Saudi Arabia’s total bank credit jumped to SR3.30 trillion by year-end, fuelled by strong demand for corporate financing tied to infrastructure and development projects aligned with the Vision 2030 economic diversification agenda.

Deposits, meanwhile, recorded an annual increase of about 8.8% in February, the slowest pace in two months, while rising 2.3% compared to January.

Saudi Central Bank (SAMA) data revealed that government growth in this area was around SR127.6 billion, or 14.8%, while deposits from individuals and companies increased by approximately SR114.3 billion, up 6.1%.

“Government deposits account for about 32.5% of total holdings compared with 65.6% for deposits from individuals and companies, reflecting the continued key role of the private sector in supporting banking liquidity,” the Saudi Central Bank remarked.

According to Al-Rajhi Bank, deposit levels and banking liquidity remained within safe thresholds, while capital reserves continued to exceed regulatory requirements by a comfortable margin. Another important metric, credit growth, outpaced deposit growth, with the Saudi banks actively financing a wide range of economic activities, including real estate development, trade, manufacturing, and utilities.

The report also highlighted SAMA’s continued pivotal role in safeguarding financial stability, alongside the “Financial Sector Development Programme,” which has strengthened the competitiveness, resilience, and sustainability of Saudi Arabia’s banking system.

Al-Rajhi Bank also confirmed that the Kingdom’s fintech sector is experiencing rapid advancement in 2025, marked by deepening collaboration between banks and fintech companies within a supportive regulatory framework.

“The number of fintech firms surpassed 280 by the end of the year, operating under the guidance and support of the Saudi Central Bank and the Capital Market Authority,” Saudi Gazette reported while quoting the report.

“Banks, in partnership with startups, have successfully developed innovative services across digital payments, integrated finance, buy-now-pay-later solutions, peer-to-peer lending, and API-based platforms—driving innovation that enhances financial inclusion and economic diversification,” Saudi Gazette concluded.

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Alfonso Gomez, an industry veteran, joins from Banco Bilbao Vizcaya Argentaria (BBVA), where he spent more than three decades in a range of senior roles across key financial locations such as New York, London, Madrid, and Zurich. Most recently, he served as CEO of BBVA Switzerland for over 12 years. Alfonso Gomez will be based in Geneva and report to Ida Liu, CEO of HSBC Private Bank.

“We are delighted to welcome Alfonso Gomez, whose extensive experience in Switzerland, strong track record of leadership and commitment to excellence in customer service ideally position him to lead our Swiss Private Bank, an integral and strategically important part of our global franchise,” said Ida Liu.

In addition to being a financial industry veteran, Alfonso Gomez has been actively involved in the Swiss financial ecosystem. Since 2018, he has served on the board of the Association of Foreign Banks in Switzerland and has held the position of Vice Chairman since early 2023. He is also a board member of the Swiss Finance Institute.

Daniel Calado will now return to his responsibilities as Chief Financial Officer of HSBC Private Bank Switzerland and EMEA, while continuing as a member of the banking venture’s executive committee.

“Under Alfonso Gomez’s expert leadership, our Swiss Private Bank will continue to leverage HSBC’s global and diversified business model for the benefit of our clients, addressing the private banking needs of entrepreneurs and businessmen in some of the world’s fastest-growing markets. We take this opportunity to warmly thank Daniel for his excellent leadership and valuable contributions, which he will continue to develop as a key member of our executive committee,” said Yannick Hausmann, Chairman of the Board of Directors of HSBC Swiss Private Bank.

It is worth mentioning that HSBC Swiss Private Bank had Gabriel Castello as its CEO until December 2024, when he was promoted to interim CEO of global private banking. John Shipman then took over as interim head. However, his tenure lasted less than a year, as he joined rival Barclays as their Swiss CEO in November 2025.

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Through the sandbox, the Egyptian government wants to promote the widespread adoption of fintech, expanding digital services in non-banking financial activities. Lumin Soft specialises in digital identity solutions, electronic verification and digital contracting technologies. It recently submitted a project that would verify the identity of non-Egyptians using electronic passports (e-passports) through Near Field Communication (NFC) technology, enabling the creation of an integrated digital pathway for identity verification via smartphone devices.

Islam Azzam, Chairperson of the FRA, told the Daily News Egypt that such digital mechanisms represent an important step toward facilitating the entry of foreign investors into the North African country’s market, enabling them to access non-banking financial services.

“Simplifying procedures for identifying and verifying investors’ identities through secure digital channels would help strengthen foreign investment flows into Egypt,” the senior official stated further.

Lumin Soft’s project relies on reading and verifying e-passport data in accordance with the International Civil Aviation Organisation Public Key Directory (PKD) standards, ensuring both data security and reliability throughout the verification process.

Azzam further added that adopting advanced technological solutions in financial services aligns with the government’s broader strategy to position Egypt as a regional fintech hub.

“Supporting digital innovation and strengthening the technological infrastructure of the financial sector will enhance the competitiveness of the Egyptian market and attract more fintech companies,” he noted.

The regulatory sandbox launched by the FRA serves as a key regulatory tool, not only in terms of supporting innovation in the financial sector and providing a supervised testing environment that allows companies to trial innovative business models and technological solutions before bringing them to the market.

“Through its participation in the sandbox, Lumin Soft will be able to conduct live testing of its business model within the regulatory framework. This includes creating digital identities using e-passports and integrating with the Azimut Investments Egypt platform, enabling investors to access financial products within a regulated supervisory environment,” Daily News Egypt reported.

Ahmed Khalifa, Executive Director of the FRA’s regulatory sandbox, said the project will help non-Egyptians access investment services across various asset classes in the Egyptian market while enhancing the efficiency and competitiveness of the non-banking financial sector (NBFC).

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Revolut, which was recently cleared by the United Kingdom’s regulators to launch its bank in the European country, said its revenue was 4.5 billion pounds, up from 3.1 billion the previous year, driven by income from fees charged to its 68.3 million customers.

The company more than doubled its loans to customers, with its lending portfolio (mostly consumer loans) growing ‌120% to 2.2 billion pounds. Since its formation in 2015, Revolut has emerged as the most successful of the handful of European fintech companies founded in the ⁠2010s, with no physical branches. In November 2025, the venture hit a USD 75 billion valuation in a private secondary share sale.

The approval from the Bank of England’s Prudential Regulation Authority now allows the company to end its “mobilisation” phase, which lasted for longer than the usual 12-month limit.

“This allows Revolut to offer protected deposit accounts and paves the way for a wider range of services in future, including lending and other products,” the fintech venture remarked.

Predicting that the process of moving customers to the new bank will take “a few months in total,” Nik Storonsky, Revolut’s co-founder and CEO, remarked, “Launching our UK bank has been a long-term strategic priority for Revolut, and marks a significant moment in our journey. The UK is our home market and ‌central to our growth.”

“The full licence will open the door to balance sheet-driven products and sharpen pressure on both traditional banks and the cohort of challenger banks,” said Elliot Reader, Director in Houlihan Lokey’s FinTech Group, while interacting with Reuters.

The company ⁠is also seeking a banking licence in France, although it already offers banking services in the European Union by “passporting” a ⁠licence from Lithuania, and has applied for a bank charter in the United States.

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Sara Naison-Tarajano, a 27-year veteran of the firm, most recently served as Global Head of Private Wealth Management (PWM) Capital Markets and Global Head of Goldman Sachs Apex, the firm’s dedicated family office business. Her appointment underscores Goldman Sachs’ commitment to grow its premier wealth management platform and the firm’s differentiated ability to harness One Goldman Sachs to serve clients. She replaces David Fox, who will retire after 27 years with Goldman.

Founded in 1971 and acquired by Goldman Sachs in 2003, Ayco works with many of the world’s largest companies to provide financial wellness programmes and executive counselling. The venture’s services include investment management, financial planning, tax preparation, and estate coordination, delivered through a team of experienced professionals dedicated to helping clients optimise their financial lives.

Sara Naison-Tarajano joined Goldman as an analyst in the investment banking division in 1999. She became a managing director at a global investment giant in 2012. In 2020, she was promoted to partner.

Discussing Ayco, along with BNY Pershing, the company will enter the client custodial referral market, a space previously dominated by Charles Schwab and Fidelity Investments, thereby challenging the latter’s position in the sector.

BNY Pershing’s programme will be launched later in 2026 under the name “BNY Advisor Match Service.” It will provide “one or two” advisor referrals to clients upon request based on criteria set up by the custodian, according to the venture’s market filing.

Goldman Sachs Ayco, on the other hand, has already started a referral programme with Creative Planning, Mercer Advisors and Wealth Enhancement, according to the registered investment advisors, which are also among the largest in the United States.

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Bank of Montreal, the third-largest Canadian bank by market value, said in October that it would sell 138 branches to First Citizens Bank, apart from reinvesting in markets with stronger client engagement and longer-term growth prospects.

Bank of Montreal’s latest move comes amid some of the biggest American banking players investing in building branches in affluent areas to attract more clients, earn consumer trust and provide higher-value services such as mortgage services and wealth management. In 2023, Bank of Montreal bought BNP Paribas’ US unit, Bank of the West, for USD 16.3 billion. This was the BMO’s largest deal to date, giving it access to nearly two million customers, about 500 retail branches, and commercial and wealth offices in the Midwest and Western United States.

“The bank plans to open three new financial centres in Greater Los Angeles in 2026, two in the Bay Area and two in San Diego, which will create hundreds of jobs and expand access to in-person and advice-led banking,” the lender said in its media note.

Bank of Montreal has over 220 financial centres in California, and the planned expansions would add more than 50% to its footprint in the American state. Shares of BMO have returned a little over 7% so far in 2026, ahead of its larger peer, Royal Bank of Canada.

Meanwhile, BMO is navigating a more volatile North American rate environment while doubling down on expansion and capital discipline in the United States. For global investors, BMO offers a diversified North American banking franchise with exposure to cross-border trade, wealth management, and capital markets, but faces risks like cyclical credit and regulations.

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While net income increased to USD 282.4 million in 2025 (compared to USD 265.7 million in 2024), the year-on-year growth percentage stood at 18% from a normalised base of USD 239.6 million in 2024. Total assets grew by 23% to a record USD 13.4 billion (up from USD 10.9 billion in 2024), reflecting strong asset build-up momentum across Corporate Banking, Investments, and Treasury.

The Arab Energy Fund CEO Khalid Al-Ruwaigh said, “Our financial results reflect the strength and resilience of The Arab Energy Fund’s diversified business model. Achieving our fourth consecutive year of record net income, supported by a strong balance sheet, underscores our disciplined execution, prudent risk management, and continued ability to mobilise capital across the region.”

In terms of raising funds, the entity, during 2025, got USD 3.8 billion, reinforcing its diversified funding base and strong access to international capital markets. Asset quality remained robust, with a non-performing loan (NPL) ratio of 0.2%.

The Arab Energy Fund CFO Vicky Bhatia said, “TAEF has delivered, yet another strong performance, achieving its highest Net Income level of USD 282.4 million. We also raised record levels of funding in 2025, achieving effective pricing outcomes. We maintained strong operating efficiency, with a cost-to-income ratio of 19.5% and Capital adequacy of 30.45%, positioning us very well to fuel our future growth.”

Across The Arab Energy Fund’s business verticals, corporate banking expanded its portfolio to USD 6 billion, with net operating income reaching USD 140.1 million, supported by financing activity across the energy value chain, portfolio expansion and funding optimisation.

Investments and partnerships expanded the asset portfolio to USD 1.6 billion, generating USD 67.0 million in gross operating income. This growth was primarily driven by dividend income and ongoing portfolio diversification. Treasury and Capital Markets effectively managed the balance sheet, with assets totalling USD 5.5 billion and net operating income of USD 132.6 million. This success was supported by sound liquidity management, optimisation of investments in a declining interest rate environment, and disciplined funding execution.

And the positive momentum will continue in 2026, as the entity received regulatory approval to issue Panda bonds in China. This makes it the first multilateral financial institution from the Middle East and North Africa (MENA) region to secure such approval, granting it direct access to the domestic bond market of the world’s second-largest economy.

Under the programme, approved by China’s National Association of Financial Market Institutional Investors, TAEF can issue up to 10 billion Chinese yuan (USD 1.4 billion) in Renminbi-denominated bonds in multiple tranches over two years, providing flexible, long-term capital for the fund’s strategic investments.

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Across global banking systems, artificial intelligence is moving from back-office optimisation to the heart of credit decision-making. The shift is subtle. There are no public announcements declaring that machines now approve mortgages. Yet increasingly, algorithms analyze income, spending patterns, behavioural signals, and even alternative data before a human ever sees an application.

So, the question is unavoidable: Are machines deciding who gets loans? And if so, what happens to human judgement?

The Quiet Expansion Of AI In Lending

Artificial intelligence is already deeply embedded in financial services.

“AI is transforming banking quite significantly, and the pace of adoption is fast,” Wahyu Jatmiko, Assistant Professor in Banking and Finance at the University of Southampton Business School, told International Finance.

He points to data from the Bank of England and Financial Conduct Authority showing that around 75% of UK financial institutions were using AI by 2024, up from 58% just two years earlier.

However, he explains, the heavy use remains concentrated in internal optimisation, cybersecurity and fraud detection. In underwriting specifically, adoption is more measured.

“Roughly around 15% of firms use AI directly in credit underwriting,” he estimates.

That figure may sound modest. But the deeper shift is structural.

“Even where it is not fully taking over, AI is increasingly embedded in the process,” Jatmiko says.

Instead of relying entirely on traditional credit bureau scores, systems now analyse real-time transaction data, behavioural patterns, and alternative datasets.

The result is not necessarily that machines approve all loans. Underwriting is becoming faster, more data-driven, and far more granular.

James Ekpa, an AI researcher at the Blockchain Technology Association for Black & Minority Ethnic Engineers (AFBE-UK), did not mince words.

“Yes, machines are increasingly deciding who gets loans today,” he told International Finance.

He sees a transformation from slow, manual processes to rapid, automated systems powered by machine learning algorithms.

Speed, consistency and scalability are among AI’s biggest advantages. Decisions can be made quickly. Models apply the given criteria uniformly. And, algorithms can analyse thousands of variables at a scale humans simply cannot match.

Efficiency, in other words, is no longer the differentiator. It is the baseline expectation.

Enhancement Or Replacement?

But, does faster mean better? And more importantly, does faster mean human judgement is fading?

“At the moment, I clearly see AI as enhancing human judgement rather than replacing it,” Jatmiko says.

He cites UK data suggesting that while about 55% of AI applications involve some automated decision-making, only around 2% are fully autonomous.

Creditworthiness, he argues, is not merely about predicting default probabilities. It involves context, borrower circumstances, regulatory constraints, and sometimes ethical considerations.

AI excels at analysing large datasets, document reading, income verification, and affordability calculations. In that sense, Jatmiko says, it acts like a powerful analyst. But final approvals, particularly for complex or high-value loans, still rest with humans.

Ekpa agrees that the human role is evolving rather than disappearing. Loan officers today increasingly review edge cases and borderline applications. They handle complex deals. They explain decisions to customers. They monitor model outputs and escalate anomalies.

The job is changing. It is becoming supervisory. That may be the real transformation.

When Context Meets Code

The limits of automation become clearer when qualitative factors enter the picture.

Jatmiko describes a hypothetical but realistic scenario: a small business reporting temporary losses due to a supply chain shock while holding strong long-term contracts. A human underwriter may interpret the broader narrative and take a forward-looking view. An algorithm trained primarily on historical default data might simply detect recent losses and flag high risk.

“There is research showing a mismatch between what AI models consider important and what human loan officers see as meaningful indicators of creditworthiness,” he explains.

Humans can contextualise. They can sometimes account for structural disadvantages when justified by circumstances. AI, by design, optimises patterns found in historical data. That difference is subtle. But in lending, subtle differences affect livelihoods.

The Question Of Bias

Advocates of AI argue that machines eliminate prejudice. Algorithms do not discriminate intentionally. They do not favour friends. They apply rules consistently. And that consistency is powerful.

But, consistency applied to flawed historical data can create new problems.

“AI can reduce certain types of human bias, but it can also embed and even amplify systemic bias,” Jatmiko explains.

If past lending patterns reflected unequal treatment of certain demographic groups, models trained on that data may internalise those patterns as objective signals of risk.

Ekpa echoes this concern. One of the primary risks, he notes, is bias amplification. If historical data contains discrimination, models may encode and intensify it.

Transparency is another issue. Complex models can be difficult to explain. Borrowers denied credit may receive little more than a generic explanation.

“Opacity raises regulatory and consumer trust concerns,” Ekpa warns.

Then there is model drift, when changing economic conditions gradually degrade model performance. Without continuous monitoring, systems may misprice risk during volatile periods.

In short, bias does not disappear. It changes form.

Accountability In An Algorithmic Age

If an AI-driven system denies a borrower unfairly, who is responsible? The answer is not always clear. Multiple actors are involved – AI manufacturers, developers, third-party providers, and lenders themselves.

However, both experts converge on one principle: accountability ultimately rests with the financial institution.

Ekpa says AI is a tool, not a legal entity. Financial institutions remain responsible for the models they deploy, the data they use, and the governance frameworks they maintain.

Jatmiko does not overcomplicate it. If a loan decision turns out to be unfair, the algorithm cannot be the one blamed. The bank chose to use it, so the bank carries the responsibility. That means senior leaders cannot hide behind technical language. They have to stand behind the outcomes.

He stresses that human oversight is not optional, especially for complicated or sensitive cases. Models need regular checks. They need to be tested for bias. They need proper audit trails. Otherwise, problems build quietly.

He also worries about something bigger. If many banks start depending on the same AI providers, risk can pile up across the system. One flaw could affect more than just one institution. Efficiency is important. But, it cannot come before accountability.

The Islamic Finance Lens

From an Islamic finance point of view, this is not just a technical debate. It goes deeper than that. Islamic banking is guided by Maqasid al-Shariah, ideas around justice, fairness, and social welfare. Lending is not only about numbers on a balance sheet. It carries a social responsibility.

Yes, AI can make processes smoother. Faster approvals. Cleaner risk models. That part is clear. But Jatmiko flags something more subtle. If the data used to train these systems reflects a past where small businesses were routinely sidelined, the algorithm may quietly repeat that history.

And if that happens, the technology could end up working against the very goals Islamic finance is supposed to protect. Not intentionally, but just by following patterns.

Aligning AI with ethical principles requires intentional intervention in model design and governance. It may require bringing social scientists into AI development processes. It may demand stronger oversight, particularly when tools are sourced from third-party providers.

Technology alone does not guarantee fairness. Design choices matter.

Possibility Of A Hybrid Future

So, where is banking headed? Fully automated lending systems may emerge in low-risk, low-value segments. Routine cases can be processed at speed and scale. But both experts see the broader future as hybrid.

Ekpa believes competitive advantage will come from institutions that combine AI’s analytical power with human judgement, rather than eliminating one in favour of the other.

Jatmiko similarly expects automation to expand, but insists that human supervision will remain essential, especially for complex or high-impact decisions.

Human-in-the-loop processes are already becoming common. Algorithms analyse. Humans validate. Decisions are checked before final approval. Perhaps, the future banker will not be replaced, but repositioned.

The Big Question

For borrowers, the shift may be invisible. Applications are approved faster. Rejections arrive more quickly, too. What changes quietly, beneath the surface, is how those decisions are made.

Is human judgement fading? Or simply moving further upstream, designing and supervising the systems that now perform the analysis?

The rise of the AI loan officer is not dramatic. No headlines are announcing the end of human bankers. Instead, there is gradual integration, more data, faster models, and shorter decision times.

Machines are increasingly involved. That much is clear. But whether they ultimately decide, or merely assist, depends less on technological capability and more on governance choices.

Banks can treat AI as an efficiency engine. Or, they can treat it as a tool that augments, rather than overrides, human responsibility. The distinction may determine not only how loans are approved, but how trust in the financial system evolves in the years ahead. And trust, unlike data, cannot be automated.

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The balance sheet growth comes amid the backdrop of listed Gulf banks report significant, record third-quarter profits. The combined net income for the period stood at USD 16.6 billion, an 11.6% increase from a year earlier, apart from marking a third consecutive quarterly increase, said a Kamco Invest report from December 2025, as credit conditions improved across the region.

Al-Budaiwi noted, “This path has been adopted by the GCC states as a steadfast approach and an unwavering commitment in all fields, especially within the monetary and banking sectors.”

While highlighting swift transformations in the world economy against a backdrop of successive political crises, the GCC Secretary-General remarked, “This necessitated enhancing the readiness of economic and monetary policies and taking measures to address these variables and mitigate their impacts.”

Talking about the 86th Meeting of the Committee of Central Bank Governors in Manama, the meeting was chaired by Central Bank of Bahrain Governor Khalid Ebrahim Humaidan and attended by his counterparts from across the six-member bloc.

During the event, Al-Budaiwi emphasised that GCC states have proven their ability to remain resilient and overcome various crises with efficiency and competence, making it imperative to enhance the responsiveness of economic and monetary policies and implement measures to address fluctuations.

Turning to the bloc’s standing on the world stage, Al-Budaiwi asserted that member nations have solidified their position as reliable international economic partners due to the robustness of their economies, along with factors like the stability of their fiscal and monetary policies and the effectiveness of their institutional structures. All these indicators now clearly confirm the strength and resilience of the banking and monetary sectors within the member states.

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Net Interest Income from Conventional Banking and Net Income from Islamic Financing stood at RO 413.01 million for the year ended December 31, 2025, compared to RO 397.70 million for the same period in 2024, an increase of 3.8%. Non-interest income, on the other hand, was RO 174.18 million for the year ended December 31, 2025, as compared to RO 145.00 million for the same period in 2024, an increase of 20.1% due to Bank Muscat’s growth in business volumes and higher investment income.

Operating expenses for the year were RO 222.88 million, compared to RO 209.26 million for the same period in 2023, reflecting an increase of 6.5%. Net impairment losses on financial assets were RO 60.97 million as against the 2024 tally of RO 64.41 million.

Bank Muscat’s net loans and advances, including Islamic financing receivables, increased by 4.8% to RO 10,731 million as against RO 10,237 million as at December 31, 2024. Customer deposits, including “Islamic Customer Deposits”, increased by 6.7% to RO 10,430 million as against the 2024 tally of RO 9,777 million.

The full results for the year ended December 31, 2025, along with the complete set of unaudited financial statements, will be released following the approval of the Board of Directors of the Bank at its meeting scheduled later in January 2026.

Bank Muscat’s gains also coincide with the latest numbers emerging from the Gulf country’s banking sector. By the end of November 2025, credit provided by conventional commercial financial institutions saw an increase of 8.5%, indicating a robust growth in banking activities. Credit to the private sector rose by 5.8%, reaching RO 21.9 billion during the same timeframe.

In terms of investments, the Gulf country’s conventional commercial banks recorded a 7.4% rise in total investments in securities, amounting to approximately RO 6.4 billion by the end of November 2025. Investments in government development bonds experienced a 9.5% year-on-year increase, totalling RO 2.2 billion. Investments in foreign securities, on the other hand, dropped by 4.4%, settling at RO 2.3 billion over the same period.

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