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FIVE THINGS BANKS SHOULD KNOW ABOUT THEIR EVOLVING CUSTOMER PREFERENCES TO STAY COMPETITIVE IN 2024
Recently , FinTech in the Middle East and North Africa has experienced notable changes due to advancements in technology and shifts in consumer habits . Making it more important than ever for banks in the region to grasp and meet the evolving preferences of their customers . Additionally , the UAE ’ s financial sector is embracing Blockchain technology , and digital identity solutions are expected to play a significant role in the future of the country ’ s FinTech landscape . Yannick Decaumont , Managing Director Mediterranean and Middle East at CREALOGIX , tells us more .
Freedom of choice in payments and wallets
Historically , countries across the Middle East have predominantly relied on cash payments . However , digital transactions are steadily gaining ground . The rise of FinTech companies , supported by favourable regulatory frameworks across the region , is accelerating the shift towards cashless payments . One catalyst for this transition is the rapid growth of the e-commerce industry in the Middle East , projected by Deloitte to reach a market size of US $ 50 billion by 2025 .
Government initiatives in Saudi Arabia are driving the expansion of financial technology , fostering innovation and investment . FinTech firms are revolutionising payment systems , lending , and investment platforms with strong financial backing and governmental encouragement . Moreover , regulatory authorities have implemented a comprehensive framework for the FinTech industry , prioritising consumer protection , cybersecurity and fair competition . This framework aims to enhance customer service quality while promoting equitable market conditions .
Increased expectation of digitalisation and convenience
According to a recent survey by IT business solution provider Comarch , traditional banks in the Middle East acknowledge the necessity of Digital Transformation to enhance customer experience , streamline operations , and maintain competitiveness against emerging digital players .
The report also highlights technological advancements as a key trend , with AI anticipated to play a substantial role . PwC forecasts that AI could contribute up to US $ 38 billion to the financial , professional , and administrative services sector in the Middle East and Africa ( MEA ) by 2030 . Artificial Intelligence ( AI ) is revolutionising cybersecurity and regulatory technology ( RegTech ) within the FinTech sector , significantly enhancing efficiency and effectiveness . As AI continues to advance , its integration into cybersecurity and RegTech promises to set new
Government initiatives such as Saudi Arabia ’ s Vision 2030 , aiming for 70 % digital payments by 2025 , and the UAE ’ s efforts to integrate regional payment systems , are further driving this move towards a cashless economy .
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