Saudi Arabia’s largest telecom firm, STC, is entering corporate lending through its digital banking unit, STC Bank, backed by Western Union. The unit, launched earlier this year, targets large firms, SMEs, and retail clients with loans and investment products. CEO Nizar Altwaijri stated the bank aims to roll out full services by late 2025, following an $800 million capital boost from STC.
Strategic Moves and Growth
STC Bank already serves 1.5 million customers, growing rapidly. Altwaijri emphasized leveraging STC’s vast customer base to expand across market segments. The venture could ease Saudi Arabia’s liquidity crunch amid low oil prices, supporting economic diversification projects. STC’s stock has surged 16% this year, reflecting investor confidence.
Western Union acquired a minority stake in STC Bank for $200 million in 2021, becoming a key stakeholder. STC Bank reported SAR 345 million ($92 million) in gross profit for 2024. Meanwhile, STC has diversified into internet services, acquired Telefonica shares, and sold tower assets to Saudi Arabia’s Public Investment Fund (PIF).
After nearly a decade in digital payments, STC secured regulatory approval for full banking operations in 2024. The firm declined to comment on potential Western Union reinvestment.
The launch of STC Bank is a testament to STC’s commitment to innovation and growth. As Saudi Arabia continues to diversify its economy, STC Bank is poised to play a crucial role in the Kingdom’s digital transformation.
