H.E. Sheikh Abdulla bin Saoud Al Thani, Governor of Qatar Central Bank (QCB), revealed on December 8 that the nation’s central bank is in the process of developing the banking sector’s Fintech strategy.
Qatar’s Fintech strategy is being created in cooperation with local financial institutions and local financial technology firms. The central bank plans to contribute to developing an updated regulatory framework that supports innovative initiatives and market stability. Governor Saoud Al Thani said the nation’s Fintech strategy will be announced soon.
While delivering the opening address at The Euromoney Qatar Conference, the Governor stated that the central bank, which oversees and regulates Qatar’s financial industry, is aware of the importance of adopting Fintech.
The global financial industry has been evolving rapidly. Technology is playing a key role in streamlining the traditional banking sector from its conventional channels to advanced digital platforms. Digital-only banks, which aim to transform the global financial system, are being launched throughout the world. Challenger banks aim to provide modern financial services (mainly) through mobile banking apps.
The Governor noted that the banking industry is changing quickly and heading towards a new historical turning point. Artificial intelligence (AI) and blockchain have the potential to fundamentally transform the financial industry, Saoud Al Thani stated. He added that the world’s regulatory agencies must quickly cope and take on new challenges in order to support the development of innovative technologies.
Tech giants are now creating faster and more cost-effective platforms and have started providing alternative financial services, the Governor said. He pointed out that traditional banking services providers must invest heavily in technology in order to keep up.
He also mentioned that the latest developments in the banking sector, and the shift towards increasingly using digital services, are fundamentally changing the concept of retail banking. The Governor explained that operational efficiency can only be enhanced by adopting and implementing new and transformative technologies.
As mentioned on Qatar Central Bank’ website:
“The financial and banking sector and the investment sector are undergoing a major transformation with the interaction of advanced technology. New business models provided by Fintech and technology companies have great potential to increase the efficiency of financial services, but at the same time, this will bring complications to the regulators, which may lead them to take balanced steps, in order to maintain financial stability, preserve the rights of depositors and shareholders, and encourage investment.”