SAUDI ARABIA - Finance
CEO & Co-Founder, Circlys
Bio
Khaled Hassoun is the CEO and Co-Founder of Circlys, a fintech platform revolutionizing savings circles in Saudi Arabia. With over 2.2 million active users and SAR 3.8 billion in facilitated savings, Circlys plays a vital role in advancing Saudi Arabia’s Vision 2030 and Financial Sector Development Program. Under Khaled’s leadership, the platform has catered to a diverse clientele, including citizens, residents, and businesses, promoting financial inclusion and innovation. Khaled is committed to expanding Circlys’ services, including employee savings programs and payroll integration, with a goal to exceed 3 million users and SAR 10 billion in savings by 2025. His entrepreneurial vision and dedication to accessible financial solutions have established him as a prominent figure in Saudi Arabia’s fintech landscape.
What we wanted to do with Circlys is to take something deeply rooted in culture and digitalize it. There is an economic concept known as rotating credit and savings association (ROSCA) that is practiced in places like East Asia and Europe. Before banks existed, people would save and lend money to each other through informal groups to finance big purchases, like buying a house or a car. The traditional ROSCA model had 10 people contributing a fixed amount each month, and each month, one person would get the lump sum. The cycle continues until everyone gets paid out. We took this culture, added digitalization, and ensured that individuals could join a circle without needing to know the other participants. Additionally, we have mitigated traditional risks like defaults, job loss, or even death, ensuring members are protected. Our role is to maintain the sustainability of this practice, providing safety and transparency in the transactions.
Circlys brings people together without the need for participants to know each other. The system anonymizes members, and only Circlys knows the identities involved, ensuring trust and security. Unlike traditional ROSCA models, where participants personally manage trust and repayment, we handle this through technology, which adds a safety layer. The main difference between us and banks is that customers cannot withdraw their funds immediately as they would from a bank account. Instead, they must complete the circle, or if they choose to withdraw, they have to wait around 21 business days. We incorporated Circlys in 2018, but launched in 2017, just when Vision 2030 was announced. By 2018, the Financial Sector Development Program (FSDP) started to make an impact. Back then, we were a tech start-up, and regulators did not fully recognize this type of innovation. But today, things are different. Now, the sector is booming, and Circlys is seen as part of the GDP and the FSDP. In 2017, it was difficult for us to engage with banks or other players; however, now, they approach us for partnerships. Saudi Arabia’s focus on innovation is opening the door for many new businesses. The reason why our model will be significant is because we are democratizing financial services, making them accessible to people who are underserved by traditional banks. Our digital ROSCA also helps mitigate risks like money laundering and other illicit activities, especially since Saudi Arabia is a member of the Financial Action Task Force (FATF).
We serve a broad range of people. The minimum contribution is USD100, while the maximum is USD1300, so our clients vary widely. Whether they are a citizen or resident, an employee or a business owner, or even a student, housewife, or recipient of government support, as long as they have an income. The common denominator is that they are saving for specific goals—whether it is for a vacation, buying a phone, paying rent, or starting a business. Circlys offers flexibility, so our clients can save based on their goals and financial capacity, which makes our service appealing to a wide audience.
Right now, Circlys is focused on serving individuals rather than businesses. However, we are exploring ways to integrate our platform with companies. In the future, we plan to offer Circlys as a tool for businesses to help employees save for personal goals, be it for emergencies, education, or major life events. This could become part of a broader employee benefits package. We are working on building the necessary technologies and systems to support these business integrations.
Five years ago, I would have listed numerous challenges. At the time, the market was not product-specific, and offerings were limited. One challenge we have faced is the low number of mergers and acquisitions in Saudi Arabia. The M&A market in Saudi is small compared to places like the UAE, which has made it hard for businesses like ours to scale quickly. For large corporations or businesses seeking rapid growth, M&A is a useful strategy. However, in Saudi Arabia, M&A deals are rare, and there is a lack of risk appetite in venture capital as well. Many Saudi businesses are family-owned and are reluctant to sell or merge. Educating founders about the benefits of M&A and other growth strategies is crucial.
Brand awareness is more about efficient use of resources, not a major challenge. Saudi Arabia has one of the highest smartphone penetration rates in the world, with almost 98% of the population owning smartphones. This means we do not need to rely on traditional offline marketing. Reaching potential customers through digital channels is relatively easy, provided we have the budget to support it. In terms of awareness, it is a straightforward task, as long as we focus on the right digital platforms and allocate resources efficiently.
To date, we have around 2.2 million active users, and the total amount of savings in the Kingdom is about SAR3.8 billion (USD1 billion); however, by 2025, we aim to surpass 3 million active users and reach SAR10 billion in total savings. Demand for services such as ours is growing rapidly. Our revenue is increasing, and we are already profitable. While we have not distributed dividends yet, we plan to do so in the coming year. The market is hungry for digital financial solutions, and Circlys is well-positioned to meet that demand and continue growing.
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