Saudi Arabia’s Absher boosts digital ID delivery, financial inclusion

The Absher platform in the Kingdom of Saudi Arabia has emerged as the core pillar of the country’s efforts towards digital transformation by providing various digital services to its citizens, residents, and businesses. The platform started operating in 2010 under the Ministry of Interior, and now it is considered a one-stop multi-faceted digital government service, from new national ID issuance to passport renewal. In line with the goals of Saudi Arabia’s economic diversification, “Vision 2030” in part, the Absher system supports the modernization of public services and increases their availability in the Kingdom. The system’s expansion into the sphere of finance, particularly through digital identity services, is its main contribution to the new digital economy, and is intended to improve user experience and protect data.

The beginnings of Absher platform

Absher initially focused on enhancing the efficiency of civil registration, passport issuance, and traffic management; the platform has since expanded its scope to include a wide range of government and private sectors. The advancing solutions and the use of automation within the applications are intended to improve the user experience with the application to bring higher reliability, security, and efficiency.

A research study published in 2020 by the European Journal of Economic and Financial Research examining the Absher system acceptance in the Kingdom of Saudi Arabia, using the technology acceptance model, revealed that maximum users provide positive and higher attitudes towards the usage of the Absher systems. Similarly, there is a positive relationship between ease of use and customers’ attitudes toward using the Absher system. Additionally, the study found that the majority of survey participants think that using the Absher system is useful for them.

Absher’s services enable visitors and citizens to renew digital ID cards using face biometrics, arrange residency permits, and even process driver’s license services from home. Millions of transactions have been moved by the platform. By simplifying administrative procedures and promoting financial inclusion, Absher has established one of the highest digital government platforms in the Middle East through constant innovation and growth. This has contributed to Saudi Vision 2030 to achieve settled economic diversification goals.

Growth and integration of Absher

Absher is now integrating beyond its initial scope and has spread to the private sector, where it is serving the financial industry, permitting digital identity verification for financial transactions.

A key milestone in the development of Absher’s advancement was the processing of over 7.7 million worth of digital transactions alone in July 2024, supporting broader adoption. It indicates that over 5.2 million transactions were executed through the Absher Individuals platform. Including identity verification, renewal of digital ID cards, family member registrations, open data service usage, residency permits, and processing of driver’s licenses, the services offered by Absher have become essential to millions of users. The success assisted Absher’s reputation as one of the leading digital government platforms in the Middle East. Its continued innovation and spread have led to Saudi Arabia’s digital transformation struggles, aimed at improving efficiency and enhancing the user’s experience across the Kingdom.

Absher’s role in financial inclusion

Observers say Absher’s integration of digital identity services with the financial sector has been significant in driving financial inclusion in Saudi Arabia. Absher has improved consumer comfort and reduced fraud by streamlining financial transactions through secure digital identity verification. The Financial Sector Development Program, which attempts to modernize the Kingdom’s financial ecosystem, has benefited from this integration. Because of this, 94 percent of adults currently own digital wallets and bank accounts.

In an interview with Arab News, Saudi economist Talat Hafiz emphasized that the goal of financial inclusion in Saudi Arabia is to make financial services accessible and cheapest to everyone, consistent with the government’s initiatives to increase financial inclusion, economic participation, and digital literacy. Encouraging access to more reasonable and secure banking solutions is a primary goal of the Financial Sector Development Program, which operates under Vision 2030. Saudi Arabian policymakers have also implemented robust policies to ensure and enhance financial inclusion since it has been recognized as important to economic growth.

Absher’s impact on financial transactions

Absher’s digital identity infrastructure plays a vital role in supporting protected and profitable real-time financial transactions, mainly in transnational remittance systems like the Raast-Buna payment linkage. By integrating with international financial systems, for instance, the Arab Monetary Fund’s Buna network, Absher enables unified and inexpensive remittance transfers between Saudi Arabia and other Arab countries. This integration supports digital identity to enhance transparency and security, reducing fraud risks. Furthermore, Absher’s digital identity services are anticipated to expand into global financial systems, strengthening Saudi Arabia’s role in international payments and trade while contributing to the nation’s digital and economic development goals.

Economic and social impact

With a 95 percent reduction in license and review times and savings of nearly SAR 23 billion (US$6.1 billion), Absher’s digital services have increased efficiency. Absher has transformed service delivery for citizens and communities by reducing bureaucracy and streamlining government processes, making interactions with the government easier and faster. Through the promotion of a more effective, connected, and accessible public sector, this digital transformation contributes to improvements in general quality of life and is aligned with the larger objectives of Saudi economic diversification set out in Vision 2030. Beyond just being expedient, the platform is significant because it represents a significant advancement in the Kingdom’s continuous efforts to modernize its economic and governance framework.

The World Bank report shows that in Saudi Arabia, 74 percent of adults now have a bank account, and considerable progress has been made in increasing financial inclusion. There are still issues, though, since an estimated 6.7 million people do not have a bank account. The percentage of people who use digital payments is rising to 73 percent. However, gender differences exist; as compared to men, fewer women utilize these services.

Mobile phone infrastructure is critical in facilitating this expansion, with mobile subscriber identity rates reaching 132.4 percent and near-universal internet use. Regulatory frameworks for digital money and digital ID systems have assisted in making financial transactions more secure and efficient. Despite these advances, disparities in financial access remain, particularly across urban and rural areas and across income levels. Continued efforts are required to close these gaps and ensure that all citizens benefit from financially inclusive services, especially through laws that encourage equal access to digital banking.

Saudi Arabia’s financial system stability assessment

According to the International Monetary Fund (IMF) report, September 2024 Financial System Stability Assessment for Saudi Arabia, the Kingdom’s financial sector is strong despite the rapid economic transition under Vision 2030. The report emphasizes that banks are well-funded, profitable, and resilient to major macroeconomic shocks. However, concerns remain, notably in controlling the risks linked with expanding credit and real estate markets. To address severe lapses, the IMF advises boosting systemic risk monitoring, increasing the supervisory authority of the Saudi Central Bank (SAMA), and improving data collection. In addition, tighter macroprudential tools and legislative frameworks are required to ensure long-term financial stability.

Challenges and future stance

As Absher grows, issues in infrastructure, security, and public acceptance are expected to arise. The platform’s success is dependent on a strong digital infrastructure that must be constantly maintained to keep up with changing cybersecurity risks and expanding user expectations. Public trust in digital services is critical; thus, continuous efforts to improve transparency and security will be required. Absher will contribute to Saudi Arabia’s journey for the entire digital transformation, which aligns with Vision 2030. Its connection with global financial systems holds the potential to boost the participation and position of Saudi Arabia in the global digital economy.

Article Topics

Absher  |  digital government  |  digital ID  |  digital inclusion  |  digital wallets  |  financial inclusion  |  financial services  |  identity verification  |  Saudi Arabia  |  Vision 2030