FinTechs and Banks Unite for Innovation at DIFC’s Dubai FinTech Summit Dialogues

The Dubai International Financial Center (DIFC), the leading international financial hub in the Middle East, Africa and South Asia (MEASA) region, hosted the second Dubai FinTech Summit (DFS) Dialogues this week, powered by the Innovation Hub. Leaders of 10 leading regional banks and FinTechs were invited to unpack the challenges facing the financial sector and discuss how the industry can reduce risk and build robust, sustainable financial institutions.

According to recent research by Report Ocean, the global FinTech Lending Market was valued at approximately USD573.05 billion in 2021 and is expected to grow at a healthy growth rate of more than 27.4% during the forecast period 2022-2029.

Hosting the roundtable, Mohammad AlBlooshi, Head of the DIFC Innovation Hub and FinTech Hive, said:

“As an industry based on trust and confidence, we currently see the banking sector experiencing a time of disruption. Given global headwinds, we have an opportunity to build more resilient institutions through collaboration between banks and fintech.”

Commenting on the session, he added:

“Through convenors like this roundtable and the first-ever Dubai FinTech Summit in May, we are facilitating dialogue and collaboration opportunities for long-standing financial institutions, regulators and promising entrepreneurs to together map out how the sector can – and should – move forward.”

The Age of Banks vs FinTechs is behind us

The FinTech sector, widely recognized as a major competitor to banks, is expected to double in size from USD135.9 billion in 2021 to USD266.9 billion in 2027, according to the DIFC FinTech Hive’s 2022 FinTech Report. Additionally, with approximately 50 percent of the MENA region unbanked or underbanked, FinTechs have played a critical role in promoting inclusive economic growth in the region.

However, a unanimous takeaway from all banks at the DFS Dialogue captured how both entities are indeed symbiotic.

Sanjay Sethi, Senior Managing Director, Head of Global Transaction Banking at First Abu Dhabi Bank, said:

“This is an age of collaboration and co-creation where leading financial institutions and pioneering FinTechs can embark on a journey of innovative discovery together. This is especially true when we look at opportunities to expand into new geographies, improve product capabilities, increase revenue or scale or optimize our business faster and more efficiently. Alongside this, FinTech solutions in transaction banking are growing in agility every day. Looking to the future, FAB will continue to partner with pioneering FinTechs to deliver impactful advances across the financial services industry.”

Earlier this year, the UAE Central Bank announced the implementation of its Digital Dirham digital currency strategy, which promises to be a critical step in the country’s payments industry, which will deeply impact banks, FinTechs, businesses and customers. AlBlooshi added:

“As such, the synergy between banks and FinTechs is proving to be inevitable as the industry moves towards a cashless economy.”

Technology: Disrupting and Enhancing Trust

Raman Thiagarajan, CEO and Founder, Zenda, said:

“As a FinTech service provider, the core, as with any tech player, is to build an emotional connection with the end consumer.”

As customers turn to technology, banks have been forced to adapt traditional trust building to complement the digitization of banking. Anand Krishnan, Head of Technology, Emirates Investment Bank, said:

“It is increasingly important that banks continue to invest more in technology that not only builds but maintains trust with customers throughout the journey.”

Google predicts that the finance and banking industry will emerge as the primary user of AI technology in MENA. The industry will account for almost 25 percent of all AI investments in the region, and banking technology alone is expected to contribute 13.6 percent to the region’s gross domestic product by 2030.

Mehdi Tazi, Chief Operating Officer, Lean Technologies, stated:

“I think customers still trust banks more than FinTechs – they’re bigger more established institutions. However, something FinTechs do very well is streamline processes when they help onboard customers into these larger banks. As a result, we’re seeing a marriage between FinTech and bank that improves the customer journey, and ultimately builds trust.”

The onset of Web 3.0 ushers in a transformative moment for financial services, capital markets and banking, changing customer expectations and revolutionizing the sector. The total transaction value of embedded finance is said to reach USD7tn by 2026, according to Rakesh Reddy, CEO, Cloud4u:

“This is particularly useful for Platform as a Service (PaaS) providers who will greatly benefit from this growth, undeniably becoming a major industry disruptor.”

Nilay Singh, Managing Director, State Bank of India, DIFC, pointed out:

“We cannot ignore AI. It must be adopted, but smartly and effectively, and this is where we must understand what to outsource and when to collaborate.”

Dubai is gearing up for continued growth and innovation, so how can policy makers, entrepreneurs and investors come together to move forward in these volatile times? With a common goal of improving inclusive, stable banking solutions for the region, traditional financial firms are increasingly optimistic about expanding their partnerships with promising FinTechs to help bridge gaps and strategically stay ahead of the curve. Join the dialogue at the Dubai FinTech Summit at Madinat Jumeirah in Dubai. Visitors can now buy tickets with early bird prices available until 15 April 2023.

About Dubai International Financial Center

The Dubai International Financial Center (DIFC) is one of the world’s most advanced financial centers and the leading financial hub for the Middle East, Africa and South Asia (MEASA), comprising 72 countries with an approximate population of 3 billion and an estimated GDP of 8 trillion dollars.

With a nearly 20-year track record of facilitating trade and investment flows across the MEASA region, the center connects these fast-growing markets with the economies of Asia, Europe and the Americas through Dubai.

The DIFC is home to an internationally recognized, independent regulator and a proven legal system with an English common law framework, as well as the region’s largest financial ecosystem with over 36,000 professionals working across over 4,300 active registered companies – making up the largest and most diverse pool of industry talent in the region.

The centre’s vision is to drive the finance of the future through ground-breaking technology, innovation and partnership. Today, it is the global future of finance and innovation hub offering one of the region’s most comprehensive FinTech and venture capital environments, including cost-effective licensing solutions, tailored regulation, innovative accelerator programs and growth start-up funding. -oops.

Comprised of a range of world-renowned retail and dining venues, a dynamic arts and culture scene, residential apartments, hotels and public spaces, DIFC continues to be one of Dubai’s most sought-after business and lifestyle destinations.

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