Rabat – Despite its relatively small size, Morocco’s fintech sector is growing and proving to be a “dynamic market” with potential for far more success in the future, according to a recent report by The Fintech Times.
The country is currently home to 20 fintech startups and does not have any regulations that may hinder the creation of fintech startups, said the report.
While Morocco has no unicorn startups, startups that have raised over $ 1 billion before listing on a stock exchange, the country’s fintech landscape is promising in the light of its young demography, high literacy, and large banking sector, explained the report.
“Despite its small size, the country contains two of the largest banks in Africa, Groupe Banque Populaire (BP) and Attijariwafa,” the report noted, adding that these banks are significant drivers of innovation within the fintech sector since more conventional financial institutions are now turning to fintech solutions to remain competitive.
One Moroccan bank has indeed led the way in supporting the country’s fintech landscape. The Banque Centrale Populaire Group launched in 2018 the first edition of the Fintech Challenge and Open Innovation program. The program aims to allow the bank to both collaborate with and support Africa’s startups.
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According to the report, the bank’s program is an instance of how Moroccan banking and financial groups could potentially have a significant impact on the country’s fintech landscape.
While fintech is a relatively new field in Africa as a whole, there is little regulatory framework in Morocco compared to other countries in the region.
One key positive for Moroccan fintech companies, however, is that there are no prohibitions against specific fintech businesses as funding institutions look at companies on a case-by-case basis.
The report classified Morocco as a “market to watch” as it is an early-stage fintech hub that could potentially see significant growth in the future.
