??? What’s behind the open banking wave in MENA?

Today, I’m looking into the open banking trend in MENA. The numbers from the region look really promising, hinting that there’s more growth on the way.

So, what’s driving this big leap? And what could it mean for financial inclusion in a place with lots of underbanked and unbanked people?

Let’s dig into the open banking scene and see where it’s headed.

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??? What’s behind the open banking wave in MENA?

If you're anywhere near the fintech scene in the MENA region, you can't have missed the huge rise of open banking.

The MENA open banking market is expected to increase by 25% every year for the next 5 years.

Sure, there are a lot of reasons, but three major ones stand out:

• Local policies. Saudi Arabia’s goal to make 70% of transactions non-cash by 2030 is a significant driver.
• High digital penetration. The UAE for example has a 99% internet penetration rate and 200% mobile penetration.
• And the biggest reason for them all, regulations.

It’s like every time I check the news, there’s a new regulatory sandbox or framework launching.

The solid regulatory frameworks being developed give investors a lot of trust in the ecosystem.

Here’s a quick rundown:

• The Middle East has become a focal point for open banking, particularly as a quarter of the region’s consumers already use digital banking services.

• 94% of central banks in 18 Arab countries think open banking is a must for industry growth.

• Banks in the MENA struggle to reach the underbanked due to limited access, documentation, and low financial literacy.

• Bahrain went all-in in 2020 with its Open Banking Framework that forced banks to open their APIs and turned the country into a fintech hub.

• SAMA introduced its first Open Banking Framework in 2022 focused on account information. Last week it launched Version 2 to cover payment initiation and boost security.

• UAE Central Bank introduced new Open Finance and Sandbox Conditions Regulations on April 23 this year. These rules require banks and insurers to share data and allow transactions, while the sandbox promotes innovation with flexible licensing.

• Kuwait’s Central Bank is supporting fintechs through its regulatory sandbox and plans to launch its own open banking framework in 2024.

• QNB rolled out Qatar’s first Open Banking API services for corporate clients in May, which allows direct interaction with the bank for various transactions and services.

Overall, the outlook for MENA’s open banking is strong, but regulatory-driven countries need to stay compliant.

Meanwhile, market-driven ones can’t just follow trends—they need to take real steps in building regulatory frameworks.?

What's Next for Open Banking in the MENA Region?

• The open banking market in the Middle East is expected to reach $1.17 billion by the end of 2024.
• There’s big potential in areas with unbanked populations, especially in the global Muslim community, since digital banking adapts to halal lifestyles.
• Building trust through clear standards in authentication and privacy will be super important for open banking’s success.
• Open banking will allow for more economic diversification and reduced reliance on oil.

??? How will the open banking boom affect countries with underbanked populations?

?? OneDegree has partnered with Saudi Arabia’s Walaa for global digital asset reinsurance.

?? Visa plans to launch a dedicated A2A payment service which will bypass traditional direct debits.?

?? Samsung Pay will launch in Saudi Arabia in Q4 2024, following a deal with SAMA to improve digital payments and financial inclusion.

?? PayTabs Group expects to exceed USD 54 billion in payment processing by 2025, driven by its platform and super app, with plans to expand further in MENA this year.?

?? Riyad Bank has launched a $213 million fintech fund , announced at the 24 Fintech conference in Riyadh. The fund aims to support fintech innovation in Saudi Arabia.

?? Contact Pay and Basata partner to expand Contact Pay’s services in Egypt and integrate its instalment solutions into Basata’s payment terminals.

?? Saudi fintech Barq partners with Mastercard to expand payment solutions nationwide using Mastercard Gateway technology.

?? UAE's Tarabut has acquired London-based fintech Vyne to improve its global open banking services .

?? SAMA has released the second phase of its Open Banking Framework to improve consumer experience and transaction efficiency in the kingdom.

?? Siemens boosts its Web3 presence by issuing a €300 million digital bond on a public blockchain.

?? DMCC and Bybit are hosting a $100,000 Web3 hackathon on November 20, 2024, at DMCC’s Uptown Tower.

?? Mastercard partners with Mercuryo to launch a euro-denominated crypto debit card, which will allow users to spend their crypto at 100 million European merchants .

?? Travala.com partners with Skyscanner to allow its 110 million monthly users to book from 2.2 million hotels and pay with over 100 cryptocurrencies.?

?? Saudi SaaS provider Reachware has raised $3M in Seed funding , led by Sadu Capital to expand operations in the GCC market.

?? Tunisia’s Wattnow has raised a multi-million dollar round , led by Lateral Frontiers and 216 Capital, to fuel global expansion and improve its energy management tech.

?? Saudi autotech Syarah has raised $60M in a Series C round led by Artal Capital for further expansion.

?? Saudi fintech Malaa raised $17.3M in a Series A round led by SNB Capital to expand its wealth management services.

?? UAE-based HRtech Cercli has raised $4 million in Seed funding led by Afore Capital to boost its growth and attract top talent.

?? Saudi fintech Tabby has acquired Tweeq, a licensed Saudi digital wallet, to support its financial services with new digital spending accounts and money management tools.

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This special episode of Couchonomics with Arjun recaps the top insights from Season 3, where leading experts in banking and fintech shared their perspectives. Over the past 8 months, we’ve had the privilege of engaging with some of the brightest minds in the industry. Here’s a roundup of the most impactful insights on banking, fintech, and the future of finance. Tune in for this insightful episode by clicking here.

Now, a quick break for your wellness. Chief Wellness Officer at FAB Diego Carrete is on a mission to help executives get fit, increase their energy, and live longer.

Today, he shares 6 rules to adjust your screen at work.

Hello there,?

Working long hours in front of a screen can take a toll on your posture and eye health, but a few simple adjustments can make a big difference. Here are some tips that could help:

1. Screen tilt

Adjust the screen tilt to face you directly.?

Avoid excessive neck flexion, common with mobile devices. Use a laptop only as a screen with a separate, adjustable keyboard.

2. Progressive lenses

Position the screen lower, at the bottom of your glasses, especially with near-vision or computer glasses.

3. Visual field?

The visual field is about 60 degrees wide. If using dual screens, they won't both fit within this field.?

Place the primary screen in the centre of your dominant eye and the secondary screen on the side, used only 20% of the time.?

4. Setup for traders

When using multiple screens, arrange windows based on their importance and frequency of use to optimise visual comfort and efficiency.

5. Avoid negative tilt

Negative tilt causes glare and reflections, leading to visual disturbances and poor posture.?

Place screens perpendicular to light sources to minimise reflections. Adjust brightness and contrast oppositely for better visual comfort.

6. Prevent dry eyes

A screen that is too high forces your eyes to open wider, leading to evaporation and dry eyes.?

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That’s it for now. Found this helpful? Share this with someone who needs it. See you next week, where we'll talk about two habits that took my sleep from zero to hero

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