Fintech Saudi, Kyndryl Sign Financial Technology Innovation MoU
In a significant move to bolster technological innovation in financial services, Fintech Saudi and Kyndryl have joined forces. They signed a memorandum of understanding (MoU) on December 27, 2023, in Riyadh. This partnership is pivotal in promoting advanced technological adoption among Saudi Arabia’s fintech entrepreneurs and startups.
It symbolizes a new chapter in the Kingdom’s commitment to technological progress in the financial sector. Kyndryl is a leader in IT infrastructure services. Accordingly, the collaboration with Fintech is a testament to the growing importance of fintech in the region.
This strategic alliance would open new avenues for innovation and development. Accordingly, It will provide a significant boost to the home-grown fintech ecosystem in Saudi Arabia. The MoU signifies a collaborative effort to nurture and scale innovative fintech solutions. It is aligning with Saudi Arabia’s vision to evolve into a leading fintech hub.
Makken Program: Accelerating Fintech Saudi Growth
The Makken Program, spearheaded by Fintech Saudi and backed by the Saudi Central Bank and the Capital Market Authority, is at the core of this collaboration. This initiative aims to expedite the market entry and efficiency of fintech startups, significantly contributing to Saudi Arabia’s fintech strategy. The strategy, integral to the Financial Sector Development Program, supports the broader objectives of “Saudi Vision 2030.” Makken, translating to “enable” or “empower” in Arabic, embodies the essence of the program – to empower fintech entrepreneurs in their journey towards innovation and market readiness. This initiative reflects a dedicated effort to strengthen the Kingdom’s fintech ecosystem, offering a solid foundation for startups to thrive and innovate. The program is a clear indication of Saudi Arabia’s commitment to fostering a dynamic and inclusive fintech sector.
Fintech Saudi’s Role in the Kingdom’s Fintech Industry
Since its launch by SAMA and the Capital Market Authority in April 2018, Fintech Saudi has been instrumental in nurturing the Kingdom’s fintech sector. The organization’s mission is to transform Saudi Arabia into a globally recognized fintech hub by facilitating infrastructure development, talent nurturing, and comprehensive support for entrepreneurs and startups. This commitment is evident in the substantial growth of the fintech sector, with a remarkable 300% increase in the number of operating fintech companies since 2021 and a total revenue generation of SR2.8 billion in 2022. Fintech Saudi’s role in this sector is multifaceted, ranging from offering strategic guidance to providing practical support, reflecting its dedication to creating an environment conducive to innovation and growth in fintech.
Kyndryl’s Contribution to Fintech Development
Kyndryl’s role under the MoU is pivotal in supporting fintech innovation. The company aims to provide a robust, cloud-based incubation platform for fintech startups, focusing on secure and efficient development of prototypes, products, and services. This initiative will enable startups to concentrate on their core competencies while leveraging Kyndryl’s technical expertise. The provision of such a platform is expected to significantly reduce the time and resources required for startups to develop and test their products, thereby accelerating their journey to market readiness. Kyndryl’s commitment to providing technical support and additional resources is crucial in transforming nascent ideas into viable, market-ready technological solutions. This support will play a key role in fostering innovation and driving growth within the fintech sector in Saudi Arabia.
Joint Efforts in Knowledge Sharing and Networking
The collaborative efforts of Fintech Saudi and Kyndryl extend beyond technical support. They plan to co-host a series of hands-on seminars, events, and workshops. These initiatives are, basically, designed to foster a culture of knowledge sharing and networking within the fintech community. The focus on interactive and collaborative learning environments is also aimed at promoting modernization and innovation in the fintech sector. These events will serve as platforms for entrepreneurs and startups to exchange ideas. It will also helap them learn from industry experts, and build valuable connections. The commitment to nurturing a knowledge-rich and interconnected fintech community reflects the shared vision of both organizations to cultivate a thriving ecosystem for fintech innovation in Saudi Arabia.
Statements from the Partnership Leaders
Andreas Beck, Vice President and Managing Director of Kyndryl Middle East and Africa, expressed pride in the partnership. He highlighted the collaborative efforts of Fintech Saudi and Kyndryl in contributing to the growth of Saudi financial services sector. Beck emphasized the combined strengths and resources of both organizations, which are well-positioned to facilitate the development of innovative solutions across the financial services value chain. This partnership, according to Beck, is poised to address customer needs effectively and bring about transformative changes in the financial services industry.
Fintech Saudi & Kyndryl Official MoU Signing Ceremony
The formal signing of the MoU was a significant event, witnessed by the leadership teams of both organizations. Nizar Al-Haider, Director at Fintech Saudi, and Andreas Beck represented their respective organizations in this landmark
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