The panel ‘From Telecom to Technology Players: Entering the Fintech Field’ brought together fintech experts to discuss the transformative role of fintech in the telecommunications industry during the 18th Telecom Review Leaders’ Summit, held from December 10-11, 2024, in Dubai, United Arab Emirates.
The moderator, Rabih Farhat, CEO of Related, was joined by Nicolas Levi, CEO of du Pay; Edgard Tawk, CEO and Co-Founder of Eurisko; Vivek Yadav, Managing Director of PMP Strategy Dubai; and Abdulaziz Qambar, Group Founder and Group CEO of Fimpact Group.
Converting Mobile Operators in a Developed Market
The convergence of fintech and telecommunications is reshaping the financial services landscape. Fintech refers to financial companies utilizing technology to enhance services, such as digital wallets and payment apps, while techfin represents technology companies integrating financial services into their ecosystems—like telcos enabling credit, payments, loans, and more.
Highlighting this distinction, Qambar noted, “Startups can become fintechs but cannot become techfins.” Telcos are at the forefront of the techfin movement, leveraging their vast reach, secure infrastructure, and customer insights to bridge the gap between the connected and the underserved.
Levi emphasized that fintech originated in Africa before expanding into Asia and is now striving to reach the entire market. He pointed out the convergence of fintech and telecom, stating it drives diversification, reduces churn, and enhances customer accessibility: “Because we can reach the customer more easily.”
Fintech in the GCC Region
The Gulf Cooperation Council (GCC) region’s fintech landscape is experiencing a significant transformation, demonstrating a remarkable shift in value from business-to-business (B2B) to business-to-consumer (B2C) models, particularly in the UAE and Saudi Arabia.
PMP Strategy’s Yadav highlighted three go-to-market requirements to achieve fintech success: customer acquisition, funding, and customer retention.
Impressively, fintech companies are positioned to address the requirements and support the conversion, delivering innovative solutions that streamline processes and services.
The shift towards B2C models reflects the growing demand for consumer-centric financial services, driven by the region’s rapid adaption to technological services.
Latest Innovations in Fintech Transformation
With the ever-evolving nature of the ICT landscape, telecom operators may face new challenges and opportunities.
The latest wave of fintech transformation is being driven by a focus on customer-centric innovation and emerging technologies. Tawk noted that operators are at risk of “going into decay” unless they leverage their capabilities, infrastructure, and data to deliver value to customers.
Emphasizing the importance of customer segmentation and experience, he posed the following question to the audience: “What do teenagers want?”
Fintech, with its ability to empower users, is uniquely positioned to address direct consumer needs. Tawk highlighted two transformative trends: IoT and blockchain, which are driving shifts in strategies and increased investments in digital currencies.
He emphasized the significance of capability, infrastructure, and data to deliver innovation. He stressed the importance of customer segmentation and experience, maximizing the customer-centric approach that is crucial to meet customer demands.
The Secret Recipe for Great Market Share
When the moderator questioned Levi regarding the “secret recipe for great market share,” Levi expanded on du Pay’s success, which has gained significant traction since its launch in late April. The key to this success, he emphasized, is having a clear plan, strong motivation, and a well-defined go-to-market strategy.
“We always know who we are,” he remarked, underlining the importance of aligning efforts with the brand's identity. By focusing on delivering immediate value to customers, du Pay ensures a seamless and intelligent transfer experience.
Marketed under the trusted du brand, the platform communicates a clear and consistent message. Levi summarized, “The secret is to be customer-focused and to know where our strengths are. Be consistent, be clear in our messages, and [offer a] simple customer experience.”
Features Driving Conversion, Monetization, and Partnerships
Yadav highlighted several key features shaping the future of monetization and partnerships, including adherence to PTSR regulations and leveraging RippleNet for efficient cross-border transfers. Emphasizing genuine use cases, he noted a strategic focus shift from B2C to B2B, enabling deeper collaboration opportunities. Integrated app revenue streams, such as savings plans and insurance, play a vital role in this evolution. Looking ahead, Yadav shared, “We will see how we can combine AI [and] blockchain for the future,” underscoring the transformative potential of emerging technologies in driving innovation.
How to Choose the Right Partner
Qambar emphasized that successful partnerships go beyond technology, stating, “Partnering is not about technology; it’s about the mentality and the vision of the partners and where they want to go.” He highlighted the importance of leveraging tools like KYC from the communications sector in Saudi Arabia and stressed the need to deeply understand the partner, specifically, their goals, business model, and mindset. “Is it tech-oriented or strategic?” he posed, emphasizing the importance of aligning visions for a meaningful and effective collaboration.
How Crowded is the Ecosystem?
Tawk highlighted the intense competition in the ecosystem, noting the presence of 24 fintech companies against the market share held by just two operators. He remarked on the uncertain consolidation in an open market where “startups and telcos will compete on market share.” To succeed, he stressed the importance of addressing consumer needs and identifying key areas for investment. Agility is crucial in this rapidly changing landscape, as “technology is quickly evolving.” Tawk concluded by emphasizing that the first movers in the market are likely to secure the largest market share.
How Will the Market Evolve in the Next Five Years?
Levi emphasized du Pay's “strong value proposition,” rooted in delivering simplicity for the customer experience. He reassured customers with the mantra: “Simple. Safe. Fast.”
Tawk predicts that “crypto will be the next payment means,” signaling a shift toward digital currencies. Yadav expressed optimism, praising regulators for creating the “right frameworks for entrepreneurs and fintech to innovate.”
Qambar noted the growing influence of younger generations, stating, “Gen Z and Alpha are becoming more mobile-savvy; they want to manage their entire lifecycle through a mobile app.” He described the next generation as the “real driver of fintech,” emphasizing the potential of AVR (augmented virtual reality) for delivering educative insights.
Additionally, the convergence of banking and telcos, particularly in facilitating peer-to-peer (P2P) transactions, is expected to reshape the market.
