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In the business world, there is usually a tone of grandeur that accompanies the mention of any first mover in this sphere. And this is the accompanying narrative Tamamthe fintech arm of the Saudi Arabia-based telecommunications provider Zain KSAwhich in 2021 became the first fintech company in the Kingdom to receive a consumer microfinance license from Saudi Central Bank (SAMA).

“Tamam was conceived with the ambition of becoming the leading one-stop shop for financial services in Saudi Arabia, integrating seamlessly with the fast-paced digital lifestyle of today’s consumers,” says Yousef Al Musaileem, CEO of Tamam. “As the fintech arm of Zain KSA, Tamam’s establishment within the Zain KSA ecosystem was motivated by a clear strategy to expand into adjacent markets and exploit new growth areas. The overall objective is to to lead the local fintech sector by pioneering an innovative domestic financial services platform, adapted to the growing needs of Saudi Arabia. Within this framework, our vision and center of gravity are focused on evolution and enrichment of the digital customer experience.”

Aiming to be known as “the vanguard of the fintech revolution”, Tamam was therefore built as a platform that offers quick, easy and secure short-term financing solutions that not only promise instant approval processes, but are also compliant with Shari’ah. compliant. These solutions are available on a mobile app, downloadable on both the Google Play Store and the Apple App Store, as well as on the official website. “Our core services include microloans and installment financing options, all designed to empower consumers and support them in meeting their financial needs,” explains Al Musaileem. “Leveraging cutting-edge technology, Tamam’s mission is to ensure seamless and inclusive access to financial services, with a focus on serving employees of micro, small and medium enterprises (MSMEs) through digital microfinance services. Tamam also focuses on improving the e-commerce sector through our integrated microcredit solutions.”

While Tamam has been curated to ensure financial inclusion for a broad segment of consumers who have had limited access to monetary support, there has been one particular group whose access to financial services is deemed lacking: the aforementioned banking sector. MSMEs. “A significant sticking point we have identified is limited access to finance, particularly among employees of small and medium-sized businesses, who often face difficulties in quickly obtaining necessary documentation such as salary certificates,” notes Al Musaileem. “Open banking solutions are key to ensuring these segments are reached and adequately supported. We at Tamam address this by offering a streamlined, document-free and entirely digital application process. This innovation ensures that individuals can secure financial products without bureaucratic hurdles of traditional banking, underscoring our commitment to accessibility and immediacy. Our platform’s ability to provide instant approval 24 hours a day, with funds available within 24 hours, is critical for those in need. Rapid financial assistance. Tamam is also leveraging partnerships as part of our dedication to meeting customers’ immediate needs through efficient microfinance solutions.”

Source: Tamam

According to Al Musaileem, it is Tamam’s digital approach – and the ease of access it creates – that accentuates the other benefits offered by the fintech platform. “Tamam stands out in the market with its focus on 100% digital onboarding and instant approvals,” notes Al Musaileem. “We offer simple and tailored financing solutions to meet the diverse needs of consumers. The purchase financing service simplifies the user’s e-commerce needs, offering them a seamless digital experience to finance their installments. This solution also offers users the flexibility to select repayment options that last up to 24 months. The cash financing service ensures accessibility and convenience through a simple digital process and similar repayment terms interacts with consumers through a mobile app that has achieved a start-to-finish cycle time of less than two minutes for consumers to complete the application process and receive approval.”

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In its bid to continue improving the end-user journey, in 2023, the company has also entered into strategic partnerships with two MENA-focused open banking platforms: Tarabut Gateway and Lean Technologies. “At Tamam, we are expanding and enhancing our financial services with open banking and using artificial intelligence to improve customer experiences,” adds Al Musaileem. “We are particularly excited about the role of open banking in improving the accessibility of services, especially for segments such as freelancers, who have been largely overlooked. By leveraging the alternative credit scoring data available through open banking, we aim to serve better serve people with low levels of access to banks, promoting financial inclusion across the Kingdom with a more personalized approach. This focus not only aligns with our mission, but also positions us at the forefront of financial innovation. [with Tarabut Gateway and Lean Technologies] will therefore allow Tamam to expand our service offering, potentially including financing solutions for freelancers.”

At this point, perhaps it should come as no surprise that much of Tamam’s goals lie in creating an equitable microfinance ecosystem which, according to a report by Allied Market Research – a global provider of market reporting, analytics and advisory services – is intended to reach $1.68 billion by 2031, with a compound annual growth rate (CAGR) of 9.4%. “As an integral part of Zain KSA’s diversification approach, we are also guided by a clear sustainability vision that prioritizes social well-being and serves as a cornerstone for the realization of ambitious national goals,” notes Al Musaileem. “And so, by ensuring that people from all walks of life have equitable access to essential financial services, we can help improve the quality of life across the Kingdom. This is in line with Zain KSA’s focus on harnessing innovation to empower people and promote sustainable growth.”

Al Musaileem is also quick to point out that Tamam’s solutions also directly contribute to Vision 2030, Saudi Arabia’s national plan to create “a vibrant, thriving and ambitious society, economy and nation by 2030.” Indeed, while Tamam may have received its license from SAMA in 2021, the entity was actually officially launched in 2019 with a clear vision to address Saudi Vision 2030’s Financial Sector Development Program (FDSP), an initiative which aims to increase financial inclusion in the Kingdom and develop digital solutions for the same. “We therefore ensure that our solutions are accessible, transparent and inclusive, in line with the national FSDP, formally approved by the Council for Economic and Development Affairs on 9 May 2018,” adds Al Musaileem. “The FSDP, the cornerstone of Saudi Vision 2030, aims to develop a diversified and effective financial sector, enhancing its contribution to the national economy and promoting income diversification, savings and investment opportunities.”

Source: Tamam

The first notable indication of Tamam’s commitment to the FDSP came through the fintech firm’s participation in the SAMA Regulatory Sandbox, a year-and-a-half-long program that provides a live testing environment for financial firms and fintech, as well as for startups, to test new business models and concepts in the market with real consumers within a specific period. Indeed, Tamam received the honor of becoming the first fintech with a SAMA license to provide microfinance services came in the aftermath of this painstaking 18-month journey.

“From 2019 to 2020, our 18 months within the SAMA Regulatory Sandbox allowed us to complexly navigate the multifaceted regulatory environment, aligning our innovative business model with the rigorous requirements of the new microfinance license,” recalls Al Musaileem. “The process involved testing the app and service for functionality, security and compatibility with customer user profiles in Saudi Arabia. The platform showed high product profitability and high demand during testing. This rigorous adaptation process has not only improved our service offering, but also established our commitment to adhering to the highest standards of the financial industry Culminating in a major milestone, Tamam had the honor of receiving the first microfinance license for consumption by SAMA and the subsequent PCI-DSS (Payment Card Industry Data Security Standards) accreditation. [a cybersecurity standard backed by all the major credit card and payment processing companies]enabling us to launch large-scale operations as pioneers in offering instant microlending solutions.”

It has been this sense of validation received from SAMA, as well as its fundamental vision to align with Saudi Vision 2030, that has defined Tamam’s journey so far – and if Al Musaileem’s plans for the future are anything to go by, these elements they will certainly continue to dictate the company’s next commitments. “As a subsidiary of Zain KSA, Tamam is committed to leading the digital transformation of financial services, ensuring inclusiveness, transparency and security,” he says. “The Kingdom has a growing fintech sector, driven by notable expansion due to several factors, including the technological nature of the young community and the growing demand for e-commerce. Our goal is to catalyze the growth of this promising fintech market, offering our customers the right products at the right time. Additionally, Tamam’s leading position in the Saudi fintech sector will position us at the forefront of the regional fintech ecosystem Interface) promoted by SAMA and supporting government initiatives in recent years, which have been instrumental in pushing us to the forefront of digital finance. Furthermore, the dedication and ingenuity of our team have been instrumental in demonstrating that fintech innovation originated from Saudi Arabia can compete on a regional and global stage, underscoring our commitment to excellence and the broader potential of the Kingdom’s fintech sector. Supported by Zain KSA’s continued investments in technology and talent and our leading partnerships, Tamam seeks to create a lasting legacy of positive change and progress in the fintech landscape. Saudi Arabia and beyond.”

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