Introduction of Fintech in the Financial Systems of the MENA Region: The Case of Morocco

Fintech or the application of new technologies to finance is revolutionizing the financial services sector and creating a break with traditional finance. In some countries, fintech start-ups, digital in nature, have been able to expand access to finance to unbanked people to enable better financial inclusion of households and businesses. In other countries, these start-ups are nibbling away at the market share of traditional financial actors, particularly banks, to create a disruptive effect insofar as their technological advantage allows them to offer alternative financing or investment solutions compared to traditional financial intermediaries. In this chapter, I will try to examine this process in the Middle East and North Africa (MENA) region, particularly in Morocco, by adopting an exploratory and analytical methodology of the introduction and evolution of fintechs. Finally, I conclude that the regulations adopted in Morocco do not allow start-ups to compete with traditional financial actors, only to complement them in order to improve financial inclusion.