Over the last decade, FinTechs have been rapidly transforming the global financial sector services from digital payments, lending, insurance, asset & wealth management, capital markets to supervision.
When we think about defining FinTechs, the Financial Stability Board (FSB) recognises them as “technologically enabled financial innovation that could result in new business models, applications, processes, or products with an associated material effect on financial markets and institutions and the provision of financial services”.
The ongoing pandemic has put a spotlight on the increasing need for digitisation with FinTechs and digital banking enabling safe and distant functioning not only to the global financial services industry but the entire economy.
When we look closer to home, the GCC is investing heavily in the FinTech space, and Saudi Arabia efforts are being driven specifically by the Financial Sector Development Program (FSDP), aligned to the Vision 2030 programme to accelerate the growth of the FinTech industry.Taking learnings from global leading FinTech Hubs such as Singapore and the UK, the Saudi Arabian Monetary Authority (SAMA) is responsible for bringing the Kingdom’s FinTech strategy to life.
Some strategic milestones in the evolution of the strategy have included the creation of “FinTech Saudi” in partnership with the Capital Market Authority (CMA), the development of two regulatory sandboxes (SAMA and CMA) and an innovative accelerator program.