Regulatory & financial support for Fintechs in Jordan

Reported by: |Updated: September 27, 2018

Jordan is an ideal country for fintechs to set up and flourish, says a report in Banking Frontiers. The country has 70% of its population under the age of 30, and a whopping 86% of the population use the internet. Ideally, the country is asking for an alternative to the existing financial system that is largely cash-based. Besides, the country’s economy is partly dependent on remittances and many of those who have migrated to other countries in the Gulf find the existing money transfer systems costly and time-consuming, says the report.

The report also cites how the Central Bank of Jordan on its part has been enacting measures to help fintechs. It has created a special lending window, by which banks can re-lend low-cost funds from the government to fintech and IT projects; it has facilitated the creation of an IT fund, set up in partnership between the World Bank and the country’s ministry of planning and international cooperation, which will provide support to some 200 startups using a $100 million fund in its possession. The regulator has also set up its own regulatory sandbox in which fintech companies can develop their ideas in a safe environment and make Jordan a fintech hub in the region. The facility allows both domestic and foreign firms to test new products on a limited sample of customers made up of employees for defined periods. The central bank has assured its continuous support for solutions that leverage on new innovations like Blockchain taking into consideration solutions that enhances financial access to digital financial services in a customer friendly, secured and efficient manner.

– Manoj Agrawal, Group Editor, [email protected]