4 October, 2021
Next big disruption in Middle East Finance will be Islamic Fintech
Experts believe that the financial sector in the Middle East region is on the cusp of a massive disruptive transformation, which will be driven by Islamic Finance.
The millennial and Gen-z muslim population is increasingly mobile, tech-savvy and more educated than their previous generations. Naturally, their expectations from financial transactions and platforms are of a different level altogether.
This presents a strong case for Islamic Fintech to be a massive disruptor in the financial sector.
Abu Dhabi Global Market (ADGM) observed that 83% of residents have become open to accepting Fintech solutions from non-financial institutions. It is also worthy to mention that the study found 76% respondents to trust a Fintech solution over a physical bank.
This trend, coupled with that of a young, growing and dynamic segment among muslim population, leads to a natural opportunity for Islamic Fintech.
The latest Global Islamic Fintech Index (GIFT) report shows that eight countries out of the top 20 Islamic fintech ecosystems globally are not members of the Organisation of Islamic Cooperation (OIC).
Some of the firms disrupting the space include Hakbah, an Islamic fintech which specialises in cooperative savings, and Wethaq, a platform focused on the structuring and distribution of securities in sukuk capital markets.
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