Prospects for new-wave financial services firms in the Middle East, Africa and South Asia (MEASA) bloc have brightened with the launch of its first-ever fintech accelerator.
Created to raise the industry’s funding potential within MEASA nations, the accelerator is brainchild of leading Emirates free-zone operator the Dubai International Financial Centre (DIFC).
In a statement, DIFC noted that fintech has attracted more than $50bn of investment around the world since 2010 – but firms in the Middle East and North Africa have attracted just 1% of those funds.
DIFC has designed its accelerator – dubbed the FinTech Hive – to bridge the gap by driving innovation and showcasing success.
It will achieved this by identifying promising firms and entrepreneurs through a competitive process – then offering them the chance to develop, test and modify their business models in collaboration with senior figures from regional finance outlets and the DIFC itself.
The facility will kick off with an initial, 12-week programme that will bring together numerous fintech start-up bosses in a competitive effort to assess the growing needs of the MEASA region’s financial services industry.
The programme aims to catalyse growth and efficiency in a variety of areas, such as trade finance, alternative finance – for example, peer-to-peer payments – and Sharia-based services.
Arif Amiri, head of DIFC’s managing authority, said: “In 2004, we led the development of global financial services by linking the top financial centres around the world to the region. The FinTech Hive is a continuation of our vision to link, develop and adapt top financial technologies to the region.
“DIFC is fast becoming a pivotal hub in the global economy, with more than 1,500 firms and 21,000 employees – most of whom are exploring fintech solutions to tap into the world’s fastest-growing economies. We are committed to providing a diverse and forward-thinking ecosystem to support fintech innovation.”
His Excellency Essa Kazim, the free zone’s governor, added: “The UAE National Innovation Strategy and Dubai Plan 2021 steer us to be among the smartest cities in the world.
“With our founding Membership in the Global Blockchain Council and today’s launch, we are pioneering innovative developments in the MEASA’s financial services sector, while taking our economies to new horizons.”
DIFC has selected Accenture as its strategic partner on the FinTech Hive, on the strength of the consultancy’s experience with setting up and running fintech innovation hubs in London, Hong Kong and New York.
Sushil Saluja – Accenture’s senior managing director of financial services for Europe, Africa, the Middle East and Latin America – said: “By putting together local banks and fintech firms to ideate, collaborate and partner, DIFC is helping both sectors to be at the forefront of the financial services industry.
“The accelerator programme will identify the best entrepreneurs… and grant them invaluable access to, and feedback from, potential customers and funders.”
Emirates NBD, Mashreq, VISA and HSBC are the first financial institutions to have signed up to the programme.