FinTech and Foreign Trade in Algeria: Opportunities, Challenges, and Strategic Imperatives for the Banking Sector

This research explores the impact of FinTech on Algeria’s foreign trade and how the banking sector is adapting to digital innovation. Using a mixed-methods approach integrating statistical data with expert analysis, the study evaluates digital tools’ influence on trade activities. The findings reveal inconsistent progress: while some banks have embraced FinTech, reaping benefits in efficiency, risk management, and compliance, the industry still grapples with outdated infrastructure, regulatory inflexibility, and low digital literacy. However, signs of progress emerge, especially in mobile payments and blockchain technologies. Drawing on international case studies and regional comparisons with Kenya, India, the UAE, and Brazil, the paper identifies concrete actions to propel Algeria forward through focused investment in digital infrastructure, regulatory reform, and bank-FinTech collaboration. By systematically comparing regional trends and reviewing global implementation experiences, the study proposes specific, time-bound interventions tailored to Algeria’s institutional landscape: a phased investment plan of USD 380-470 million over five years, focused on digital infrastructure upgrade, regulatory reform, strategic alliances with mature FinTech platforms, and structured capacity building. The study sets concrete goals: cutting transaction times from 5-7 days to 24-48 hours, boosting trade finance digitization from 15-20% to 75%, and extending financial inclusion from 43% to 60% of adults by 2030. The research concludes that greater FinTech adoption in Algeria’s banking and trade sectors could improve competitiveness in global markets, but only with concerted implementation supported by institutional will and resource allocation.