FinTech startups hold the key to evolving financial services in a digital economy

Over the past few years, I’ve been inspired to witness innovative startups creatively respond to the unique challenges in our region. Particularly in banking and financial services, the major increase in the FinTech market has unlocked new ways of doing daily life and even helped scores of previously unbanked individuals with access to financial services.

The numbers speak for themselves. According to a 2021 report, the Middle East and Africa is home to at least 2,800 FinTech startups, with the majority finding success in PayTech (e-wallets or digital/electronic payments), InsureTech (insurance chatbots and smartphone apps), and E-Commerce (online retailers and service providers).

This success of smaller entities in the financial services field is hardly surprising. By their very nature, startups exist to respond to the unique challenges of their community and identify new, innovative ways to respond to them. Couple this with the increasing internet and mobile phone usage in the region, as well as the digital transformation of traditional banking institutions, and it’s clear to see the great opportunities for companies of all sizes to tap into. But the real opportunity occurs when organizations of various sizes, offering varying degrees of resources and scale, collaborate to amplify this potential.

The result? Larger corporations benefitting from the speed, innovation and new technology offered by startups and potentially altering the financial landscape of that particular community altogether. But in order for these partnerships to work, mutual buy-in is key and it requires the right people to facilitate the connection and collaboration in the process.

According to a 2020 EY report, FinTech startups often find it challenging to tap into the existing infrastructure of larger corporations. This is exactly where programs like Microsoft for Startups come in. With initiatives like the GrowthX Accelerator and Highway to 100 Unicorns, we bring together different players in a meaningful way to identify ways to unlock the potential of startups in our region and maximize their impact. We do this by taking B2B startups onboard and teaching them how to go to market, sell to enterprises, execute marketing strategies, etc., and effectively support their corporate partners better.

Our GrowthX Accelerator's first cohort is already in progress, and it includes some extremely exciting FinTech startups that will collaborate with our Corporate Engagement Partners to co-create technology solutions that address their challenges.

Driving effective collaborations between forward-thinking corporations and startups is at the core of our mission at Microsoft for Startups. Bringing both these ecosystems together and bridging the gap will empower the region to thrive in the digital age. Particularly in financial services, we can cultivate a culture of innovation in MEA and keep our economies and industries competitive.