Fintech

Fintech — Sector Legal Services

Legal advisory for fintech startups in the Eastern Province and beyond.

Image: a fintech startup team at work
The fintech sector is growing rapidly in the Kingdom, and startups need a precise understanding of SAMA licensing requirements and ongoing compliance. If you're founding a fintech company, the next step is reaching out on WhatsApp.

A Fintech Sector Growing Rapidly Under SAMA's Regulatory Innovation Umbrella

The Saudi Central Bank leads one of the region's most advanced fintech regulatory environments, through its regulatory sandbox program allowing startups to test their products before full licensing. This advanced regulatory model means startups in this sector need a lawyer who understands the full licensing path from experimentation through to permanent operation.

Sandbox and Permanent Licensing Before SAMA

We help startups understand sandbox and permanent licensing requirements before SAMA, and review their business models from a regulatory standpoint to ensure compliance with the target licensing category's requirements, whether payments, lending, or automated investment advisory.

Anti-Money-Laundering Compliance

We track ongoing anti-money-laundering and counter-terrorism financing compliance for fintech companies, including designing customer due diligence procedures and suspicious transaction reporting mechanisms required by regulation.

Protecting Customer Financial Data

Fintech companies handle extremely sensitive financial data, and we help them design data protection policies compliant with the Personal Data Protection Law, accounting for the additional requirements SAMA imposes specifically on financial data.

Funding Rounds and Investor Agreements

We help fintech startups draft shareholders agreements and investment documents for successive funding rounds, reviewing valuation and liquidation preference terms in a way that protects founders' interests without deterring institutional investors.

Partnerships With Banks and Traditional Financial Institutions

Many fintech companies adopt a partnership model with licensed banks instead of direct licensing, and we help draft these partnerships clarifying the allocation of regulatory and operational responsibility between the parties.

Intellectual Property in Algorithms and Financial Technology

We help startups protect their innovative algorithms and financial technology, whether through patents when eligible, or trade secret protection for what cannot be registered.

Mergers and Acquisitions in the Fintech Sector

We help mature fintech companies evaluate acquisition opportunities for smaller startups, and review the precise due diligence required in this sector, particularly regarding the target company's regulatory licensing status.

Digital Insurance as a Natural Extension of Fintech Services

We help emerging digital insurance (insurtech) companies understand SAMA's dual licensing requirements, whether as a direct insurer or a digital intermediary, a classification that fundamentally determines the permitted scope of activity.

How We Start With You

Send us your financial product idea or your current licensing stage on WhatsApp. We help you navigate SAMA's regulatory path with confidence, from the first idea through to full licensing.

Frequently Asked Questions

We are planning to enter SAMA's regulatory sandbox. What documents are required for application?

We help you prepare a file outlining the business model, regulatory risks, and proposed testing plan, essential elements SAMA requires for program acceptance.

Our financial product involves collecting sensitive payment data. What are our data protection obligations?

We review your business model to determine the additional financial data protection requirements SAMA imposes, alongside general Personal Data Protection Law obligations.

An investor is requesting preferred shares with a high liquidation preference. Is that a fair term?

We review the proposed terms and negotiate on the founders' behalf to reach a balance that protects your stake without deterring the serious investor.

Can we operate our financial product through a partnership with a licensed bank instead of getting a direct license?

Yes, a common model, and we help you draft the partnership agreement clarifying who bears which regulatory responsibility between you and the bank.

We developed an innovative pricing algorithm. How do we protect it from copying?

We assess the possibility of registering it as a patent, and if not eligible, help protect it as a trade secret through strict non-disclosure agreements with the team.

Our sandbox testing period has ended. What is the next step to obtain a permanent license?

We help you compile the testing results and prepare the permanent licensing file based on the product's performance during the testing period.

Need legal advice for your sector?

Reach out on WhatsApp to discuss your business's needs.

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