Crowdfunding companies among 'most successful' in Fintech, says CMA's ElKuwaiz

Mohammed ElKuwaiz, Chairman of the Capital Market Authority (CMA) 

Mohammed ElKuwaiz, Chairman of the Capital Market Authority (CMA) said that crowdfunding companies are among the most successful ones in the Fintech sector during the last period, adding that those companies have become a platform for project financing, a business model that did not exist previously, especially before adapting technology to enable such models.
 

ElKuwaiz added that Fintech in Saudi Arabia has competitive advantages compared to other countries, including that the financial services sector is primarily a highly automated one. He indicated that 90% of the transactions carried out in the Saudi stock market are automated and have been done electronically for more than 10 years.
 

In his speech at the inaugural event of "Fintech Tour 21", the top official said that the Fintech sector is very sensitive, pointing out that Fintech companies have contributed to the development of the financial market sector, to overcome the current situation by providing services and products that did not previously exist, thus increasing the size of the beneficiaries' segments and improving the services of the sector in general.
 

ElKuwaiz also stated that both the CMA and the Saudi Central Bank (SAMA) jointly cooperate in developing and sponsoring the Fintech system in the Kingdom, each in its respective fields of competence.
 

He pointed out that financial inclusion means that the financial services provided, whether the conventional financial services or financial market services, are provided to the largest possible segment of the beneficiaries, both at the level of companies or investors.
 

The most prominent challenge facing the fintech sector is the continuous balancing between developing the sector, protecting investors and maintaining financial stability. There is another challenge related to the human cadres with the skills required for the sector, while the third challenge is winning customer confidence, ElKuwaiz stated.