Driving Financial Innovation: Reflections from the SAMA-BIS Innovation Summit

The SAMA-BIS Innovation Summit in Riyadh concluded with a strong call for modernization in the financial sector, emphasizing the region's commitment to building a resilient and inclusive digital financial future. Over two days, central bankers, policymakers, technologists, and innovators explored pathways to transform the financial landscape through strategic innovation and collaboration.

Key discussions revolved around the need for financial systems that are open, secure, and interoperable—with ‘trust by design’ as the core principle. The first day highlighted cross-border payment advancements, where leaders stressed faster, cheaper, and more transparent payment infrastructures as vital for both regional and global economic growth. Notable projects, such as the Agora initiative and explorations in tokenization and smart contracts, showcased the potential of digital technology to streamline wholesale settlements. Artificial intelligence (AI) was also spotlighted, particularly in enhancing regulatory frameworks and improving payment decision accuracy while addressing concerns around security and bias.

On the second day, the conversation shifted to the risks that accompany emerging technologies. Experts underscored the threats posed by cybersecurity gaps, systemic misinformation, and the looming challenge of quantum disruption. The summit highlighted the need for robust legal frameworks, operational resilience, and ingrained standards to ensure seamless interoperability among increasingly modular financial systems. The evolving role of central banks was also discussed, with a consensus that they must move from reactive oversight to a more proactive role in nurturing innovation and managing risk.

Three central takeaways were institutionalizing innovation within regulatory bodies, prioritizing regional interoperability through collaborative projects, and bolstering resilience against emerging risks like AI drift and quantum threats. The event closed with a collective reaffirmation of cross-sector cooperation as the foundation for a more secure, inclusive, and future-ready financial ecosystem.

The outcomes of this summit signal a crucial shift toward proactive, collaborative financial innovation, setting a strong precedent for other regions aiming to lead in the digital economy.