Saudi Arabia's Fintech Revolution: Paving the Way for a Digital Financial Future

Saudi Arabia is setting the stage for the future of fintech

The upcoming 24 Fintech event is a testament to the kingdom's vision and its dedication to driving forward fintech, says one of the organisers The GCC is abuzz as Riyadh prepares to host 24 Fintech, a premier event set to showcase the best of the fintech landscape in the region and beyond. The event takes place from September 3-5, 2024, and major global players have already taken notice, with key sponsors for the event including the likes of VISA, J.P. Morgan Payments, Mozn, and many more. The event is expected to attract 26,000 attendees, 300 exhibitors, 200 investors, 80 start-ups, and host up to 175 hours of expert-led content. Attendees are expected to include banking industry executives, payment providers, regtech and compliance experts, insurtech companies, AI and machine learning experts, cybersecurity companies, wealth tech and robo advisors, lending and crowdfunding companies and financial inclusion players, among many more. A key reason behind the event happening in Riyadh is that Saudi Arabia's Vision 2030 has become a driving force behind the country's rapid technological and economic transformation. 24 Fintech 2024 aligns with these objectives, offering a unique opportunity to highlight the kingdom's progress in fostering a vibrant FinTech ecosystem, say the event's organisers. "Saudi Arabia's commitment to creating a supportive environment for FinTech growth is truly commendable. 24 Fintech 2024 is a testament to the kingdom's vision and its dedication to driving forward FinTech," says Annabelle Mander, senior vice president at Tahaluf (one of the organising partners of 24 Fintech). Four packed stages As part of the event, attendees will be able to experience four stages, consisting of action-packed talks, networking and Q&A sessions. These four stages will range from the Executive Summit, 24° Trends Stage, 24° Futures Forum and Fintech Fusion. Executive Summit The Executive Summit stage will be a key platform for learning and collaboration in the fintech industry. This stage will host discussions on the latest trends, strategies, and innovations in fintech, providing participants with insights into the industry's evolving dynamics. Attendees will have the opportunity to connect with key decision-makers and gain valuable knowledge. 24° Trends Stage 24° Trends Stage is a 3-day stage diving into trends shaping the world of finance. It will explore the very latest trends and game-changing technologies that are reshaping the financial landscape. The Trends Stage also offers friendly and informative sessions that provide invaluable insights into the market, evolving trends, and strategies, giving attendees the chance to connect with industry leaders and visionaries. 24° Futures Forum The 24° Futures Forum will be dedicated to blue-sky thinking. This platform aims to enrich and inspire future fintech leaders by exchanging groundbreaking ideas and innovative solutions. It is designed to foster transformative change in the financial landscape. Fintech Fusion Fintech Fusion will bring together investors and startups for dynamic discussions and showcases. This stage will feature insights from investors, presentations from fintech pioneers, and opportunities for networking and Q&A sessions. Participants can explore the evolving industry landscape and learn from the experiences and strategies of top investors and fintech founders. To learn more about 24 Fintech, you can visit www.24fintech.com.

The future of fintech: Key trends shaping the future of finance at '24 Fintech

Image credit: Getty Images The inaugural 24 Fintech summit, a groundbreaking financial services-focused event in Saudi Arabia, is set to bring top government officials and global finance leaders together, to address critical issues shaping the future of the industry. Key topics on the agenda include governance, risk and policy, cybersecurity, global interoperability, and innovations in payment systems. As Saudi Arabia's fintech sector rapidly evolves, now accounting for nearly 20 per cent of all venture investments in the kingdom, the event will serve as a crucial platform for discussing the latest trends, challenges, and opportunities. Here's a look at the key trends that will be highlighted at the event: 1. Digital-first future The shift towards a digital-first approach is revolutionising financial services globally. In 2023, digital payments in the Middle East and North Africa (MENA) region grew by 19 per cent, with the market expected to reach $200bn by 2026. This trend underscores the growing importance of digital technology in enhancing financial inclusion and accessibility. 2. Direct access to payment systems Cross-border payment systems remain a significant challenge, with global remittance costs averaging 6.3 per cent in Q1 2024. The event will explore the key barriers in payments and how fintech companies can reduce these costs. In the MENA region, cross-border payments are forecasted to grow by 12 per cent annually, reaching $55bn by 2025. Additionally, Saudi Arabia is ranked third globally in remittance outflows, with SAR144bn ($38.4bn) sent abroad in 2023 alone. 3. Balancing innovation and regulation As the fintech market continues to grow at a projected CAGR of 25 per cent from 2023 to 2028, reaching $310bn, the role of central banks in regulating fintech becomes increasingly crucial. Discussions at the event will focus on how regulatory frameworks can balance fostering innovation while ensuring financial stability, particularly in emerging markets like Saudi Arabia. 4. Saudi Arabia's AI strategy in finance Saudi Arabia is making significant investments in artificial intelligence (AI), aiming to become a global leader in AI by 2030. The kingdom's AI market is expected to grow by 35 per cent annually, contributing $135bn to the economy by 2030. Various speakers at '24 Fintech will delve into how this AI strategy is transforming the financial sector, particularly in areas such as risk management and customer service automation. 5. The evolution of payment landscapes The global Buy Now, Pay Later (BNPL) market is set to reach $1.2tn by 2027, with a CAGR of 28 per cent. In the MENA region, the BNPL market was valued at $9bn in 2022 and is projected to reach $146.19bn by 2032, growing at a CAGR of 32.20 per cent from 2023 to 2032. This growth presents a significant opportunity in a region where card usage is underutilised, and e-commerce adoption is rapidly increasing. 6. Resilience in fintech regulation Fintech startups must navigate complex regulatory environments to attract investment. In 2023, global fintech investment reached $75bn, with the MENA region accounting for $3bn. The event will focus on strategies for startups to thrive in this challenging landscape, particularly in Saudi Arabia, where fintech investment is expected to grow by 15 per cent annually. 7. Capital markets and venture capital The digital transformation of capital markets is accelerating, with the global digital assets market projected to reach $23bn by 2025. Saudi Arabia's Vision 2030 has spurred a surge in venture capital, with fintech emerging as a major beneficiary. In 2023, venture capital funding in Saudi Arabia's fintech sector grew by 60 per cent, reaching $500m, with fintech leading investor transactions in H1 2024. 8. Cybersecurity As the fintech industry faces increasing cyber threats, cybersecurity spending is expected to reach $45bn globally by 2026. Various discussions around fintech resilience will address strategies for mitigating risks such as ransomware and blockchain exploits, particularly as the MENA region experiences a 25 per cent increase in cyberattacks targeting financial institutions. This innovation bridges the gap between conventional banking and the digital finance world, offering a more efficient way to manage and transfer assets. Meanwhile, central bank digital currencies (CBDCs) and stablecoins are also key developments in the fintech space. Over 130 countries are experimenting with CBDCs, seeking to modernise payments and enhance financial inclusion. Furthermore, stablecoins, which aim to reduce cryptocurrency volatility by anchoring their value to stable assets, play a critical role in the emerging digital ecosystem. These trends highlight the dynamic nature of the fintech industry and the importance of staying ahead in a rapidly evolving financial landscape. The '24 Fintech event, scheduled for September 3-5, 2024, promises to be a must-attend gathering for industry leaders, investors, and innovators shaping the future of finance. Read: Inaugural '24 Fintech' edition to host global finance industry leaders

In numbers: Saudi Arabia's 24 Fintech 2024

Image: Getty Images As the global fintech sector is poised to quintuple by 2030, reaching $1.5tn in revenue, Saudi Arabia is emerging as a key player in this transformative space. The kingdom's fintech sector is projected to grow from $64bn in 2024 to $87bn by 2029, with the number of fintech companies surging from 89 in 2022 to 200 in 2023. To mark the sector's growing importance and in line with Saudi Arabia's Vision 2030, the inaugural 24 Fintech 2024 event is set to take place from September 3-5 at the Riyadh Front Exhibition and Convention Centre. This landmark event aims to elevate Saudi Arabia as a global fintech powerhouse, fostering innovation, collaboration and networking among industry leaders. "Saudi Arabia's fintech industry is experiencing remarkable growth, driven by robust government support and the digitalisation of the banking and finance sectors," said Annabelle Mander, senior vice president at Tahaluf, one of the event's organising partners. 24 Fintech 2024 will feature a host of initiatives, including Venturescape, which will gather over 200 global investors and 100 fintechs for workshops, mentorship, and pitch competitions. The event will also spotlight top trends such as artificial intelligence and machine learning, with experts discussing their potential to revolutionise financial services. With high-profile speakers and sponsors like Visa, J.P. Morgan Payments, and Mozn, 24 Fintech 2024 promises to be a pivotal event, positioning Saudi Arabia at the forefront of fintech innovation on the global stage. In numbers: Shining the spotlight on 24 Fintech 2024 and the kingdom's fintech ecosystem

Insights: How Saudi Arabia's fintech evolution is unfolding

Image: Getty Images The MENA (Middle East and North Africa) region has witnessed unprecedented growth in the fintech sector in recent years. According to a McKinsey report, the region's positive macroeconomic outlook, coupled with the consistently strong performance of its financial services industry, provides a favourable environment for continued fintech growth. The consultancy forecasts that the region's fintech revenue could nearly triple from $1.5bn in 2022 to between $3.5bn and $4.5bn by 2025, boosting fintech's share of financial services revenue from less than 1 per cent to approximately 2 to 2.5 per cent. Saudi Arabia, in particular, has rapidly advanced its fintech industry, making significant strides toward becoming a global fintech hub. Since 2018, when the Saudi Central Bank and the Saudi Capital Markets Authority (CMA) launched Fintech Saudi, the industry has experienced remarkable growth. This initiative has catalysed a 20-fold increase in the number of fintech companies, attracting over SAR4bn in investments, according to consultancy Arthur D. Little. Key programmes such as the Fintech Accelerator and the Fintech Regulatory Sandbox have been instrumental in this success. Saudi Arabia's Vision 2030 has further solidified fintech's role in the national economy, setting ambitious targets that include establishing 525 fintech companies, creating 18,000 jobs, and contributing SAR13.3bn to the GDP by 2030. The upcoming 24 Fintech event, being held at the Riyadh Front Exhibition & Conference Centre from September 3-5, is expected to provide a significant boost to the industry. The inaugural event will bring together some of the region's top fintech companies, emerging startups, regulatory authorities, financial institutions and thousands of visitors. Read: New 24 Fintech summit to debut in Riyadh this September Here, we speak to companies exhibiting at the event to get their perspectives on the fintech industry and emerging trends. Tomas Skoumal, chairman and co-president of Dyna.Ai The significant number of fintech startups and the substantial investment of $15.5bn highlight a thriving ecosystem. This level of investment suggests confidence in fintech's potential to drive innovation. The MENA region is poised to become a global leader in fintech innovation, driven by strong investment, supportive regulations, technological advancements, and a growing market. The integration of AI in fintech is set to improve the industry by enhancing decision-making, personalising customer experiences, and improving fraud detection. As the ecosystem continues to mature, the region is likely to see transformative impacts on its financial landscape, improving accessibility, efficiency, and inclusivity. We are in the process of completing our registration in Saudi Arabia and hope to open our office there in the coming quarter. Our expansion strategy is underpinned by having a strong local presence, hiring local talent, and building partnerships that truly power the future of financial services in the MENA region. Marcin Parafianowicz, founder and CEO, Empeiria The future of fintech will be focused on technological innovation: open banking, verifiable data, and blockchain-based assets (real-world asset tokenisation). Saudi Arabia is open to innovation and aims to leapfrog legacy infrastructure with ambitious goals set by Vision 2030. We plan to open an office in Riyadh at the beginning of 2025 and establish several partnerships with consultancy companies that will scale digital transformation expertise across the kingdom. We aim to empower Saudi youth talents to capitalise on the opportunity to build innovative industry-specific applications and market them worldwide. We provide decentralised infrastructure that is a core component for the next generation of processes in fintech, insurance, and beyond. This empowers companies in Saudi Arabia to quickly build industry-specific applications that enable entirely new use cases focused on cross-legal entities, cross-border trusted data exchange, and data for AI. Early adopters will set up the standards for interoperable data models and can expand their applications to other countries. Abdulmajeed Alaskar, founder and CEO, MONEYMOON Saudi Arabia is leading the MENA region in fintech innovation, with its Vision 2030 driving significant change through the Financial Sector Development Program (FSDP) and its fintech strategy. These initiatives are positioning Saudi Arabia as the hub for fintech in the region. The future of fintech in MENA is incredibly promising, with rapid digital transformation and increased adoption of innovative financial solutions. We anticipate significant growth in areas such as digital banking, blockchain technology, and AI-driven financial services. Saudi Arabia is poised to become a global fintech hub, driven by supportive regulatory frameworks, a young and tech-savvy population, and a strong emphasis on financial inclusion. Rami Panayoti, co-founder and chief business officer, SIFI (Simplified Financial Solutions) The future of fintech in MENA looks exceptionally bright. We anticipate continued growth, with a focus on digital payments as well as finance management solutions that cater to the unique needs of businesses and other organisations in the region. Our experience shows that companies in MENA are increasingly seeking efficient, tech-driven financial management tools. This trend, coupled with the region's young, tech-savvy workforce and supportive regulatory environment, is driving rapid adoption of fintech solutions. We're also seeing a growing demand for dedicated integrated financial platforms that can handle multiple aspects of business finance - from expense management to accounts payable and receivables. This is great as it perfectly aligns with our vision to become a comprehensive financial management solution for these businesses. As the fintech sector continues to evolve in Saudi Arabia and the broader MENA region, the insights from industry leaders highlight the potential for significant transformation in the financial landscape. With strong support from both government and private sectors, the region is well-positioned to become a global fintech hub, leading the charge in innovation, efficiency, and inclusivity. Saeed Alqarni, founder and CEO, Waslah Tech The financial sector in the region is being transformed, especially with the advancement in AI. We believe traditional financial institutions will transform into fintech institutions soon. We aim to be part of that wave. At Waslah Tech, we offer high-value solutions for our customers by strategically reducing financial obligations through innovative services leveraging market dynamics and financial transactions. Our platform provides instant offset certificates, enabling companies to manage liquidity issues in volatile markets without resorting to additional borrowing or debt consolidation.