According to a new report compiled in a collaborative effort between Wamda Research Lab & Payfort, fintech start-ups in the MENA (Middle East & North Africa) raised over USD 100 million in funding over the last 10 years.

A recently published report – the State of Fintech – launched by the Wamda Research Lab (WRL) and Payfort, indicates that the number of start-ups launched and investments are expected to increase by more than double by 2020. Further, the report showed that start-ups in MENA aimed to to raise USD 50 million in funding this year, a 270 percent increase on the USD 18 million in disclosed investments last year. As of 2016, a total of 105 fintech startups had launched in the region. However, the report estimates that this will rise to 250 by 2020. Half of these start-ups offer some form of payment solution, and a third are involved in money lending and capital raising.

In the report, four drivers of the fintech revolution are identified, and the move toward a cashless economy is highlighted as a major driver of change. In MENA around 86% of the adult population does not bank at all; SME lending by regional banks is 50% under the average held by the middle income countries. Likewise, ecommerce is expected to quadruple by the end of the decade, and according to an EY study, 3 in 4 customers stated that they would be ready to change banks.

To download the complete State of Fintech report by Wamda and Payfort, click here.