Among a wide array of business options in the UAE, one of the most in-demand rises is Fintech. Numerous business setup companies in the UAE are currently divulging in the world of Fintech. The global rise in demand for this industry has been predicted to surpass USD 332.5 Billion by the year 2028.
Essentially, Fintech or financial technology is the incorporation of novel technological breakthroughs to financial products and services, with the singular goal being the enhancement and automation of supply and usage related to financial services.
This industry aims to compete with the traditional financial methods that have been used in the delivery of financial services. The importation of technology like programming interfaces (APIs), artificial intelligence (AI), blockchain technology and data analytics is crucial in Fintech.
If you are looking forward to establishing a Fintech startup, then read on. In this blog, we will explore,
- What is a Fintech startup?
- Fintech startup options in Dubai, UAE
- 5 Reasons for the rise in demand
- Why choose SPC Free Zone?
What is a Fintech startup? And Reasons for the rise in Fintech startups
Financial technology, better known as Fintech, describes an array of technological services integrated to improve financial services. These automate the delivery system for financial management. Every business in the UAE is currently indulged in this industry in one form or another.
Offshore companies utilise Fintech to manage their financial operations and processes better. The use of specialised software and algorithms is said to be the key to the rise in demand for Fintech.
At the beginning of the 21st century, Fintech only emerged as a technology employed at the back-end systems of financial institutions. However, recent times have seen a shift towards a more consumer-oriented approach.
Various mainland companies are now integrating Fintech as it is integrating into many sectors and industries. These include education, retail banking, fundraising and investments, to name a few.
Five Reasons for the rise in Fintech startups
There are many reasons why consumers are increasingly being attracted towards Fintech and its resources. Following are a few of them;
#1 – Access to resources
Fintech companies aim to create algorithms and ecosystems that contribute towards businesses accepting payment for trades and services in a streamlined manner. As such, experts find it safe to conclude that Fintech is introducing innovations that serve as significant growth drivers.
#2 – Business process optimisation
Fintech services are said to streamline business growth and contribute to the revenue potential of various companies. By owning a Fintech product, one can help improve the infrastructure of organisations and their performance efficiency as well. The systematic streamlining of financial services is one of a kind.
#3 – improved retention rate
In the financial sector, one of the primary goals of FinTech is to provide a personalised user experience. A central crux of it all is to facilitate users in prison of long-term services.
#4 – Secure and user-friendly
Financial safety is one of the significant fortes associated with e-payment options. Fintech aims to reduce the risk of loss and cyber theft, thereby making the online system safe and secure for users.
#5 – Convenient access towards credit pool
According to experts, the digital lending sub-sector of the economy is predicted to grow at an astounding CAGR of 16.7% in the next five years. This is an appropriate reflection of the rise in consumer demand associated with Fintech-facilitated loans. This demand is in line with various Fintech businesses that offer a credit facility for a pool of lenders through a hassle-free process.
Why choose SPCFZ?
With various lucrative UAE business setup packages, SPC Free Zone aims to help businesspeople with company setup options. Suppose you aim to establish a business in the Fintech startup in Sharjah. In that case, we can help by providing opportunities like obtaining business licences at SPC Free Zone.
SPC Free Zone offers business packages that are customised to specific business needs. With SPC Free Zone, you can take advantage of up to 100 visa quotas and maximise profits with zero paid-up share capital, 0% corporate and personal income tax, and 100% foreign ownership.
We aim to give business owners the tools and knowledge they need to navigate their way.
SPC Free Zone is here to help with your Fintech business setup in the UAE!