Is cash dead? Not yet. The majority of people in most countries – roughly 75 per cent of the world’s population – still conduct most transactions with cash.
Nonetheless, a massive transition to digital payments is under way. According to a recent survey by management consultancy McKinsey, 58 per cent of Middle East consumers strongly prefer digital payment methods, while only 10 per cent strongly prefer cash.
Cash can be inconvenient and, as most of our activities move online, it’s not always an option. The Covid-19 pandemic caused a one-off shift of certain purchases online and this change cannot be undone.
In fact, online sales in the Middle East and North Africa region are expected to triple to $28.5 billion by 2022 from $8.3bn in 2017, according to research by Bain & Company.
The world is establishing a new normal and FinTech is well positioned to enable and benefit from the transition.
Defining the FinTech investment opportunity
In the Middle East, one out of every four investment deals this year was in the FinTech sector, accounting for roughly a third of all the funding raised ($2.1bn in 220 deals), according to a report by consultancy RedSeer.
The Middle East’s financial technology landscape has become the most well funded due to a favourable regulatory framework, the research found.
Financial free zones such as the Abu Dhabi Global Market and Dubai International Financial Centre have aided the expansion of the regional FinTech sector through regulatory sandboxes, accelerators and events.
Globally, over the past 18 months, the FinTech investment opportunity has grown immensely. Many large technology companies have been investing in and acquiring businesses with niche capabilities in financial technology.
Global FinTech funding hit a record high of $33.7bn in the second quarter of 2021, up 191 per cent from a year earlier, and accounted for 22 per cent of total global venture capital funding, according to a report by CB Insights.
Where are the opportunities?
Payments, banking, lending, trading, investing and insurance are just a few important service sectors with significant and growing market value.
In 2018, for example, worldwide payments totalled about $200 trillion, while electronic transactions amounted to approximately $40tn. However, estimates show that global payment volume will increase 30 per cent by 2030 to around $260tn, with electronic transactions accounting for $90tn, a whopping 125 per cent increase.
Contactless payments
As the financial services industry evolves, new business models such as contactless payments are generating significant growth. After the pandemic, several new technologies have accelerated, with consumers increasingly turning to payment methods such as electronic payments for e-commerce and contactless in-store payments for reasons of safety, necessity and convenience.
Serving the unbanked who have mobile phones is a massive opportunity for companies offering text- or app-based banking services
Steven Rees,
head of investments for Mena, J.P. Morgan
For example, in Saudi Arabia, point-of-sale contactless card transactions increased 10 per cent per month, while payments via pass-through card-based wallets are up 18 per cent each month, according to McKinsey.
How FinTech fosters financial inclusion
Estimates suggest that about 1.7 billion adults worldwide are “unbanked” (not served by a bank or similar financial institution) – that’s a little more than 20 per cent of the global population.
Within that demographic, about two-thirds have a mobile phone. Serving the unbanked who have mobile phones is a massive opportunity for companies offering text- or app-based banking services.
The UAE has the highest financial inclusion rate at 46 per cent, followed by Bahrain at 39 per cent and Saudi Arabia at 31 per cent, according to the MENA Financial inclusion Report 2020.
As countries in the region bolster their technological infrastructure, digital banking can improve access to financial services and facilitate financial inclusion across the population.
Increasing adoption of InsurTech
InsurTech is also poised for significant growth as start-ups continue to disrupt this sector and traditional insurers rapidly adopt technologies.
While current consumer adoption of InsurTech stands at 8 per cent, the intent to use the service in the future is at 48 per cent, according to a report by RedSeer.
More FinTech disruption on the way
Digital transformation has already altered the financial service industries, but more disruption is on the way.
FinTech is expected to produce $500bn in revenue in 2030 from $150bn in 2018. New entrants and quick-to-adapt incumbents are among the FinTech companies that could win significant market share in areas ranging from payments, investing and insurance, among others.
However, it is essential to acknowledge that digital finance comes with its own set of concerns, including regulatory complexities and issues such as data security and privacy. Still, it could be rewarding to navigate the risks of this rapidly growing industry.
Steven Rees is head of investments for the Middle East and North Africa at JP Morgan Private Bank
Read more about the coronavirus
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
On Instagram: @WithHopeUAE
Although social media can be harmful to our mental health, paradoxically, one of the antidotes comes with the many social-media accounts devoted to normalising mental-health struggles. With Hope UAE is one of them.
The group, which has about 3,600 followers, was started three years ago by five Emirati women to address the stigma surrounding the subject. Via Instagram, the group recently began featuring personal accounts by Emiratis. The posts are written under the hashtag #mymindmatters, along with a black-and-white photo of the subject holding the group’s signature red balloon.
“Depression is ugly,” says one of the users, Amani. “It paints everything around me and everything in me.”
Saaed, meanwhile, faces the daunting task of caring for four family members with psychological disorders. “I’ve had no support and no resources here to help me,” he says. “It has been, and still is, a one-man battle against the demons of fractured minds.”
In addition to With Hope UAE’s frank social-media presence, the group holds talks and workshops in Dubai. “Change takes time,” Reem Al Ali, vice chairman and a founding member of With Hope UAE, told The National earlier this year. “It won’t happen overnight, and it will take persistent and passionate people to bring about this change.”
Killing of Qassem Suleimani
More on Yemen's civil war
Three tips from La Perle's performers
1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.
2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.
3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.
Zayed Sustainability Prize
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Reputation
Taylor Swift
(Big Machine Records)
More from Neighbourhood Watch:
Fire and Fury
By Michael Wolff,
Henry Holt
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
More from Rashmee Roshan Lall
The biog
Name: Abeer Al Shahi
Emirate: Sharjah – Khor Fakkan
Education: Master’s degree in special education, preparing for a PhD in philosophy.
Favourite activities: Bungee jumping
Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.
The Gandhi Murder
- 71 - Years since the death of MK Gandhi, also christened India's Father of the Nation
- 34 - Nationalities featured in the film The Gandhi Murder
- 7 - million dollars, the film's budget
Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
New schools in Dubai
Mohammed bin Zayed Majlis
The years Ramadan fell in May
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The years Ramadan fell in May
Company%20profile%20
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EYodawy%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Egypt%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EKarim%20Khashaba%2C%20Sherief%20El-Feky%20and%20Yasser%20AbdelGawad%3Cstrong%3E%3Cbr%3ESector%3A%20%3C%2Fstrong%3EHealthTech%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%20%3C%2Fstrong%3E%2424.5%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EAlgebra%20Ventures%2C%20Global%20Ventures%2C%20MEVP%20and%20Delivery%20Hero%20Ventures%2C%20among%20others%3Cstrong%3E%3Cbr%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%20500%3Cbr%3E%3C%2Fp%3E%0A
The years Ramadan fell in May
SPEC%20SHEET%3A%20APPLE%20IPAD%20(2022)
%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%2010.9-inch%20Liquid%20Retina%20IPS%20LCD%2C%202%2C360%20x%201%2C640%2C%20264ppi%2C%20wide%20colour%2C%20True%20Tone%2C%20Apple%20Pencil%201%20support%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EChip%3A%3C%2Fstrong%3E%20Apple%20A14%20Bionic%2C%206-core%20CPU%2C%204-core%20GPU%2C%2016-core%20Neural%20Engine%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStorage%3A%3C%2Fstrong%3E%2064GB%2F256GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPlatform%3A%3C%2Fstrong%3E%20iPadOS%2016%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMain%20camera%3A%3C%2Fstrong%3E%2012-megapixel%20wide%2C%20f%2F1.8%2C%205x%20digital%2C%20Smart%20HDR%203%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EVideo%3A%3C%2Fstrong%3E%204K%20%40%2024%2F25%2F30%2F60fps%2C%20full%20HD%20%40%2025%2F30%2F60fps%2C%20slo-mo%20%40%20120%2F240fps%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFront%20camera%3A%3C%2Fstrong%3E%2012MP%20ultra-wide%2C%20f%2F2.4%2C%202x%2C%20Smart%20HDR%203%2C%20Centre%20Stage%3B%20full%20HD%20%40%2025%2F30%2F60fps%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAudio%3A%3C%2Fstrong%3E%20Stereo%20speakers%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBiometrics%3A%3C%2Fstrong%3E%20Touch%20ID%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20USB-C%2C%20smart%20connector%20(for%20folio%2Fkeyboard)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%20Up%20to%2010%20hours%20on%20Wi-Fi%3B%20up%20to%209%20hours%20on%20cellular%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFinish%3A%3C%2Fstrong%3E%20Blue%2C%20pink%2C%20silver%2C%20yellow%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20iPad%2C%20USB-C-to-USB-C%20cable%2C%2020W%20power%20adapter%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20Wi-Fi%20%E2%80%94%20Dh1%2C849%20(64GB)%20%2F%20Dh2%2C449%20(256GB)%3B%20cellular%20%E2%80%94%20Dh2%2C449%20(64GB)%20%2F%20Dh3%2C049%20(256GB)%3C%2Fp%3E%0A
