Digital Dynamics of Banking in Saudi Arabia and Comparative Institutional Evidence

Abstract

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Banks have been changing how they operate using digital tools over the past ten years, and this has become a big area of study. This research examines the digital transformation of the banking system in Saudi Arabia in comparison to banks in more developed and emerging Islamic countries. It checks how far each country has come, what digital services they offer, and how their rules and regulations support these changes. To achieve this, the study employed a step-by-step method to collect and analyze the information. They gathered 44 main documents and seven websites through five steps: first, figuring out the topic, then planning, searching for sources, picking the right ones, and checking if they fit. After that, they compared the information to see how similar or different the digital changes are in Saudi Arabia, the U.S., the U.K., and Malaysia. The results showed that Saudi Arabia and Malaysia have banking systems that are about the same size, but smaller than those in the U.S. and the U.K. Still, all these countries' banking systems are very important to their economies, as shown by how much they contribute to GDP. All four countries use similar digital technologies and offer similar banking services. When it comes to their rules, the U.K. has a good system called a sandbox, which is both effective and a good example for others. The U.S. still needs to improve because its rules are complicated and there are differences between state and national laws. Saudi Arabia and Malaysia have built their own systems inspired by the U.K. model, but they each have different levels of following Sharia law.