Born to Disrupt Podcast: Saudi Arabia’s FinTech Boom, Regulation, and Investment with Michael O’Loughlin
In this episode of Born to Disrupt, Grant Niven and Simon Hardie are joined by Michael O’Loughlin, a fintech expert who has worked across banking, payments, fintech startups, regulation, and now investment. The discussion delves into Saudi Arabia’s rapid fintech growth, the role of regulation in fostering innovation, and the evolving investment landscape in the region.
Michael provides insight into his unconventional career path, which has seen him transition from traditional banking to fintech startups, regulation, and venture capital. His early career in payments consulting and fintech entrepreneurship led him to shape open banking regulations in Saudi Arabia. Now, as an investor with Argonautic Ventures, he applies his regulatory experience to identifying and backing high-potential startups.
His journey offers a unique perspective on how innovation, regulation, and investment intersect, making him well-placed to assess the future of fintech in emerging markets.
Saudi Arabia’s FinTech Transformation
Saudi Arabia has undergone a remarkable transformation in fintech over the past decade. When Michael first engaged with the Kingdom, fintech was a new and unfamiliar concept, with only six recognised fintech firms—including Visa and MasterCard. Today, the market has grown to over 200 fintech firms, with a target of 525 by 2030 under the government’s Vision 2030 strategy.
The key drivers behind this growth include:
✅ Government investment in digital transformation
✅ A progressive regulatory framework supporting fintech innovation
✅ Financial inclusion initiatives and a shift towards digital payments
✅ A cultural shift encouraging entrepreneurship and local talent development
Saudi Arabia is no longer simply following global fintech trends—it is aiming to become a fintech leader on the global stage.
The Role of Regulation in FinTech Growth
Michael discusses his time at the Saudi Central Bank (SAMA), where he helped shape open banking regulations and fintech sandboxes. Unlike in some markets where fintech companies operate without clear regulatory guidance, Saudi Arabia has taken a deliberate and structured approach.
Key aspects of Saudi’s regulatory strategy include:
🔹 Sandbox Testing – Startups undergo a rigorous testing phase before receiving a licence, ensuring they can operate sustainably and securely.
🔹 Market Differentiation – Regulators assess whether new fintech firms bring real innovation or simply replicate existing models.
🔹 Customer Protection & Economic Stability – Regulatory measures ensure that new financial services enhance market stability rather than introduce risk.
Michael highlights that regulators and fintech founders must engage more effectively. Many fintech startups assume that regulation is an obstacle, when in reality, it provides the foundation for long-term success.
Government’s Role in FinTech & Business Innovation
A key point of discussion is government involvement in fintech and business innovation. Unlike in Western markets, where venture capital and private-sector funding dominate, Saudi Arabia’s fintech growth has been largely state-driven. This approach has led to some misconceptions about innovation in the region.
Michael argues that Saudi’s state-led fintech strategy is highly structured and transparent, with clear anti-corruption measures and investment frameworks. For foreign fintechs and investors looking to enter the market, he advises:
✅ Understanding key regulatory bodies such as SAMA, the Capital Market Authority, and MISA
✅ Engaging with local partners to navigate the market effectively
✅ Recognising that regulation is designed to foster long-term stability, not hinder growth
From Regulator to Investor: Michael’s Transition into Venture Capital
Michael explains why he moved from regulating fintech firms to investing in them. As an investor at Argonautic Ventures, he focuses on:
🚀 FinTech – Payments, lending, and AI-driven banking solutions
🚀 AI & Data Analytics – Startups leveraging AI for financial services
🚀 Crypto & Digital Assets – Despite regulatory uncertainty in Saudi
He rejects the “unicorn obsession”, favouring startups with sustainable business models and clear profitability strategies. His regulatory experience gives him a unique ability to assess startups that can scale within compliance frameworks, making him an informed investor in emerging markets.
Saudi Arabia & Crypto: Future Possibilities?
One of the more controversial topics discussed is Saudi Arabia’s approach to crypto and digital assets. While fintech regulation has advanced significantly, crypto remains largely unregulated and, in some cases, prohibited.
Michael highlights that Saudi regulators are well-informed about blockchain and digital currencies, having conducted extensive research on stablecoins, CBDCs, and crypto tracing. However, he notes that:
📌 The government prioritises financial stability over speculative assets.
📌 Crypto firms looking to enter Saudi must focus on compliance, security, and risk mitigation.
📌 A regulatory framework for digital assets will likely emerge in the future, but not yet.
For now, crypto remains on the sidelines in Saudi Arabia, but global trends may influence future regulatory developments.
Saudi Arabia as a FinTech & Investment Hub
The discussion concludes with reflections on Saudi Arabia’s growing role in global fintech. With rapid digital transformation, evolving regulation, and significant AI investment, the Kingdom is positioning itself as a major fintech hub.
For fintechs, startups, and investors, the key takeaways are:
🔹 Saudi Arabia presents significant opportunities, but preparation is crucial.
🔹 Regulation will continue to evolve, shaping fintech’s long-term sustainability.
🔹 Saudi’s fintech boom is still in its early stages—engaging now could be a strategic advantage.
With Michael’s diverse experience across banking, fintech, regulation, and investment, this episode offers a rare inside look at one of the world’s fastest-growing financial ecosystems.
