On the 2nd of December,2021, the UAE celebrated its golden jubilee. Yes, the country has turned 50 and in its glorious journey, it has seen an enormous development in varied sectors including finance. Major contributing factors that have revolutionized the financial sector in the UAE are supportive government policies, prevalent financial free zones, a tech-savvy population interested to adopt the latest fintech models, and private sectors willing to partner with innovative fintech startups. In this blog, we will discuss the top 5 fintech trends that will catapult businesses to a new dimension in the fintech sector in 2022.

What is Fintech

FinTech is the fine amalgamation of finance and technology. It aims to enhance business operations while delivering financial services adopting modern digital technologies. Fintech allows the inclusion of varied technologically advanced methods while disrupting legacy financial models, automating financial processes, making them more efficient and productive. Examples of the varied fintech models are mobile payment apps, Cryptocurrency, digital wallets, Blockchain like Gemini & Bitcoin, net banking system, etc.

Top Trends

AI-ML-enabled fintech services are increasingly impacting the financial sector in the UAE creating lucrative opportunities for businesses promising improved outcomes. Top fintech trends include:

1. Consolidating Banking Sector

Over the last few years, the banking sector has consolidated via adopting digital financial technologies and integrating them into the banking eco-space. Multiple M&A (Mergers & Acquisitions) in the UAE banking industry has further increased the number of banks available in the country to the end-users. This trend will continue in 2022 as well.

2. Data-Driven Investment Technologies

Digital tools and technologies are crusading the financial landscape and data holds a prominent place in the entire sector. AI-ML-powered data-driven investment technologies are taking the mainstream stage. Data Analytics, Predictive Analytics, and other digital tools are allowing investors to get valuable insights and forecasts about the markets, helping in their decision-making process. These analytics provide accurate and value-based predictions regarding changes in an asset’s value, and so on.

3. Lending Marketplaces

In the finance domain, lending marketplaces have emerged as a favorite fintech trend in the UAE market. Traditional lenders and investors are taking a keen interest in venturing into these platforms and lending out funds over there. This fintech model allows enhanced lending capacity where more and more people get access to varied types of loans, at much lower rates. These lending platforms are allowing borrowers to find the perfect loan as per their specific needs, and get greater options to choose from, with unique interest rates.

4. Open Banking

The UAE fintech model is increasingly supporting open banking methodology considering it as a major key to innovations in the financial landscape. An open banking system facilitates sharing of bank data amongst financial service providers in the country. As a result, consumers get more control, more command over their valuable assets and finances. This fintech model is removing roadblocks in the banking sector where the common complaint of consumers  “banks not listening to us” is vanishing!

5. Non-Fungible Tokens

Blockchain technology-led Cryptocurrency, non-fungible tokens (NFTs) is another trend that the UAE is witnessing on an exponential basis. According to a recent poll conducted featuring over 1,004 people in the country (source- AlarabiyaNews), an impressive 23 % of UAE people possess at least one Non-Fungible Token (NFT).NFT ownership is gaining momentum and is a top trend in the UAE’s fintech sector in 2022.

Fintech – A Booming Market

The UAE fintech market is exponentially growing and is attracting international players into the country. Favorable investment policies, innovative business models, favorable tax policy for foreign investors, massive digital campaigning to increase awareness are a few ways that propel the fintech sector to grow and expand in the country. These are indeed the top 5 UAE Fintech trends that you should keep an eye on in 2022. Keep Watching!

If you are a Fintech Start-Up or an SMB in the UAE and want to explore how digital can enhance your business turnover, reach us today!