NEWS
Saudi Arabia ’ s banking sector soars in 2022 , poised for growth in 2023
The banking sector in Saudi Arabia experienced a period of high profitability in 2022 as a result of the Kingdom ’ s ambitious Vision 2030 initiative and an economic boom experienced across the Gulf Cooperation Council ( GCC ) countries . A new report by Boston Consulting Group ( BCG ), titled Saudi Arabia ’ s Banking Sector : 2022 in Review and The Path Ahead , highlights that elevated energy prices , the abatement of COVID-related measures and an increase in tourism resulting from major global events have precipitated highly dynamic economic activities .
High energy prices are benefitting hydrocarbon economies and the International Monetary Fund ( IMF ) estimates that energy exporters in the Middle East and Central Asia will net a windfall of US $ 320 billion more than it had earlier forecast – approximately US $ 1.4 trillion over the next five years if current global economic conditions persist . Much of this will flow to exporters in the GCC , which number among the top energy-exporting nations in the world .
Markus Massi , Managing Director and Senior Partner , BCG , said : “ The banking sector in Saudi Arabia is well-positioned for growth
in the coming years . The Kingdom ’ s Vision 2030 initiative , along with high energy prices and an increase in tourism , are driving an economic boom in the GCC , and Saudi Arabia is at the forefront of this trend .”
70 % of European banks and FinTechs to increase investment in technology over the next 18 months
The report explores the current economic downturn and cost-ofliving crisis ’ impact on the financial technology buying landscape , offering insight into what influences banks ’ and FinTechs ’ choice of provider . CCgroup commissioned Censuswide to survey 251 decision-makers at major banks and FinTechs across the UK , France , Germany , Spain and Italy .
CCgroup has launched its research findings from How to influence fintech buyers , based on a survey of major banks and FinTechs across five European markets . The report reveals that , despite the FinTech and wider economic downturn , 70 % of European financial institutions expect to increase investment in financial technology over the next 18 months .
“ Geopolitical and macroeconomic turbulence is driving major financial institutions to buy more technology and at higher ticket prices . However , the market is crowded with thousands of suppliers vying for the attention of a small number of major buyers ,” said Daniel Lowther , Head of FinTech at CCgroup . “ The biggest issue FinTech providers face is that nearly half of buyers are only engaging with a supplier at the discovery or even the purchase stage . This means that firms are being evaluated from afar and selection depends on their reputation and online presence . Effectively , it ’ s all about the shop window .” www . intelligentfin . tech
7