Approximately 20% or one-fifth of bank account holders in the Middle East are now using Fintech solutions, according to a recent survey performed by Deloitte.
The survey, which examined nine key markets in the Middle East, reveals that consumers in the region are quite willing to use Fintech platforms, however, adoption remains relatively low compared to other parts of the world like Europe.
There were reportedly 1,500 bank customers (in the Middle East) that responded to the Big Four auditing firm’s survey. More than 50 financial services providers in the region also participated in the survey. Respondents are based in several different Middle Eastern countries including Bahrain, Egypt, Jordan, Kuwait, Lebanon, Qatar, UAE, Oman, and Saudi Arabia.
More than 80% of customers responding to the survey said they’re willing to use Fintech solutions, and around two-thirds or 66% said that innovative financial tech has the potential to address their banking requirements.
Peer to peer (P2P) money transfers and account aggregation tools are among the most-widely used Fintech solutions in the Middle East.
Customers based in countries with relatively larger and mature Fintech ecosystems, like Egypt, Saudi Arabia, and the UAE, said they were increasingly using automated investment advice (or Robo Advisors). Customers in these nations also noted that they’re using connected automotive insurance and crowdfunding platforms.
The survey revealed that there are many people in Saudi Arabia that are using Fintech solutions for home insurance and P2P insurance. According to Deloitte’s survey, P2P insurance is a very challenging segment to develop in Kuwait, Jordan, and Oman, where users are a lot more comfortable with using more traditional options.
As expected, most or 80% of Fintech adoption in the Middle East is among the under-40 age group, as younger people are usually more eager to try out new products and services. Most younger consumers use Fintech apps because they offer a better user experience and allow users to complete transactions quickly at affordable costs.