Fintech continues to change the delivery of financial services across the Middle East region and remains high on the agenda of industry participants and governments seeking to develop and modernize financial services.
FREMONT, CA: The fintech market in the Middle East region will account for 8% of financial services revenue by 2022. This growth is fuelled by rising fintech startups, growth of the Islamic banking industry, increasing internet and mobile phone usage. Along with this, several traditional banks are undergoing digital transformations to reach more customers and compete with fintechs. The number of fintech firms in the Middle East is estimated to top 250 by the end of 2020. All these show that the Middle East has a considerable opportunity to develop itself as a digital-first region when it comes to banking and financial technology.[vendor_logo_first]
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The key factors contributing to the successful fintech ecosystem in the Middle East include the presence of a large pool of technology-savvy customers with good knowledge of the financial industry or a strong education system that contributed to the creation of such a talent pool. This also needs the presence of firms and individuals tasked with offering advisory services and coaching opportunities for this workforce.
Regulators that allow Middle East fintech companies to operate in a light regulatory environment under real-time conditions so that they can test their concepts and ensure viability. Their role is protecting the consumer and overall financial system by helping fintech companies spread their wings. Clarity of the regulatory requirements throughout the test phase and at the launch of fintech companies is vital. For Middle East fintech ecosystems, this includes a dimension related to their requirements and compliance.
When it comes to integrating fintech into traditional financial services, the countries in the Middle East have made significant strides by offering governmental support as regulatory approvals and funding. The Middle East is estimated to witness considerable changes to its banking, payments, and financial landscape in the next few years with the growth of fintech across the region.
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