GCC FinTech startups ‘cash in’ on Millennial banking habits
GITEX Technology Week 2016 will run from 16-20 October 2016 at the Dubai World Trade Centre
Financial Technology (FinTech) startups in the GCC are reaping the benefits due to the always-connected banking habits of Millennials, according to industry experts.
According to the Database Marketing Institute, banks often struggle to profit from their customers. The research highlights that the bottom 28% of customers give a 22% profit loss, due to cashing checks at branches or not paying back loans.
Furthermore, there is a surge in growth of "moneyhawks", the high-income, and under-35-year-old customers who want constant mobile access to their banking and finance accounts. However, moneyhawks are only 16% of banks' customers, but generate the majority of profit, especially from digital payments.
A recent report by the Kuwait Financial Centre, Markaz, revealed that Millennials in the UAE are a key target for banks, as 60% of the population are under 25 years old, and the GDP per capita is over $48,000, the second-highest in the Middle East and North Africa.
GITEX Technology Week 2016 will host a range of finance and technology experts to shed light on how FinTech is evolving. At last year's GITEX, startup Trriple launched as a company and signed a partnership with Ericsson on mobile wallet solutions in banking and Smart Cities.
Trriple returns this year to showcase digital payment innovations, and exhibit alongside FinTech startups at the GITEX Startup Movement.
Abdirizak Ibrahim Salah, co-founder of Trriple, said: "UAE Millennials do not want to wait at bank branches they want constant, secure, and easy access to their banking and financial from their mobile devices. As a result, more banks are establishing partnerships with FinTech startups, which can drive digital payment innovation with a more agile mindset.
"Cash represents 75% of the UAE's total payments, leading to a fragmented payment space for consumers, businesses, and banks. Innovative FinTech startups can use mobile apps to transform the UAE consumer payments space, leading to a cashless society by 2018."
GITEX Technology Week 2016 will run from 16-20 October 2016 at the Dubai World Trade Centre, and Trriple will exhibit in hall 6, along with their partner ecosystem.