FinTech – which stands for financial technology – is not a new concept and it basically refers to technological innovation in the financial sector, including the use of cutting-edge tools and platform to facilitate the financial services. From the first day that banks in the UAE started using computers, the banking sector has seen tremendous progress in FinTech applications including ATMs, credit cards, online and mobile banking.
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Over the past few years, significant growth has emerged in the financial technology space, driven by four key elements:
- Technology: The steady growth of smart technologies and access to its innovations accelerate more than ever before.
- Customers Demand: Traditional banks now had customers who are demanding new levels for personal, comprehensive and retail financial services.
- Entrepreneurs: A significant number of technological talents already left banks to establish their new Fintech startups.
- Governments: The authorities have been keen to legislate this sector, which will continue to support small and medium enterprises’ efforts to facilitate financial services.
Interest in the Fintech has increased significantly among both individuals and investors, albeit for different reasons.
The individuals are more interested in financial technology because it saves them time and effort through its innovative payment methods that provide safe and secure channels.
As for investors and entrepreneurs, their focus is how the Fintech means could facilitate doing their business both in terms of financing different projects or even borrowing and transferring value between different people. This has made the process of transferring funds to finance individual projects or startups faster and easier than traditional lending channels, which often consume long procedures and complicated routines.
In a recent report, the International Monetary Fund (IMF) said the UAE regulators had already enacted legislations and set up collective rules to encourage innovation and information exchange about innovative financial services.
“The financial technology has grown rapidly in terms of importance and popularity in the region, especially in the UAE, where significant progress has been made,” the IMF added.
Dubai has taken the lead in raising awareness about financial technology across the Middle East and Africa. The UAE iconic city was listed among the top ten Fintech destinations. Dubai has come out on top in the region and was ranked 10th in The Banker’s annual International Financial Centre (IFC) index, ahead of key Fintech hubs such as Montreal and Sydney.
Additionally, Dubai has been superior to several destinations in terms of the Fintech adoption, ranking fourth before Hong Kong, Vancouver, Berlin and Singapore. It also earned a good recognition in terms of talent and innovation, overtaking China’s Shanghai.
In terms of economic maturity, Dubai bested big cities such as Montreal, Hong Kong and Sydney. It has also outdone in the government support sub-index, surpassing Berlin, Shanghai, Boston and the Silicon Valley.
