This article is an opinion piece written by Konstantin Vladimirovich Tserazov, a former Senior Vice President at Otkritie Bank and a strategic business consultant for several prominent international fintech companies.
It's worth mentioning that in 2024, the UAE may become the leading hotspot for ultra-wealthy individuals worldwide, surpassing even the US as a desirable destination.
One of the crucial factors driving this dynamic is that UAE fintech has demonstrated brilliant results in its development. From my experience with onboarding capital from ultra-wealthy individuals, it is vital to identify which fintech niches are most in demand to fill the existing gaps.
My experience in the banking and fintech sectors and my current position as a fintech strategist covering developments in these regions allow me to highlight some key points about the future trajectory of fintech in the CIS and Middle Eastern regions.
I see a unique situation in the CIS countries, which have experienced a significant influx of Russian specialists in Kazakhstan, Kyrgyzstan, and Armenia in recent years. This migration brings expertise to bolster these economies, whose GDP growth outpaces advanced economies.
This has several consequences, including a rise in demand for financial services, and fintech has an opportunity to impact this situation significantly.
Regarding the Middle Eastern regions, it's worth mentioning that in 2024, the UAE will become the leading hotspot for ultra-wealthy individuals worldwide, surpassing even the US as a desirable destination.
One of the crucial factors driving this dynamic is that UAE fintech has demonstrated brilliant results in its development. From my experience with onboarding capital from ultra-wealthy individuals, it is vital to identify which fintech niches are most in demand to fill the existing gaps.
The regulatory hurdles facing fintech growth
All hurdles in these regions for fintech development can be effectively addressed with proper management.
Indeed, a properly built team of specialists can achieve all corporate goals. I was convinced of this when I navigated one of the key brokerages in Russia, "Otkritie Broker." I managed to increase the client base by 76% in just one year, and when I look back at this success, I understand that the key is to direct the team in the right direction. It's not only about delegating tasks but also about hard personal work that involves paying attention to all relevant details while having a strategic vision for the corporation.
In the case of the CIS and Middle Eastern regions, I have several points that must be addressed to unlock the potential of fintech as a driver of sustainable client base growth. It's about maintaining proper government relations and working not just on current challenges but also foreseeing future ones to prevent the appearance of new hurdles.
The notable advancements in digital finance
Advancements in digital finance must be more than theoretical; they must be implemented practically. This is a point I've always stressed, and it is something I continue to emphasize as I work out tailored solutions for multibillion-dollar individual and corporate businesses.
To be practically innovative is very important for any business. As Chairman of the Board of Directors of Otkritie Broker, I introduced several fintech decisions and implemented numerous innovations into the corporate fabric. This allowed us to raise the operational income of Otkritie Broker by 28% in a very competitive market environment.
Currently, it is very important to stay ahead of competitors in the practical implementation of technologies such as Artificial Intelligence (AI), blockchain, Augmented Reality (AR), and Virtual Reality (VR).
Many talk about these innovations, but the core of a company's success in the next five years lies in the precise knowledge of introducing these technologies into corporate life. I fully understand that this process is not easy, but my experience provides valuable insights into how to do it effectively.
How do you view the progress of blockchain technology adoption in the financial sector?
When we discuss blockchain technology, we often see the term simplified. It is more accurate to speak of Distributed Ledger Technology (DLT).
With my corporate experience, I see that various operational processes require implementing different types of DLT, including blockchain. In the financial sector, the implementation of DLT faces several obstacles that can be overcome if one knows how to implement DLT effectively.
One crucial point is that if a financial institution wants to implement DLT successfully, it is necessary to find the optimal way to do so by introducing Artificial Intelligence (AI) alongside DLT.
The current phase of blockchain technology adoption in the financial sector clearly shows that corporate investment in DLT will only be 100% effective if DLT introduction is accompanied by AI implementation.
The main obstacle in incorporating blockchain and AI into established institutions is that most companies do this on the wave of hype. They decide to invest in innovations but often lack a thorough vision of how blockchain and AI can improve their financial results.
After a while, they naturally lose interest in these innovations, thus committing a significant mistake and risking being left behind. Most companies in any sector of the financial industry make this mistake, but those who avoid it and clearly understand "how to do it" and "how to earn from it" become market leaders.
What key strategies have proven most impactful for you throughout your career?
The valuable lesson I've learned from my corporate journey in the financial sphere is that the winner is the person or company that doesn't give up in any life or corporate circumstances.
This means having steadfast faith in one's capabilities and the power of your team.
Another lesson is that there is always a niche for any financial service in which one can be an undisputed leader in the market. The only thing that stands in the way is the skill to figure this out, which comes only with practice.
Finally, it is crucial to be seasoned in finding new ways to explore all the innovations we are surrounded by.
Konstantin Vladimirovich Tserazov, a former Senior Vice President at Otkritie Bank and a strategic business consultant for several prominent international fintech companies.