Fintech

Fintech Saudi Releases National Fintech Adoption Survey Results

Fintech Saudi has announced the results of the National Fintech Adoption Survey which is aimed to measure the level of the people’s interest in adopting fintech solutions and to develop a clear understanding of how the fintech industry supports individuals and companies and streamlines their daily financial operations and activities.

The National Fintech Adoption Survey, supported by Saudi Central Bank (SAMA) and the Capital Market Authority (CMA), presents its results in five areas: cash usage, fintech activities, banking relationship, open banking, environmental, social and governance goals.

“Given the importance of financial technology, we need to understand the extent to which individuals and companies in Saudi Arabia rely on fintech solutions. The National Fintech Adoption Survey will help us understand the consumer’s behavior and new financial trends so we can ensure that innovation in the financial sector continues to live up to the aspirations and expectations of individuals and companies,” said Nejoud Almulaik, Director of Fintech Saudi.

Cash Usage

One of the key findings of the National Fintech Adoption Survey is that the majority of the population use cash once a week. However, overall cash usage is steadily declining. In this regard, one of the goals of Saudi Vision 2030 is to achieve a future-ready cashless society that relies on technological solutions for their finances and to increase the rate of non-cash transactions to 70% by the year 2025. The COVID-19 outbreak has led to an acceleration in cashless activity with digital payments increasing by 75% over the last year, whilst cash withdrawals from ATMs and other payment points have declined by 30% over the same period.

The survey results illustrate that 60% of individuals still use cash at least once a week and that one out of four individuals use cash daily despite the overall decline in the average number of cash payments. With variations from one region to the other, just under 20% of the population use cash every day in the Central Region (which includes Riyadh) and the Eastern Region. That said, this percentage rises to 48% among the residents of the Southern Region and reaches 37% and 35% in the Northern Region and the Western Region respectively.

Furthermore, the results reveal a strong correlation between age and the daily use of cash: 18% of individuals between ages 16 and 22 use cash every day while 46% of those aged 60 and above have this habit. In spite of that, cashless activity is expected to continue to grow.

Fintech Activity

Revealing that 74% of individuals (3 out of 4) have used at least one fintech solution, the results indicate that the adoption rate of such solutions is similar among both men (75%) and women (73%). Moreover, the individual’s tech-savviness is strongly associated with their level of fintech adoption. While only 35% of individuals with the lowest level of tech-savviness opted for fintech solutions, 82% of tech-savvy individuals had a high level of fintech adoption.

With results varying according to each region, the Central Region (which includes Riyadh) scored the highest rate of fintech adoption with 82%, followed by the Eastern Region (75%), the Western Region (68%), and the Northern Region (65%). On the other hand, the Southern Region recorded the lowest fintech adoption rate, with only 50% of individuals having used at least one fintech solution.

The results also underscore that age is significantly associated with the rate of adopting fintech solutions. The fintech adoption rate of individuals between ages 16 and 39 remains above 80%, with the age group between 23 and 29 among them having the highest adoption rate at 82%. As for individuals aged 50 and above, their fintech adoption percentage drops to 60%.

The activity of e-payments is considered the greatest contributor to adopting fintech solutions. With results showing that 91% of individuals have heard of e-payments, 69% of individuals regularly make e-payments. Notably, a robust payment law introduced by SAMA, acceleration in cashless activity, and the rise of large prominent fintechs have contributed to the growth of e-payments. Additionally, e-payments are predicted to gain traction and become more widely used with the launch of “SARIE”, the Instant Payment System by Saudi Payments.

The National Fintech Adoption Survey has also found that 47% of companies search for solutions to improve/automate business operations, whereas 43% of companies search for solutions to raise capital, and 42% of them focus on improving business security.

Open Banking Services

The survey results show that 48% of individuals and 68% of companies are willing to share their bank data with external parties for a better service, 86% out of them confirmed that they would want to share their data with regulated financial services companies.

Whilst the results suggest that individuals are sensitive about sharing their data, the levels are not dissimilar to what has been witnessed in other developed markets when Open Banking was first introduced. Open Banking is expected to be introduced in Saudi Arabia in 2022. Once customers experience the benefits of Open Banking, we expect an increase in the number of individuals that are comfortable with sharing their data.

  • Polly Harrison Polly Jean Harrison

    Polly is a journalist, content creator and general opinion holder from North Wales. She has written for a number of publications, usually hovering around the topics of fintech, tech, lifestyle and body positivity.

Source: https://ukeconomynews.co.uk/fintech-saudi-releases-national-fintech-adoption-survey-results/

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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