In this latest episode of Born to Disrupt, hosts Grant Niven and Simon Hardie are joined by Michael O’Loughlin, a fintech veteran turned regulator and now investor. The discussion explores the rapid transformation of Saudi Arabia’s fintech ecosystem, the role of regulation in fostering innovation, and the future of investment in emerging markets.
🎧 Listen to the full episode here:
Mingzulu Pioneer, Michael O’Loughlin’s Journey: From Banking to FinTech to Investment
Michael shares his unconventional career path, spanning banking, payments consulting, fintech entrepreneurship, regulation, and now venture capital. He describes how his early work in payments led him to fintech startups, where he played a role in shaping the open banking movement. Later, his transition to regulation in Saudi Arabia gave him a unique perspective on how policymakers balance innovation with financial stability. Now, as an investor, he applies this knowledge to identifying fintech and AI startups with real growth potential.
Saudi Arabia’s FinTech Boom: From Niche to Mainstream
The conversation shifts to Saudi Arabia’s meteoric rise as a fintech hub, a transformation Michael witnessed first-hand. When he first engaged with the region, fintech was an unknown concept, and there were just six identified fintech firms in the Kingdom—two of which were Visa and MasterCard.
Fast forward to today, and Saudi Arabia boasts over 200 fintech firms, with a target of 525 by 2030 under the government’s Vision 2030 strategy. The key drivers behind this explosive growth include: ✔️ Government-led investment in digital transformation ✔️ A rapidly evolving regulatory framework supporting fintech development ✔️ An increased focus on financial inclusion and digital payments ✔️ A cultural shift encouraging entrepreneurship
Saudi Arabia has positioned itself as a fintech leader in the MENA region, with ambitions to compete on a global stage.
Regulation as a Catalyst for Innovation
Michael reflects on his time working with the Saudi Central Bank (SAMA) to develop fintech regulations, particularly in open banking and regulatory sandboxes. Unlike some markets where fintech startups operate in a "move fast, break things" environment, Saudi regulators have taken a structured, deliberate approach to fintech development.
Key regulatory strategies include: 🔹 Sandbox Testing: Before granting fintech licences, regulators assess startups for viability, ensuring customer protection and economic stability. 🔹 Encouraging Market Differentiation: Regulators filter new entrants to avoid oversaturation in areas like EMI (Electronic Money Institutions) and Buy Now, Pay Later (BNPL) solutions. 🔹 Supporting First Movers & Category Leaders: Saudi aims to foster homegrown fintech giants, akin to how Uber and Airbnb became dominant in their sectors.
Michael highlights how fintech founders need to better understand regulators’ perspectives, ensuring they are prepared for compliance requirements rather than assuming innovation alone is enough.
The Role of Government in FinTech & Business Innovation
A key point of discussion is the influence of government involvement in the Gulf’s fintech sector. Unlike Western markets, where venture capital and private-sector players dominate, Saudi Arabia’s fintech growth has been largely state-driven, with government-backed initiatives shaping the regulatory and investment landscape.
Some Western investors hesitate at the idea of government-led innovation, fearing bureaucratic overreach. However, Michael argues that Saudi’s approach has been methodical and transparent, with clear regulations, structured investment frameworks, and strict anti-corruption policies guiding business operations.
For foreign fintechs and investors looking to enter the Saudi market, his advice is simple: ✅ Understand the local landscape and key regulatory bodies (e.g., SAMA, Capital Market Authority, MISA) ✅ Be prepared for a structured, compliance-first approach ✅ Work with local partners who understand the market dynamics
From Regulator to Investor: Why Michael Moved into Venture Capital
Michael explains his transition from shaping fintech regulations to investing in startups, citing his desire to support businesses beyond compliance. He has joined Argonautic Ventures, focusing on investments in: 🚀 FinTech (including payments, lending, and AI-driven banking) 🚀 AI & Data Analytics 🚀 Crypto & Digital Assets (despite regulatory uncertainty in Saudi)
As an investor, he prioritises profitability over hype, rejecting the "unicorn culture" in favour of sustainable, long-term growth. His time in regulation has given him a sharp eye for spotting fintechs that can scale within structured regulatory environments.
Saudi Arabia & Crypto: The Missing Piece?
One of the most controversial topics is Saudi Arabia’s stance on crypto and digital assets. Unlike other fintech segments, crypto remains largely unregulated and, in many cases, prohibited in the Kingdom. However, Michael notes that this is not due to a lack of understanding—Saudi regulators have conducted extensive research on blockchain, CBDCs, and crypto tracing.
His key takeaways on Saudi and crypto regulation: 📌 Regulators are watching closely but are not ready to open the floodgates. 📌 The government prioritises financial stability over speculative assets. 📌 Crypto firms looking to enter Saudi must focus on compliance, security, and risk mitigation.
He predicts that regulatory frameworks for digital assets will eventually emerge, but only when market credibility and regulatory confidence improve.
Final Thoughts: Saudi Arabia as a FinTech & Investment Hub
The discussion concludes with reflections on Saudi Arabia’s role in the global fintech landscape. The Kingdom is no longer just a regional player—its rapid digital transformation, regulatory advancements, and investment in AI are setting the stage for global competitiveness.
For startups, fintechs, and investors looking to enter the Saudi market, the message is clear: 🔹 Opportunities are abundant, but preparation is essential. 🔹 Regulation will continue to evolve, shaping fintech’s long-term sustainability. 🔹 Saudi’s fintech boom is just beginning—those who engage now will be best positioned for success.
With Michael’s unique perspective across banking, fintech, regulation, and investment, this episode provides a rare inside look at one of the world’s fastest-growing financial ecosystems.
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