Fintech has the potential to alter financial services in the GCC by 2020. Presently, the fintech revolution is still dwelling in its nascent stage in the GCC because of the lack of consumer confidence, issues of scale, and regulatory compliance, said Xpress Money COO, Sudhesh Giriyan.
The fintech evolution in the GCC is being driven by two factors; first, larger conventional institutions are creating digital channels to safeguard against potential disruption. Second, nimble startups are helping deliver online and mobile services for remittances, insurance, investment advisory and online trading.
However, fintech has challenges to overcome. Larger institutions sometimes struggle with a rapid-response, digital-first culture that is required for fintech innovation. Smaller players, on the other hand, struggle with the resources, size and scale required to compete meaningfully. Startups also lack the networks and regulatory relationships to gain the necessary permissions.
Giriyan believes that these challenges will see a spate of collaborations between fintech startups and conventional money transfer houses and banks in the short to medium term.
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