Consumer Fintechs in the Kingdom Need to Compete More on Rewards

Why KSA Consumer Fintechs Must Level Up Their Rewards Game

Saudi Arabia's consumer fintech sector is booming. Companies like Barq, STC Pay, Mobily Pay, and Tweeq have transformed how people manage their money, offering sleek apps and seamless digital experiences. Yet, while these platforms dazzle with tech-savvy innovation, there's one area where they’re leaving money—and loyalty—on the table: rewards programs. Traditional banks like BSF are ahead in this space, and it’s time fintechs catch up.

The Rewards Opportunity: A Game-Changer Waiting to Happen

Fintechs have an edge that traditional banks can only dream of: access to granular, real-time consumer data. Imagine the possibilities! With this data and their tech-forward mindset, fintechs could deliver rewards programs that are hyper-personalized and endlessly flexible. Think dynamic cashback offers that adjust to your spending habits, gamified incentives to make saving or spending fun, and rewards tailored to where you are or what time of year it is. These features aren’t just nice-to-haves—they’re loyalty-builders.

But here’s the kicker: fintechs in the Kingdom haven’t truly entered the rewards race yet. While they excel at delivering core services like peer-to-peer transfers and bill payments, they’ve largely ignored the rewards space. That’s a missed opportunity to differentiate in an increasingly competitive market.

BSF's Lifestyle Cashback Card: The Standard to Beat

Traditional banks are setting the rewards standard, and BSF’s Lifestyle Cashback Card is a prime example with a unique offering. This card offers up to 10% cashback in key spending categories with no annual fee. Users can tweak their rewards preferences monthly via BSF’s apps, making it a versatile option for everyday use.

Here’s how it works:

• Cardholders can choose one category—Dining, Grocery, Travel, Medical Care, or Education—and earn 10% cashback (capped at SAR 250 per month).

• Alternatively, they can pick two categories to earn 3% cashback on each, with the same SAR 250 monthly cap per category.

• For all other spending, there’s a flat 0.5% cashback.

This flexibility—to adapt rewards to users’ changing priorities—is what makes BSF’s offering so compelling. It’s a clear win-win for both the bank and its customers, driving loyalty and engagement in one seamless package.

The Gap: Where Fintechs Can Improve

STC Pay, one of Saudi Arabia’s leading fintechs, does have a cashback card, but the comparison to BSF is stark. STC Pay’s top card offers 1% cashback—and it comes with a SAR 575 annual fee. To match BSF’s SAR 250 monthly cashback potential, users would need to spend SAR 25,000 in a single month. Factor in the annual fee, and that spending threshold jumps to nearly SAR 30,000.

What’s Next for Fintechs? More Innovation Is the Answer

To stay competitive, fintechs need to up their game. Here’s how they can dominate the rewards space:

• Leverage Real-Time Data: Use consumer spending patterns to offer personalized, meaningful rewards. For instance, if a user frequently shops for groceries, offer elevated cashback in that category.

• Go Dynamic: Introduce rewards that change with the seasons, user location, or even the time of day. A summer bonus for travel spending? Yes, please.

• Gamify the Experience: Think milestones, challenges, and fun incentives. Reward users for hitting savings goals or making eco-friendly purchases.

• Diversify Redemption Options: Whether it’s cashback, discounts, or even crypto, let users choose how they redeem their rewards. The more options, the better.

The Takeaway: Rewards Are the New Battlefield

Saudi fintechs have built the foundation for success with their intuitive apps and forward-thinking services. But the next big differentiator is clear: rewards. By designing innovative, personalized, and flexible rewards programs, fintechs can not only attract new users but also retain existing ones in an increasingly crowded market.

Traditional banks like BSF are proving that rewards drive loyalty and engagement. It’s time fintechs step up and turn what’s currently an afterthought into a core strength. After all, in a market as competitive as Saudi Arabia’s fintech scene, those who reward their customers best will win the game.