Morocco is said to be one of the most important fintech hubs in the MENA region, as it is currently home to around 13% of the roughly 400 regional fintech companies, according to a study by a financial inclusion supporter. Consultative Group to Assist the Poor (CGAP).
The report, titled Fintechs in the Arab world, possesses examined the FinTech sector in 22 member countries of the Arab League. The study examines how the fintech space has evolved and matured in recent years. CGAP has successfully identified around 400 fintech platforms and solutions offered by over 320 different service providers in the region (as of November last year). As expected, the United Arab Emirates (UAE) is home to the largest number of FinTech companies (23%) and is followed by Egypt (14%) and Morocco (13%) in the MENA region.
Morocco’s Fintech ecosystem would be supported by a high level of mobile coverage. But the country still has many unbanked residents who could become contributors to the formal economy if the country continues to work on updating its infrastructure. Morocco has many talented or skilled professionals in particular, and several government initiatives are in place to help consumers access digital financial services.
According to the report, the banking penetration rate in the MENA region country was only 28.6% in 2017 and the economy was mainly dependent on cash transactions. About 80% of monetary transactions in the country have been settled in cash.
However, digital commerce has seen strong growth, resulting in significantly more online transactions which jumped 43% in December 2020. These numbers are considerably higher than the total volume for January 2020, according to Mikael naciri, CEO of Interbank Electronic Banking Center (CMI).
Of around 40 fintech-related service solutions in Morocco, payment, remittance and point-of-sale (POS) systems have matured the most compared to other platforms, the report revealed.
As the first reported by Fintech News Middle East, a local company Invyad offers an end-to-end mobile point of sale solution for SMEs, Wafacash is a company focused on remittances and Inwi money and HmizatePay aim to facilitate mobile payments. HmizatePay is the mobile payment platform of the digital commerce solutions provider Hmizate.
Crowdfunding, personal financial services, lending platforms, and advanced data analytics are other forms of Fintech that are growing in popularity in the country. Cotizi would be the country’s very first crowdfunding platform.