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Though not all international locations within the Gulf Cooperation Council (GCC) — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) — are recognized for his or her tech industries or their management in digital finance, a better look reveals that the Arab Peninsula is dwelling to a number of the most fun improvements in FinTech right now.
This PYMNTS collection will take into account every member of the GCC in flip, highlighting a few of their FinTech success tales and elaborating on their respective politico-economic environments with respect to technological innovation in finance.
Of all of the GCC nations, the UAE might be probably the most recognized for its booming FinTech sector.
Learn extra: The UAE’s Rising Function as a Regional FinTech Hub
The nation’s largest cities — Abu Dhabi and Dubai — function as international monetary hubs and are dwelling to a number of the largest banks within the Center East and North Africa (MENA). Because the UAE more and more appears to be like to digital transformation as a key avenue for financial diversification, unsurprisingly, the nation’s two megacities have emerged as necessary places for FinTech innovation.
Pioneering Wave of Neobanks
One space the place the UAE particularly leads is within the subject of cell banking, the place a excessive degree of smartphone penetration and a wholesome retail surroundings have allowed digital-first banking apps to flourish.
Associated: 59% of UAE Consumers Use Smartphones to Improve Their In-Retailer Expertise, Examine Finds
In contrast to in different elements of the world, the place innovation has been left to a rising technology of neobanks, within the UAE, established gamers had been among the many first to launch multi-feature banking apps available in the market.
For instance, though its guardian firm Mashreq is the oldest privately-owned financial institution within the UAE, the digital-first Mashreq Neo has been on the forefront of pioneering new applied sciences like facial recognition.
See additionally: UAE Digital-First Financial institution Mashreq NEO Debuts Facial Recognition
Different app-based options on provide from the UAE’s banks embrace Liv and E20 by Emirates NBD, and the Abu Dhabi Islamic Financial institution’s (ADIB) ADIB Good Banking and ADIB Amwali.
To not be outdone by their friends within the conventional Islamic Banking sector, lately, a younger cohort of neobanks have additionally entered the fray.
Yap, Wio and Zand are pioneering a wave of cell banking apps that take the branchless mannequin popularized in Europe and the U.S. as their mannequin whereas catering particularly to the wants of consumers within the UAE and its GCC neighbors.
Learn extra: UAE Approves New Digital Financial institution Wio
However their ambition doesn’t cease there. With overseas funding flowing into the nation’s startups, alongside the sizable Emirati sovereign wealth funds, the UAE has each the human and monetary capital to behave as a launchpad for brand spanking new FinTechs to step as much as the worldwide stage.
Associated: UAE-Primarily based Digital Financial institution YAP Raises $41M to Develop to Saudi Arabia, Pakistan, Egypt
Actually, UAE-based corporations play an more and more vital function in the entire of the MENA monetary system. Firms like Nymcard are strategizing round constructing regional dominance because of the UAE’s established banking heart and shut political and financial ties to different international locations within the GCC and past.
What’s extra, as scaling startups from different international locations look to develop throughout the area, Abu Dhabi and Dubai are seen because the go-to places for organising MENA headquarters.
See additionally: The Key to Fixing MENA Banking Challenges Begins With Regulators
Lively Authorities Help
By GCC and international requirements, the UAE is usually thought to be having an economically progressive political surroundings that cultivates innovation and an entrepreneurial spirit. Because the Nineteen Seventies, efforts to diversify the nation’s economic system have seen successive governments plow billions of {dollars} of oil wealth into the cities of Abu Dhabi and Dubai.
The federal government’s assist has additionally been instrumental within the creation of a number of initiatives and enterprise growth applications, together with enterprise and innovation hubs, expertise parks, free financial zones, Dubai Web Metropolis and the Dubai Worldwide Finance Middle — all aimed toward shaping the nation’s monetary panorama.
Associated: DIFC Selects Tarabut Gateway for MENA’s First Open Finance Lab Associate
As an additional signal of its assist to drive enterprise progress, the federal government just lately introduced a scheme to supply as much as a one-year paid depart to authorities staff who need to begin their very own companies.
Learn extra: UAE Authorities Workers Supplied 12 months Paid Go away to Begin Companies
“Our objective is to encourage the youth to reap the benefits of the massive business alternatives provided by our nationwide economic system,” Sheikh Mohammed bin Rashid Al Maktoum, the vp and prime minister of the UAE and ruler of Dubai, mentioned in a translated tweet.
For all PYMNTS EMEA protection, subscribe to the day by day EMEA E-newsletter.
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NEW PYMNTS DATA: HOW UTILITIES AND CONSUMER FINANCE COMPANIES CAN ENHANCE THE BILL PAYMENTS EXPERIENCE
About: Greater than half of utilities and shopper finance corporations have the aptitude to course of all month-to-month invoice funds digitally. The kicker? Simply 12% of them do. The Digital Funds Edge, a PYMNTS and ACI Worldwide collaboration, surveyed 207 billing and collections professionals at these corporations to study why going completely digital stays elusive.
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