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The proliferation of fintech companies in Saudi Arabia across a wide range of industries has increased the pace of disruption in the financial services industry, a trend spurred on by the Saudi Vision 2030.<br><br>
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Potential Threats And Breakthroughs For Saudi Fintechs In 2022 The proliferation of fintech companies in Saudi Arabia across a wide range of industries has increased the pace of disruption in the financial services industry, a trend spurred on by the Saudi Vision 2030. The number of Saudi Arabian financial technology companies is expected to increase in the next years. It was reported that the number of active fintech in Saudi Arabia increased by 37% in 2021 compared to the previous year. Talent and Recruitment To successfully create, develop, and improve digital financial services, businesses need to hire digital people with the necessary experience, education, and skills, as well as an in-depth understanding of their customer's wants and requirements. The Fintech Saudi annual study makes this point quite evident, as 38%-40% of fintech Saudi Arabia name talent and recruiting as their largest barrier to rapid expansion. Eighty-eight percent of the financial services organizations questioned by Fintech Saudi mentioned finding the right knowledge as one of the key challenges to hiring staff. Due to a lack of available talent in Saudi Arabia, fintech has looked to prominent IT outsourcing nations like Jordan to fill the void. However, outsourcing brings a whole new set of issues for businesses that need to prepare for them. However, due to the rapid pace of change in the financial services sector, the need for new skill sets may emerge out of nowhere, disrupting the software development process. ...which leads us to...
Technology and Product Development To succeed in today's highly competitive digital economy, financial institutions must create and provide cutting-edge digital financial products, services, and experiences to consumers who prioritize ease of use and safety. Traditionally, these abilities were concentrated in the financial services sector (finance, accounting, risk, compliance, and so on). The rising reliance on technology has reshaped the fundamental competencies required to provide financial services. So, what are the most important hard and soft skills for the developing Saudi Arabian financial services sector? Technical Skills In the next several years, the financial services industry will witness rapid expansion due to the widespread use of mature technologies like blockchain, robotics, and AI. The rising use of such technologies in the financial services sector has resulted in a greater need for technically competent individuals to assess, implement, and track the results of such initiatives. Soft Skills The future of the financial services industry will also demand people with soft skills who can use technology to innovate advancements. and adapt rapidly to technological Access to Customers Even while it may be difficult to access clients and do customer tests in Saudi Arabia, doing so will pave the way for improvements that will help the country overcome fundamental challenges such as a lack of financial literacy and exclusion. Key benefits of Open Banking include: Healthy Competition
With the advent of Open Banking, Tech Startups In Saudi Arabia will be able to compete based on the quality and affordability of the individualized services they provide to their consumers. Innovation As a result of increased competition, financial institutions and service providers in Saudi Arabia will improve their value offer by developing innovative new goods and services, which will lead to the development of additional income streams for the sector. Financial Inclusion As a result of open banking, more people in Saudi Arabia will have access to credit, which is good for their financial well-being and education about money management. Efficient Banking System Since banks and fintech can more easily work together and develop partnerships thanks to Open Banking, more clients will be able to rapidly and securely share their banking data with third parties, according to SAMA's research. The Saudi Arabian Monetary Authority (SAMA) will launch Open Banking in the country in 2022, after a year of planning, research, and development in 2021. Going Forward: Fintech Investment Opportunities in Saudi Arabia There has been a rise in loan investment in addition to repayments this year. Some examples of this include the $7.2 million Series A investment in invoice finance service Lendo and the $2.3 million Series A investment in the crowdlending platform Raqamyah. There have also been early-stage investments in other fintech, such as the accounting software VoM ($0.7m) and the personal financial management system Wafeer, as well as the savings platform Hakbah ($1.2m) at its seed stage. As a result of these investments, the fintech industry is growing, opening up opportunities for investment across various fintech sub-sectors. Starting in 2022, Saudi Arabia plans to deploy Open Banking, which is expected to hasten the creation of the next wave of fintech activity and support the expansion of fintech endeavors in domains including Open Banking APIs and embedded finance. We can assist you in realizing concrete outcomes in your efforts to speed up your digital transformation and expand your organization.
