5 FinTech trends that will shape the regional FinTech ecosystem in 2019
By Ece Simsekalp on ALTCOIN MAGAZINE
The next generation payment platform based on Blockchain, MenaPay listed the trends that will form the agenda of financial technologies, particularly in the Middle East and North Africa region in 2019.
The finance world continues to transform into the technology axis in the new year. After 2018, where user-friendly solutions designed for emerging markets have accelerated, the regional financial technologies (FinTech) market is waiting for vibrant 2019. MenaPay General Manager Tolga Odoglu emphasized the 5 FinTech trends from the changes in the legal arrangements to new usage of blockchain technology.
Blockchain for everyone
In order for Blockchain to become widespread, people need to know this technology better. Although the crypto money does not work without the blockchain, the blockchain is not limited to Bitcoin and its derivatives. Teaching the difference between blockchain and cryptocurrency is the 2019 agenda of the ecosystem that does business on the blockchain. However, the consumer does not need to specialize in the pay area to take advantage of the features offered by the blockchain. Just as you don’t need to know the payment technology that uses its infrastructure to use a credit card, you don’t have to be a blockchain expert to use next-generation payment systems like MenaPay.
Payment technologies mention the consumer
The Z Generation, which grows in the age of internet and mobility, makes mobile-friendly solutions indispensable especially in the field of retail and banking. The share of the most widely used payment infrastructures today in the world e-commerce market is expected to fall from 23 percent to 15 percent in two years. The way to expand global market targets is to offer the consumer the preferred payment method. With the FinTech transformation, new payment methods have emerged to more effectively respond to customer needs.
Thanks to the Alibaba Group’s blockchain infrastructure, it can also offer payment solutions for consumer needs in different geographies outside of China and Asia. MenaPay also offers suitable solutions to the consumer without any bank, which constitutes 84 percent of the population in the Middle East and North Africa region. As a result of this belief, the masses who are unable to benefit from existing banking services gain a payment technology based on blockchains and mobile technologies.
We will benefit from artificial intelligence more effectively
Artificial intelligence helps to make faster decisions by analyzing high volume data faster and more effectively than a person. Artificial intelligence in financial technologies, fraud detection, investment consulting, there are many applications. The artificial intelligence, which predicts the financial fluctuations in the market, performs the most accurate operations based on this information.
The legislative arrangements designed to increase the transparency of artificial intelligence are envisaged to be implemented in 2019. We’re gonna start to use artificial intelligence more than ever this year. In this way, FinTech services will become more and more useful.
Legislation will be stretched for FinTech
Despite the rapid development of financial technologies, economic and legal systems are more cautious. In October 2018, the FinHub, which was launched by the US financial authority SEC to create a communication channel between FinTech entrepreneurs and regulatory leaders, is of great importance in this respect. FinHub will also provide consultancy services for blockchain and other FinTech solutions.
In 2019, large-scale companies will launch enterprise blockchain products for real-world usage scenarios. In the last two years, regulators and policymakers have increased their interest in crypto money and blockchain. In 2019, the legal arrangements for financial technologies are expected to become more flexible.
Three key elements for Islamic finance
In the Middle East and North Africa (MENA) region where MenaPay serves, Islamic finance is very important due to belief and cultural values. However, this financial system needs full access to regulatory reforms, standardization, and FinTech.
The Arabian Gulf cities are competing to establish themselves as regional centers for FinTech. In Kuwait, the central bank has announced legal regulations for companies that have tried FinTech’s products and services. In February of this year, FinTech Bay in Bahrain will host about 30 companies working on cryptocurrencies, blockchains, digital payments, and other financial technologies. Abu Dhabi and Dubai are investing to increase the growth of FinTech initiatives.
The number of enterprises in MENA is expected to increase more than twice by 2020. The Global Islamic FinTech Summit will bring together experts, experts, investors, consultants, ecosystem supporters, bankers and regulators in various fields to share their experiences and ideas on developing the entrepreneurial ecosystem in the global Islamic economy.
The most important obstacles in front of the Islamic financial institutions that embrace FinTech are legal regulations and top management support. therefore, banks should see FinTech as a strategic necessity, not as a cost center.
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