How 2023 will be a turning point for fintech in the Gulf region?

The Gulf region is quickly becoming a hotbed of innovation in the financial technology (fintech) sector. As new technologies and services continue to revolutionize the way people access, manage and invest their money, 2023 promises to be an important turning point for fintech in this part of the world.

From digital banking solutions to blockchain-based tools and artificial intelligence (AI)-powered investment platforms, here’s why 2023 could be a game-changer for fintech in the Gulf region.

While there has been a significant push towards digitization and the incorporation of fintech solutions in the global economy, it is fair to say that there is still much room for improvement. In countries such as the United States, where fintech solutions are commonplace, many businesses have yet to fully embrace the digital revolution, with financial institutions still relying on old-school processes.

The Gulf region, however, is primed to take fintech to the next level. By 2023, countries such as Saudi Arabia and the United Arab Emirates have set ambitious plans in motion to become global leaders in digital transformation. This includes a focus on streamlining services and improving customer experiences through cutting-edge technology, such as blockchain and AI.

In addition to providing innovative services for businesses, these countries are also looking to empower individuals by introducing digital banking solutions that can handle a wide range of financial tasks including budgeting, savings, payments, and investing. This could revolutionize the way people manage their finances in the Gulf region, allowing them to make better-informed decisions that can improve their financial outcomes.

The combination of these initiatives and the continued commitment to digital transformation will no doubt result in 2023 becoming a turning point for fintech in the Gulf region.

What are the challenges faced by institutions and governments to fully rely on Fintech?

While the promise of fintech is immense, so are the challenges faced by institutions and governments in adopting the technology. The most significant challenge is that of ensuring adequate infrastructure and cybersecurity measures are in place to secure financial data and transactions.

There is nothing like a rich poor country approach. It’s about adapting the technology to the new method of consuming foods and exchanging values. Wealth tech management and artificial intelligence is going to be the next challenge for the Gulf region as well as new tech such as buy now pay later.

Regulatory issues also present a major challenge as governments strive to create regulatory frameworks that foster innovation and protect customers’ rights without stifling progress. Finally, the cost of implementing fintech solutions must be taken into account, as the technology can be expensive.

In the Gulf region, everyone is now talking about buy now pay later. This BNPL fintech is about payments in installments and is an attractive alternative to credit cards.

By 2023, these challenges will still exist, but there is reason to believe that fintech’s benefits will outweigh its risks. The Gulf region has already taken decisive steps toward building a foundation for innovation, and with the continued dedication to digital transformation.

How can Fintech speed up the transition to digital banking and when you thought that will completely happen?

Fintech is actually reducing the cost of building a new digital bank. ​ For instance, KPMG assisted a bank in deploying a digital solution within six months, achieving approximately a 50% reduction in processing time.  This efficiency enables many entrepreneurs to explore opportunities in digital banking, though not all will succeed.Traditional banks are also adapting to these technological advancements. 

When I invest in stocks or crypto I can gain capital gains or losses, but what is the benefit from investing on the metaverse platform?

There are a few key benefits to investing in the metaverse platform. Firstly, the metaverse is decentralized and runs on blockchain technology which provides a more secure way of investing than traditional methods. Furthermore, since transactions are powered by smart contracts, there are no third-party intermediaries involved in the process so you can rest assured that your funds are safe and secure. Finally, the metaverse platform also offers a variety of different investment options such as stocks, tokens, and virtual real estate, so you can diversify your portfolio to better protect yourself from market volatility. All of these factors combined make investing in the metaverse a much more attractive option than traditional methods!

Saudi Arabia is building an ambitious new mega-city called Neom, which is set to become a world-leading hub of innovation. The city will provide a safe, secure, and diverse environment for businesses and individuals looking to invest in the future of technology.

We are glad to bring InvestGlass as a NON-US – CRM solution to the Gulf and the local banks. InvestGlass offers not only compliance with the new regulation but also a unique and secure way to invest, manage and replicate portfolios. InvestGlass is perfectly tailored for the Gulf region in terms of Arabic language support, and understanding tax regulations and culture.

By 2023, the Gulf region is set to become a world-leading hub of innovation with initiatives such as Neom and InvestGlass. Fintech will have revolutionized banking in the area by providing more secure ways for individuals and businesses to invest their funds, while also reducing costs associated with digital transformation. The future looks bright for fintech in the Gulf region, but it’s important that governments continue to foster innovation through sound regulation so that customers are protected while still being able to take advantage of all these new technologies has to offer!

Fintech in the Gulf Region – Frequently Asked Questions

1. Why is 2023 considered a turning point for fintech in the Gulf region?

2023 marks the acceleration of digital banking, AI, and blockchain adoption in Saudi Arabia and the UAE. InvestGlass supports this shift with a secure, non-US CRM platform, helping financial institutions modernise client management and digital onboarding.

2. What technologies are driving fintech growth in the Gulf?

The Gulf is embracing AI, blockchain, BNPL, and wealthtech platforms. InvestGlass integrates AI-driven portfolio tools and automated workflows, enabling institutions to offer smarter, faster, and compliant services.

3. What role does digital banking play in the region’s transformation?

Digital banking empowers individuals with tools for payments, savings, and investments. InvestGlass provides white-labelled client portals and mobile CRM, giving banks and fintechs the ability to deliver secure digital services in Arabic and English.

4. What challenges do governments face in adopting fintech?

Cybersecurity, infrastructure, and regulation remain challenges. InvestGlass addresses these with on-premise hosting options, GDPR/eIDAS compliance, and robust data encryption, ensuring safe and compliant fintech adoption.

5. How is fintech accelerating the creation of digital banks?

Fintech reduces costs and speeds up launches. InvestGlass automation and robotic process automation (RPA) enable new digital banks to scale faster by streamlining KYC, e-signatures, and client workflows.

6. Why is Buy Now Pay Later (BNPL) gaining traction in the Gulf?

BNPL appeals to younger customers seeking flexible instalments. With InvestGlass CRM, BNPL providers can manage compliance, customer onboarding, and transaction tracking within one secure platform.

7. What are the benefits of investing in the metaverse?

The metaverse offers decentralised, blockchain-based investments in tokens, stocks, and virtual real estate. InvestGlass portfolio management tools help Gulf investors track and diversify these assets securely.

8. What is Neom and why is it important for fintech?

Neom is Saudi Arabia’s futuristic mega-city designed as a hub for digital innovation. InvestGlass positions itself as a trusted fintech partner in Neom, offering compliant CRM, AI, and automation for banks and wealth managers operating there.

9. How does InvestGlass support fintech in the Gulf?

InvestGlass delivers a non-US, Swiss-made CRM tailored for Gulf markets, offering Arabic language support, tax compliance, digital onboarding, e-signatures, and portfolio management for local financial institutions.

10. What is the long-term outlook for fintech in the Gulf?

The Gulf is set to become a global fintech hub with strong government backing and innovation. InvestGlass will play a key role by providing secure, automated, and compliant solutions that empower banks and fintechs to serve customers more effectively.