The Middle East is expected to experience considerable changes to its finance ecosystems in the next few years with the emergence of fintech across the region.
FREMONT, CA: FinTech firms and banks embrace changes as they strive to address dynamic consumer demands for timely and convenient payments. Technology has initiated a transformation in policies and regulations, compelling financial institutions to rework on their strategies and push the boundaries for technology. The Middle East, being world's fastest-growing regions in the banking sector, is also witnessing heavy investments and financial institutions are improving their offering with the help of advanced technologies, aiming to match or surpass their competitors. In the middle east market, there is tremendous scope for both new entrants, and legacy players capitalize on the growing fintech solutions.
[vendor_logo_first]Start-ups focused on payments, remittances, insurance, digital banking, online lending, crowdfunding, blockchain, and cryptocurrency have seen vast investment within the middle east's fintech sector. Youngsters are the early adopters of tech products across the world. Countries like the UAE and Bahrain are acting as gateways to the wider Middle East region, and by basing operations in either country, fintechs are entering more developing markets. Internet and mobile penetration is also an important factor for fintechs. In the Middle East, mobile penetration has already topped 100 percent. The region is also preparing for the roll-out of 5G some time this year. All of this shows that fintech firms can survive and thrive in the Middle East region.
The fintech industry in the region has a lot of growth potential and innovation along with it. Government bodies are also pushing for more developments in the sector. They are even joining forces with private companies to help set up a sound ecosystem so that fintech start-ups flourish. When it comes to incorporating fintech into traditional financial services, the Middle East has made several strides by offering governmental support in regulatory approvals and funding.
Traditional banks in the Middle East will soon need to adopt 360-degree digital transformations to compete with digital giants. The arrival fintechs and a changing banking ecosystem coupled with digital disruption require a more thorough digital transformation agenda.
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