In Morocco, the fintech industry is evolving rapidly, and the country is looking to play a major role in the African market, by implementing advanced technologies in the financial sector.
A large number of companies and startups are investing in the sector, taking advantage of the opportunities of this trend.
In this blog post, we will look at the current situation of the fintech industry in Morocco, and what we can expect to see in 2023.
Overview of Morocco’s current fintech landscape
Morocco has a strong fintech environment due to different factors such as:
- Financial infrastructure
- Educated population
- A rapidly growing number of financial institutions
Most of Morocco’s banking sector is dominated by centralized models and single-brand financial institutions.
This is because many banks in the country are French-owned, as evidenced by the large number of branches operating under the Banque Populaire du France brand.
Although, there are some locally-owned banks, such as Banque Populaire du Maroc that offer fintech services.
Payments, remittances, and point of sale (POS) systems are the most developed areas among more than 40 active fintech solutions in Morocco.
Invyad provides end-to-end mobile POS solutions for small and medium enterprises (SMEs).
Wafacash is a money transfer startup.
Inwi Money and HmizatePay specialize in mobile payments. HmizatePay is the mobile payment platform for his e-commerce startup Hmizate.
OnePay allows both offline and online businesses to accept digital payments. Its platform acts as an aggregator of payments and value-added services.
Cotizi is Morocco’s first crowdfunding platform.
Ciwa is a mobile app for creating and managing tontines.
Afdal provides online mortgage brokerage services.
Peaqock is a startup that provides innovative solutions in the field of Data Science, AI, and machine learning.
Additionally, we have HPS, a Moroccan multinational specializing in publishing electronic payment solutions for financial institutions.
How advanced technologies are transforming the fintech market in Morocco
Advanced technologies such as AI, machine learning, and blockchain have revolutionized the financial sector in Morocco, and they have been integrated by many companies.
Some of the advanced technologies that are expected to disrupt the fintech sector in Morocco include:
- Advanced data analytics and data visualization technologies
- Advanced communication and collaboration technologies
- Advanced cyber security technologies
- Advanced artificial intelligence and machine learning technologies
These technologies are expected to change the way of working, making financial decisions, and also to bring more transparency to the fintech industry.
Advanced technologies have created new opportunities for businesses and individuals to reach new clients and engage with them in new ways.
By integrating these technologies, businesses can reduce costs, improve the user experience, and increase productivity.
Increased access to financial services in Morocco
The banking sector is expected to grow in the coming years as demand for financial services increases and the number of bank accounts increases from 26.5 million to over 29 million between 2020 and 2021.
The increase in the number of accounts is mainly due to increasing internet penetration and the increase in the GDP of the country.
The evolution of the banking sector has contributed to the development of the financial sector.
Also, the Moroccan government has made many efforts to support the development of the financial sector, such as the introduction of Law 103–12 in 2014.
The law commands Moroccan financial institutions to create online platforms that make it easy for clients to use financial services rapidly and conveniently.
In 2016 the launch of the national financial inclusion strategy which aims to reduce disparities in terms of access and use of financial services. It is supposed to facilitate the access of the least favored people to the various financial services and products.
Also, the Moroccan Central Bank (BAM) has set up a one-stop shop dedicated to advising and supporting fintech, particularly in their relationship with the banking system.
Opportunities for organizations and individuals
A lot of opportunities have been created with the introduction of advanced technologies and the rise of the demand for financial services. And it’s expected to continue over time.
Financial institutions and startups are the main characters in this phase, and they can take advantage of this trend by launching new financial products and services, or just by transforming their current products to match the market needs.