank, retail lending reached SR1.39 Trillion in March 2024, reflecting a year-on-year increase of 9.65%.

Expansion of non-oil sectors

The expansion of non-oil sectors is offering a favorable market outlook. According to industry reports, as of December 2024, non-oil sectors accounted for nearly half (49.9%) of Saudi Arabia’s GDP. As sectors like tourism, real estate, entertainment, healthcare, and technology are thriving under the Vision 2030 initiative, more individuals and businesses require banking services, such as personal loans, savings accounts, and digital transactions. The rise in job creation is leading to increased incomes, encouraging people to engage with retail banks for financial management. Banks are responding by developing tailored products to meet the unique needs of customers in these emerging sectors. Additionally, new small and medium enterprises (SMEs) rely on banking support for operational funding and payroll services. This diversification is reducing dependence on oil revenues and opening up a wider, more stable customer base, leading to sustained growth and modernization of the retail banking landscape in Saudi Arabia.

Saudi Arabia Retail Banking Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on product, application, and channel.

Product Insights:

• Transactional Accounts
• Savings Accounts
• Debit Cards
• Credit Cards
• Loans
• Others
   

The report has provided a detailed breakup and analysis of the market based on the product. This includes transactional accounts, savings accounts, debit cards, credit cards, loans, and others.

Application Insights:

• Hardware
• Software
• Services
   

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes hardware, software, and services.

Channel Insights:

• Direct Sales
• Distributor
   

The report has provided a detailed breakup and analysis of the market based on the channel. This includes direct sales, and distributor.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Retail Banking Market News:

• March 2025: Mozn collaborated with D360 Bank, the top digital bank in Saudi Arabia to foster innovations in digital banking security by utilizing artificial intelligence (AI)-based AML compliance solutions, guaranteeing smooth financial services for clients throughout the Kingdom. Malik Alyousef, Co-Founder and COO at Mozn, and Osama Alshathri, Head of Retail Banking at D360 Bank, recently signed the agreement. This partnership aligned with D360 Bank’s dedication to providing improved, customer-focused digital banking services while maintaining regulatory compliance in a changing financial environment.
• February 2025: Telr, a prominent provider of payment gateways, formed a strategic alliance with Bank AlJazira to advance Saudi Arabia’s Vision 2030 project, which sought to move towards a cashless economy. The collaboration aimed to simplify transactions, providing quicker payments, enhanced fraud prevention, and a smooth checkout process for vendors and their clients. Bank AlJazira provided an extensive array of banking and financial services, such as retail and corporate banking, investment options, and advancements in digital banking. This partnership would allow Saudi merchants to gain enhanced payment options and greater financial access, helping e-commerce enterprises to prosper in the nation's changing digital marketplace.
• December 2024: D360 Bank became the first licensed digital bank in the country to launch operations after obtaining approval from the Saudi Central Bank (SAMA). The bank aimed at individuals desiring more adaptable and efficient banking experiences, providing services such as personal and business accounts, retail banking, bill payments, payment cards, and money transfers.
• October 2024: The KSA Banking Sentiment Index report from PwC Middle East, in partnership with DataEQ, examined user attitudes towards nine prominent retail banks in Saudi Arabia: Al Bilad Bank, Alinma Bank, Banque Saudi Fransi, Al Rajhi Bank, Riyad Bank, STC Pay, Saudi Awwal Bank, Saudi National Bank, and Saudi Investment Bank. The overall industry net sentiment saw a slight year-on-year increase, rising from -0.8% to 0.1%.
• October 2024: Ziraat Bank KSA, the provider of retail and corporate banking services, finalized a significant enhancement of its core banking system. The bank transitioned from Temenos’ T24 R17 to the R24 edition. The update brought quicker transaction handling, enhanced security measures, and better overall system dependability.
• September 2024: Saudi National Bank (SNB), the leading financial institution in Saudi Arabia, introduced ‘NEO’ Digital Banking, offering a unique digital banking experience, in line with its goal to promote digital transformation as a key focus of Vision 2030. It encompassed personal expense tracking, savings, currency conversion, financial services, and an online retail store featuring gifts, entertainment, electronic games, and diverse choices.

Saudi Arabia Retail Banking Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia retail banking market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia retail banking market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia retail banking industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.