A recent report has shown that in the last ten years, Middle East and North Africa (MENA) fintech start-ups have raised $100 million and the sum is li
A recent report has shown that in the last ten years, Middle East and North Africa (MENA) fintech start-ups have raised $100 million and the sum is likely to double by 2020.
The report (available at: wamda.com) stated that the region is witnessing an increasing number of financial technology start-ups. About 44% of them are partnering with corporations, while 44% seek a future collaboration with big companies.
Across all MENA countries, payment start-ups remain the most common with payments and lending start-ups representing 84% of the market in the region.
One of the leading hurdles in their way is the fact that they lack the thrust that banks have already gained.
Also, the region has been reportedly known for its lack of understanding of the financial technology services.
However, despite the difficulties that stand in their way, a large majority of the companies have said that they look to expand. The surveyed participants were clearly in favour of future expansion. More specifically, 98% (or 40 out of 41) fintech start-ups in MENA have commented that they want to enter new markets in the following two years, according to the report.
Still, some argue that a national sandbox have to established in Jordan, Lebanon and Egypt.
“One of the key challenges in Jordan is the lack of a fintech sandbox.”, said Faisal al Bitar, assistant investment manager at Oasis500 that is situated in Jordan.
According to opinions of supporters, this can be beneficial not only for start-ups, but also for banks and policymakers who remain skeptical of financial technology.