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4
Building a Simple Fintech System and Market Opportunities
Session Objectives
- ✓Practical application of building a simple Fintech system
- ✓Understanding basic system components
- ✓Exploring investment opportunities in Saudi market
- ✓Learning how to launch a Fintech company
- ✓Participants' project presentations
Session Content
1
Workshop: Designing a Simple Transfer System
Requirements Definition
- •Core features: Registration, Transfer, Transaction history
- •Target users
- •Use Cases
Technical Architecture
- •Frontend: React Native / Flutter for mobile
- •Backend: Node.js / Python (FastAPI)
- •Database: PostgreSQL / MongoDB
- •APIs: Nafath (KYC), Payment Gateway, SMS
- •Cloud: AWS / GCP
- •Security: Encryption, MFA, Tokenization
Transaction Flow
- •User enters amount and beneficiary
- •Balance verification
- •KYC/AML checks
- •Transfer processing
- •Send notifications (SMS + Push)
- •Update balances
- •Log transaction
Compliance and Security
- •PSP License from SAMA
- •KYC: Nafath integration
- •AML: Transaction monitoring
- •PDPL: Consents, encryption
- •Audit logs: Complete transaction records
Cost and Timeline
- •Licensing: 6-12 months, administrative cost
- •Development: 3-6 months, 500K-2M SAR
- •Infrastructure: Cloud (Pay-as-you-go)
- •APIs: Transaction fees (1-3%)
- •Team: 5-10 people
2
Opportunities in Saudi Market
Current Gaps
- •SME Finance
- •Financial Wellness for youth
- •Embedded Finance
- •Cross-Border Payments for workers
- •Insurtech (on-demand insurance)
- •Digital Banking for women
Market Size and Potential
- •Digital payments market: 1.2+ trillion SAR
- •SMEs: 99% of Saudi businesses
- •Youth under 30: 65% of population
- •Expatriate workers: 10+ million transferring $35B annually
- •Working women: Rapid growth
Successful Business Models
- •Transaction-based: Fee per transaction (like Stripe)
- •Freemium: Free basic + subscriptions (like Revolut)
- •Merchant-funded: Merchant pays (like Tamara)
- •Data-as-a-Service: Selling data access (like Plaid)
- •B2B SaaS: Monthly subscriptions for businesses
3
How to Launch a Fintech Company
Basic Steps
- •1. Identify problem and solution
- •2. Feasibility study and market research
- •3. Build MVP (Minimum Viable Product)
- •4. Apply for SAMA Sandbox
- •5. Test with real users
- •6. Raise seed funding
- •7. Obtain full license
- •8. Scale and grow
Funding Sources
- •Bootstrapping: Self-funding
- •Accelerators: Badir, Fintech Saudi, 500 Startups
- •Local VCs: STV, Khwarizmi Ventures
- •Corporate VCs: Banks, telecom companies
- •Angel investors
- •Government grants: Monsha'at
Challenges and Solutions
- •Regulation: Use Sandbox, partner with bank
- •Trust: Transparency, strategic partnerships
- •Cost: Simple MVP, use ready APIs
- •Talent: Local hiring, remote teams
4
Participants Presentations and Discussion
Project Presentations
- •Each participant: 5 min presentation + 2 min Q&A
- •Problem and solution
- •Target audience
- •Competitive advantage
- •Technologies used
- •Next steps
Group Evaluation
- •Vote for best idea
- •Discuss possible improvements
- •Suggestions from participants
Resources & Links
📚Resources
- •Fintech Startup Launch Guide - Fintech Saudi
- •Saudi Venture Capital Landscape
- •SAMA Sandbox Guide