Yefim Oks Says AI, Regulation and Modular Infrastructure Will Define the Next Phase of Fintech
Serial entrepreneur and investor Yefim Oks, founder of UAE-based project UMO, has outlined the forces he believes are reshaping the fintech industry, pointing to artificial intelligence, regulatory readiness, and the convergence of traditional finance and digital assets as the sector’s most important trends.
In an interview with Fintech News UAE, Oks said the fintech market is undergoing its biggest transformation since the rise of online banking. According to him, customer expectations for speed, transparency, global access and greater control over assets are pushing financial institutions to modernize or risk losing relevance.
AI Moving Into Core Banking Operations
Oks said artificial intelligence is no longer limited to chatbots or customer-facing tools. Instead, he described AI as becoming a “second operational system” within banks, supporting fraud detection, anti-money laundering processes, compliance workflows, personalized product recommendations, risk scoring and cost optimization.
He argued that financial firms that have not integrated AI into their core operations are beginning to fall behind, particularly in terms of efficiency and cost structure. In his view, AI is increasingly a business infrastructure layer rather than a standalone feature.
Unit Economics Remain a Challenge for Fintech
Oks also highlighted the economics of building fintech businesses, noting that many new ventures remain unprofitable for the first five years. He said this is often overlooked as customer acquisition costs continue to rise and zero-fee services have become standard in the industry.
He added that revenue is now more likely to come from adjacent services such as lending, buy now, pay later, wealth management, crypto products and B2B offerings. For him, the companies that succeed will be those that establish sustainable and scalable unit economics early on.
UMO Built Around Converging Industry Trends
Discussing current market developments, Oks pointed to three major themes: the convergence of banking and crypto, automation through AI, and the rise of digital banks focused on user experience and personalization. He said UMO was designed at the intersection of these changes and is being developed in the UAE.
He described the traditional banking model as increasingly outdated, arguing that successful financial products now need to function as integrated ecosystems. These systems, he said, should combine core banking, KYC, AML, custody, trading infrastructure, crypto processing, cards and instant payments in a single environment.
Oks also said legacy banks face a major challenge because many still rely on technology stacks that are 20 to 30 years old. Rebuilding such systems can take years and migrating millions of customers is a complex undertaking, he said. By contrast, modular and scalable architecture built from the ground up can support faster growth.
The UAE as a Fintech Launchpad
Oks said the UAE was chosen as the launch market partly because of its progressive approach to technology and government digitization. He contrasted this with Europe, where bureaucracy can slow implementation.
While acknowledging that the UAE applies strict financial regulation, Oks said regulation should not be viewed as a barrier to innovation. He argued that in mature fintech markets, regulation can become a competitive advantage by creating clear rules and protecting consumers. He cited jurisdictions including the UAE, DIFC and VARA as examples of structured environments that can support growth.
Looking ahead, Oks said the market will increasingly split between firms that can align their products with regulatory expectations and those that cannot scale. He also emphasized that regulatory compatibility is becoming part of product design, rather than an afterthought.
TradFi and DeFi Move Closer
Oks said the relationship between traditional finance and decentralized finance has shifted from competition toward collaboration. He pointed to developments such as crypto platforms introducing bank cards, banks expanding into custody and tokenized assets, and regulators developing crypto-specific frameworks.
He added that stablecoin payments are also challenging SWIFT on speed and cost. For UMO, he said the long-term goal is to offer a regulated environment where eligible users can access supported fiat and virtual asset services within one product framework, subject to the necessary approvals.
Industry Analysis
Oks’ comments reflect a broader shift in fintech toward infrastructure-led competition. As AI becomes embedded in operational processes and digital asset services move closer to mainstream financial products, firms will need more than consumer-friendly interfaces to stand out. Regulatory readiness, scalable technology and diversified revenue models are likely to become defining factors for fintech growth, particularly in markets such as the UAE that are actively shaping digital finance frameworks.
