21 minute read
Paving its way to a cashless economy
2021 saw a seismic change in the payments landscape, with higher consumer demand for digital solutions. Some of the drivers behind this transformation were innovative technologies such as contactless payments, e-commerce and AI.
To discuss some of the trends and transformations occurring in the sector, we spoke to Abdullah Al Othman - the Founder and Chairman of Geidea, a leading fintech that is transforming the payments experience across the Middle East.
From your point of view, how has the digital payments market in the Arab region evolved? What will attract the most investment going forward?
International Finance Magazine interviews Abdullah Al Othman, Founder and Chairman of Geidea
I believe that the digital payments market in the Arab region is now at a very advanced level in terms of the solutions and technologies that are on offer. The majority of the Arab region’s consumers are tech-savvy and are used to transacting in multiple ways – be it through contactless cards, QR codes, mobile wallets or online solutions. A major driver is the high adoption of smartphones in the MENA region - with countries such as Saudi Arabia and the United Arab Emirates achieving close to (or above) 90 percent smartphone penetration rates.
Looking ahead, I believe the future of investment rests on the quality of innovation in the fintech sector - and its ability to fully leverage the power of artificial intelligence and analytics. This will enable all companies to explore new innovative concepts and take full advantage of the digital economy. The fintech industry has been growing at a
rapid rate particularly in the Kingdom, and I believe with the support from Government and the infrastructure already, Saudi Arabia will emerge as the hub for fintech in the region. SAMA and the Capital Market Authority (CMA) have both continued to issue regulatory licenses and develop regulations to support fintech activities and innovation in the sector.
At Geidea, we have successfully leveraged this ecosystem to create POS terminals such as the ‘Geidea pro range’ which are multifunctional systems for businesses and merchants. These include solutions such as barcode scanners, biometric readers, and acceptance of contactless payments through QR codes, e-Wallets, Bluetooth, or NFC. These technologies are now a
prerequisite for most businesses and continue to attract strong interest. Ultimately, our goal is to create new experiences, new solutions and new value for consumers, banks, regulators, and most of all - merchants.
Paving its way to a cashless economy
What role do you believe that artificial intelligence will play in terms of digital payments? And what new opportunities will it create?
Artificial intelligence (AI) has evolved significantly over the last few years, and we believe it is set to transform the digital payments landscape. It is an area we are paying close attention to, and from a Geidea perspective, what’s tremendously interesting to us is its potential to help businesses. In contrast to the average human, AI can process and generate insights from huge datasets in seconds; helping to find multiple patterns and opportunities to enhance the customer experience.
For companies in the financial services ecosystem, including us at Geidea, this means it will enable us to increase the personalization of our services to customers, improve the ways services are delivered and uncover new opportunities to tap into.
For example, I believe that in the future, AI will act as an invaluable assistant that helps businesses with their decision-making. It will be able to predict cash flow events and repayment needs more accurately, thereby spotting liquidity gaps and helping businesses to redeploy funds as well as address any issues. It will also help merchants in terms of investigations and support – for example highlighting any issues with a businesses’ systems, as well as recommending ways to enhance the experience to meet customers’ expectations.
AI is also changing the actual way payment transactions happen; either through bio-metric applications such as facial recognition – or other smart applications. For example, Amazon’s ‘smart store’ model is an innovative example of AI which can automatically bill customers when they leave the store with products – without the need of any check-out counter.
What new trends have you spotted over the past year in terms of AI?
We are seeing a significant shift in the way businesses process payment transactions. Already, several organizations have developed chatbots to enable customers to transact with them in a more efficient and convenient manner. This is being done via automation, where AI can serve as a virtual agent by interacting with users on behalf of the business. Another example is when customers shop online. AI tools now learn from customers’ buying patterns to suggest additional products the customer might be interested in purchasing.
Biometric data is also helping to give a boost to AIpowered payment services. Tools such as facial recognition and fingerprint scanning are already enabling financial companies to simplify account opening processes, and there is an opportunity to use the same technology to authenticate transactions. While this is still a work in progress – and innovation such as this will be tremendously beneficial for both merchants and consumers alike; simplifying day-to-day activities and freeing up more time to improve convenience and efficiency.
What are your strategic priorities in 2022?
Our goal continues to be to empower merchants and make payments and commerce technology more accessible, affordable, and intuitive for everyone. With that in mind, 2022 will see us launch a variety of services, initiatives, and partnerships across KSA, as well as the UAE and Egypt.
As a homegrown Saudi Fintech brand, we want to reach out beyond our own borders and advance our mission of transitioning to a more cashless digital economy that empowers merchants. We believe both the UAE and Egypt represent immediate and important markets for us in addition to Saudi Arabia, and we look forward to providing our expertise, services and products to drive digital payments acceptance.
FEATURE
ARTIFICIAL INTELLIGENCE DIGITAL TWINS
Digital Twins: Real & virtual collaboration
IF CORRESPONDENT
There might be a time when you would have come across a person who would have had an uncanny resemblance to you. Or you might have heard from your friend who would have met someone who looked similar to you.
But what if I tell you that you could create your own twin, an inchby-inch replica of yourself, but living in digital life?
We currently live in a world where things that exist in the real world are being digitally replicated, be it our cars, our homes, our cities, and even ourselves.
Digital twins have emerged as a new tech trend, just like the muchdiscussed metaverse—plans for a virtual, digital world where you might roam about as an avatar.
A digital twin is a distinct clone of something in the physical world with the specific goal of aiding in improving or proposing feedback to the real-world counterpart.
Before artificial intelligence (AI) and the internet of things, which uses sensors to connect physical objects to the network, it was
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only possible to create sophisticated 3D computer models of these twins. However, thanks to AI and the internet of things, it is now possible to create digital twins that are constantly learning from and assisting in improving their physical counterparts.
Technology analyst Rob Enderle acknowledges that we will have the first versions of thinking human digital twins before the decade ends.
He said, "The emergence of these will need a huge amount of thought and ethical consideration, because a thinking replica of ourselves could be incredibly useful to employers. What happens if your company creates a digital twin of you, and says 'hey, you've got this digital twin who we pay no salary to, so why are we still employing you?'"
According to Enderle, the issue of who owns these digital twins will come to define the upcoming metaverse period.
As we have already started the journey towards human twinning via avatars, there is still that feeling of it being at the elementary level.
For instance, you might be able to give your avatar a face that might be similar to yours in Meta's virtual reality platform, Horizon Worlds, but you can't even give it hands or legs because of the fact that technology is still in its early stages.
Prof Sandra Wachter, a senior research fellow in AI at Oxford University, shared her views about creating digital twins.
The professor said, "it is reminiscent of exciting science fiction novels, and at the moment that is the stage where it is at." "Whether someone will be successful at law school, get sick, or commit a crime - will depend on the still debated 'nature versus nurture question'. It will depend on good luck and bad luck, friends, family, their socio-economic background and environment, and of course their personal choices," she added.
The most advanced and pervasive usage of digital twins is now found in the industries of product design, distribution, and urban planning.
Formula One giants Red Bull and McLaren are also using digital twins of their race cars.
To be more effective, DHL is currently constructing a digital map of its supply lines and warehouses.
Singapore and Shanghai both have digital twins that were designed to aid in enhancing the structure and functionality of transportation, networks, and streets.
The major task of the digital twin in Singapore is to guide people to navigate on the streets to avoid areas that are polluted. This innovative technology is also used to indicate where to build new infrastructure.
The Middle East has been building new cities simultaneously both in the digital as well as the real world.
French software giant Dassault Systemes says it is now receiving interest from thousands of companies for its digital twins technology.
Till now it has used the digital twins to help out a hair care company in digitally designing more sustainable shampoo bottles, in place of the regular real-life prototyping. This has eventually resulted in cutting down on waste.
And this doesn't stop there. It is also guiding other firms in churning out fresh futuristic projects. This includes jetpacks, motorbikes with floating wheels and flying cars.
However, digital twins will end up being more useful when it comes to the healthcare industry. The Living Heart project initiated by Dassault Systemes has produced a precise virtual model of
Top 10 leading digital twin companies
Microsoft Corporation $143 Billion
Bosch $91.51 Billion
General Electric Company $75.619 Billion
IBM Corporation $73.6 Billion
Siemens $67.30 Billion
Oracle Corporation $39.07 Billion
Cisco Systems $49.30 Billion
Dassault Systems $5.24 Billion
Ansys $1.516 Billion
PTC Inc $1.164 Billion
Source: Twi-global
the human heart that can be tested and analysed. This will enable surgeons to simulate a variety of 'what if' scenarios for the organ using different procedures and medical equipment.
Dr Steve Levine, who had founded
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the project, has his own reasons to create a digital twin. His daughter was born with congenital heart disease and she was at a high risk of heart failure in her last 20s. This is when Dr Steve decided to recreate her heart in virtual reality.
Currently, Boston Children's Hospital with the help of this technology is mapping out the real heart condition of patients. A committed group of engineers is collaborating with medical professionals at London's Great Ormond Street hospital to test devices that could benefit kids with uncommon and challenging-to-treat cardiac problems.
Dassault Systemes' Global Affairs Director Severine Trouillet stated that experimentation taking place on a digital heart has knock-on effect of cutting down on the requirement to test on animals, which is considered one of the most controversial aspects of scientific research.
They are now planning for more digital organ twins, including the brain and eyes.
Trouillet said, "At some point we will all have a digital twin, so that you can go to the doctor, and we can increasingly make preventative medicine, and make sure that every treatment is personalised."
What might be more challenging than replicating human organs is the vision of building a digitalised version of the entire planet.
Nvidia, a US software firm, runs a medium called Omniverse that is designed to create digital twins and virtual worlds. Building a digital twin of the Earth and collecting high-definition images of its entire surface is one of its most ambitious projects.
In order to simulate physical settings in the digital realm and develop climate change solutions, Earth-2, as it is now known, will combine neural networks and deep-learning algorithms.
Earlier this March, working alongside the European Space Agency and others, the European Commission revealed its own ambitious project to create a digital twin of the planet, called Destination Earth.
Hopefully, by end of 2024, it should have the acquired necessary data from simulations and realtime observations to have a digital twin that will concentrate on floods, drought, tsunamis, heatwaves, volcanic eruptions, and earthquakes. This information is ought to be shared with other countries which will definitely help save lives during the time of crisis.
Hexagon, Fujitsu Join Hands To Solve Societal Challenges For ‘Trusted Society’
Hexagon and Fujitsu Limited have collaborated on a new partnership where one will get to witness the two provide joint use cases leveraging their respective digital twin technologies to drive advancement towards ‘Trusted Society’.
Information and communications services firm Fujitsu describes its Trusted Society as promoting a safe, secure, and sustainable society by utilising technologies to address societal issues with the help of all stakeholders.
The safety, infrastructure, and geospatial branch of the information technology business will collaborate with Fujitsu as part of the cooperation.
The two will combine their digital twin technologies and solutions, including high-performance computing IoT sensors, infrastructure, AI analysis, data processing, and enhanced cloud data visualisation.
Fujitsu executive vice president and vice head, Yoshinami Takahashi said, "Our goal at Fujitsu is to realise our vision for a ‘Trusted Society’. Partnering with Hexagon will allow us to extend our reach and provide even greater value to cities and regions around the world.”
Echoing similar views, Hexagon’s safety, infrastructure & geospatial division president Steven Cost stated that cities are playing a huge role in solving challenges.
He said, "Cities are playing a leading role in solving global challenges, from addressing climate change to eliminating traffic fatalities. Our partnership with Fujitsu can help cities put data to work to solve these pressing problems and meet sustainability and safety goals."
This partnership was announced during Hexagon’s digital technology conference - HxGN LIVE Global 2022.
editor@ifinancemag.com
TECHNOLOGY
FEATURE
AI / VR METAVERSE
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METAVERSE
Are we in metaverse yet?
IF CORRESPONDENT
In 1992 Neal Stephenson’s sci-fi classic Snow Crash coined the term 'metaverse'. The protagonist in the show wears a headset to escape reality and enter a virtual space where avatars stroll the streets, digital shops line the pavements and electronic currencies rule the roost.
After 30 years that vision is close to becoming reality. In October 2021, Mark Zuckerberg announced a plan to bring metaverse into life. He rebranded Facebook as 'Meta' and invested $10 billion in virtual space.
With this, several companies, including Apple and Microsoft are betting that the world of tomorrow will be carried out in the metaverse. Even Microsoft has recently acquired the video game giant Activision Blizzard for the US $68.7 billion.
Fashion brands like Nike, and Gucci are designing clothes and accessories for the metaverse. J.P. Morgan and Samsung have set up shop in Decentraland, a decentralized virtual reality platform. In the metaverse, people can operate their own Forever 21 stores and even sell their own designs.
There are some popular books that explain to people more about the metaverse. Books like Navigating the Metaverse, by Cathy Hackl, Dirk Lueth, and Tommaso Di Bartolo; The Metaverse Handbook, by QuHarrison Terry and Scott Keeney; and Step into the Metaverse, by Mark van Rijmenam, all set themselves up as Lonely Planet guides to the digital frontier.
Van Rijmenam a tech strategist says, "We are currently spending astronomical amounts of money to make our cities more liveable, equitable,
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and sustainable, but what good are these investments if the citizens of tomorrow will only experience the city virtually?".
According to Rijmenam, many urban attractions such as cinemas, restaurants, museums, and historical monuments will see a drop in the number of customers. Now, it is possible to visit several museums virtually, he added.
As the metaverse grows, it will need more money, land, and infrastructure to house the computer servers it runs on. Although the experiences are virtual, their costs — in terms of money, energy, and environment — are real and increasing.
According to Rijmenam, in the coming years, other social activities such as enjoying a coffee or a beer with friends may also take place online. "Not only will these virtual meetings eliminate the constraints of distance, reducing our use of urban transport, but they will also allow us to choose a location for a meeting anywhere on the planet", Rijmenam said.
Visualizing real estate in metaverse
In the metaverse, real estate is a virtual ecosystem, where technologies such as virtual reality, and augmented reality, seamlessly come together to create a real-world user experience. There are unique and non-replicable land parcels available. Visiting and creating a virtual landscape, conducting virtual events, and purchasing properties are opening new possibilities for real estate. According to a leading Analytics firm, real estate sales on major metaverse platforms reached $501 million in 2021 and are expected to double in 2022.
Users can claim ownership of a parcel of virtual land-based on blockchain ledgers. The landowners will have complete control over how virtual land is utilized on their land which is identifiable by a set of geographic coordinates to locate the property.
The most popular metaverse environments also known as the Big 4 are Sandbox, Decentraland, Cryptovoxel, and Somnium. These four platforms together have a combined 268, 645 parcels of land. Land prices in Metaverse have risen by as much as 500% as of March 2022.
Transaction and ownership of land on metaverse can be done using cryptocurrency. For this, users can create an account on any of the crypto wallets such as Metamask, Bitski or Arkane. The actual token currency where the transaction takes place depends on the metaverse environment.
Several large companies have jumped onto the metaverse bandwagon. For instance, global consulting company PwC’s Hong Kong wing has purchased a land parcel in a metaverse space where it intends to construct a Web 3.0 advisory hub to facilitate a new generation of professional services. Sporting goods giant Adidas also aims to market exclusive branded content, experience, and merchandise in the metaverse.
South Korean mobile manufacturer Samsung recently launched its metaverse location design basis at its store location in New York named Samsung 837 store. In addition to this, popular music artists Snoop Dogg, Imagine Dragons, and BTS have conducted virtual concerts in the metaverse.
Investing in metaverse
Real estate investors are exploring ways to incorporate real estate in the metaverse as an asset class in their investment portfolio. With low
Metaverse: Facts and figures $10 billion
Meta Reality Labs has already invested in the metaverse $50 million
Meta recently invested $50 million in non-profit funding groups to help the metaverse grow responsibly 10,000 jobs
Meta will also create 10,000 jobs in the EU over the next five years $1 billion
In April 2021, Epic Games raised $1 billion to accelerate metaverse's long-term vision $800 billion
The metaverse may be worth $800 billion by 2024 due to a surge in interest during the pandemic. That's up from $47 billion in 2020 $24 million
Decrentraland raised $24 million ahead of its February 2020 release. In just three months, Decentraland Games' casino earned $7.5 million $300 billion
The global AR, VR, and MR market will roughly reach $300 billion by 2024 North America held the largest share of the worldwide metaverse market in 2020
Tech companies see metaverse as a reach expand medium
Source: Techjury
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barriers of entry, metaverse allows a wider pool of investors with virtual land parcels available at various price points. Land on metaverse is also being bought by large brands looking to create an experiential center to showcase their products.
Also, there are several Indian investors who are reimagining real estate in the virtual world. For instance, Lepasa, which is a web 3.0 metaverse ecosystem, is creating 15-20 virtual cities, with each town having a different theme.
Developing in metaverse
Real estate developers can also explore opportunities arising from the metaverse. Metaverse with its immersive landscape could one day be used to solve complex engineering challenges by providing a collaborative landscape for architects, engineers, and project managers to seamlessly interact and come up with solutions to realworld problems. Unity, a cross-platform game engine developed by Unity Technologies can be used to create a virtual model on metaverse. This virtual model could then be used as the reference model for the actual construction of the building.
Metaverse is at its earliest stage, currently used for gaming and virtual events, and could soon have the capability to solve real-world problems. With greater penetration of 5G technology and global brands investing, the metaverse landscape is expected to gain greater acceptability in the near future.
How do NFTs fit into the metaverse?
Non Fungible Tokens (NFTs) figure to play a big role in the usefulness and popularity of the metaverse. NFTs are a secure type of digital asset based on the same blockchain technology used by cryptocurrency. Instead of currency, an NFT can represent a piece of art, a song, or digital real estate. An NFT gives the owner a kind of digital deed or proof of ownership that can be bought or sold in the metaverse.
Metaverse Properties bills itself as the world's first virtual real estate company. The company acts as an agent to facilitate the purchase or rental of property or land in several metaverse virtual worlds -- including Decentraland, Sandbox, Somnium, and Upland. Offerings include conference and commercial spaces, art galleries, family homes, and "hangout spots."
While the metaverse has created opportunities for new companies such as Metaverse Properties to offer digital goods, established brick-andmortar companies are also jumping in. For example, Nike acquired RTFKT -- a startup that makes one-of-a-kind virtual sneakers and digital artifacts using NFTs, blockchain authentication, and augmented reality. On its website, RTFKT said it was "born on the metaverse, and this has defined its feel to this day."
Prior to the acquisition, Nike filed seven trademark applications to help create and sell virtual sneakers and apparel. Nike and Roblox also partnered on "Nikeland," a digital world where Nike fans can play games, connect and dress their avatars in virtual apparel.
Nick Donarski, CEO of ORE System, an online community of gamers said that NFTs and blockchain lay the groundwork for digital ownership, content creators and game developers. Ownership of one's real-world identity will carry over to the metaverse, and NFTs will be this vehicle, he added.
How close is the metaverse?
While the basic idea of being able to engage in a virtual online world has been around for many years, a true metaverse where life-like interactions are possible is still years away. In his annual year in a review blog post, Microsoft co-founder Bill Gates noted that most people don't have the VR goggles and motion capture gloves to accurately capture their expression, body language, and quality of their voice.
But for business, Gates predicts that in the next two to three years most virtual meetings will move from two-dimensional square boxes to the metaverse -- a 3D space with participants appearing as digital avatars.
