How Venture Capital and FinTech is Shaping a Dynamic New Future for Financial Services Sector Growth

Global finance decision makers are meeting for the second edition of the Financial Services Conference (FSC 2023) in Riyadh, where they will be turning their knowledge and experience towards how the sector’s role and characteristic is changing globally.

Technology and digitalization are altering the sector at a pace that was unprecedented only a few years ago. Blockchain, FinTech, are fundamentally changing the way we bank, make purchases and invest.

Alternative investments are here to stay. The financial sector is witnessing a diversification of assets. New opportunities are emerging beyond the traditional capital market assets offered in traditional financial hubs in Asia, Europe and North America.

In Saudi Arabia, we are committed to making the Kingdom a regional hub with a robust and transparent regulatory environment that supports a sophisticated capitals markets environment. Saudi Arabia is pursuing this ambition as part of our efforts to diversify our economy by providing venture capital, FinTech and digitalization services to international, regional and local investors. We are seeing positive results.

We have witnessed year-on-year growth of 72% in venture capital investments. The FinTech area was the biggest area last year for investors in the Kingdom. That has bolstered the  digital environment for young entrepreneurs and reflects a wider dynamism the Saudi market.

Overall, the sector has seen extraordinary growth in Saudi Arabia. Venture capital only really started in 2018 when a total of $59 million was invested. But by 2022, that figure had grown to just under one billion dollars at $987 million and the health and desire of Saudi VCs to invest shows no sign of diminishing.

The Saudi VC sector will continue to grow and advance, attracting more global interest. Our success is part of the dynamic growth and development of a vibrant venture capital culture that is not risk averse and eager to grasp the opportunities it presents.

The world’s financial services community is gathering in Riyadh for FSC 2023 to address how roles and characteristics of the financial sector are changing.

The presence of so many leaders in global banking is a clear testament to the importance put on solving these problems. We will see inputs from regional officials, including myself, and prominent bankers and investors from Europe and North America.

Under the theme “Promising Financial Horizons,” we will look for solutions that help extend these transformative opportunities to markets and communities that have historically been slower to adopt the latest financial trends. We recognize that we have an important role in the world, one that will help us collectively address the challenges and opportunities that are rapidly and undeniably impacting lives around the world though the emergences of new financial technologies.

Merely a decade ago a conference such as FSC 2023 would have been overwhelmingly dominated by the big traditional banks and investment houses. But there will be a greater diversity of talented men and women, who are shaking up and bring new positive energy to the sector and helping to frame its future.

A new generation has grasped the opportunity of digitization, seen how it has broken down traditional barriers of geography and processes and confidently moved the sector forward. As these new venture capitalists and FinTech specialists advance, it will be essential that the more traditional financial community welcome them and embrace the change.

These entrepreneurs can be the leaders of tomorrow and their creative energy and innovation will also be vital to helping achieve one of the ultimate goals of FSC 2023 to foster sustained growth and ensure strong financial stability in the sector.