DIFC Unveils Five-year Innovation Outlook For Financial Services – UrduPoint

DUBAI, (UrduPoint / Pakistan Point News / WAM – 20th Sep, 2023) Dubai International Financial Centre (DIFC), in collaboration with Refinitiv, a London Stock Exchange Group business and one of the world’s largest providers of financial markets data and infrastructure, today published a report titled “Drivers of Innovation in Financial Services”, revealing a five-year outlook for innovation in the financial services industry.

Following the initial wave of innovation sparked during the pandemic, the global financial services industry continues to see major transformations. Tailored to the evolving preferences and expectations of customers and clients, the high demand for convenient and personalised services has increased competition and continuous disruptions as new players including FinTech and Big Tech companies claim their space in an ever-expanding market.

Leveraging automation technologies such as artificial intelligence (AI), blockchain, and cloud computing are also seeing business model and product innovations that have led to reduced operating costs and streamlining of inefficient processes. Investments in FinTech, projected to grow by 17.2 percent CAGR to USD 949 billion from 2022 to 2030, are further accelerating the ongoing pace of FinTech innovation globally and in Dubai, which offers access to high-growth emerging markets in the middle East and North Africa (MENA), Western Europe, Asia and Africa.

The report unveils four key trends that will be pivotal in shaping the sector over the next five years, unlocking the potential of open finance, greater decentralisation in finance, the emergence of digital assets as a viable asset class, and the incorporation of ESG considerations across banking operations.

Additionally, the report outlines the importance of innovation within established financial institutions to facilitate agile development and improve future competitiveness through frameworks such as Venture Studios.

A strategic global hub for FinTech and Innovation companies in the region, Dubai and DIFC is home to a comprehensive innovation eco-system that provides financial institutions and FinTechs alike with the tools, platforms and regulatory support that enable financial innovation. These range from forward-thinking regulations, accelerator, and venture building platforms, to venture capital and other start-up funding vehicles, and internationally recognised talent development programmes.

Arif Amiri, CEO of DIFC Authority, said, “Investments in FinTech, projected to grow by 17.2 percent CAGR to USD 949 billion between 2022 and 2030, are accelerating the ongoing pace of FinTech innovation globally and in Dubai. Combined with access to high-growth emerging markets and DIFC’s world-class financial, regulatory and innovation eco-system, this provides immense opportunities for expansion and innovation. At DIFC, we already see Financial Institutions actively joining forces with disruptive start-ups as we collaborate to shape the future of finance in line with our 2030 strategy and beyond.”

Nadim Najjar, Managing Director, CEEMA, London Stock Exchange Group, added, “Innovation in the financial industry has become more important than ever with the continuous and fast pace of disruption in the industry pushing all players to find new ways of doing business. FinTech has been a cornerstone for the financial innovation in recent years, introducing a growing range of new technologies that enable new business models, applications, processes, or products. The ‘Drivers of Innovation in Financial Services’ report provides an overview of innovation in the financial industry, and insights on new financial innovations that will shape the industry in the next five years.”