FinTech, basically is Financial Technology, a fancy name and attractive indeed, the question is, are banking re-imaging themselves to adopt to the fast pace of technology effecticy in our daily lives, or is there a real change in the banking and financial technologies other than ATMs, website and mobile Apps?!
According to Accenture, investments in FinTech start-ups grew in 2014 to reach more than $12b and in 2016 reached $13.1b according to EY, confirming the sector as a hot ticket for venture capitals.
Its not clear to me yet what does the contribution of the MENA startups in this space nor the size of investments from the region. although I see a lot of talk about startups as well as venture capitals, in my opinion still we need to have more structured approach to develop this industry in the MENA region.
Back to FinTech, in my views, another huge potential, I started to read a lot about, everywhere, the digital revolution in financial services is underway no doubt, who and how is going to impact the industry, is it the banking or the technology firms, not clear yet. Digital disruption has the potential to shrink the role and relevance of today’s banks, and simultaneously help them create better, faster, cheaper services that make them an even more essential part of everyday life for institutions and individuals. To make the impact positive, banks are acknowledging that they need to shake themselves out of the institutional complacency recognize that merely navigating waves of regulation and waiting for interest rates to rise won’t protect them from obsolescence.
Talking about all of that is interesting I guess, loking at the reality of the current legacy of the banking systems, how are they going about that, what will be the adoption ratio and speed, with the youth populations who were born with completely diferenet environment of technology and access to information at their fingertips.
Where do we stand with Blockchain and cryptocurrency?
Is that part of the changes coming to the traditional banking system or is it something else? I tried to research this and the relationship between the two. I felt people are talking about the FinTech but not as much about the cryptocurrency, I don’t know why! Is this good or bad? Will the cryptocurrency take-off as expected or will it burse as some are expecting? Will legislation define Blockchain so everyone is clear about it or will that take long? All these questions, I hope I will be able to address in my next article.
About the author
Mohammed Al Fardan has around two decades of ICT experience in starting up Middle East & North Africa operations for international ICT firms such as IBM, Lexmark, Microsoft and Software AG. He is an award winner Entrepreneur who lived the multinational culture and achieved a very successful growth in all his ventures. He has top executive contacts across the MENA region and he established leadership in the ICT industry.
He managed acquisitions and created venture capitals focused on ICT industry in the region. As well as he attracted many ICT firms to come and work in the MENA under his leadership. He was awarded the Entrepreneur of the year 2014 at iTech Gulf.
He created the concept, technical study and master plan for MENA ICT hub city, which is the first and only fully integrated smart city in the world as stated by industry experts.
At the end of 2007, he created successful partnerships and entered into Oil & Gas, Real Estate, Motors, Yachts, Aviation, Heavy Constructions, Civil Engineering, Marine & Maritime Engineering, Hospitality, Jewellery, Fragrances, Energy, Investments, Venture Capitals, Travel & Tourism, and Pharmaceutical.