Why the Middle East is such a great region for fintech startups

By Bizclik Editor

The Middle East has a booming industry of fintech startups.

Experts are convinced this is partly because of the always-connected banking habits of Millennials. In the run-up to GITEX 2016, research had been released showing a surge in growth of “moneyhawks” - the high-income, under-35-year-old customers who want constant mobile access to their banking and finance accounts.

Banks often struggle to profit from their customers. The bottom 28 percent of customers give a 22 percent profit loss, due to cashing checks at branches or not paying back loans. Moneyhawks are only 16 percent of banks’ customers, but generate the majority of profit, especially from digital payments, according to the Database Marketing Institute.

Millennials in the UAE are a key target for banks. About 60 percent of the population is under 25 years old, and the GDP per capita is over USD 48,000, the second-highest in the Middle East and North Africa, according to a recent report by the Kuwait Financial Center, Markaz.

Abdirizak Ibrahim Salah, Co-Founder of Trriple, a UAE-based digital payments startup, commented: “UAE Millennials do not want to wait at bank branches – they want constant, secure, and easy access to their banking and financial from their mobile devices. As a result, more banks are establishing partnerships with FinTech startups, which can drive digital payment innovation with a more agile mindset.”

At last year’s GITEX, Trriple launched as a company and signed a partnership with Ericsson on mobile wallet solutions in banking and Smart Cities. Trriple returns this year to showcase digital payment innovations, and exhibit alongside FinTech startups at the GITEX Startup Movement. Salah added: “Cash represents 75 percent of the UAE’s total payments – leading to a fragmented payment space for consumers, businesses, and banks. Innovative FinTech startups can use mobile apps to transform the UAE consumer payments space, leading to a cashless society by 2018.”

Follow @BusinessRevME

Read the September 2016 issue of Business Review Middle East magazine

 

Share

Featured Articles

Abu Dhabi Airports prepares for Terminal A opening

A decade in the making, Abu Dhabi International Airport welcomes 6,000 volunteers to test operational readiness of stunning new Terminal A building

Business Chief expands portfolio with new look and coverage

Business Chief Middle East & Africa launches with fresh new look and extended coverage of the region, with exclusive executive interviews and insights

How Octopus Energy grew to become an industry giant

Octopus Energy continues to grow after a deal was agreed to acquire Shell Energy in the UK and Germany, taking its customer base to almost seven million

Perkbox CEO: How to support employees through tough times

Human Capital

How Middle East is embracing the future of digital finance

Corporate Finance

UAE Lulu Group shifts business for global growth and IPO

Corporate Finance