The report provides a comprehensive analysis of the potential of the Fintech Industry in KSA. The report covers an overview and genesis of the industry, market size on the basis of GTV and volume of transactions.

Its market segmentation includes verticals, Region, Company Stage and Investment Stage; growth enablers and drivers, challenges and bottlenecks, trends driving digital adoption; regulatory framework; industry analysis, competitive landscape including competition scenario, and market shares of major players on the basis of GTV. The report concludes with future market projections of each segmentation and analyst recommendations.

Market Overview:

According to Report Ocean estimates, the KSA Fintech Market - which grew at a CAGR of $% in the period of 2017-2022P - is expected to grow at a CAGR of $% in the forecasted period of 2023F-2027F, owing to the New Government Initiatives and Rising Service Verticals.

Payments and Currency Exchange is the largest Segment in the KSA Fintech Market followed by Lending and Finance, Personal Finance and Private Fundraising.

KSA Fintech Market is still evolving with investment driving the growth of the industry and fintech players still attracting funds in order to launch more innovative services in the market.

Key Trends by Market Segment:

By Region: Riyadh has the most number of Fintech Startups being headquartered there. There is a need to open more Fintechs in the northern region of KSA to capture the demand for Fintech in that area and enable companies to operate at a much larger scale.

By Company Stage: Every Fintech Player has to obtain a license to operate in the SAMA's regulatory sandbox to test out their innovations before launching in the market. Such companies constitute 9% in 2022 from 20% in 2022 as more companies were declared active by SAMA.

Competitive Landscape

STC Pay has a market share of 30% and was the first unicorn in KSA followed by Foodics with 22% and Tamara with a share of 14% of KSA Fintech Market.

STC Pay, Geidea and Foodics are positioned in the opportunity area with a higher market share and a variety of innovative services and have expectations for further growth in future.

Future Outlook

The KSA Fintech Market witnessed significant growth during the period 2017-2022P, owing to increasing fund allocation, increase in government support and adoption of technology.

The demographics outlook of KSA is changing with young generation being more tech savvy and embracing innovation in the services. Fintechs are launching innovative and technology based products in order to attract younger population.

The industry is moving towards digital advancement and technologies such as AI and ML to improve capabilities.