By Puja Sharma

Today

• Consumer savings
• Digital payment app
• financial decisions

Naif AbuSaida – Founder, Hakbah

Hakbah is the cooperative savings platform in Saudi Arabia, offering an integrated solution for the digital management of Jamiya (savings groups). The app supports payments via Mada cards and ensures compliance with Saudi regulations. With features like SMS, email notifications and real-time updates, Hakbah simplifies saving and lending within trusted circles, promoting financial inclusion and ease of use.

In conversation with Naif AbuSaida – Founder of Hakkabah

How are technologies being used to increase savings and address the savings crisis in the Middle East?

The Middle East faces a significant savings gap, with many in need of a financial safety net. However, technology is emerging as a powerful tool to bridge this gap and enable people to save effectively.

While traditional savings practices such as Jameya (collective savings pool) have deep roots in Middle Eastern culture, they often rely on manual processes, which can limit accessibility and transparency. At Hakbah, our goal is to digitize Jameya and provide a seamless and secure experience for a new generation of savers. Our mobile app not only digitizes the process, but also promotes community and accountability, two crucial factors for successful savings habits.

With Hakbah, the days of managing Jameya through complex paperwork, Excel and WhatsApp groups are over. Our intuitive FinTech platform automates contributions, sets personalized goals and can track your progress. This allows people to develop financial discipline and stay motivated on their savings journey.

Smartphones are not just a tool; they are a way of life in the Middle East, with a staggering 88% penetration rate in Saudi Arabia alone. By leveraging mobile technology, financial services and savings become more accessible and convenient.

Our social savings platform is evidence of our commitment to community, leveraging technology to modernize traditional practices, close the savings gap and empower people to take control of their financial well-being.

The future of savings in the Middle East is bright and we are proud to lead this transformative journey. By embracing innovation, we can create a region where everyone has the opportunity to build a secure financial future.

What role does artificial intelligence play in the Gulf’s thriving FinTech ecosystem?

Artificial intelligence is a powerful tool to unlock the Gulf FinTech landscape.

One of the most interesting capabilities of artificial intelligence is its ability to analyze vast data. This allows FinTech companies to understand users’ financial behavior with unprecedented accuracy. This information is invaluable for creating customized financial savings solutions.

At Hakbah, we are leveraging AI to address two critical challenges in the region: the lack of financial education and the burden of personal debt through social savings. Our AI models go beyond simply offering savings tools and empower individuals by providing personalized financial guidance. Businesses can use AI to analyze their income and spending patterns and then suggest a realistic savings plan or debt repayment strategy. This level of personalized support is critical to achieving financial stability and building a secure future.

By leveraging the capabilities of artificial intelligence, Hakbah is committed to promoting financial inclusion, empowering individuals, and shaping a brighter financial savings future for the region.

How is the savings market evolving in Saudi Arabia and what are the changes in the financial behaviors of Saudis and younger generations driving the change?

The Saudi savings market is experiencing an exciting transformation. We see a significant shift in financial behavior, particularly among young Saudis. With a large population under 30 (over 60%), the demand for digital and easy-to-use savings solutions is booming. Traditional methods, used by more than four million people, are no longer the only option. Hakbah, for example, offers group digital savings that traditional methods lack, making it more attractive to younger generations.

Financial education is key to driving change among younger generations when it comes to saving. At Hakbah, 70% of our users fall within the 21-28 age group, demonstrating our success in transforming young people’s saving habits. This is a testament to our effectiveness and potential for further growth.

Furthermore, government initiatives such as the Zood Savings Program and the Financial Sector Development Program are not just a boon; we are perfectly in line with their mission. These programs, in line with Vision 2030, aim to diversify the financial sector, increase household savings and promote economic inclusion across the Kingdom. This alignment provides a solid foundation for our future growth and success.

While we have made significant progress, there is exciting potential for further growth. Traditional, non-digital methods remain our main competitor, and Saudi Arabia’s household savings rate is still the lowest in the G20. However, with the growing demand for digital savings, we are ready to bridge this gap and create a smart savings culture for all Saudis.

– What are the current trends and forecasts for the global Rotating Savings and Credit Association (ROSCA) market?

While Rotating Savings and Credit Associations (ROSCA) and Social Savings (Jameya) are traditional savings methods with a global footprint and a $500 billion market, they are ripe for digital transformation, especially in emerging markets like Saudi Arabia . We expect the industry to continue to digitize as demand for user-centric tools increases.

Here because:

• Large and non-digitalized market: ROSCAs in Saudi Arabia hold a $5 billion market but lack the efficiency and security of digital solutions. Investing in businesses like Hakbah can bridge this gap by providing a safe and easy-to-use platform for these existing savings groups.
• Government support for innovation: The Saudi Arabian government actively promotes innovation in the financial sector and Hakbah aligns perfectly with this vision. This alignment provides a solid foundation for the feasibility and success of the project.
• Tech-savvy young people: Over 60% of Saudis are under 30 and require digital solutions.

This represents a significant opportunity for FinTechs and innovative solutions. Our pilot programs have already shown promising results, with strong demand for the service, reflected in our <400% organic growth over the last 18 months, indicating the potential for substantial growth and profitability.

Why is cooperation between key players in the FinTech sector necessary?

In today’s dynamic financial landscape, FinTech collaboration is essential for success. At Hakbah, we firmly believe that by working with key players (government bodies, investors, innovators and consumers) we can create a more inclusive and impactful financial ecosystem in Saudi Arabia.

Government support: The Saudi Arabian government has promoted innovation through initiatives such as the Regulatory Sandbox. As a participant in this Sandbox, we were able to test and refine solutions in a safe environment, mitigating risks and accelerating market entry.

Strategic partnerships: We are actively seeking partnerships with other FinTech players to enhance our offering. Our recent partnerships with ELM, Simah, Masdr, Riyad Bank, Fransi Bank and Tarabut are a good example. By joining forces, we have simplified onboarding and reduced data processing by 40%, creating a more seamless customer experience.

Involve regulators: Working closely with regulators like SAMA is key to ensuring FinTechs comply with the latest regulations. This collaborative approach promotes trust and stability within the ecosystem, demonstrating our commitment to regulatory compliance.

At Hakbah, collaboration isn’t just a buzzword; it is a fundamental principle. By fostering a collaborative environment, we can unlock the immense potential of fintech to promote financial inclusion, empower individuals and advance the Kingdom’s economic approach.

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