MENA Fintech Association launches the second volume of the SHIFT report

MENA Fintech Association launches the second volume of the SHIFT report

Cross-border payments are vital to the financial ecosystem in the MENA region, with two of the world’s three largest remittance corridors located in the United Arab Emirates (UAE) and Saudi Arabia (KSA). Both the UAE and KSA have handled $78 billion in payments in 2020 (source McKinsey) as millions of unbanked and underbanked expats reside across both countries.

The report provides an understanding of the cross-border payments scenario in the MENA region, making a case that there is a strong need for new and innovative technologies to help boost financial inclusion and access to financial services. A few key insights from the report are:

- With more people living in other countries for work or business, globalization and outsourcing of firms, the openness of economies (FDI, FII), international tourism, and international e-commerce, cross-border payments are becoming an important aspect of business and daily life.

- The volume of remittances transmitted from MENA to other nations is 20% Intra- MENA and 80% Inter-MENA region, indicating a solid use case for MENA's cross-border payment infrastructure.

- Fintechs have introduced new channels for cross-border transactions and helped legacy players like banks and MSBs improve their cross-border payment products through APIs, digital onboarding, e-KYC, digital channels like Apps