Open Banking in Arab countries is expected to grow by 25% annually within five years, reaching up to $1.17 billion.
That is according to a new report by consultancy company red_mad_robot which predicts that the continued development of open banking systems in the region will enable startups and banks to step up innovation in different verticals of payments, neobanks and credit scoring, among others. As a result, consumers will have access to an increasingly broad range of financial services by 2029.
DeFi and Crypto
‘Fintech trends in 2024: navigating the future of financial technology’ also examines the Middle East’s DeFi market which it says is creating a unique dynamic. According to the report, some countries are embracing cryptocurrency, while others are creating regulatory frameworks to attract crypto firms and support blockchain adoption. This could lead to the development of tokenization or real-world assets and the adaptation of stablecoins as one of the payment methods in online and offline.
Fintech services in the Middle East are growing, particularly in niche segments, as traditional banks struggle to compete due to high costs and slow service delivery. The report suggests there is potential for a range of new fintech products on the market, such as those for gig-workers.
Green fintech
Among other trends, it notes the rise in green fintech and sustainable finance which will see fintech companies and banks start to incorporate ESG practices into their products and operations, implement special features and create relevant products.
Additionally, AI is a trend that is here to stay with a focus on integrating AI capabilities into digital banking and fintech products to generate additional revenue and improve the overall experience for customers.
CBDCs, meanwhile, continue to gain global momentum as more countries research and develop projects, with integration into financial systems enabling cross- border transactions, retail payments, and innovative applications.
Access full report here
.……….
Subscribe to the Seamless Xtra weekly NEWSLETTER
See our latest daily updates on LinkedIn
Photo by Kaitlyn Baker via Unsplash
.……….
