With more than 30 local and international banks, and 2062 bank branches,  the banking system in the Kingdom of Saudi Arabia gives those wishing to open a bank account for an online store or other business or personal transactions wide options. Local and international banks offer modern and efficient services in most cases, which contributes to facilitating commercial transactions, especially for those working in the field of e-commerce..

In this article, we share with you some information about the banking system in the Kingdom and how to easily open a bank account for an online store.

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The nature of the banking system in the Kingdom

Before we talk about opening a bank account for an online store, let's discover some of the most important information about the banking system in the Kingdom..

The Saudi banking system is similar to the banking system in Western countries. Opening a bank account therefore gives banking customers wide options, as the Kingdom is home to many serious banking institutions, and as long as you can provide the required documents, opening a bank account for an online store will only take a few minutes, most likely.

Your account is directly linked to your mobile phone number, which means you will receive your security codes and information about your account activity via SMS.

The Saudi Arabian Monetary Authority (SAMA), which regulates banking activity in the Kingdom, states that banks cannot charge customers fees for opening new accounts, as this service is available for free, and online or phone banking services and operations are available in both English and Arabic.

You can withdraw money from ATMs, and they can be found almost everywhere (there are more than 18,000 machines across the country, from bank branches to shopping malls, supermarkets, etc.). Most banks do not charge fees for ATM withdrawals. If you receive a transfer or send a transfer, the transaction will appear immediately on your online account, and you may have to pay a nominal fee.

To make your first transfer to a foreign account, you will need to go to your branch. Subsequent transfers can be made from your account on the  website, and fees will be charged by your Saudi bank and possibly the foreign bank. 

The most important banks in the Kingdom of Saudi Arabia

According to KPMG, banks in the Kingdom are home to assets worth $604.9 billion. Among the most important local e-payment banks in the Kingdom are:

• National Commercial Bank (NCB)

• Al Rajhi Bank

• Samba Bank

• Riyad Bank

• Saudi British Bank (SABB)

National Commercial Bank (NCB) is the largest bank in the Kingdom in terms of assets, capturing 20.5% of the market share, followed by Al Rajhi Bank (16.1%), Samba Bank (10.1%) and Riyad Bank (10.1%).

A number of international banks have established themselves in Saudi Arabia, including:

• Emirates NBD

• Deutsche Bank

• BNP Paribas

• J.P. Morgan Chase Bank N.A.

• Industrial and Commercial Bank of China

• First Abu Dhabi Bank

• Standard Chartered Bank

• HSBC

 Types of Bank Accounts

In order to open a bank account for an online store, it is important to understand the types of bank accounts to find the right solutions for your needs. The following are the most important types of bank accounts in Saudi banks:

• Current Accounts

A current account allows you to perform traditional banking transactions, opening a bank account including depositing or withdrawing cash, issuing checks, paying and collecting checks, and paying recurring costs such as utility bills via phone or online banking. You can also open a joint account with another person. You can also learn about making money from the internet

Current accounts come with checkbooks and may be subject to minimum balance requirements.

• Savings Accounts

Many banks in the Kingdom  offer savings accounts that can be accessed through online banking. While they do not usually offer check facilities, they also allow account holders to maintain balance levels close to zero. Savings accounts in Saudi Arabia offer a higher profit rate than current accounts. 

• Time Deposit Accounts

Time deposit accounts are for people who want to make their money work, and who are able to deposit large sums for a period of time. They usually carry a higher profit margin than a savings account and are usually linked to a certain fixed deposit amount and a certain period of time.

There are also foreign currency accounts, joint accounts, ladies' accounts, children's accounts and other types of bank accounts according to each need.

Digital Banking

Saudi Arabia has recently emerged as the largest market for digital banking in the Middle East and North Africa. According to research from ArabNet, more than three-quarters of bank customers use online or mobile applications, while 76% of Saudi bank customers use digital platforms, and 60% use online and mobile applications.

Banking users in the Kingdom will find it easy to operate their accounts online or via smartphone apps, as almost every major bank has a notable online presence, thanks to an electronic push from the Saudi Arabian Monetary Authority. 

Online banking is available through most banks for customers who want a more convenient way to track their financial resources. Major banks in Saudi Arabia now offer mobile banking apps so customers can access accounts and make payments from their mobile phones and tablets.  

How to open a bank account for an online store in the Kingdom

The process of opening a bank account for an online store seems similar in most local or international banks in the Kingdom, with some minor differences. We will present a model on how to open a bank account for an online store in the Kingdom at Al Rajhi Bank.

Opening a current bank account at Al Rajhi Bank

Al Rajhi Bank is the oldest and largest Islamic bank in the world in terms of capital. Founded in 1957, it is one of the largest joint stock companies in the Kingdom. The bank has more than 330.5 billion Saudi riyals of assets under management, and more than 600 branches. It also has a large customer service base that helps you when opening an account at Al Rajhi Bank, and obtained the international ISO certification from Intertek, after the company reviewed all the strategies the bank uses when dealing with crises. The ISO certificate comes after the bank obtained Level 4 certification from the Uptime Institute, which is the highest award ever.

The bank offers current accounts, basic accounts, private accounts, and ladies' accounts, in addition to credit cards, personal loans, home and auto loans.

Conditions for opening an account at Al Rajhi Bank

•  National ID card for Saudis or residence ID card (Iqama) for residents must be provided.

• The age must be at least 18 years for adult accounts, and at least 15 years for minor accounts.

• The mobile phone number registered with the bank must be from service providers or telecom companies within the Kingdom.

• The National Address must be valid.

• The customer must be registered on the Absher platform to complete bank account verification, and for trademark registration go to registration in Absher Ministry of Interior.

• The customer must not be currently registered with the bank or Al Rajhi Transfer Service, in the event that the customer performs any banking transactions within the branch, or to request financing products or credit cards, and he must visit any branch of Al Rajhi Bank to check the account's validity.

Steps to open a bank account at Al Rajhi Bank

Opening a bank account at Al Rajhi Bank online has become one of the easiest services provided by the bank's official website. You can open a bank account in the bank without having to travel to the bank's headquarters. Here are the steps you must follow to open a bank account for an online store:

• Go to the link for opening an Al Rajhi Bank account via the bank's official website.

• Fill in the required information and complete the online form.

• Verify your mobile phone number.

• Authenticate details through the Unified National Access Portal.

• After completing the account opening procedures, you will receive a text message containing your account information.

You will be asked to provide a copy of your National ID, and Saudi citizens can open an account starting from the age of 15.

After opening a current account at Al Rajhi Bank, the customer can issue a checkbook, deposit money, and perform all daily banking transactions.

Al Rajhi Bank provides current account customers with a standing orders service that determines a fixed value that the bank will pay on your behalf at specified times.

Al Rajhi Bank provides you with a monthly account statement, either in Arabic or English, with all details related to the account, including the current balance.

The customer can perform all financial and banking transactions from self-service machines.

The bank also provides customers with a subscription to the Mubasher service for individuals, through which all online transactions can be performed at any time and anywhere.

• Now, after knowing how to open an account at Al Rajhi Bank, you can now benefit from all the banking services offered by Al Rajhi Bank around the clock, and receive and transfer money with ease.

 Finally..

Opening a bank account for an online store is an important step in establishing a successful e-commerce business..

We at Salla platform realize the importance of providing different payment gateways from banks and credit cards, so we have provided store owners in Salla with the ease of linking between the most prominent reliable Saudi banks that support e-commerce, in addition to many other features..

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