Insights into the state of the financial services industry in the Middle East

Insights into the state of the financial services industry in the Middle East

Dubai, UAE – Following the release of their much anticipated global State of the Financial Services Report – which finds a shift in value towards new players, but also a set of market conditions ripe for smart incumbents to regain market share – global management consultancy Oliver Wyman looks at what these findings mean for the Middle East.

According to Mathieu Vasseux, Partner – Head of IMEA Financial Services, and KSA Market Leader at Oliver Wyman, “The financial services sector in the region is undergoing a once-in-a-generation value shift, as new fintech entrants and incumbents jostle for position in a market rapidly expanding into new services”.

Notwithstanding this shift, there is significant opportunity for established players though, according to Vasseux: “In light of specific market conditions at present (high interest rates boosting bank earnings, regulators championing change, and fintechs under pressure from investors to demonstrate real ROI) , there is a real opening for established players to get back in front – if they make their move wisely” .

The impact of new players in the sector can certainly not be ignored: in 2019 – 2021, MENA’s fintech sector captured the largest portion of venture capital investments across all tech sectors, at USD