By Jamal Saleh, Director General, UAE Banks Federation (UBF)

The Middle East and North Africa (MENA) region is currently undergoing a significant transformation of its financial landscape, driven by rapid digitalisation and the development of innovative financial services. The region has its sights set on becoming a haven for the world’s most innovative fintech (financial technology) companies and has attracted capital and talent from Europe, the United States and Asia, while fintech innovation hubs in the Gulf have multiplied in recent years.

From digital lending platforms to AI-driven financial-advisory services, fintech innovations are streamlining processes, reducing costs and improving financial-services accessibility for businesses and individuals.

According to recent reports, fintech revenue in the MENA region and Pakistan was estimated at US$1.5 billion in 2022 and is expected to reach US$4.5 billion by 2025. Most GCC (Gulf Cooperation Council) countries have embraced the digital revolution by setting ambitious targets to diversify their economies—resulting in government-led investments and initiatives, including favourable regulations to attract digital financial-services providers. Meanwhile, major banks are also investing in taking their digital products to new levels to meet evolving customer preferences, creating a diversified fintech market.

Some of the notable factors driving the fintech industry include the push towards a cashless society, with digital payment solutions such as mobile wallets, contactless payments, online payment gateways and digital insurance platforms mushrooming. Other key developments driving the sector include growing alternative lending platforms, such as buy-now-pay-later (BNPL) products and blockchain and cryptocurrency solutions.

The MENA region is one of the fastest-growing markets for financial-services providers, with the digital-payments segment accounting for the largest share of the MENA fintech market by application. The region is uniquely positioned for further financial innovation thanks to a tech-savvy population, increasing demand for financial inclusion and an advanced banking ecosystem that accommodates new solutions. In fact, between 2022 and 2023, the United Arab Emirates (UAE) saw a 100-percent growth in digital-banking adoption. Earlier this year, it also undertook the first cross-border transfer of its central bank digital currency (CBDC), the digital dirham.

Several GCC countries have introduced comprehensive frameworks to promote innovative financial products. The Central Bank of the UAE (CBUAE) and the Securities and Commodities Authority (SCA) have been instrumental in supporting the growth of the UAE’s fintech industry. In 2019, the central bank established the Fintech Office to support the sector’s development. More recently, it issued two exciting fintech regulations: the Open Finance Regulation, which introduces an “open finance framework” in the UAE, and the Sandbox Conditions Regulation, which allows fintech companies to trial and refine innovative solutions within controlled settings. While the Saudi Central Bank (SAMA) issued more detailed BNPL guidelines last year, another GCC country, Bahrain, introduced a regulatory framework for open banking.

The UAE is driving MENA’s fintech revolution

The UAE stands out as a leader in the MENA region’s fintech revolution. The government’s strong commitment to innovation has attracted to the country numerous fintech startups and established financial institutions. The presence of a well-established banking sector and a growing pool of investors creates a favourable environment for fintech ventures.

The country has also developed national fintech strategies and established government-backed accelerators and incubators, whereby both the UAE’s public and private sectors are committed to promoting the growth of the fintech market. The Dubai Financial Services Authority’s (DFSA’s) Innovation Testing Licence (ITL) programme and the Abu Dhabi Global Market’s (ADGM’s) Regulatory Laboratory (RegLab) are notable examples of the UAE’s thriving fintech scene.

Meanwhile, the Central Bank of the United Arab Emirates has played a fundamental role in the country’s evolution into the world’s leading fintech hub, focused on creating a robust regulatory framework to promote safe and reliable innovations through improved anti-money laundering and combating the financing of terrorism (AML/CFT). At the same time, CBUAE’s Open Finance Vision and Financial Infrastructure Transformation (FIT) Programme aim to stimulate innovation by promoting data-driven and customer-centric financial models.

These developments align with the country’s Digital Economy Strategy, which endeavours to double the digital economy’s contribution to the gross domestic product (GDP) from 9.7 percent in 2022 to 19.4 percent within 10 years. Notable initiatives include digital-payment infrastructures such as the instant-payment platform Aani and the central bank’s pilot issuances of digital currencies for cross-border and domestic transactions.

The fintech sector’s challenges in MENA

The digital-banking-and-finance sector is complex and rapidly evolving, with numerous advances in operations, RegTech (regulatory technology), cybersecurity and digital transactions occurring every day. This rapid pace of fintech innovation brings both challenges and opportunities. Major challenges to the growth of the fintech market include cyberattacks and security breaches. In general, fintech companies are a target for cyberattacks due to the sensitive data they handle.

Furthermore, the fintech sector is fiercely competitive, with both startups and established financial institutions vying for market share; success in the industry depends on the provider’s ability to stay ahead, continuously innovate and differentiate its offerings. The rapid developments of blockchain, artificial intelligence (AI) and machine learning (ML) technologies have made the challenge even greater. Most importantly, regulatory fragmentation in the region must be addressed to mitigate compliance risks while fostering innovation and growth. More specifically, the gaps in fintech regulation across the MENA region and the lack of a harmonised approach complicate business dealings for fintech firms, creating roadblocks to their development.

This situation calls for building interoperability across the MENA region to ensure secure cross-border payments and facilitate the seamless operation of fintech companies, which often operate in multiple countries. Hence, the continued success of the MENA region’s fintech sector depends on the cooperation of various stakeholders, including financial institutions, regulators and investors. It is also crucial that traditional banks and financial institutions work with fintech companies to utilise their innovative solutions and improve their offerings.

A future shaped by fintech

In my opinion, the future of banking in the MENA region is inextricably linked to fintech. By harnessing the power of innovation and fostering a collaborative environment to tackle regulatory challenges, the region has the potential to emerge as a global leader in financial technology.

With its commitment to innovation and strategic regulatory focus, the UAE is poised to play a pivotal role in developing next-generation fintech products based on AI and blockchain. Other countries in the GCC region are not far behind; Saudi Arabia has set up a US$40-billion fund to invest in AI and other technologies to support its Vision 2030 goal of developing its digital economy and encouraging the evolution of technology-based financial services and solutions.

On the other hand, the emergence of open-banking frameworks promises to democratise financial services further, improving accessibility and promoting innovation in the banking sector. In the GCC, neo-banking players will utilise the opportunities of open banking to go beyond existing consumer and corporate use cases and develop functions such as investment, insurance and logistics management. At the same time, other markets, such as Egypt and Pakistan, will see banks and fintech players integrate efforts to develop innovative solutions through bilateral agreements.

As digital payments become ubiquitous and innovative solutions such as on-demand salaries, BNPL and peer-to-peer lending flourish, traditional banking and fintech players will be forced to adapt further. This rapid embrace of fintech disruption, coupled with strategic partnerships, promises an exciting future in which finance is more accessible, inclusive and empowering than ever before.

As India accelerates its journey in the digital economy, Karnataka has emerged as a frontrunner in shaping the nation’s fintech landscape. With a robust policy framework and a focus on inclusive innovation, the state is witnessing remarkable growth in financial technology, driven by proactive governance and rapid digital adoption.

Karnataka’s fintech industry is growing at an exceptional pace. In 2024, the sector was valued at nearly $100 billion, and as of 2025, it has surged to $145 billion, an impressive growth of 45%. Looking ahead, this momentum is expected to continue, with the sector projected to reach $550 billion by 2030, representing a CAGR of 30.55%. This extraordinary progress highlights the state’s growing importance in the global fintech landscape.

India’s population of over 1.4 billion offers huge opportunities for fintech offerings. This opportunity is being capitalised upon through major government-driven initiatives such as UPI and the larger rollout of digital public infrastructure, allowing quicker and more extensive use of digital financial services in the country.

To facilitate this thriving ecosystem, the Government of Karnataka is working to simplify regulatory pathways and encourage innovation. Faster and more transparent compliance mechanisms will empower fintech startups to scale with confidence. Where policies are still evolving, the state advocates for a robust sandbox environment, one that enables safe and controlled experimentation, particularly important when dealing with sensitive user data..

The fintech vision of the state is founded on inclusion. In order to really harness the potential of fintech—be it in payments, lending, insurance, or other areas, it has to reach every citizen, particularly those at the base of the pyramid. Responsive to this, Karnataka is creating a humongous digital infrastructure to cater to Tier 2 towns and villages. More than 700 government services are online today, well integrated with secure digital payment channels to facilitate fast and transparent public service delivery.

Also Read: The Role of Personalisation and Data Ethics in the Next-Gen BFSI Experience

Karnataka is slightly ahead of the curve, and its model of innovation, governance, and inclusive development offers a replicable blueprint for other regions in India. Through stronger collaboration between government and industry, simplified regulations, and expansive sandbox frameworks, the state is setting the foundation for sustained leadership in global fintech.

Views expressed by: Shri Priyank Kharge, Hon’ble Minister for Electronics, IT & Biotechnology, Rural Development & Panchayat Raj, Government of Karnataka at the World Fintech Summit 2025.

It’s no secret that the United States has the best fintech ecosystem in the world, with the United Kingdom and Singapore trailing closely behind.

Their winning combination of available talent, healthy competition, enabling regulations, and financial stability gives them an edge that’s hard to beat.

But while these countries are currently considered the best places in the world to launch or base a fintech business, this may not be the case in the future. In particular, the market in the United States is becoming increasingly competitive, and the impact of Brexit in the UK remains uncertain.

Enter the new guard – a group of rising stars that are making huge progress in developing their fintech ecosystems and changing the game for companies in the industry. They may not be world leaders just yet, but if you’re hunting for the best location to base your fintech business in the future, they are certainly worthy of consideration.

Let’s take a look at why the current fintech powerhouses are at risk of being displaced and find out which countries might be a better bet for your fintech business as we look forward.

Why ‘best’ doesn’t necessarily equal ‘most attractive’

With all but two of the companies listed on the Forbes Fintech 50 based in the United States, the country is widely recognized as the best in the world for fintech businesses. It boasts a thriving fintech ecosystem and the highest number of fintech hubs of any country worldwide.

The downside to this success, however, is that the country also has one of the most competitive environments in fintech. It can also be a high-cost location to base a business. Popular fintech hubs San Francisco and New York are among the most expensive cities in the world, with high costs of living and wage bills to match.

And the United Kingdom’s reputation as a world leader in fintech has been called into question following the country’s decision to exit the European Union. Other member states have taken advantage of this opportunity, positioning themselves as alternatives that are able to offer an entry point to the EU – something that is no longer available from the UK.

In addition, fintechs in the UK may be impacted by talent restrictions. Currently, 42% of their staff come from outside the UK, with two-thirds of this made up of workers from the EEA. But post-Brexit, workers from the European Economic Area (EEA) will no longer be able to take advantage of visa-free entry to the UK.

The rising stars

As we look to the future, we may see a shift in the nations at the top of the leaderboards. Many countries now recognize the economic benefits of a healthy fintech sector and are fiercely committed to building their ecosystems, including fintech-friendly regulation that promotes innovation.

To compile this list of countries that may be good bets to base your fintech business in the future, we used Findexable’s Global Fintech Rankings. This report takes into account many factors, such as regulations that incentivize entrepreneurship and encourage investment, availability of talent, and infrastructure quality.

If you’re considering launching or relocating your business, choosing one of these countries may give you a competitive edge and a boost towards fintech success at scale.

1. India

India has seen explosive growth in fintech over the past five years, and it shows no sign of slowing. Its fintech sector is expected to reach a valuation of $150-160 billion by 2025, a value creation opportunity of $100 billion, according to a recent report by BCG.

The country’s success is based on four key factors – strong prospective demand, an enabling regulatory environment, high availability of tech talent, and a robust investment ecosystem.

India now has 11 fintech unicorns, including investment platform Groww, bill payment service BillDesk, and credit card management and bill payments platform CRED. Razorpay, Paytm, and Pine Labs are focused on payments and transactions, while general insurer Digit Insurance and life and general insurance comparison portal PolicyBazaar also make up the billion dollar club.

2. Brazil

The second-largest fintech hub in Latin America, Brazil is home to almost 380 fintech companies. The Central Bank of Brazil is supportive of boosting market competition and increasing financial education and began its implementation of open banking in February 2021.

Fintech companies also have opportunities in the form of a large underserved population and high technology usage coupled with a younger population – the country’s median age is just 32. Fintech unicorns in Brazil include sexy neobanks like Nubank and C6 Bank and companies more focused on payment solutions, such as Ebanx and Stone.

3. Luxembourg

It may be small, but some of the world’s largest e-payment and e-commerce companies, such as PayPal, Alipay, and Amazon, have made Luxembourg their European hub. Considered a gateway to the EU for international fintechs, Luxembourg is renowned for its innovative and fintech-friendly regulatory environment.

Luxembourg’s favorable tax laws make it a hub for private investment, potentially boosting its appeal to future unicorns. The country also offers a range of public and private funding to assist fintech companies at all stages of their development, including the Luxembourg Future Fund, the Luxembourg Business Angels network, and the Digital Tech Fund.

4. Norway

Tipped to become one of the first countries in the world to go cashless within the next decade, unsurprisingly, Norway has a thriving fintech sector with a strong focus on mobile payments and online banking.

The country’s government is highly engaged in supporting the growth of fintech. In 2019, its Ministry of Finance launched a regulatory sandbox, giving companies a fast, low-cost, and risk-free way to trial products, services, and technologies and boost adoption.

Norway is also renowned for its high standard of living and public education, bolstering its supply of available tech talent. It doesn’t yet have any fintech unicorns, but mobile payments provider Vipps is one to watch for the future.

5. Mexico

Mexico is Latin America’s largest fintech hub, just ahead of Brazil, with more than 440 startups. Similarly to Brazil, Mexico offers fintech companies significant opportunities in terms of its low penetration of financial services, good internet access, and young consumer base.

Legislation has also been introduced in Mexico to promote and drive fintech development. The 2018 Fintech Law and its subsequent secondary provisions cover areas such as open banking standards, cryptocurrency, and the Modelo Novedoso (Regulatory Sandbox).

Notable Mexican fintech companies include Konfio (digital banking) and Kueski (online lending).

6. Malta

The Maltese government has its sights firmly set on making the country a destination of choice for crypto and blockchain providers. In 2018, the Malta Financial Services Authority (MFSA) approved three new laws to regulate cryptocurrency and blockchain solutions. And in 2019, the MFSA rolled out the country’s Fintech Strategy, which aims to establish Malta as an international fintech hub.

Binance, the world’s largest crypto exchange, and BitBay, a digital currency exchange, moved their headquarters to Malta shortly after the new regulations were announced. Other Malta-based fintechs to watch include blockchain companies Neufund, OKEx, and Chiliz.

7. United Arab Emirates

The UAE is currently home to almost half of the Middle East and North Africa (MENA) region’s fintech companies, making it the largest fintech hub in the area. In 2020, the UAE Central Bank announced a new fintech office, which aims to position the nation as a leading regional and global fintech hub.

The Middle East is experiencing exponential growth in its fintech industry due to a high number of unbanked or underbanked people who largely rely on cash, coupled with a substantial population of young consumers.

Promising fintechs from the country include Bayzat (insurance and HR software solutions), Beehive (peer to peer lending), and Dapi (banking API).

8. Malaysia

Malaysia also offers significant opportunities to fintech companies as a result of its relatively large unbanked and underbanked population, alongside high rates of smartphone penetration. Digital payments and mobile wallet companies currently make up around 40% of the country’s fintech sector.

In 2016, the central bank of Malaysia, Bank Negara Malaysia, introduced the Financial Technology Enabler Group to enhance innovation and improve access to financial services. Part of the bank’s provisions include a regulatory sandbox to allow fintech companies to test and deploy products and services in a controlled environment.

Malaysia hasn’t given birth to any fintech unicorns just yet, but the Axiata Digital Group, the company behind Boost (e-wallet) and Aspirasi (financing and insurance for business), may become its first.

9. South Africa

Funding for African fintech companies grew by 51% in 2020. South Africa led the way with $112m in investments, prompting some to hail it as fintech’s next big hub.

Around a third of the country’s population currently use a smartphone and 94% of individuals have regular access to the internet. Combined with a large unbanked or underbanked population, the country offers great potential for fintech providers.

Companies disrupting the financial services sector in South Africa include Bank Zero, the country’s newest bank; Mama Money, an international money transfer service; and LulaLend, an SME funding provider.

10. Argentina

Fintech is growing rapidly in Argentina. Since 2018, the number of fintech companies has more than doubled, increasing from 133 to 268 by 2020. Although bank account penetration is high in Argentina at around 80%, usage remains low, presenting an opportunity for fintechs to shape the market and increase financial inclusion.

The Cámara de Fintech de Argentina (Argentine Chamber of Fintech) was launched in 2017 to support the transformation of financial services in the country. Its aim is to turn Argentina into a hub for innovation and financial inclusion.

Up and coming Argentine fintechs include Afluenta (lending) and Comparaencasa (AI-backed insurance broker).

Who will rival the United States’ fintech dominance?

While the United States may currently be unrivaled as the best fintech ecosystem in the world, it now feels like only a matter of time before another country poses a threat to its dominance.

The countries in this list are placing significant emphasis on building their fintech ecosystems and developing their economies. Their unique blend of fintech-friendly regulations, strong talent pools, and untapped markets is what places make these locations an interesting proposition for fintech businesses at all stages of development.

From an investment perspective, placing bets on fintechs in largely uncharted territories may bring better returns than doing so on the developed markets.

So if you’re looking for an alternative to the highly competitive United States or an opportunity that the rest of the industry hasn’t latched onto (yet), keep an eye on our rising stars.

Malaysia’s fintech ecosystem in 2024 reflects the nation’s rise. With a population of over 33 million people, the country has strategically positioned itself in Southeast Asia.

In 2022, Malaysia’s economy was divided as follows: agriculture contributed 8.92 per cent of the GDP, industry accounted for 39.1 per cent and services dominated with 50.93 per cent. The nation’s GDP per capita stood at nearly $12,000, placing Malaysia comfortably in the upper-middle-income category.

Malaysia has advanced and well-developed its financial services sector through significant restructuring and liberalisation in the 2000s, largely in response to the 1997 Asian Financial Crisis. Today, this sector includes a wide array of institutions, such as conventional commercial banks, Islamic banks, insurance companies, and investment banks.

Leading financial institutions like Malayan Banking Berhad, CIMB Group Holdings and Public Bank Berhad anchor the sector, with Kuala Lumpur serving as the hub of the nation’s financial activities.

The rise of Islamic finance

Malaysia’s large Muslim population has spurred the growth of Islamic finance, establishing the country as a global leader in this area. Kuala Lumpur is recognised as one of the world’s foremost Islamic financial centres, alongside London, Dubai, Doha, Riyadh and Jakarta.

In terms of Sharia-compliant assets, Malaysia ranks third globally, holding 12 per cent of the market. The top five countries in this category also include Qatar, Kuwait, the United Arab Emirates, Saudi Arabi and Iran.

Malaysia is both a major economy in the ASEAN region and also in the fintech space IMAGE SOURCE GETTY

Malaysia’s fintech landscape

Malaysia is a major player in the fintech space within the ASEAN region, boasting at least 549 fintech companies. This ranks Malaysia third in the region, following Indonesia with 785 fintechs and Singapore with 1,600.

The fintech sector in Malaysia is diverse, with payments leading at 22 per cent, followed by lending and e-wallets, each at 13 per cent. Other notable segments include remittances, insurtech, and wealthtech, each holding a nine per cent share. Key fintech companies based or founded in Malaysia include Jirnexu Sdn Bhd, MoneyMatch and PolicyStreet.

In the realm of Islamic fintech, Malaysia mirrors its global dominance in Islamic finance. Alongside other key economies within the Organisation of Islamic Cooperation (OIC), Malaysia, together with ASEAN and Gulf Cooperation Council (GCC) nations, dominates the global Islamic fintech market.

The top six players in this market, accounting for 85 per cent of transaction volume and assets under management, include Saudi Arabia, Iran, Malaysia, the UAE, Indonesia and Kuwait, according to the Global Islamic Fintech (GIFT) Report 2023/2024.

Government initiatives driving fintech growth

The rapid development of Malaysia’s fintech sector is largely due to proactive government support. In 2015, the Securities Commission Malaysia (SC) launched the Alliance of Fintech Community (aFINity) to enhance the fintech ecosystem. That same year, CrowdPlus, the country’s first equity crowdfunding platform, was established to help startups and small and medium enterprises (SMEs) access alternative funding.

In 2016, Bank Negara Malaysia (BNM) – the country’s central bank – formed the Financial Technology Enabler Group (FTEG) to create a regulatory framework that supports the adoption of new technologies in the financial services sector. The central bank launched a regulatory sandbox later that year, enabling fintech innovations to be tested in a controlled environment.

The Covid-19 pandemic accelerated the adoption of fintech and digital services in Malaysia, mirroring global trends. In 2020, compared to the previous year, the transaction volume for online banking, e-wallets and QR code payments surged by 49 per cent, 131 per cent, and 164 per cent, respectively.

By 2021, Malaysia had achieved a 50 per cent adult adoption rate for QR payments, the highest in Southeast Asia. With nearly 97 per cent of the population having internet access, the country saw strong growth in online banking and e-wallet usage. From 2021 to 2022, online banking usage increased by 7.2 per cent, while e-wallet adoption grew by 5.5 per cent. Additionally, contactless transactions at physical premises accounted for 68.9 per cent of all transactions in 2022, up from 64.6 per cent the previous year.

Looking ahead: Malaysia’s aspirations for the future

While Malaysia is currently an upper-middle-income economy, the country has ambitious long-term goals. The Shared Prosperity Vision 2030 (Wawasan Kemakmuran Bersama 2030) aims to transform Malaysia into a nation that achieves sustainable growth with fair and equitable distribution across income groups, ethnicities, regions, and supply chains.

The government underscores its commitment to these goals by strengthening political stability, enhancing national prosperity, and ensuring unity among the rakyat (people), all while celebrating the nation’s ethnic and cultural diversity.

As Malaysia strives to become a high-income economy, the fintech sector will play a crucial role in driving the nation forward.

FRA launched a regulatory sandbox to guide fintech startups in the non-banking financial sector, fostering innovation under regulatory oversight.

Enacted Law No. 5 of 2022and executive decisions to digitize non-banking financial transactions, with a focus on KYC and digital identity.

FRA showcased its role in digital finance, engaging the public through workshops and discussions on non-banking financial services.

Egypt’s Financial Regulatory Authority (FRA), emphasized its commitment to accelerating digital transformation in Egypt’s non-banking financial sector.

Speaking at the Cairo ICT Exhibition and Conference, Mohamed Farid, Chairperson of FRA highlighted the authority’s efforts. The authority’s main goal is to create a supportive regulatory environment for fintech innovation.

Regulatory Sandbox for Fintech

Farid announced the launch of the FRA’s regulatory sandbox, which is to support startups offering innovative solutions in the non-banking financial sector.

This sandbox provides startups with guidance and oversight, encouraging innovation within a controlled environment while fostering digital solutions.

Among the Egyptian companies that are driving significant change in Egypt’s financial ecosystem: Fawry, Paymob, MNT-Halan, Money Fellows, and Paysky.

Legislative Key Initiatives for Fintech

Farid outlined the FRA’s recent initiatives, including the development of a clear regulatory framework aimed at digitizing non-banking financial transactions.

Key steps include the enactment of Law No. 5 of 2022 and related executive decisions, which govern the use of technology, Know Your Customer (KYC) protocols, and digital identity verification.

These efforts align with Egypt’s Vision 2030 goals of creating a knowledge-based digital economy and promoting financial inclusion.

FRA Participation at Cairo ICT Expo

During the event, Prime Minister Mostafa Madbouly, Minister of Communications Amr Talaat, and Minister of Higher Education Ayman Ashour visited the FRA pavilion.

The FRA’s presence at the Cairo ICT Expo spans several days, featuring workshops and panel discussions on digital finance. The events were highlighting the authority’s role in raising public awareness about the benefits of non-banking financial services.