- According to most global finance executives, the working together viz. partnership is a both ‘win-win’ situation with MEA’s FinTech sector forecast to make up 8 percent of financial services’ revenue by 2022.
- All the global financial technology firms are becoming an integral part of the banking industry which is in pursuit to look out for finding out much simpler, quicker and more efficient services for customers in the dynamic digital global world.
Thus, collaboration is crucial, according to Industry experts. Banking Institutions have large customer base while the Fintech has very economical as well as efficient service solutions, and both can benefit from working together.
According to Jayesh Patel, head of Liv, digital banking unit of Dubai’s biggest lender, Emirates NBD, “Both banks as well FinTechs have common goals. These two’s partnerships can bring valuable elements to the financial services space.”
Within 2022, the FinTech sector in the Middle East and Africa region is forecast to make up to 8 percent of revenues from the financial services sector, driven in with customer demand and increased investment, reported jointly released in November by professional services company Accenture and Dubai accelerator FinTech Hive.
Through FinTechs, “banks will launch new services quicker,” whereas “FinTechs realize new ways that to decriminalize their innovations,” value-added Mr. Patel.
“FinTechs concentrate on specific problems, solve them, and build associate improved expertise for the client. This enables banks to feature additional services for their clients,” he stated.
Founded in 2017, Liv signed a multi-year agreement with payments innovation service Verrency in Melbourne in December last year. The deal enabled the Dubai lender to access cost-efficient, cloud-based payment solutions.
The global payments company Visa that works closely with banks and FinTechs, same each will build the best use of every other’s strengths to modify a “smart banking” model.
“FinTech start-ups will use resources, infrastructure and scale of ancient banks, whereas banks will harness the information analytics capabilities and cheap model to boost client expertise and cut back operational prices,” same Otto Williams, Visa’s VP and head of strategic partnerships – FinTech and ventures – for Central Europe, geographic region and continent.
Visa has launched international initiatives – FinTech means to program and Visa everyplace Initiative – to support the digital transition. In the UAE, the corporate is exploring digital avenues through its partnership with FinTech Hive, and the city International monetary Centre supports that.
Regional interest in FinTech has soared in recent years as new entities enter the market with solutions to chop prices and higher serve customers.
The DIFC extended the $100 million (Dh367m) FinTech fund in 2017 to establish start-ups and grow their businesses. Likewise, Bahrain Development Bank and also the Economic Development Board of Bahrain launched two separate funds of $100m every to support FinTech start-ups last year.
The UAE tops the list of nations with the very best range of FinTech start-ups within the region with sixty-seven, in keeping with Bloomberg Intelligence, followed by Turkey at forty-four and Jordan and Asian country fastening at thirty.
Sonny Zulu, head of retail banking at commonplace chartered UAE, same banks and FinTechs complement one another.
“Traditional banks cannot match the pace of FinTech innovation … [whereas] the latter cannot stand on their own.
“A partnership between them could be a win-win scenario that ensures compliance to monetary rules and client protection whereas capitalizing on the trending innovations,” same Mr. Zulu.
SC Ventures – a wholly-owned subsidiary of ordinary chartered – is taking minority stakes in FinTech corporations through its $100m innovation investment fund. It’s backed comes like Ripple, that connects banks and payment suppliers via RippleNet, for associate unrevealed quantity.
Last month, international bank Citi proclaimed a FinTech challenge for corporations based mostly within the geographic region and geographical region.
“We are the job on FinTechs with relevant, innovative solutions, starting from existing enterprises to early-stage start-ups. This may uncover innovative solutions for our shoppers,” same Emre Karter, treasury and trade solutions head for Mena, West Pakistan, and Turkey at Citi.”
“By giving the FinTech community the chance to showcase their ideas, we tend to hope to contribute within the development and growth of the general monetary scheme in the region,” Mr. Karter value-added.