Fintech has been one of the most promising industries lately. There are 27 fintech unicorns in the world right now with a combined valuation of $138.9 billion; most of these are from United States & China. Just like rest of the world, Middle East & North Africa region also has great potential for fintech and is attracting eyeballs of all the stakeholders.
Wamda and PayFort have collaborated to publish State of Fintech report highlighting almost everything you need to know about Finech in MENA.
According to the report, Fintech Startups in the region have raised an estimated $100 million in last ten years and plan to raise about $50 million this year.
“MENA’s fintech startups raised $100 millions over the last decade. Pointing to a sharp increase of funding activity, around $50 millions in investments are expected for 2017. This is mainly driven by a significant increase in Series A, B and C deals up from an average of 30% in the past to 65% moving forward.”
Highlighting the drivers of Fintech in the region, the report notes that the ecommerce sector in MENA is set to quadruple by 2020 reaching $20 billion. Another driver highlighted in the report is that adults with bank accounts in the region are less than 20%. But with all these opportunities, there are obviously challenges as well. One of the biggest challenge or barrier for fintech is security concerns because of which majority of consumers in the region prefer cash on delivery option for their online purchases.
“The rise of fintech in MENA is driven by four opportunities: 86% of adults don’t have a bank account, and SME lending stands at half of the global average; at the same time, the volume of ecommerce is set to quadruple over five years, and 1 in 2 bank customers is interested in new digital services.”
The report is available on Wamda and can be downloaded for free.
Featured image via Knowledge at Wharton