Digital transformation of Middle East financial services is accelerating
Friday, 05 03 2019, Category: Technology, Country: Middle East
The financial services industry looks ripe for disruption 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, says Jupiter Asset Management. In relative terms, the adoption of FinTech in the Middle East remains in its infancy compared to the US, Europe and Asia, but the region is waking up to new opportunities in the sector. Meanwhile, in 2018 a record-breaking USD 111.8 billion was invested in FinTech deals globally, threatening to upset traditional financial services providers who have underinvested in enhancing IT systems, software and processes. The research paper, “Shifting sands: FinTech as a catalyst for change in the Middle East’s financial sector” provides an in-depth look at emerging trends in 2019, against the backdrop of 2018’s surge in FinTech investment.
The GCC region shows considerable promise in embracing financial innovation. Across the region, banks and financial institutions are working with FinTech firms to digitalise operations and provide new solutions to customers. In the UAE and Saudi Arabia, financial innovators have been supported by a Sandbox regulatory environment to facilitate the impact of new technologies, supporting firms in testing innovation and solutions.
Guy de Blonay, 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, adopting the latest technologies from cybersecurity tools to payment platforms, and working with regulators to increase access to new technologies. Within the sector, the role of FinTech is manifold, from increasing efficiency to supporting broader industry trends, such as consolidation in the GCC banking sector.”
Source: MENA Herald