Lebanon is the region’s third most advanced fintech startup ecosystem, with the population quickly adapting to financial technology innovations. The Lebanese ecosystem has witnessed a surge of fintech companies that are competing on the global market.

KEY FACTS AND FIGURES:

• Lebanon hosts 14% of the region’s fintech startups and is the 4th most served market by fintech companies.
• In 2017, 54% of people with a bank account have adopted digital banking in Lebanon.
• In 2016, Lebanon ranked 2^nd in the region for the percentage of people who only used mobile banking.

COMPETITIVE ADVANTAGES:

• Strong and Supportive Banking System: Lebanon ranks 45^th worldwide on the Soundness of Bank’s ranking along with Lebanese banks that have started to adopt financial innovations (PinPay and Tap2pay).
• Highly skilled and multi-lingual labor force: Lebanon ranks 18^th worldwide for the Quality of its higher Educational System and 4^th for the quality its Math and Sciences Education.
• Competitive labor cost: the average wage of software engineers is 27% less than in the GCC and 55% less than in selected developed economies.
• Booming regional market for ICT services: Lebanon’s access to expanding regional markets presents significant opportunities for ICT companies to serve the region.
• Enabling Infrastructure: Companies operating out of Lebanon can benefit from an adequate infrastructure and an enabling business environment:
  • Fixed broadband penetration rate ≈ 25.6% in 2016, the highest amongst the Levant countries and other MENA economies.
  • Mobile broadband penetration rate ≈ 53.5% in 2016, up from 43% in 2013.
• A thriving supporting system: with the proliferation of incubators and business development centers and the increase of financial support by the government and international institutions.

MARKET OPPORTUNITIES:

• Insurtech: The market has recorded a penetration rate of 3% in 2016, positioning the country in high rankings globally and regionally with 52 companies operating in the sector.
• E-payment: The market comprises 12 payment providers offering fast and innovative payment methods which enables fintech start-ups to bring new techniques.