Embrace fintech to drive growth, Al Maraj tells banks

Bahrain’s top banker has called on the bankers here to “play on their strengths” and embrace financial technology to overcome the persistent sluggishness in the global economy. Bahrain, Rasheed Al Maraj said, has laid the foundations for fintech development, with regulations on Crowdfunding, Cloud Computing, Open Banking, Robo Advisory and Crypto Asset services covering trading, dealing, advisory and portfolio management.

“It is up to the market players now to come up with innovative solutions, on their own or in partnership with tech companies,” the CBB Governor stressed. Al Maraj was addressing the 44th ICA conference at the Ritz Carlton, Bahrain, which Bahrain is hosting for the fifth time. This year’s theme is “Reshaping Finance in a Changing Economy”.

Held under the patronage of HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, the 44th Interarab Cambist Association (ICA) conference opened yesterday at the Ritz Carlton, Bahrain. “With a synchronised slowdown and uncertain recovery, the global outlook remains precarious. At 3 per cent growth there is no room for policy mistakes,” said Rasheed Al Maraj quoting Chief Economist of the IMF.

No-room for mistake

“The low-interest environment, with some facing negative interest rates, if prevails will pose an unprecedented situation for the banks to tackle. “This situation leaves no room for policy mistakes indeed,” he warned. Fintech, Al Maraj said, in this scenario is a development, “if embraced properly, can help in the progress of the financial sector.”

Bahrain, he said, has decided early to embrace Fintech by introducing a full spectrum of regulations to facilitate innovations.

Need prudent policies

“While it is challenging the incumbents in the financial sector and forcing them to rethink their business models, it is also presenting a great opportunity, to existing and new players alike, to expand into new customer segments and cost-effectively,” he explained. “Our Regulatory Sandbox provides a safe environment to innovative companies as well as incumbents to test their solutions,” Al Maraj said.

So far, CBB has authorised 36 companies for the Sandbox, of which two have graduated. While reminding that the global economy is going through challenging times, Al Maraj said to survive requires “prudent policies, good governance and practices.”

Govt support

The conference, organised by the Bahrain Financial Markets Association in cooperation with the Central Bank of Bahrain was attended by the Deputy Prime Minister, HH Shaikh Mohammed bin Mubarak Al Khalifa, Deputy Prime Minister, Shaikh Khalid bin Abdullah Al Khalifa, and several senior government officials.

In his opening statement, HH Shaikh Mohammed stressed the Kingdom’s commitment to further enhance its economic development, and support the objectives of its comprehensive development. Bahrain’s representative of the Interarab Cambist Association (ICA), Chairman of the Higher Organizing Committee of the 44th ICA Conference, Abdulla Dawood highlighted the importance of hosting the conference in Bahrain.

ICA Chairman, Tamer Khalifa, said the conference reinforces the Kingdom’s determination to further strengthen its role in the region’s financial and business markets. Several high-profile keynote speakers are attending the conference over the two days, sharing their perspectives on the developments of the financial industry in light of the global economic changes.

Fintech expo

The conference includes an exhibition for local, regional and international companies and banks to showcase their latest financial products and innovations.

Meeting with Sarkozy

On the sidelines of the 44th ICA Conference, the Deputy Prime Minister, HH Shaikh Mohammed bin Mubarak Al Khalifa, held a meeting with one of the main speakers at the conference, former President of France, Nicolas Sarkozy.

HH Shaikh Mohammed and Sarkozy discussed bilateral ties, as well as regional and international issues of common interest. The Deputy Prime Minister, Shaikh Khalid bin Abdullah Al Khalifa, also attended the meeting.