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MODULE_04

Real Use Cases and Market Opportunities

SESSION_OBJECTIVES

  • Understand real use cases: neobanks, robo-advisory, crowdfunding
  • Discuss business models and real-world applications
  • Explore opportunities in Saudi market
  • Learn how to launch a Fintech company
  • Participants discussion and exchange

Learning Path

01 //

Neobanks: Models and Real Use Cases

What are Neobanks?

  • Fully digital banks with no traditional branches
  • Mobile-first user experience
  • Core services: Accounts, payments, transfers
  • Neobank vs traditional bank digital offering

Models and Examples (Global and Local)

  • Revolut, N26, Chime: Global models
  • STC Pay, Mada: Saudi and GCC examples
  • B2C vs B2B: Retail vs SMEs
  • Revenue: Fees, subscriptions, interest

Compliance and Licensing

  • SAMA licensing: Digital bank, PSP, etc.
  • KYC/AML and Nafath
  • Integration with Mada and traditional banks
02 //

Robo-advisory and Digital Wealth Management

What is Robo-advisory?

  • Algorithm-based automated investment advice
  • Portfolio allocation by risk and goals
  • Automated management and rebalancing
  • Lower cost than human advisors

Use Cases and Examples

  • Investing for youth and small savers
  • ETFs and mutual funds
  • Examples: Betterment, Wealthfront; local players
  • Regulation: CMA and securities regulators
03 //

Crowdfunding and Alternative Finance

Types of Crowdfunding

  • Donation-based: No financial return
  • Reward-based: Rewards or products
  • Equity crowdfunding: Investment in companies
  • Lending (P2P): Loans between individuals and SMEs

Use Cases and Regulation

  • Funding SMEs and startups
  • Debt financing (Lendo and similar)
  • CMA role and crowdfunding regulations
  • Opportunities in Saudi market
04 //

Other Fintech Use Cases

Insurtech and Embedded Finance

  • Insurtech: On-demand insurance, comparison, claims
  • Embedded Finance: Payments and credit inside non-financial platforms
  • Buy Now Pay Later (BNPL) and e-commerce
05 //

Opportunities in Saudi Market

Current Gaps

  • SME Finance
  • Financial Wellness for youth
  • Embedded Finance
  • Cross-Border Payments for workers
  • Insurtech (on-demand insurance)
  • Digital Banking for women

Market Size and Potential

  • Digital payments market: 1.2+ trillion SAR
  • SMEs: 99% of Saudi businesses
  • Youth under 30: 65% of population
  • Expatriate workers: 10+ million transferring $35B annually
  • Working women: Rapid growth

Successful Business Models

  • Transaction-based: Fee per transaction (like Stripe)
  • Freemium: Free basic + subscriptions (like Revolut)
  • Merchant-funded: Merchant pays (like Tamara)
  • Data-as-a-Service: Selling data access (like Plaid)
  • B2B SaaS: Monthly subscriptions for businesses
06 //

How to Launch a Fintech Company

Basic Steps

  • 1. Identify problem and solution
  • 2. Feasibility study and market research
  • 3. Build MVP (Minimum Viable Product)
  • 4. Apply for SAMA Sandbox
  • 5. Test with real users
  • 6. Raise seed funding
  • 7. Obtain full license
  • 8. Scale and grow

Funding Sources

  • Bootstrapping: Self-funding
  • Accelerators: Badir, Fintech Saudi, 500 Startups
  • Local VCs: STV, Khwarizmi Ventures
  • Corporate VCs: Banks, telecom companies
  • Angel investors
  • Government grants: Monsha'at

Challenges and Solutions

  • Regulation: Use Sandbox, partner with bank
  • Trust: Transparency, strategic partnerships
  • Cost: Simple MVP, use ready APIs
  • Talent: Local hiring, remote teams
07 //

Participants Discussion

Q&A and Exchange

  • Discuss the use cases covered
  • Questions on neobanks, robo-advisory, crowdfunding
  • Link content to local reality and Saudi market
  • Participants suggestions and feedback

REFERENCES

  • Neobanks and robo-advisory examples
  • Digital wealth and crowdfunding guides
  • Fintech Startup Launch Guide - Fintech Saudi
  • SAMA Sandbox Guide