The fintech ecosystem in Oman is developing at a fast pace, promoted by regulatory support, innovative financial institutions, rapidly growing startups, and overall technological advancements. This article will cover the key segments and players in the Oman fintech ecosystem.
The fintech ecosystem of the country includes startups, established financial companies, and other companies that use advanced technology to disrupt and innovate in the financial services industry. The number of fintech companies operating in Oman at present is not substantial but expected to grow rapidly in the coming years due to regulatory support, among other favorable factors.
Fintech Regulations in Oman
According to Oman Vision 2040, the country intends to become diversified and have a sustainable economy based on technology, knowledge and innovation in the next few decades. Central Bank of Oman (CBO) CBO plays a pivotal role in fostering the national fintech ecosystem. The regulator strives to create a favorable environment for fintech development with its open banking strategy, fintech-specialized education programs, and the national eKYC platform. The institution has been proactive in developing regulations that support fintech innovations while paying enough attention to financial stability and consumer protection.
One of the CBO’s important initiatives is a regulatory sandbox that allows fintech companies to test their products and services in a controlled live environment. It helps in fine-tuning solutions under development before a full-scale launch.
Field tests in an off-market development environment allow to collect evidence on the benefits and risks of new financial innovations under careful monitoring. CBO fintech regulatory sandbox (FRS) has launched three cohorts starting from 2020. The initiative promoted innovation and competition in the financial sector by supporting innovation in the digital payments marketplace, trade Finance marketplace using distributed ledger technology/blockchain and digital lending marketplace. To apply for the CBO FRS, a fintech solution must be almost a ready product with main measures (financial resources, human resources, customer data safeguards, AML & CFT measures etc.) already in place.
Tech Players and Banks Supporting Fintech Development
Except for a supportive legislative environment, the striving fintech segment of Oman is receiving a boost from large banks and technology companies. For example, Bank Muscat, the largest financial institution in the country, announced a $100 million fintech investment program in 2019.
Traditional banks can serve not only as investors but also as enablers for financial technology as fintechs can play a role with those banks as partners in their digitization and modernization strategies. Thus, the National Bank of Oman (NBO) is constantly striking innovative fintech partnerships enabling the scale-up of payment and lending solutions. For example, the institution has partnered with Zumr Technologies, Habib Bank Limited, Paymob and PayMate to excel in innovation and enhance mutual growth.
Bank Muscat and National Bank of Oman are both increasingly adopting global fintech solutions to enhance their digital offerings. Both institutions are investing in technologies like mobile banking, blockchain, and AI.
Meanwhile, the country’s telecom sector is also highly involved in the local fintech ecosystem. For instance, Omantel launched its Innovation Lab, to cultivate the tech-based startup ecosystem in Oman. It also offers the accelerator program for tech startups run in partnership with the Oman Technology Fund (OTF) and Brinc. The program focuses on 5G, internet of things (IoT), cybersecurity, customer experience and big data.
Omantel accelerator specially dedicated to fintech startups is a collaborative effort of the telecom company and CBO. This six-month program aims to drive innovative fintech solutions by providing mentorship, training, networking, and fundraising support to promising, high-potential local startups with fintech solutions in debt-based crowdfunding, buy now pay later (BNPL), microfinancing and a rotating savings and credit association (ROSCA) system.
Fintech Startups Promoting Emerging Technologies in Oman
The revolution of national financial landscapes is driving financial inclusion, empowering businesses, and accelerating economic growth. The startup ecosystem of Oman is constantly growing. It is still rather small compared to some other countries in the region. However, there are several fintech startups emerging in areas like digital payments, peer-to-peer lending, and financial management.
Thawani Pay
Thawani was the first Omani payment service provider to receive a license from CBO for non-financial (fintech) entities in 2020. Founded in 2016, this Omani company specializes in innovative payment gateway solutions as well as e-payment solutions available through mobile phones and other electronic channels. The Thawani fintech platform offers a free payment app that makes it easy for customers and merchants to make and authorize transactions with their smartphones. The payments can be initiated manually or automated with a certain schedule. The app enables the electricity, water and phone bill payments exclusively for Omantel customers, as well as payment of the education fees and social insurance fees.
Besides, Thawani app has a mobile wallet function. It offers integration codes that enable the merchant to integrate its current billing or ERP system with Thawani to accept and make payments directly from within their routinely used software. The wallet allows accepting card- and cashless payments by scanning merchant QR code and authorizing payments with fingerprint or MPIN. With Thawani merchant portal, all business management tools are available through a centralized dashboard. One can monitor live sales, view reports on sales, add branches, etc. there.
Zumr
Zumr is an innovative Rotating Savings and Credit Association (ROSCA) platform. This emerging microfinance player has recently partnered with NBO to jointly harness the power of digital solutions and incentivized saving plans. With NBO as the custodian bank, Zumr can now provide its innovative services in a secure environment. Offering both open and closed money circle solutions, Zumr encourages individuals and small businesses to access flexible savings and credit facilities tailored to their needs. The startup’s mission is to contribute to increasing financial inclusion, support cashless societies, and narrow the gender gap in savings.
Hal Capital
With offices in Oman and Kenya, Hal Capital offers a Sharia-compliant embedded fintech solution with alternative financing products and services. The institution’s digital mobile finance platform is focused on financial solutions for MSMEs and individuals underserved by traditional banks. These include fuel financing, inventory financing, stock financing, salary advance financing, mobile device financing and receivable financing.
TasHeel Financial Solutions
The startup provides tourists with its Buy Now Pay Later solution. With TasHeel, one can split the travel cost up to 5 months and pay in installments. The solution is available for local and international trips, making travel affordable for both individuals and businesses. At present, it offers only a few curated travel packages from select partners.
Wadiaa
Wadiaa is an equity-based crowdfunding and peer-to-peer lending solution. The startup’s crowdfunding and crowd-lending activities are focused on equity and loan-based funding for SMEs. Wadiaa provides collateral-free lending, powered by its alternative risk model driven by AI and machine learning (ML). The company’s goal is bridging the finance gap for SMEs while also providing an investment opportunity into an otherwise very difficult market to access. Most of the fundraising on Wadiaa is for common stock of promising local startups and SMEs.
Ubhar Capital
Ubhar Capital is a CMA-regulated, full service investment firm that has been operating since 2017 upon acquiring the Investment Management Group of Oman Arab Bank. The firm offers an online trading and investment management platform for individuals with analytics and research tools. Its asset management and wealth management services come along with solid expertise and history of successful investment cases. The company has executed notable corporate finance deals including initial public offerings (IPOs), debt placements and other advisory mandates.
Mulk Financial
Mulk Financial is a fintech platform for property owners, tenants and landlords. This rental payment management solution enables users to report rental-related payments to credit score agencies, track financial performance of real estate investments, monitor rental payment collection, store tenant’s historical rent payment and utility payment history for a creditworthiness profile, check the historical and projected cash flow of rental units, and more. In addition, Mulk reports could be used by financial institutions to verify rental payments.
