Fintech in MENA: Interview with BKN301 CEO

Explore the MENA fintech scene with an interview featuring Stiven Muccioli, CEO of BKN301, conducted by Rabab Zehra, Executive Editor at TECHx. Discover the factors driving growth, BKN301’s pivotal role, and their strategic expansion plans in this dynamic industry.

TECHx: The MENA region is recognized as a burgeoning market in the fintech industry. Can you identify the key factors that contribute to the growth of this region as a significant player in the fintech industry?

The fintech industry of the Middle East and North Africa (MENA) region is experiencing a significant uptick, which can be attributed to a multitude of factors. Thanks to a large population of tech-savvy millennials and Gen Z individuals who consistently embrace digitisation, the MENA region has become a well-known fintech powerhouse, offering a favourable market for fintech goods and services. Additionally, the region’s extensive use of smartphones has also hastened the development of fintech. In the MENA region, almost 91 per cent of customers make online purchases. In addition, almost 70 per cent of the customers in the region prefer to utilise digital payment options.

Recognising the immense potential of financial technologies, governments in the MENA region are proactively encouraging its integration and adoption, establishing several regulatory frameworks and initiatives to foster innovation and entrepreneurship in the sector. A perfect illustration of this would be the establishment of regulatory sandboxes by the UAE to foster the growth of fintech businesses. There is further a significant need for fintech solutions that facilitate international commerce and currency conversion due to the region’s status as a cross-border investment and trade hub. Additionally, the significance of Islamic finance in the MENA region contributes to the creation of fintech solutions that address the requirements of this sector, strengthening the position of fintech in the region’s financial landscape.

TECHx: BKN301 plays a significant role in the MENA Fintech market. Can you explain the core business model of BKN301 and how it enables third parties to offer financial services?

BKN301 is a fintech business primarily focused on the ‘Banking as a Service’ industry. Our primary goal is to deliver a comprehensive solution that effectively meets the needs of businesses and individuals alike. We offer financial services and solutions to a variety of industries, including financial institutions, corporate organisations, telcos, utilities, retailers. We collaborate with local businesses to deliver white label technological and financial solutions under our B2B2C and B2B2B business models.

With a major emphasis on payment innovation, we utilise blockchain and tokenisation to develop unique solutions and ways to make payment experience for customers more convenient, faster, and streamlined. We aim to build a world where financial services are not only accessible, but also convenient to use, secure, and customisable to meet the specific requirements of individuals and businesses.

TECHx: BKN301 seems to have ambitious expansion plans. Could you elaborate on the company’s expansion strategy, particularly in terms of target markets and focus areas?

At BKN301, we prioritise establishing solid and meaningful alliances with local businesses and groups as a vital component of our company’s strategy. We remain steadfast in our commitment to designing innovative products and services that are tailored to satisfy the varied needs and demands of the fast-growing market, targeting specific regions such as Middle East, North Africa and Levant, Caucasus and Stans markets. In addition, we are dedicated to investing in human capital as a key factor for development and progress. Through such investments, we are confident that we will be successful in efficiently meeting the rising demand for our services while also fostering innovation. Staying at the vanguard of innovations and trends in the industry is a vital aspect of our strategy and commitment. We constantly adapt our approach in response to these markets advancements to ensure that our solutions remain versatile and one step ahead of the curve. Our overarching objective is to position ourselves as a leading player in in those regions and the corresponding fintech markets, to assist the industry’s growth with a wide range of financial services.

TECHx: It’s evident that various industries can benefit from integrating BKN301’s services. Can you provide examples of the types of industries that can benefit from your services, and explain how BKN301’s offerings add value to their clients?

Our range of solutions are designed with the sole objective of catering to the financial needs of individuals and businesses involved across industries. We provide B2B companies the ability to integrate fintech solutions into their ecosystems, thereby providing added value, enhancing end-user experience, and promoting monetisation. Additionally, with our Banking-as-a-Service (BaaS) platform, we take pride in empowering a variety of sectors. On a white-label basis, our platform offers merchant acquiring, card issuance, and digital payments.

Conventional banks and credit unions may utilise our platform to modernise their offerings, improve the digital customer experience, and cut down on operational expenses. They can promptly implement new services, including mobile banking apps and digital wallets, to sustain their competitiveness in the changing market. Large businesses and corporations, on the other hand, may leverage our services to enhance their treasury operations, control staff expenses, and expedite payment procedures. Our platform helps them to achieve better visibility and control over their financial transactions.

Furthermore, by providing its users with financial services, such as mobile money and digital wallets, telecommunications companies (telcos) can diversify their sources of revenue. Using our platform, utility providers can also streamline bill payments and provide value-added services to their customers, which may result in more satisfied and devoted customers. Additionally, retailers can incorporate our payment solutions into their loyalty programs, in-store point-of-sale systems, and eCommerce platform, to improve shopping experiences and increase sales…

We constantly ensure that our services abide by pertinent financial regulations and security requirements to provide added value. Additionally, customers can reduce operating and development expenses by outsourcing the complexities of the banking infrastructure. In essence, BKN301 enables a variety of sectors to remain innovative and competitive in the ever-changing financial services industry. Our chief aim is to provide our clients with the liberty to completely focus on their core operations while we deliver the technology and knowledge necessary to advance their financial service offerings.

TECHx: What are the key trends and challenges currently shaping the MENA fintech market, and how is BKN301 positioned to address these challenges and capitalize on the trends?

Numerous trends and challenges are reshaping the ever-evolving fintech sector in the MENA region. The global fintech market is expected to grow at a compound annual growth rate (CAGR) of 23.41 percent between 2021 and 2026 to reach USD 324 billion. Furthermore, in the MENA region, the embedded finance sector is expected to grow at a CAGR of 27.8 per cent from USD 10,359 million in 2022 to USD 39,820 million by 2029, according to the MENA Fintech Association report.

Factors, including digitalisation, financial inclusion, cross-border payments, and the introduction of blockchain and cryptocurrencies, are driving the growth of the fintech sector. However, this market growth comes with its own fair share of challenges, such as regulatory complexities, cybersecurity threats, and the need to sustain customer trust. In light of this, we seek to offer state-of-the-art solutions to improve financial services. At BKN301, our focus on payment innovation, including tokenisation and blockchain technology, aligns with the regional trend towards digital transformation. Furthermore, our vast knowledge and expertise in managing regulatory complexities, commitment to providing robust customer data protection, as well as our strategic partnerships with regional businesses enable us to offer customized and efficient financial services. We aim to resolve the challenges and excel in the constantly evolving MENA fintech sector.