The Fintech landscape in the Middle East and North Africa (MENA) region is undergoing a transformative journey, marked by regulatory shifts, technological advancements, and a surge in innovative players.
Recent projections by Statista in the global Digital Payments market forecast a staggering 54.94 million users by 2027, adding a compelling layer to the evolving narrative. As the global financial hubs transform, the ripple effect extends across the broader MENA region.
As the region is witnessing the birth of new banks and digital Fintech companies, each carving its niche in this dynamic landscape, Stiven Muccioli, CEO and Co-founder of BKN301, sheds some light on the transformative Fintech sector. BKN301 is a payment and Banking-as-a-Service provider in the MENA region, and an innovator in the financial technology sector.
Stiven believes that there is a significant movement in Fintech in the region, “In Doha, we’ve witnessed new regulations on digital banking. Cross-border payments and international money transfers are areas of high interest, particularly with new regulations and increased investments,” he said.
He further added that the Fintech industry is experiencing growth with the emergence of new banks and digital Fintech companies. The region’s wealth, coupled with a substantial foreign workforce, emphasises the pressing need for easy access to financial technology to catalyse economic activities. The connection between the MENA region and Europe is a critical aspect, given geopolitical situations and the emergence of alternative payment systems like China UnionPay. As Stiven points out, these factors play a pivotal role in shaping the trajectory of Fintech in the region, establishing it as a strategic hub for connectivity.
As the word itself suggests, Fintech is incomplete without technology. One of the key reason for the growth of Fintech in the region is attributed to the explosive adaptation of technology. Stiven delved into the role of innovative solutions in facilitating seamless financial services.
“Our solution disconnects banks and Fintech from long-term contracts with suppliers, particularly in core banking and KYC solutions. We provide a high-voltage solution that allows banks to connect to different suppliers through APIs, eliminating the need for them to change their entire system each time. This flexibility enables quick adaptation to new technologies at a lower cost, fostering innovation in the industry,” he said.
However, amidst the burgeoning growth, challenges persist. The need to create the right environment for workers to access financial services stands out prominently. Standardised access is essential, especially for low-wage workers facing hurdles in opening bank accounts in certain regions. “Another challenge relates to currency, as most currencies in the region are tied to the dollar. Addressing these issues is essential to protect financial transactions in the region,” he said.
Looking forward, Stiven foresees the Fintech landscape evolving globally, mirroring trends observed in Europe and the United States. “Traditional banking systems may shift focus to corporate and big business, while the retail sector could be covered by neobanks, digital banks, and Fintech companies.” The integration of cost-effective solutions is expected to support both small and large players in navigating this transforming landscape.
The Fintech industry is at a crossroads, with the MENA region positioned as a focal point for growth and innovation. Challenges notwithstanding, the industry’s future lies in the hands of adaptable and forward-thinking players, driven by the need for financial inclusion, seamless services, and a commitment to staying ahead of the technological curve.
