It’s a tech era in financial sector

RITIKA SHARMA / Emirates Business

Governments of the GCC nations are being lauded by experts globally for their unwavering drive towards innovation in the segment of financial technology, commonly known as ‘FinTech’. Gauging its long-term rewards and sustainability in the financial sector, UAE is working towards enhancing the FinTech infrastructure by connecting stakeholders to support innovations upto the optimum level. This movement is poised to garner huge benefits for the financial industry and the regional economy in the coming months, experts assert.
According to a recent study conducted by the global management consultancy Strategy&, the region has a strong foundation to develop an effervescent FinTech sector, thereby changing the present scenario of limited investments in the segment.
Talking about UAE’s role in promoting innovation and creativity in the FinTech sector, Farida Balkish Khan, an independent financial analyst working in Dubai, told Emirates Business, “UAE has earned its place as a leader in the field of innovations across an array of fields. As far as FinTech novelties are concerned, a number of events are happening in UAE that aim to bring together stakeholders on common platform to address topics like digital banking ecosystem, branch transformation and changes in the customer behaviour.”
In the UAE, incubators and innovation hubs are supporting the creation and growth of local digital enterprises in a big way. Reports state that FinTech global investments quadrupled to nearly $12 billion (AED44 billion) in 2014 and the figures are expected to grow making it essential to invest in this segment for the serious stakeholders.
It is notable that critical success factors, for developing a healthy FinTech environment, exist in the country in the form of government-driven funding programmes and the financial advisory services.
“UAE supports technology start-ups to sustainably grow in the terms of FinTech. This is a part of long term strategy of UAE to become a knowledge-based economy. Start-ups are always the heart and soul of any economy and investment made in their growth will benefit UAE as a nation, especially in digital trends like FinTech,” stated a senior financial analyst, requesting not to be named.
“Ultimately we are expecting UAE to emerge as a trendsetter in the
FinTech industry in the MENA
region. Successful models of the Emirates could be replicated in other nations through mutual cooperation,” she added.
The aforesaid study by Strategy&, named ‘Developing a FinTech ecosystem in the GCC’ stated that “a consensus is emerging among governments and financial institutions that nurturing these ecosystems is important and beneficial for the region.”
Daniel Diemers, Partner at Strategy& Dubai, said in an official statement, “It is essential to see how GCC governments are playing an important role in the sector of FinTech innovations, even better than the established markets worldwide. Need of the hour is enforcing policies and a regulatory environment that will ease the development of FinTech and eventually attract more talent to the region, boost entrepreneurial and business activities, and most importantly improve the country’s overall competitiveness.”