Data is going to be the new oil, Ajay Banga, President and CEO of Mastercard, told Saudi Gazette on the sidelines of the ongoing Future Investment Initiative where he took part in a panel discussion.

“Data — and the insights generated from it — will be the fuel to drive new innovation, new opportunities across the economic, cultural and societal sectors,” he said.

Saudi Arabia, with its landmark economic and social reforms in recent months, is laying the ground for new technologies and breakthroughs that can result from public-private collaborations.

Q: As outlined in Saudi’s Vision 2030, digital infrastructure is integral to economic development, attracting investors and enhancing the fundamental competitiveness of the Saudi economy. What is Mastercard doing to help advance digital infrastructure development in Saudi?

A: Mastercard has a long history of partnership in Saudi Arabia. For the past three decades, we have helped transform and advance the way people think about and interact with their money. In today’s digital world, the foundation and the infrastructure we’ve helped develop are creating greater efficiencies and better experiences for businesses and people.

Both the government and its citizens are benefitting from the shift from paper-based payments to electronic forms. People have a safe and secure way to pay, while governments can create significant cost savings and efficiencies. What started with plastic cards has evolved into a more digital world.

Saudi Arabia was one of the first countries where we went live with Masterpass, our digital payment service. As more people in the Kingdom shop online, there was a real need to deliver a better, more seamless experience. That’s what we’ve been able to do, building on a strong collaboration with The National Commercial Bank and local retailers.

Q: At the recently held Future Investment Initiative (FII) event in Riyadh, there was a lot of discussion around the future of the information economy and the role data is playing in driving digital innovation and new business opportunities. What role do you see data playing in driving transformation in Saudi?

A: Perhaps the simplest way to think of the role data will play is by thinking of data as the new oil. Data — and the insights generated from it — will be the fuel to drive new innovation, new opportunities across the economic, cultural and societal sectors.

On a global stage, data accounted for more economic value than traditional goods and services. And, the potential will only grow. The adoption of technology is producing more data today than we’ve seen throughout history. More than 90 percent of the data on the internet has been created in the last two years. It’s critical that we use this data and related insights effectively.

Looking at the opportunity here in Saudi, the digital world will provide data to help the Saudi economy build up its smart government capabilities. For instance, customs clearing is the second largest revenue stream for the Kingdom’s government. Digitizing the entire end-to-end process would enable significant efficiency gains and minimize losses.

While data presents an opportunity to build new products, it’s important that we balance this with the fundamental protections of personal privacy and security. At the same time, the data can generate insights and trends that can be used to protect people and businesses against fraud and cyberattacks.

Q: There is a shift towards public private partnership models in Saudi Arabia. Mastercard recently signed an MoU with SAMA to drive cashless Hajj and Umrah transactions, as part of the overarching objectives of Saudi Vision 2030. How is the current regulatory landscape supporting new technology adoption?

A: The concept of partnerships is where we began this conversation. Partnerships and coordination between the public sector and the private sector are critical in driving opportunities and helping to formalize in formal economy.

Government has to create conditions for companies to operate and cooperate. That starts with predictable and consistent policy. With that as a foundation, companies will identify the skills, products, services and experiences that they can bring to a market. Companies will then be able to plan long-term investments and sustainable business models at scale.

Saudi Arabia, with its landmark economic and social reforms in recent months, is laying the ground for new technologies and breakthroughs that can result from public-private collaborations.

Today, our work with Saudi Post is delivering additional convenience for their customers, providing greater choices in how to pay in-store and online. At the same time, we’re working with SAMA to help Hajj and Umrah travelers have a stress-free pilgrimage by replacing hard cash with reloadable prepaid cards.

Both of these programs draw upon learnings and insights from other markets, but customizes the product and service for the Saudi consumer through our work with local partners, government and regulators.

Q: SMEs around the world are considered critical enablers of any country’s economic diversification and growth. In your opinion, how critical are SMEs for the economic development of the Kingdom?

A: Small and medium business play an important role in countries looking to diversify their economies. They’re the backbone of the economy, creating jobs for millions of people and spurring innovation and new ways of thinking

The Saudi Vision 2030 aims to ramp up small business’ contribution to the national economy. The country has supported entrepreneurs through the ‘SME Authority,’ providing easier access to funding, new business incubators and specialized training.

Like the government, we recognize the unique needs of this critical part of the economy. We recently introduced Masterpass QR, a new solution that makes it easier and cheaper for small merchants to accept payments with the technology they already have – a mobile phone. There are other opportunities where we can use existing technology and scaling their potential to help businesses flourish.

We are also working to support the innovators and entrepreneurs. Since 2014, our startup engagement program ‘Start Path Global’ has provided more than 90 startups with a variety of operational support, mentorship and investment. We look forward to further activating this program to train and empower the Saudi youth.

Q: Saudi Vision 2030 aims to boost the participation of women in the workforce from 22% to 30% by 2030. How can Mastercard contribute towards this?

A: These goals cannot be achieved by merely adopting new technologies. It’s important to look at the social and cultural impact as well. The Kingdom has recently introduced landmark reforms to allow women greater visibility and participation in the economy.

Women empowerment and gender parity are priorities across our global and regional operations. This culture, which is nurtured at the very top, percolates down to every facet of Mastercard. It inspires concerted efforts to empower everyone within the organization and in the communities outside through various programs. It’s an ongoing effort and we are making great strides to ensure pay parity and make Mastercard a great place for women to work.

Businesses like ours have to be involved with transforming the opportunities for women for two reasons. The first one is an obvious one because half of the population is women. Any business cannot ignore such a larger percentage of its potential customers. Second, if you make a woman economically independent, she will invest that money and independence back into her family and her local community.