Deloitte: 82% of surveyed banking customers in the Middle East willing to start using FinTech solutions

22 June, 2020 – Deloitte has just released its inaugural edition of the Middle East FinTech study to shed light on one of the world’s highest-potential ecosystems and to serve as a decision-making tool for banking executives, regulators, and FinTech practitioners. The new report captures the point of view of digital leaders as well as that of Middle East banking customers.

“We hope to provide insights that increase transparency on the evolution of the Middle East FinTech ecosystem, and to strengthen the cooperation between banks and FinTechs, enabling banks to offer their customers innovative value propositions,” said Rushdi Duqah, Deloitte Middle East Digital Leader.

The Deloitte study gathered input from 1,500 banking customers and more than 50 digital leaders from KSA, UAE, Qatar, Kuwait, Bahrain, Oman, Egypt, Lebanon and Jordan and finds that there is limited alignment between customer expectations and bank offerings and the FinTech ecosystem in the Middle East is characterized by a certain degree of contradiction and dichotomy.

Key findings of the report include:·        

• The ecosystem is evolving rapidly when it comes to deploying innovative solutions, however it is struggling to attract additional financing that will boost its footprint and impact.
• Banks are keen to engage with FinTechs in a broad range of exploratory projects, however, they are reluctant to integrate FinTechs into their strategy, as they prefer to follow a “wait and see” approach.
• Customer behavior across the Middle East, especially in KSA, is characterized by a willingness to adopt innovative solutions offered by banks; in particular, when it comes to peer-to-peer money transfers, account aggregation and automated investment advice.
• Banks are not leveraging the full suite of FinTech solutions/features to address customers’ needs and requirements to enhance the daily  banking journey and experience.
• 25% of Middle East banking customers surveyed are aware they are using FinTech solutions.
• 82% of Middle East banking customers surveyed are willing to start using FinTech solutions however only 22% of Middle East banking customer use FinTech solutions today; there is a significant growth potential to address this gap.

“The way forward for the Middle East FinTech Ecosystem to reach its full
potential goes through regulatory harmonization and development of strategic
partnership between Banks and FinTechs,” concluded Anthony Yazitzis, Financial
Services and FinTech Partner, Deloitte Middle East.

To view the whole report, click here.

About Deloitte:

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.

Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services. Our network of member firms in more than 150 counties and territories, serves four out of five Fortune Global 500® companies. Learn how Deloitte’s approximately 280,000 people make an impact that matters at www.deloitte.com.

About Deloitte & Touche (M.E.):

Deloitte & Touche (M.E.) (DME) is a licensed member firm of Deloitte Touche
Tohmatsu Limited (DTTL) and is a leading professional services firm established
in the Middle East region with uninterrupted presence since 1926. DME’s
presence in the Middle East region is established through its affiliated
independent legal entities which are licensed to operate and to provide
services under the applicable laws and regulations of the relevant country.
DME’s affiliates and related entities cannot oblige each other and/or DME, and
when providing services, each affiliate and related entity engages directly and
independently with its own clients and shall only be liable for its own acts or
omissions and not those of any other affiliate.

DME provides audit and assurance, tax, consulting, financial advisory and risk
advisory services through 25 offices in 14 countries with more than 3,300
partners, directors and staff. It has also received numerous awards in the last
few years which include, Middle East Best Continuity and Resilience provider
(2016), World Tax Awards (2017), Best Advisory and Consultancy Firm (2016), the
Middle East Training & Development Excellence Award by the Institute of
Chartered Accountants in England and Wales (ICAEW), as well as the best CSR
integrated organization.