Recently, the Fintech sector in the Middle East has been growing impressively. In fact, during 2023-24, $1.9 billion was invested in over 200 deals in the Middle East and North Africa (MENA) region. Moreover, key players (banks, digital lenders, etc.) are vying for the attention of tech-savvy customers.
And as trust is the key growth driver in any industry, eKYC, phone verification, and email validation for Fintech are getting more attention than ever. Besides facilitating regulatory compliance, these tools help minimize frauds and augment customer experience in a digitalized world.
So, let’s dig deeper into the need for verifying identity and communication, if you are planning to scale your Fintech venture in the Middle East.
Why the Middle East’s Fintech Market is Primed for Growth
Till 2028, Fintech net revenue in the MENA region is likely to grow at a 35% rate annually, which is significantly higher than the global average (15%). Reasons include:
Those days of paper-based, slow, and error-prone identity checks are long gone. Electronic Know Your Customer (eKYC) Middle East is here to capture identities digitally, automate document verification, and conduct biometric matching. And Fintech entities can expect these perks:
Across the Gulf, regulators and central banks have clearly outlined stringent expectations when it comes to customer due diligence and digital identification. And by implementing eKYC, Fintech firms can meet regulatory requirements closely without inconveniencing customers.
eKYC Middle East eliminates the need for customers to visit a Fintech company’s branch or wait long for manual reviews before they can start availing services. Today, they can onboard in just a few minutes. This translates to fast conversion for Fintech firms too.
Compared to manual review, automated checks like cross-database validation and biometric liveness help in spotting synthetic identities, identity thefts, and forged IDs way earlier.
While email might not seem as avant-garde as biometrics, it comes in handy at different points of a customer’s lifecycle. From account creation and transaction alerts to password recovery and marketing, email acts as a communication, engagement, and problem-solving tool.
That’s not all. Email validation for Fintech in real time boosts message deliverability and minimizes the risk of account takeover. That is because this technique confirms if a certain address is complete, accurate, valid, and properly formatted. In the process, firms benefit in multiple ways:
More and more Fintech firms are availing phone verification services as this technique helps in connecting an identity with a communication medium that’s live. Phone checks usually happen via voice calls, one-time-passwords (OTPs) sent through SMS, and attestations at the network level.
Since every check takes only seconds, the fact that a particular user is tied to a specific number can be established almost instantly. And Fintech firms benefit because:
Phone-based authentication is not only sensible but also familiar since mobile subscription in the Middle East is on the rise. In MENA, in fact, smartphone subscriptions are poised to hit the 710 million mark in the next 5 years. Penetration of mobile internet is also above 90%.
Phone verification services help in strengthening eKYC by forging a link between the verified ID and a mobile device. This later helps in detecting swapping of SIM cards, device changes, and fraudulent activities.
However, using only SMS OTPs might not do the trick for phone verification. The reason is this method is vulnerable to disposable number frauds and malicious attacks involving SIM swaps.
Combining device intelligence, network attestations, and risk scoring works better for stronger authentication. Another option is to leverage smart authentication models that are designed for checking identities efficiently in real time and resistant to common frauds.
When combined, eKYC Middle East, email validation, and phone verification help in establishing two-way trust. Having accurate information about customers allows Fintech businesses to personalize marketing efforts and drive conversions cost-effectively. On the other hand, customers feel more confident when they realize that companies are going that extra mile to maintain clean databases and prevent frauds.
Just remember to follow these best practices when integrating eKYC, phone verification, and email validation for Fintech:
Make sure phone numbers and email addresses are verified in real time when someone is signing up on your site. This will prevent hackers and inaccurate or fake data from entering the system at all.
Let eKYC be the primary anchor for a user’s identity. It can be a combination of documentation and biometrics. Then link that identity to a verified phone number and email address.
For high-risk transactions, deploy an authentication process that requires multiple steps. You can minimize the friction in case of low-risk transactions.
Monitor points of contact for email inactivity or changes in phone number periodically. Make note of anomalies like overseas IP addresses or random device changes.
Be aware of and adhere to country and region-specific regulations on privacy, money laundering, terrorism financing, consent, etc.
To grow your Middle East Fintech business with resilience, combining eKYC, phone verification, and email validation is the way to go. This unified identity verification strategy will help you unlock advantages like higher conversions, faster onboarding, fewer frauds, and improved regulatory compliance.
Most importantly, you can identify, trust, engage with, and market to real, interested customers. And they too will trust your business. In the long run, that is exactly what you need to drive loyalty and thrive in a competitive Fintech sector.
Hence, to keep up with the Middle East’s dynamic digital economy and scale sustainably and safely, get ready to embrace eKYC as well as email and phone verification services.