Data analytics and artificial intelligence (AI) are the top technologies of the Fourth Industrial Revolution that are powering fintech solutions, says a Mastercard study on the state of fintech in the Middle East and Turkey markets.
The white paper titled ‘The Future of Fintech: Smart, Scalable, Collaborative’ was released during Fintech Surge in GITEX Global 2022. Mastercard is a strategic sponsor of Fintech Surge where senior global and regional executives are speaking at multiple panel discussions, fireside chats and presentations.
Announced during a panel discussion, the white paper findings were discussed by industry leaders who highlighted how young, technologically savvy, and informed consumers are driving the trend for fintech products and services across the Middle East and Turkey. The metaverse, AI, 5G, and data analytics are making hyper-personalised experiences possible for consumers, which, in turn, fuel the demand for a 24/7 digital experience.
“The fintech landscape is accelerating at an unprecedented speed to transform economies and the exchange of value,” said Ngozi Megwa, senior vice president digital partners and enablers, EEMEA, Mastercard. “Our study shows that new players are continuously emerging, their scaling strategies are maturing, and investments are accelerating.
“Yet, the core mission of fintech companies remains the same – they strive to empower consumers, increase financial access, and help bring the unbanked and underbanked into the digital economy. Mastercard provides the services and tools fintech innovators need to iterate at each stage of their journey, transform bold ideas, and achieve scale at pace to connect more people to the digital economy.”
The study highlighted that fintech are disruptors of the status quo in the pursuit of a better tomorrow. They are agile and able to identify opportunities – often during times of upheaval such as the 2008 financial crisis and Covid-19 pandemic, when the need for innovation is heightened.
The global fintech market was valued at $112.5billion in 2021 and is projected to reach $332.5billion by 2028, reflecting a compound annual growth rate (CAGR) of 19.8 per cent. The white paper also revealed that there are more than 470 fintech unicorns globally, with 40 of them added in Q1 2022.
The Middle East and North Africa (MENA) region alone is expected to have 45 fintech unicorns by 2030, a tenth of global numbers. In Turkey, 2021 was a record year for fintech deals and funding. The highest ever fintech round in Turkey was closed in 2021 and one startup announced its acquisition.
A major reason for this growth, the study found, is the collaborative approach that can lift all boats in the fintech sector of the Middle East and Turkey. The paper goes to say that fintech solutions in these markets work to resolve pain points of consumers and merchants in a very localised framework. For the fintech sector and companies to expand, they need to start operating across borders.
Image and article originally from thefintechtimes.com. Read the original article here.