In his recent report, robot_rouge_mad highlights the most important financial technology (fintech) trends in the region, including Open Banking, sustainable finance, artificial intelligence (AI) and cryptocurrencies. The report, Fintech Trends in 2024, forecasts a staggering 25% annual growth in the Open Banking market in Arab countries over the next five years. Furthermore, it outlines a compelling trajectory that could see the Arab Open Banking market reach an unprecedented value of $1.17 billion this year. This signals a sea change in the financial landscape of the Middle East.
Sustainable finance
As sustainable finance becomes a global priority, the UAE banking sector has boldly committed to mobilizing over AED 1 trillion in sustainable financing by 2030. This ambitious commitment reflects a dedicated effort to guide financial practices towards a more environmentally and socially responsible future.
Inspired by sustainability commitments made at COP28, the report predicts a significant shift towards green blockchains and eco-friendly features in banking applications. Additionally, the report expects fintech companies and banks to integrate environmental, social and governance (ESG) practices into their products and operations. This is therefore part of the growing global focus on sustainable finance.
Blockchain and AI are reshaping Fintech
The red_mad_robot report looks at the transformative impact of cutting-edge technologies like blockchain and AI. It highlights the revolutionary role these technologies will play in reshaping the fintech ecosystem in the Middle East. Additionally, it provides insight into the future of financial innovation.
Financial systems
Central bank digital currencies (CBDCs) are gaining momentum globally. More and more countries are exploring projects integrating CBDCs into their financial systems. Therefore, the report highlights the potential of CBDCs to facilitate cross-border transactions. Thus, it revolutionizes retail payments and promotes financial inclusion, while reducing production costs for central banks.
Additionally, governments in the Middle East, including the Central Bank of the United Arab Emiratesactively support the growth of fintech payment ecosystems. Initiatives such as the UAE AI & Robotics Award for Good highlight the region’s commitment to fostering AI-driven businesses and services. The report also forecasts the integration of AI capabilities into digital products, AI regulations, and the adoption of generative AI to reshape the fintech landscape.
DeFi and crypto development
Decentralized finance (DeFi) and cryptocurrencies are among the most important fintech trends of 2024. The report highlights the region’s growing focus on the tokenization of real estate, financial tools and various asset classes in 2024. This strategic decision aims to expand export potential and attract new users and investments. Additionally, it promotes the adaptation of stablecoins as online and offline payment methods, marking an important step towards the integration of DeFi and cryptocurrencies.
Read: Revolutionizing the global economy: the unstoppable force of Fintech
Additional Trends
Among the fintech trends gaining momentum in the region is niche fintech. The red_mad_robot report identifies niche fintech as a growing trend, focusing on providing products to targeted categories of consumers. Additionally, the report emphasizes improving security, including widespread adoption of biometric authentication. It also addresses the critical need for robust security measures in the evolving financial technology landscape.
As the Middle East propels itself towards a fintech-driven future, red_mad_robot’s comprehensive report serves as an indispensable guide for stakeholders, investors and enthusiasts. It provides insight into the dynamic trends that will shape the region’s financial landscape in 2024 and beyond.
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