MEA banks turn to fintechs to boost digital transformation progress, Finastra research reveals

MEA banks turn to fintechs to boost digital transformation progress, Finastra research reveals

Dubai, UAE – Finastra research reveals that banks in the Middle East and Africa (MEA) region regard fintech partnerships as important for growth and innovation, with respondents looking to connect with an average of two fintech providers in the next 12-18 months. The largest proportion of respondents want to plug into a platform of integrated fintech solutions (63%), with only 7% preferring to build capabilities in-house.

The research, conducted by East & Partners, finds that the core motivations of respondents to integrate fintech solutions is reducing operational costs (53%), benefiting from broader technology experience than they have in-house (51%), and aligning more closely with evolving compliance needs (46%).

When it comes to digital transformation progress, banks in MEA are behind. On average, 29% of respondents say they have digitized their processes, compared to the global average of 47%. Similarly, only 12% of respondents in MEA feel they are ahead in their digital journey, and the largest proportion (62%) say they are behind. Four out of five banks state that regional differences in legal and compliance requirements is the biggest barrier for implementing new technology, and nearly three in four say this slows down the entire adoption process. This suggests that banks will