Aid groups warn any invasion would add to already-catastrophic conditions for Gaza's 2.4 million people
FinTech solutions are transitioning from start-up offices to the mainstream, and companies such as PayPal, the now ubiquitous online payment portal, are becoming the norm for many financial product consumers. In response, mainstream banks are beginning to adopt mobile banking solutions to meet the demands of their clients, finance and technology experts said.
"Banks, start-ups and non-banking players are disrupting the global banking and finance industry with mobile apps, immersive technology and non-traditional payments. Emerging markets like the Middle East have the drive for innovation and opportunity to build next-gen infrastructure, enabling them to become global leaders in the digital payments revolution while providing a lifeline for billions of under-banked people," said James Barrese, PayPal's former chief technology officer and senior vice-president of payment services.
Emerging markets represent 90 per cent of mobile growth, according to industry body GSMA, and these figures are set to grow. With the UAE's ongoing progress in becoming a hub for FinTech, the potential for GCC-home grown innovation is apparent. As many FinTech solutions begin as small businesses and start-ups, the Gitex Start-up Movement at Gitex Technology Week 2016 is set to provide support for up-and-coming FinTech entrepreneurs.
Currently, two billion people use at least one of 270 available mobile money services, and industry studies show the need for further easy-to-use digital payment solutions. Frequent mobile banking users are 40 per cent less likely to switch banks, and customers who primarily use bank branches are three times more likely to switch banks, according to a report by consultancy Bain & Company.
Across Europe, the Middle East and Africa, 96 per cent of banks are deploying end-to-end digital transformation strategies, with cloud computing, Big Data analytics and mobile apps to enhance the customer experience, according to a new report by IDC Financial Insights and global technology company SAP. Half of EMEA banks report that they will hire a chief digital officer by 2020 to support these strategies, according to the report.
According to projections made by We Are Social's 2016 Digital Yearbook, the e-commerce industry in the Middle East and North Africa is set to rise by 11 per cent by 2019, to more than $5 billion. With the UAE in particular witnessing mobile broadband connection rates of 130 per cent - three times the global average - mobile payments are set to account for 60 per cent of that market. Currently, 80 per cent of online transactions in the Middle East are fulfilled by cash on delivery.
The UAE has been a first mover in the development of government initiatives and policies designed to accelerate the development of a digital economy. The UAE government recently instituted duty-free e-commerce hub 'mahajircom', a purpose-built free zone to facilitate online commerce. In addition, Abu Dhabi recently announced plans to become the financial technology capital of the region1.
E-payments and cashless transactions have received a strong push from the government, with the Dubai Smart Government obtaining the Payment Card Industry Data Security Standard Certificate, one of the internationally accredited standards of compliance and security developed to protect payment cardholders' personal information and prevent card fraud.
"Mobile apps have become a game-changer for global banking and finance, as in every other industry. Firstly, they have trained consumers to demand that every service should be simple and pleasant to use. Secondly, they have demolished entry barriers and levelled the playing field, enabling emerging markets to compete on an equal footing for primacy in the next wave of innovation," said Andres Wolberg-Stok, global head of emerging platforms nd services at Citi.
- issacjohn@khaleejtimes.com
Aid groups warn any invasion would add to already-catastrophic conditions for Gaza's 2.4 million people
The American they will face Australia and Serbia on July 15 and July 17 as part of their preparation for the Paris Olympic Games
The leaders emphasise that the deal to release the hostages would bring an immediate and prolonged ceasefire in Gaza
Dubai-based Sumit Augustine has had a philosophical approach towards spending
The regional upswing also defies oil production cutbacks
It's a treatise that would determine the course of your life, not just academically, but as a person too
A US-based company is developing an eVTOL aircraft for commercial passenger service and is expected to start operations by 2025 or early 2026
The project’s aim is to generate funds for Harmony House, an orphanage located in India's Gurgaon