The partnership between these two entities will promote a series of initiatives to drive the industry forward and promote innovation. Cryptocurrency exchange Binance will ensure expertise and resources to the partnership while the Mena Fintech Association will share its knowledge of the local fintech market while making its network of industry connections available.
The Mena Fintech Association is a non-profit organisation that aims to support the development and growth of the fintech industry in the Middle East and North Africa region. The organisation includes a network of industry experts, policymakers, and stakeholders, and it offers a platform for collaboration and ideas exchange in the fintech sector.
Mena Fintech Association representatives cited by ibsintelligence.com expressed their hope of seeing a positive impact as a result of the partnership. They also committed to working together with Binance to support and advance the fintech sector in the region.
Binance officials cited by the same source emphasised how a free exchange of ideas and discussion is at the core of any successful industry. They also revealed their intention to work closely with regulators and governments in order to create a clear and beneficial regulatory framework that protects the integrity of the market as well as the safety of consumers.
According to a 2022 report from strategyand.pwc.com, the Middle East and North Africa region is steadily building its financial technology sector, as fintech hubs are surfacing across the region and are supplying funds to dynamic, small companies. Moreover, MENA region startups received more than USD 2.5 billion in funding in 2021 alone and trends in the first half of 2022 showed that they would surpass those figures.
The same source revealed that countries from the Gulf Cooperation Council stood out, as some of them have moved decisively into fintech and even established large fintech hubs. A stronger and sustainable fintech sector in the region could result in economic diversification and innovation.
However, Improving the fintech sector requires more private-sector involvement and improved efforts to fill the ecosystem’s gaps. Scaling up can prove challenging in the context of a fragmented regional market, but proving easier access to capital could help, including through increased venture capital (VC) funding.
The report concluded that talent represents a significant gap in the fintech ecosystem, which is why the sector must attract experienced professionals who can improve the sophistication and delivery of systems and support.
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