The adoption of fintechs in the Middle East remains relatively low compared to the US, Europe and Asia, however the region is waking up to new opportunities in the sector.
Thursday 25, April 2019 BY KUDAKWASHE MUZORIWA
UK-based Jupiter Asset Management said that the Middle East financial services industry is ready to adopt technology disruptions as rapid developments in financial technology, new regulations to improve transparency and the rise of digital savvy millennials support an irreversible global trend towards financial innovation.
Banks and financial institutions in the GCC region are showing considerable promise in adopting financial innovation as well as collaborating with fintech firms to digitalise operations and provide new solutions to customers.
Guy de Blonay, the Fund Manager at Jupiter Asset Management, said, “Across the Middle East, and particularly in the GCC, financial services providers are demonstrating a commitment to innovation, securing a number of partnerships with fintech providers as well as adopting the latest technologies from cybersecurity tools to payment platforms and working with regulators to increase access to new technologies.
Jupiter Asset Management stated that financial innovators in the UAE, Saudi Arabia and Bahrain, receives support from a Sandbox regulatory environment to facilitate the impact of new technologies as well as supporting firms in testing innovative solutions.
The establishment of fintech incubation programmes such as Dubai International Financial Centre’s (DIFC) FinTech Hive and the Saudi Arabian Monetary Authority’s (SAMA) Fintech Saudi, demonstrates the GCC bloc’s readiness to provide an environment for growth of emerging technology companies, added Jupiter Asset Management.
Additionally, the recent London IPO of Network International and Careem’s merger with Uber further highlights the region’s capacity to provide a fintech ecosystem for growth of world-leading technology firms.