Mastercard finds that data analysis and artificial intelligence will drive the growth of Fintech

Data analysis and artificial intelligence (AI) are the top technologies of the fourth industrial revolution driving fintech solutions, says one MasterCard study on the state of fintech in the markets of the Middle East and Turkey.

The white paper with the title ‘The Future of Fintech: Smart, Scalable, Collaborative’ was released during the Fintech Surge in GITEX Global 2022. Mastercard is a strategic sponsor of Fintech Surge where senior global and regional leaders speak at several panel discussions, fire chats and presentations.

Announced during a panel discussion, the white paper findings were discussed by industry leaders who highlighted how young, tech-savvy and informed consumers are driving the trend for fintech products and services across the Middle East and Turkey. Metaverse, AI, 5G and data analytics are enabling hyper-personal experiences for consumers, which in turn is driving the demand for a 24/7 digital experience.

“The fintech landscape is accelerating at an unprecedented rate to transform economies and the exchange of value,” said Ngozi Megwa, senior vice president digital partners and enablers, EEMEA, Mastercard. “Our study shows that new players are continuously emerging, their scaling strategies are maturing, and investments are accelerating.

“Yet the core mission of fintech companies remains the same – they strive to empower consumers, increase financial access and help bring the unbanked and underbanked into the digital economy. Mastercard provides the services and tools fintech innovators need to iterate at every step of the journey, transforming bold ideas and achieving scale at the pace of connecting more people to the digital economy.”

The study highlighted that fintech is disrupting the status quo in the pursuit of a better tomorrow. They are agile and able to identify opportunities – often in times of upheaval such as the 2008 financial crisis and the Covid-19 pandemic, when the need for innovation is heightened.

The global fintech market was valued at $112.5 billion in 2021 and is projected to reach $332.5 billion by 2028, reflecting a compound annual growth rate (CAGR) of 19.8 percent. The white paper also revealed that there are more than 470 fintech unicorns globally, with 40 of them added in Q1 2022.

The Middle East and North Africa (MENA) region alone is expected to have 45 fintech unicorns by 2030, a tenth of the global number. In Turkey, 2021 was a record year for fintech deals and funding. The highest-ever fintech round in Turkey closed in 2021 and a startup announced its acquisition.

A key reason for this growth, the study found, is the collaborative approach that can lift all boats in the fintech sector in the Middle East and Turkey. The paper says that fintech solutions in these markets are working to solve pain points for consumers and merchants in a very localized framework. For the fintech sector and companies to expand, they need to start operating across borders.