subsidiaries

neotek

One of the latest additions to alrajhi’s growing financial services ecosystem is neotek, an independent fintech enabler focusing on data aggregation and payment processing. Through this new fintech, alrajhi group aims to foster an open ecosystem that enables interoperability and collaboration among financial institutions, service providers, and third-party applications. This seamless integration allows businesses to develop innovative financial solutions by connecting with a wide range of partners and services. The establishment of neotek reflects alrajhi group’s growing investments in the fintech space, and our drive to develop capabilities to competitively participate in Saudi Arabia’s burgeoning open banking environment and digital transformation. Within the group, neotek’s role is to serve as a key enabler of digital transformation, providing the fintech infrastructure necessary to deliver innovative services and unique experiences. With neotek enhancing the journey of financial products, alrajhi bank has been able to reap resulting benefits including cost optimisation, and growth across multiple banking verticals.

In September 2024, neotek received permission from the Saudi Central Bank (SAMA) to operate within the regulatory sandbox, highlighting SAMA’s confidence in neotek’s capabilities to develop innovative fintech solutions to enhance the digital infrastructure of the Kingdom’s financial sector.

Prioritising regulatory compliance

With 2024 as its first full financial year in operation, one of neotek’s primary focuses was to achieve and maintain regulatory compliance. The subsidiary main objective in the establishment phase is to put together strong Governance, Risk, Compliance and Cybersecurity teams to ensure all its products and processes comply with relevant local and international regulations. In terms of data security, neotek complies with relevant local regulations to ensure the safety of confidential financial information, in order to protect it from theft, corruption, and unauthorised access.

In terms of controls and in alignment with SAMA cybersecurity requirements, neotek implemented various administrative and technical controls to strengthen its infrastructure using international best practices and latest technologies. These controls helped to enhance compliance with SAMA regulations, protection of customer data, customer trust and confidence, while also ensuring operational resilience. The subsidiary remains committed to continuously enhancing its security and privacy controls, ensuring that neotek not only meets regulatory requirements but also proactively addresses emerging threats to protect customers and their data. By doing so, neotek will continue to uphold the highest standards of trust, security, and compliance.

An expanding portfolio

neotek aims to build partnerships with key organisations, to support and drive their digital transformation agendas, taking on the role of fintech enabler. By adding this offering to its service portfolio, neotek wishes to enable big corporations to overcome their digital transformation challenges, and modify how value is delivered to their stakeholders.

During the year in review, neotek focused on establishing and operating its product offerings to help service providers deliver a seamless customer experience, while also improving their end-users’ financial outcomes. This approach led neotek to establish the reputation as a leading infrastructure company in the fintech domain within less than a year in operation and stand out by delivering innovative solutions tailored to the saudi market. The subsidiary offers financial data aggregation through its key business vertical, including Account Information Services (AIS) and other innovative solutions, all developer-friendly infrastructure that enables service providers to deliver hyper-personalised financial experiences for their customers.

Yet another addition to neotek’s fast-growing product portfolio is the Qaema Accounting Solution, a core application developed by neotek to simplify financial management and accounting affairs for small and medium enterprises (SMEs). The accounting tool is powered by innovative features, which will allowing users accessibility to aggregated bank accounts in one-platform, thereby providing a seamless experience to conduct day-to-day financial operations. While assisting SMEs in ensuring they meet accounting and regulatory compliance, Qaema also aims to strategically boost the group’s penetration and engagement within the SME sector.

At neotek, product development is driven by a dynamic and adaptive approach that aligns with our commitment to innovation and rapid market responsiveness. During product discovery, our team collaboratively defines the scope, conducts market research, and identifies opportunities to address gaps with innovative solutions. Leveraging agile methodologies, we iterate quickly through design, development, and user feedback cycles, ensuring solutions evolve to meet real-time user needs. With a focus on continuous improvement, quality assurance, and compliance, we deliver products that exceed expectations, while staying flexible to adapt to fast-changing market dynamics.

Building a winning team

neotek attracts top fintech talent by building a strong employer brand focused on innovation and impactful work. Our recruitment efforts include partnerships with universities, participation in industry events, and engagement across digital channels to reach skilled professionals. During the year in review, neotek invested in developing internal talent through targeted training in fintech skills including data analytics, product management and cybersecurity. Mentorship and knowledge-sharing sessions were also facilitated to nurture a culture of continuous learning, ensuring that neotek not only attracts but also retains top talent, maintaining a competitive edge in the fintech space.

In 2024, neotek launched several employee engagement initiatives, including team-building activities, wellness programmes, and recognition schemes to enhance morale and nurture a positive work environment. We also organised open forums for feedback to foster transparency. The subsidiary’s performance management system also went through continuous improvements during the year, with more frequent check-ins and clearer goal settings being introduced alongside flexible work policies.

Future outlook

Data aggregation and payment processing will play a crucial role in the fast-evolving modern financial ecosystem, increasing collaboration among financial institutions and fintech companies. Opportunities for neotek lie in the growing demand for secure digital solutions in the expanding domain of open banking. However, risks such as regulatory changes and cybersecurity threats will require ongoing focus on compliance and security. In the longer term, neotek plans to grow its offering by providing Payment Initiation Services (PIS), leveraging various data providers to come up with innovative solutions. The subsidiary will also look at building strategic partnerships to boost its services and stay ahead of industry trends such as Banking as a service. Internally, neotek plans to launch a new learning platform to support the continuous development and career growth of its employees, further strengthening its employee value proposition in a highly-competitive job market.