FinTech products are receiving high demand in Middle East’s banking sector. According to recent reports, a total 82% of the banking customers are interested in using FinTech products for their banking purposes. However, there are no signs yet of integration of lender products into the network.
Deloitte conducted a study in the Middle East region and found that 18% are unwilling to use FinTech products, security and privacy being the main concern for this fraction. Besides, banks were more into a ‘wait and watch’ approach rather than partnering with a start-up.
The study was subjected on responses from industry executives in UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, Oman, Egypt, Lebanon and Jordan. The study was done over 1500 people and 50 personal interviews. One interesting fact is that, of the subjected population only 22% of individuals on whom survey was conducted used FinTech products.
About 25% of the surveyed population were aware of FinTech products and of this 25%, 75% believed that FinTech products would make banking easier. Banks are showing interest in partnering with technology firms, but are reluctant to incorporate FinTech in their stratagems. Middle East has attracted only 1% of $45 billion worth of global financing into FinTech But the experts say that there is significant potential to grow this.