Fintech Startups in The Middle East

This is where the financial technology sectors (Fintech for short) come in. The financial technology sector is comprised of tech startups that exist in the financial services industry. These startups are disrupting the private sector ecosystem in The Middle East. In just the past five years, fintech startups have raised over $100 million.

Fintech and The Middle East

Fintech startups aim to provide a large range of financial solutions using technology. Therefore, financial technology does not aim to replace banking systems; rather, financial technology startups aim to improve the customer experience surrounding banking and other financial services.

Often times, fintech startups address a diverse range of customer needs, whether it be educating them on the process of setting up a bank account or making investing easier to handle. While fintech startups provide differing services, one thing remains the same: fintech is using technology to make financial services more accessible to the general public.

In The Middle East, fintech startups are a new driving force to increase accessibility to the general public. With over fifty startups, fintech companies aim to foster greater financial inclusion. For example, one of the main obstacles for small business owners in The Middle East is gaining financial inclusion.

Startups, such as Ambareen Musa’s Souqalmal.com, address this need by connecting investors with small business owners. This refined database and algorithm allow small business owners to raise capital for a cheaper price while also allowing investors to gain better returns on their deals. Another fintech startup that has raised 20 million dollars in funding is PayTabs, which is an online payment processing solution that allows small businesses to add payment services to their sites.

Funding for Fintech

Funding for fintech startups is done through a combination of crowdsourcing (84 percent), allowing people with startup ideas to get funding from anywhere around the world, and government and industry support. Through crowdsourcing, startup founders can receive money faster than they would be able to from investors; as a result, their businesses can grow faster and have an impact on the public faster.

There is a 380 billion dollar market that is comprised of the world’s financially underserved consumers and businesses. Not only are there economic gains to be made through the rise of fintech but there are also large social gains. Furthermore, governments in The Middle East are contributing to the thriving fintech ecosystem by supporting regulations and initiatives such as accelerator programs.

For instance, The Bahrain Economic Development Board launched Fintech Hive in 2017, a fintech startup accelerator that funds and provides instrumental resources for fintech startups. Banks in The Middle East, particularly the UAE, have also started to adopt some of the digital solutions put forth by fintech startups.

With the public sectors of the government working together with the private sectors in the fintech industry, there is a powerful combination of forces working together to foster greater financial inclusion to those in The Middle East.

– Shefali Kumar

Photo: Flickr

Solve Education: Transforming Education in Developing Countries  

More than 250 million children do not attend school, according to UNESCO. After realizing that almost all NGOs only address this issue for a limited few thousand children, the famous venture capitalist Ong Peng Tsin became inspired to take a more revolutionary angle. Believing entrepreneurial investment in creative startups can increase social good for millions and eventually transforming education in developing countries, Tsin asked: “Can we teach without human teachers? Can you teach without schools?” 

What is Solve Education?

Gathering minds from the gaming industry, the social media world and pedagogues, Tsin then created a smartphone-based system called Solve Education. The company’s mission is to close the global education gap by taking advantage of the rise of smartphones and game mechanics to engage youths in accessible, educational opportunities.

Technology as a solution is relatively new to philanthropists worldwide, but the technology boom in Asia produces wealthy entrepreneurs looking to invest in social enterprise tech focused on multiplying impact with big-scale tech projects.

Naina Subberwal Batra, CEO of the Asian Venture Philanthropy network, distinguishes between the generation of philanthropists who say: “Let’s build schools; let’s put our name on buildings” and the newer group who’ve “made their money through tech. And if you really want to look at social enterprise tech is the fastest way to scale.”

EdTech Investments

Global investors in the first half of 2017 have poured about $8.15 billion into edtech ventures. As a whole, the Asia-Pacific region has been predicted to own 54 percent of the global edtech market by 2020. Google and KPMG reported that India’s online education market will reach about $1.96 billion in the next four years, which equates to about the $1.2 billion invested in Chinese edtech companies in 2016.

The interest in edtech investments aligns with the fact that Asia has more young people than any other continent. Parents in Singapore invest about $70,939 annually for their children’s education, which is almost twice the global average amount. China, in its 13th Five-Year Plan, is encouraging the development of online education to gradually modernize China’s education system with $30 billion in investments by 2020. Other countries in Asia have similar plans revolving around increasing tech education.   

As part of an emerging style of philanthropy, Solve Education uses technology to take part in transforming education in developing countries by incorporating educational games to teach children across Southeast Asia. Solve Education hopes to reach 100 million people in teaching them basic vocational skills.

A Powerful Organization Advocating For Good

Tsin’s self-funded initiative, this application will be based on its initial success to essentially create millions of workers that will generate revenue flow in their field. So far, the initiative is being used in the following countries: Indonesia, Malaysia, Myanmar, Philippines, Rwanda, Singapore, Thailand and Vietnam.

Requiring only low-end smartphones and intermittent internet service, this application reaches those that are marginalized by education systems and opportunities.  

This crowd-working model is not a guaranteed success, but it does broach the issue of limited and inaccessible education in an innovative and optimistic way. It provides more opportunities for the youth, ethnic minorities, immigrants and refugees, women and girls, the unemployed and others that generally have difficulty gaining access to quality education.

All in all, Solve Education is a powerful nonprofit in its resourceful intersection of social good ambitions and use of rising edtech in transforming education in developing countries.

– Alice Lieu

Photo: Flickr

Make It Rain! Cloud Seeding Benefits and Concerns

The World Wildlife Fund predicts that in 7 years, two-thirds of the world’s population will face a water shortage. This hypothesis is due to a number of reasons such as higher birth rates and longer lives as a result of improved healthcare, pollution as a result of oil, chemicals, trash disposal and fecal waste, poor management of resources and conflict.

Human Trajectory

Such an outcome is further exasperated by changes in climate, particularly in the form of an increase in the number of droughts and the melting of glacial mountains. If this continues, humanity will face a number of issues. For starters, health will decline and disease susceptibility will increase as more individuals lose access to clean drinking water and proper sanitation.

If these changes occur, then the financial security as individuals will also be affected as people become unable to function properly for work and school. Overall, the efforts of poverty reduction will be for naught if climate change continues to deplete water resources. In order to help combat these effects of climate change, scientists have been working towards enhancing a process called cloud seeding.

Cloud Seeding

Cloud seeding is the process of adding chemicals — like dry ice, silver iodide, etc. — to clouds to increase rainfall. Typically, these chemicals are shot or released into the sky by machines or small jets. Since its discovery in the 1940s, this system has been used to generate snow, and to try to stop hurricanes, or extend monsoon seasons. However, it wasn’t until 2017 that the hypothesis for the methodology was confirmed to be true and, thanks to this significant finding, scientists determined a range of potential effects/uses of cloud seeding.

Of these proposals, the potential effect cloud seeding can have on agriculture and the food security problem is one of the most notable. Cloud seeding is believed to support healthy growing seasons as it has the potential to combat droughts by boosting the amount of precipitation in a given area by 5 to 15 percent.

If cloud seeding is implemented, there will be increased harvesting and more food available from a wide variety of crops for the ever-growing human population. The process also has the potential to improve biomes, allow for more fertility and create more farming land and land that could be used to build better homes. Such effects can then indirectly create jobs and contribute to financial security for people living in poverty-stricken countries.

Realistic Expectations

Due to the potential benefits, many developing countries are starting to fund their own cloud seeding program, but without considering the potential drawbacks. Some of the downsides of this technology include the safety of continued exposure to silver iodide and other chemicals, which some studies have reported can cause skin discoloration and be carcinogenic.

Another setback is the economic and technological availability. There are countries like Dubai and China where they have the economic sufficiency but lack the technology and basic geographical set up to manage the precipitation. The amount and length of precipitation is also difficult to control, as can be seen in 2009 Beijing and the 2017 flooding  in Dubai.

The bottom-line is: cloud seeding is uncharted waters. There are variables that need to be taken into consideration before introducing nationwide cloud seeding programs in developing countries, especially in the case of long-term use. However, once addressed, cloud seeding has the potential to bring the seemingly achievable dream of eradicating global poverty a step closer to reality.

– Stephanie Singh
Photo: Flickr

Fighting Malaria with Genetically Engineered Mosquitoes

This June, the Bill and Melinda Gates Foundation announced that it would be investing over $4 million in support of Oxitec — an Oxford-founded group that focuses on reducing insect-borne disease around the world. Specifically, the Gates Foundation and Oxitec are partnering to fight malaria with genetically engineered mosquitoes.

The Threat of Malaria

Mosquitoes kill more humans each year than any other creature — a total of 830,000 — and can carry a number of diseases including dengue fever and zika virus. The most deadly of these is malaria.

The World Health Organization (WHO) reports that there were 216 million cases of malaria in 2016, which resulted in nearly 450,000 deaths. Malaria hits the very young the hardest, and most fatalities are children under the age of 5; even the children who survive may develop intellectual disabilities.

Malaria occurs in nearly 100 nations. The world has made great progress fighting the disease, including eliminating it in much of Europe and North America, but progress has stalled. Support for fighting malaria has stagnated and the disease is starting to develop a resistance to the drugs which treat it.

A New Strategy

This is where Oxitec’s genetically modified mosquitoes come in. Oxitec introduces a self-limiting gene in male mosquitoes. When these lab mosquitoes mate with females in the wild, any male offspring are unharmed and continue carrying the gene. Female offspring, though, will die before they reach adulthood.

Only adult female mosquitoes can bite and spread diseases. The self-limiting gene effectively targets this portion of the mosquito population while also allowing new males to survive to carry and spread the gene after the original lab mosquitoes have died.

These genetically engineered mosquitoes would be one of several vector control methods (such as mosquito netting and repellant sprays) aiming to reduce the number of disease-carrying mosquitoes in affected areas.

The Oxitec mosquitoes have already proven effective in recent field tests in Brazil where they were released to combat the zika virus and dengue fever. Areas where modified mosquitoes were released showed an 82 percent reduction of larvae and a 91 percent reduction of dengue fever cases. This may have been a relatively small test, but the lab mosquitoes were incredibly effective and even outperformed tried and true traditional methods like insecticides.

Safety and Precision

Similar to many other genetically modified products, many have met the Oxitec mosquitoes with some suspicion. In 2016, residents of the Florida Keys voted against a planned field test in their communities, and environmentalist groups have also opposed Oxitec in the past.

Concerns with protecting the earth’s ecosystems are understandable and commendable. Still, genetically engineered mosquitoes have the potential to save hundreds of thousands of lives, protect children from the risk of lifelong disabilities and accomplish all of this with minimal and controllable impacts on the environment.

The modified mosquito strategy is not intended to cause the mass extinction of mosquito species. The self-limiting gene only lasts up to ten generations, which ideally will allow for long-term reduction in disease without leading to an unstoppable downward spiral in insect populations.

Long-Term Goals

The gene is also designed to only affect a single, specific species of insect at a time. This specificity allowed Oxitec field tests to target the Aedes aegypti mosquitoes that were instrumental in spreading zika and dengue fever in Brazil while leaving other insect populations unaffected.

Whatever the case, both the precision and effectiveness of the genetically engineered mosquitoes doubtless played a role in convincing the Gates Foundation to back Oxitec. Philip Welkhoff, the malaria program director at the Gates Foundation, has affirmed that new, innovative ways of fighting malaria are necessary to eradicate the deadly disease once and for all. The second generation of Oxitec’s mosquitoes are set to be field tested by 2020, and countless lives hope for a breakthrough.

– Josh Henreckson
Photo: Flickr

Tackling Poverty Alleviation Through Technology Programs

Although breaking the cycle of poverty is difficult, poverty rates around the world have been improving. According to a report issued by the World Bank, 35 percent of the world’s population lived in extreme poverty 1990. In 2013, that number was down to 10.7 percent, which means the U.N.’s first Millenium Development Goal, to cut poverty in half by 2015, has been accomplished.

However, while many have moved out of extreme poverty, statistics show that the end of poverty is far from over. As a potential way to help speed up the process even more, many companies are helping with poverty alleviation through technology programs.

Companies Tackling Poverty Alleviation Through Technology

1. Microsoft 365: Microsoft teamed up with the United Nations Development Programme on Jan. 23, 2004, to help with poverty alleviation through technology in Africa. It strongly believes that technology is a crucial aspect that can bridge the gap between schools in urban and rural areas, eventually eliminating world hunger and poverty. Co-founder of Microsoft Bill Gates hopes to end poverty by 2030 by launching his software in more developing countries around the world.Microsoft set up a three-pillar model in order to make sure the technology was applied correctly in schools. The first pillar provided the appropriate service for the individual based on their technological ability or age group. The second pillar equipped more than 200,000 teachers with the software in order to make sure the teachers were trained and familiar with the technology before it was introduced to students. The third pillar encouraged participation and creativity. The students were introduced to programs such as Skype or OneNote.
2. GeoPoll: GeoPoll is a company that is taking advantage of mobile phones becoming more common in developing countries. Since 2012, it has partnered with more than 85 mobile network operations and has had connectivity in 64 countries of the world. Its purpose is to send a survey text through those living in the developing countries. Once citizens fill out the survey, the results are sent to the government and NGOs, allowing them to help with poverty alleviation.An example of when a GeoPoll survey was used was during the outbreak of Ebola in 2014. GeoPoll conducted food security surveys in countries that were affected and helped gather data on food prices and wages. From these results, it was able to decipher which areas needed more aid and which areas should continue to be monitored.
3. Humanitarian Accelerators: Humanitarian Accelerators was launched in 2016 by the Ruler of Dubai, Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum. It is meant to help with cultural, social and environmental issues in the region by connecting businesses all around the globe to United Arab Emirate’s humanitarian sector. Humanitarian Accelerators has set up its technology in over 116 different countries with the hopes of improving the lives of those in developing countries.In the past, the company has worked to provide educational technology to refugee students in order to ensure they receive the same level of education as other children. One of the company’s current initiatives is to employ technology in order to provide job opportunities to refugees.
4. Poverty Spotlight: Poverty Spotlight is a program that is currently working in 18 countries and is most advanced in South Africa. It is meant to help with poverty alleviation through a mobile app that enables those in poverty to self-diagnose their own level of poverty. Its mission is to help individuals and families in poverty discover innovative solutions to lift themselves out of their situations.Individuals complete a survey about what they are in need of, then their neighbors fill out the same assessment and together they work on achieving them. The app allows individuals to become aware of their situation and build motivation and support from others to overcome it. The staff behind Poverty Spotlight also creates a personalized plan for every family.

Technology allows for many things today that were impossible in the past. The more technology advances, the more opportunities it gives us to learn, educate and help poverty alleviation through technology around the world.

– Negin Nia