The President of the Saudi Capital Market Authority, Mohammed Al-Khuwaiz, highlighted the increasing significance of digitization in the financial sector during the 24 Fintech Conference in Riyadh. He stated that trading based on algorithms accounts for about 25 percent of transactions in the Saudi capital market and 70 percent globally, particularly in developed markets. Al-Khuwaiz also emphasized the popularity of the “buy now, pay later” model among citizens as an authorized field that can be further simplified to protect investors and customers. He pointed out that the financial sector was an early adopter of digital transformation, with trade beginning in the 1970s prior to the Internet’s launch.
Al-Khuwaiz mentioned that Saudi Arabia was among the pioneers in introducing digital trade in the 1990s, with over 90 percent of traded volumes now attributed to digital transactions. Furthermore, he noted that the financial services sector accounts for approximately 15 percent of global spending on information technology, underscoring the sector’s focus on digitization and technology. This demonstrates the importance of digitization in financial services and the significant role it plays in the industry. As trading based on algorithms continues to grow in popularity and importance, companies need to adapt to stay competitive and meet customer demands.
The increasing reliance on algorithms for trading reflects the shift towards digitization in the financial sector, with Saudi Arabia at the forefront of this trend. As technology continues to advance and shape the industry, it is essential for organizations to embrace digital transformation to remain relevant and competitive in the market. The adoption of digital technologies not only enhances efficiency and transparency but also provides a better overall experience for investors and customers. With the growing popularity of digital trade and the significant role it plays in global trading volumes, companies need to prioritize digitization to stay ahead in the rapidly evolving financial landscape.
In conclusion, the remarks made by Mohammed Al-Khuwaiz at the 24 Fintech Conference in Riyadh highlight the increasing importance of digitization in the financial sector. As trading based on algorithms continues to gain traction, organizations must prioritize digital transformation to meet the changing demands of investors and customers. With Saudi Arabia leading the way in digital trade and technology adoption, there is a clear emphasis on the significance of digitization in financial services. By embracing digital technologies and adapting to the evolving industry landscape, companies can position themselves for success in the digital era.
