The MENA FinTech Association's (MFTA) Open Finance Working Group has released a new report that sets out how embedded finance is becoming a reality in the MENA region as well as how open banking and open finance are fuelling its growth.
The launch occurred during Abu Dhabi Finance Week.
There has been a considerable interest in embedded finance for some time, with many expecting it to be disruptive - a ‘must-have' in the online customer journey and to enable any large firm to become a FinTech company.
Now, the advancement of the industry is becoming a reality. A new report from the MENA FinTech Association's Open Finance Working Group defines embedded finance, how it's delivered and explains why it's a transformative product for both banks and non-financial firms in the MENA region.
• Embedded finance enables any brand to incorporate innovative financial services swiftly and affordably into consumer experiences.
• The use of application programming interfaces (APIs) for sharing customer-permissioned data and banking capabilities makes embedded finance an efficient and convenient option for providers and recipients of all sizes.
• Its relevance extends across all industries as everything can be re-engineered and applied to any specific field.
• It is already worth billions of dollars globally, and the Middle East & North Africa (MENA) is no exception.
Nameer Khan, chairman & founding board member, MENA FinTech Association (MFTA), said: "Our region (MENA) is the global opportunity hub, the leadership across the region has created tremendous opportunities to further amplify impact on a global stage.
The evolution of technologies being built and scaled from and outside the region are phenomenal.
"We are extremely proud of our Open Finance Working Group and everyone participating in our conversations with the regional regulators, these are true impact makers and innovators striving to make an impact across the region. Together we all shall continue to educate, advocate and empower the rise of embedded finance that powers industries holistically."
Hakan Eroglu, MFTA Open Finance Working Group Lead, Advisor to the MFTA Chairman and Global Open Banking & Open Data Practice Lead, D&S at Mastercard, said: "The use of APIs for sharing customer-permissioned data and banking capabilities makes embedded finance an efficient and convenient option for providers and recipients of all sizes. Embedded finance is now making that growth a reality in MENA by allowing almost any brand—big or small—that adopts APIs to become a fintech company."
Kareem Refaay, managing director of MENA & GGC, The London Institute of Banking & Finance (LIBF), said: "This report, the third in an annual series on important fintech developments in the Middle East and Africa, focuses on embedded payments. Integrating payments into the online sales journey might not sound like a disruptive use of technology, but it's a billion-dollar business, and here we explain why. On behalf of LIBF MENA, we are very pleased with the reception of the past reports, and they drive us to continue delivering impactful insights to the region."
The report is a product of the Open Finance Working Group of the MENA FinTech Association with insights from regional and international experts: Arthur D. Little; Codebase Technologies; Dubai International Financial Center (DIFC); The London Institute of Banking & Finance (LIBF); Lean; Mastercard; M2P FinTech and Tarabut Gateway.
