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RESULTS2021SAUDI ARABIANATIONAL FINTECHADOPTION SURVEYInfo@fintechsaudi.com
Saudi Arabia National Fintech Adoption Survey - Results 2021SURVEY KEY FINDINGSINTRODUCTIONWelcome to Fintech Saudi’s National Fintech Adoption Survey Results!Since the launch of Fintech Saudi, we are pleased to have seen the fintech industry in Saudi Arabiaadvance forward. Whilst supporting the growth of the fintech industry, we also need to evaluatethe demand for fintech solutions, track the level of fintech adoption and understand the barriersthat are preventing more users from embracing fintech solutions.The National Fintech Adoption Survey is the first of its kind in Saudi Arabia and was conducted byFintech Saudi at the beginning of 2021 to measure the level of fintech adoption in the Kingdomand understand how the fintech industry is supporting individuals and companies.We are pleased to present the survey results in five areas:CASH USAGEFINTECH ACTIVITYOPEN BANKINGENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)BANKINGRELATIONSHIPThis report provides a summary of the key insights from the survey, which will be built upon inthe coming years.We would also like to take this opportunity to thank our partners that supported us in promotingthe survey and all the companies and individuals that took the time to complete the survey andcontribute to the results. Thank you for helping to shape the future of the fintech industry inSaudi Arabia!We hope that you find the National Fintech Adoption Survey Results useful and we would love tohear your feedback on how the survey can be improved.Sincerely,The Fintech Saudi Team2 2021 Fintech Saudi - All Rights Reserved
Saudi Arabia National Fintech Adoption Survey - Results 2021SURVEY KEY FINDINGSThe majority of the populationuse cash once aweek but overall cash usagestillis declining3 out of 4There areregional andage disparitiesin the use of cashindividualshave used at least onefintech solution but age,tech savviness and regionaldisparities remainE-payments activity isOnly 2 out of 10customers visited their bankbranch in the last month and93% of customers primarilyconduct their bankingactivities electronically9 Out of 10Just over half ofindividuals are concernedabout sharing their datafor a better service6 Out of 10 customersthe biggestcontributorto fintech adoptioncustomers trust theirprimary bank relationshipand 84% believe thatthey receive a goodservice from their bankCustomers are lookingfor fintech solutionsthat can support thempayments,investmentsand saving morewithconsider environmental, socialand governance goals of acompany when choosing afinancial services provider3 2021 Fintech Saudi - All Rights Reserved
Saudi Arabia National Fintech Adoption Survey - Results 2021CASH USAGETHE MAJORITY OF THEPOPULATION STILL USE CASHONCE A WEEK BUT OVERALLCASH USAGE IS DECLININGA major target of Saudi’s Vision 2030 is tomove towards a cashless society and increasethe number of non-cash transactions to 70%in 2025. The COVID-19 outbreak has led toan acceleration in cashless activity with digitalpayments increasing by 75% over the last year,whilst cash withdrawals from ATMs and otherpayment points have declined by 30% over thesame period. 1THERE ARE REGIONAL,AGE DISPARITIES IN THEUSE OF CASHIn the Central Region (which includesRiyadh) and Eastern Region, just under20% of the population use cash everyday. However, in the Southern Region,nearly half the population use cashevery day.PERCENTAGE IN EACH REGIONTHAT USE CASH EVERYDAYWhilst the overall number of transactions carriedout using cash have reduced, our survey resultsshow that nearly 60% of individuals still usecash at least once a week and 1 out of 4 usecash every day.HOW OFTEN DO THE RESPONDENTSUSE CASHEVERYDAY31%ONCE A WEEKONCE A MONTH18%26%25%6 MONTHS OR MORE1: Financial Sector Development Program4 2021 Fintech Saudi - All Rights Reserved
Saudi Arabia National Fintech Adoption Survey - Results 2021CASH USAGEWe also see a strong correlation between age and use of cash every day. 18% of 16-22 year oldsuse cash every day, which increases to 46% of 60 years and above using cash every day.PERCENTAGE OF EACH AGE GROUP THAT USE CASH EVERYDAY46%38%18%16 - 22YEARS21%23%23 - 29YEARS30 - 39YEARS29%40 - 49YEARS50 - 59YEARS 60YEARSINSIGHTCASHLESS ACTIVITY IS EXPECTED TO CONTINUE TO GROWAs we transition out of the pandemic, the cashless habits that havebeen formed are expected to remain. Together with increasedspending from younger consumers that already use low levels of cash,growth in e-commerce, stronger digital payments infrastructure andgovernment support, cashless activity is expected to continue to grow.5 2021 Fintech Saudi - All Rights Reserved
Saudi Arabia National Fintech Adoption Survey - Results 2021FINTECH ACTIVITY3 OUT OF 4 INDIVIDUALS HAVE USED AT LEAST ONE FINTECHSOLUTION BUT AGE, TECH SAVVINESS AND REGIONALDISPARITIES REMAIN74% of individuals have used at least one fintechsolution. Whilst the adoption rate between men75% and women 73% is similar, our analysisshows disparities in fintech adoption related totech savviness, region and age.PERCENTAGE OFINDIVIDUALS74%IN EACH AGEGROUP THATUSE AT LEASTONE FINTECHWith respect to regions, Central Region(which includes Riyadh) has the highestrate of fintech adoption at 82% followedby the Eastern Region 75%, WesternRegion 68% and Northern Region 65%.The Southern Region has the lowestrate of fintech adoption with only 50%of individuals having used at least onefintech solution.PERCENTAGE OF INDIVIDUALS INEACH REGION THAT USE AT LEASTONE FINTECH SOLUTIONSOLUTIONThere is a strong correlation between the techsavviness of individuals and their level of fintechadoption. This ranges from 35% for individualswith the lowest level of tech savviness to82% for individuals with the highest level oftech savviness.65%75%82%PERCENTAGE OF FINTECH ADOPTIONBY THE LEVEL OF TECH SAVVINESS OFTHE RESPONDENTS81%82%67%35%LOW668%50%40%TECH SAVVINESSHIGH 2021 Fintech Saudi - All Rights Reserved
Saudi Arabia National Fintech Adoption Survey - Results 2021FINTECH ACTIVITYWe also see a strong correlation between ageand the level of fintech adoption. Fintechadoption for individuals between 16 to 39years old remains above 80% with 23-29year olds having the highest level of fintechadoption at 82%. For 50 years and above, thelevel of fintech adoption drops to around 60%.PERCENTAGE OF INDIVIDUALS THATUSE AT LEAST ONE FINTECH SOLUTION80%82%23 - 29YEARS80%30 - 39YEARS40 - 49YEARS59%60%50 - 59YEARS 60YEARSE-PAYMENTS ACTIVITY IS THEBIGGEST CONTRIBUTOR TOFINTECH ADOPTIONE-Payments activity has provided the largestcontribution to fintech adoption. 91% ofindividuals have heard of e-payments with69% of individuals regularly using e-paymentsolutions. A robust payment law introduced bythe Saudi Central Bank, acceleration in cashlessactivity and the prominence of a numberof large and well known e-payment fintechcompanies have contributed to the growth ine-payments. The launch of Sarie, the InstantPayment System by Saudi Payments is alsoexpected to contribute to a further growth ine-payments.7AWARENESSOF SOLUTIONE-PAYMENTS69%91%ONLINEBUDGETING71%16 - 22YEARSEXPERIENCEIN USING GREGATORS63%21%ROBOADVISORY62%11%PEER TO PEERLENDING8%52% 2021 Fintech Saudi - All Rights Reserved
Saudi Arabia National Fintech Adoption Survey - Results 2021FINTECH ACTIVITYWhilst fintech adoption levels for other fintech activities are currently low (ranging from 8%to 21%), the respondents are familiar with the activities. Over 60% of individuals have heard ofactivities such as online budgeting / financial planning 68%, equity crowdfunding 66%, insuranceaggregators 63% and robo-advisory 62%. We therefore expect adoption in these activities toincrease in the future, as regulations are developed and more fintech companies providing suchsolutions enter the market.INSIGHTE-PAYMENTS DRIVEN FINTECH ADOPTIONIn many markets, the first introduction to fintech activity for individualstends to be e-payment solutions. Customers may use a solution suchas an e-wallet to transfer funds or make digital payments. For manyindividuals, this may also be the first non-banking solution that they use.If individuals receive a good experience in e-payments, they are morelikely to consider other non-banking digital financial services solutions,which supports greater adoption in other areas of fintech activity.CUSTOMERS ARE LOOKING FOR FINTECH SOLUTIONS THATCAN SUPPORT THEM WITH PAYMENTS, INVESTMENTS ANDTO SAVE MOREDespite the high level of e-payments activity,65% of individuals and companies are in searchof fintech solutions that can help them tomake payments faster, cheaper and easier. Thissuggests that whilst customers have adoptedthe current generation of e-payment solutions,there remain pain points in payments wherecustomers need support.Solutions that support investing and saving werealso a priority for individuals. 51% of individualswere looking for solutions that could help themto invest more easily and 39% of individuals werelooking for solutions that could assist them withbudgeting / saving.8TOP 3 REASONS CUSTOMERS USEFINTECH SOLUTIONS:24/7AVAILABILITYBETTER CUSTOMEREXPERIENCEBETTER TECHNOLOGY,FUNCTIONS ANDFEATURES 2021 Fintech Saudi - All Rights Reserved
Saudi Arabia National Fintech Adoption Survey - Results 2021FINTECH ACTIVITYTOP 3 AREAS WHERE INDIVIDUALS ARELOOKING FOR MORE SUPPORT65%TOP 4 AREAS WHERE COMPANIESARE LOOKING FOR MORE SUPPORT65%MAKE PAYMENTSFASTER, CHEAPER, EASIERMAKE PAYMENTSFASTER, CHEAPER, EASIER51%47%INVEST MORE EASILYIMPROVE / AUTOMATEBUSINESS OPERATIONS39%43%SUPPORT WITHBUDGETING & SAVINGSOLUTIONS TO RAISECAPITAL42%6 OUT OF 10IMPROVE BUSINESSSECURITYWANT TO USE FINTECH SOLUTIONSTHAT ARE BASED LOCALLYCompanies were looking for solutions that could help them improve their business activities. 47%of companies were looking for solutions to improve / automate their business operations, 43%were looking for solutions to help them raise capital and 42% were looking for solutions to helpthem improve their business security.When looking for a new fintech solution, 46% of respondents conduct personal research (comparisonsites, review sites, forums etc.), 25% ask their network (friends, family, business associates etc.) and21% consult with their bank.HOW RESPONDENTSLOOK FOR A NEWFINTECH SOLUTIONPERSONAL RESEARCH25%FRIENDS AND FAMILYBANK8%946%21%OTHER 2021 Fintech Saudi - All Rights Reserved
Saudi Arabia National Fintech Adoption Survey - Results 2021BANKING RELATIONSHIP9 OUT OF 10 CUSTOMERSTRUST THEIR PRIMARY BANKRELATIONSHIP AND 84%BELIEVE THAT THEY RECEIVEA GOOD SERVICE FROMTHEIR BANK93% of respondents confirmed that they trusttheir bank. In well-regulated banking sectors,customers tend to trust their bank as custodiansof their wealth. However, some banking sectorssuffered a deterioration in customer trust levelsafter the 2008 / 2009 financial crises. The Saudibanking industry avoided much of the falloutfrom the financial crises, which may explain whyhigh levels of customer trust remain.TOP 3 REASONS CUSTOMERS DONOT USE FINTECH SOLUTIONS:BANK SERVICES MEETMY NEEDSNOT HEARD ABOUT THEFINTECH SOLUTIONSDO NOT UNDERSTANDTHE FINTECH SOLUTIONSHowever, there is also evidence to suggestthat outside of e-payments, there maybeless awareness about the benefits of othernon-banking solutions. When asked whycustomers were reluctant to use fintechOur survey results also showed that 84% ofsolutions, two out of the top three reasonsfrom their bank and 83% are satisfied with theabout them or did not understand them.levels of satisfaction maybe partially explainedconfirmed that a better understanding ofrespondents believe they receive a good serviceprovided were either they had not hearddigital services provided by their bank. The highIn addition, 4 out of 10 respondentsby the investment made by Saudi banks into theirdigital services over the last few years.93%83%the benefits would incentivise them to trynew fintech solutions.4 OUT OF 10MORE LIKELY TO USE FINTECHSOLUTIONS IF THEY BETTERTRUST THIERBANK84%SATISFIEDWITH DIGITALSERVICESUNDERSTAND THE BENEFITSRECEIVE A GOODSERVICE10 2021 Fintech Saudi - All Rights Reserved
Saudi Arabia National Fintech Adoption Survey - Results 2021BANKING RELATIONSHIPONLY 2 OUT OF 10 CUSTOMERSVISITED THEIR BANK BRANCHIN THE LAST MONTH AND 93%OF CUSTOMERS PRIMARILYCONDUCT THEIR BANKINGACTIVITIES ELECTRONICALLYWhilst the bank remains at the centre of thecustomer’s financial activities, only 22% ofcustomers visited their bank branch in the lastPRIMARY WAY CUSTOMERSCONDUCT BANKING ACTIVITIES2%Telephone Banking5%BranchBasedBanking93%Electronic Bankingmonth and 35% of customers were not ableto recall the last time that they visited theirbank branch.Although these results may have beenTHE LAST TIME RESPONDENTS VISITEDA BANK BRANCHTHIS WEEK14%THIS MONTHthe COVID-19 pandemic, which restrictedindividualsfromvisitingtheirbankbranch, the longer term trend of a growthin digital services suggests that electronicbanking activities will continue to growwhilst the need for customers to visit bankbranches will decline.LAST 6 MONTHS35%8%impacted by the disruptions caused by43%CAN’T REMEMBERIn addition, 93% of respondents confirmed thatthey primarily conduct their banking activitieselectronically (through internet banking ortheir mobile banking app) and only 5% ofrespondents primarily conduct their bankingactivities through bank branches.11 2021 Fintech Saudi - All Rights Reserved
Saudi Arabia National Fintech Adoption Survey - Results 2021OPEN BANKINGINSIGHTWHAT IS OPEN BANKING?Open banking is the process of opening up of bank’s transaction data tothird parties such as other banks and fintech companies in order to boostinnovation and improve products and services for customers. The mainprinciple behind Open Banking is that customers are in control of theirbank transaction data and if they choose to, they can provide explicit andinformed consent to their data being shared securely with third parties inreturn for receiving better financial products and services.JUST OVER HALF OFINDIVIDUALS ARECONCERNED ABOUTSHARING THEIR DATAFOR A BETTER SERVICEBanking, we expect there to be an increasein the number of individuals that arecomfortable with sharing their data.PERCENTAGE OF RESPONDENTSTHAT ARE WILLING TO SHARETHEIR DATA WITH THIRD PARTIESFOR A BETTER SERVICEOur survey found that just over half of individuals52% and a third of companies 32% would notbe comfortable with sharing their bank data68%Yes32%No52%No48%Yeswith third parties for a better service. Out of therespondents that disclosed that they would becomfortable with sharing their bank data, 86%COMPANIESINDIVIDUALSof respondents confirmed that they would wanttheir data to be shared with regulated financialservices companies.* OF THOSEWhilst the results suggest that individuals aresensitive about sharing their data, the levels arenot dissimilar to what has been witnessed inother developed markets when Open Bankingwas first introduced. Open Banking is expectedto be introduced in Saudi Arabia in 2022. Once86%THAT SAIDYES WOULDWANT TOSHARE THEIRDATA WITH AREGULATEDFINANCIALSERVICESCOMPANYcustomers experience the benefits of Open12 2021 Fintech Saudi - All Rights Reserved
Saudi Arabia National Fintech Adoption Survey - Results 2021ENVIRONMENTAL, SOCIALAND GOVERNANCEINSIGHTWHAT IS ESG?ESG refers to the consideration of the environmental, social andgovernance goals of a company that drives the company’s sustainabilityimpact and activities in society. Globally, ESG in financial services isgaining increasing importance with customers considering moreethical investments and evaluating ESG goals of a company as part oftheir selection process in choosing financial services providers.6 OUT OF 10 CUSTOMERS CONSIDER ENVIRONMENTAL, SOCIALAND GOVERNANCE GOALS OF A COMPANY WHEN CHOOSING AFINANCIAL SERVICES PROVIDER62% of customers consider environmental,social and governance goals to be an importantfactor in their decision making when choosinga financial services provider. As customersprioritise ethically-led products and services,PERCENTAGE THAT CONSIDERTHE ESG GOALS OF COMPANYWHEN CHOOSING A FINANCIALSERVICES PROVIDERwe expect more financial services lves and their activities to align withtheir customer’ needs.1362% 2021 Fintech Saudi - All Rights Reserved
Saudi Arabia National Fintech Adoption Survey - Results 2021ABOUT THE SURVEYINDIVIDUAL RESPONDENTS2297RESPONDENTSGEOGRAPHIC LOCATIONAGENATIONALITY3.9GENDERTHE AVERAGE RESPONSE TO RATING THERESPONDENTS TECH SAVVINESS LEVEL OUT OF 5EMPLOYMENT STATUS27%Not in Employment(Retired and Unemployed)*14NOTE: ALL THE DATA WAS NORMALIZED TO REFLECT THE DEMOGRAPHICS OF THE SAUDI POPULATION 2021 Fintech Saudi - All Rights Reserved
Saudi Arabia National Fintech Adoption Survey - Results 2021ABOUT THE SURVEYCOMPANY RESPONDENTS237GEOGRAPHIC LOCATIONRESPONDENTS16.36%Operating Across MultipleLocations in SaudiCOMPANY RESPONDENTS BY THEIR SIZE*15NOTE: ALL THE DATA WAS NORMALIZED TO REFLECT THE COMPOSITION OF COMPANIES ACROSS SAUDI ARABIA 2021 Fintech Saudi - All Rights Reserved
THANK YOUThank you to our partners that supported us in promoting theNational Fintech Adoption Survey throughout the Kingdom
The National Fintech Adoption Survey is the first of its kind in Saudi Arabia and was conducted by Fintech Saudi at the beginning of 2021 to measure the level of fintech adoption in the Kingdom and understand how the fintech
