BPC, a Global payment firm, has teamed up with Fincog, a strategy consultancy company, to publish a report on the digital banking market in the Middle East. Along with analysing Islamic finance, the report also focuses on the countries within the Gulf Cooperation Council (GCC).
The report, referred to as Digital Banking in The Middle East, offers a well-rounded insight into the Middle Eastern digital banking markets and a keen understanding of the present competitive landscape. It provides an overview of how technological innovations in finance, along with numerous economic development and diversification policies across the GCC, have made it possible for the Middle East to become a hub of opportunities for newcomers as well as reputable financial and non-financial organisations.
The report also examines the specific characteristics of thriving newcomers to the region, considering the current cultural observations, banking infrastructure, and evolving trends.
Key Findings of the Report
- The richer GCC countries offer a region that is a key basis for attracting talent. To appeal to the best talent, persuasive employer branding and employee value proposition must be on offer;
- New players are encouraged to identify and address the needs of particular sections of the population. It is the only way for these players to participate in a competitive banking market and garner ample market share;
- Strategic government priorities to engender future growth and development entail sector diversification and digital transformation, which must include the financial services and technology sectors;
- Modern expertise and sophisticated UX design are deeply rooted in virtually all digital products across numerous industries. Thus, rather than being a mere luxury, a compelling digital customer experience is now essential to satisfy customers.
Worldwide interest in Islamic finance is continually rising, with a projected population of 1.9 billion Muslims worldwide. As a result, the OIC (Organisation of Islamic Cooperation), with its 57 member countries, is estimated to have an Islamic Fintech market size of nearly $49 billion, which is set to increase to $128 billion in 2025. While Saudi Arabia has a Fintech market valued at approximately $17.8 billion, the country’s Fintech market is expected to grow to $47.5 billion in 2026.
A Chance for Vibrant and Far-sighted Players
Hany Al Deeb, BPC’s managing director for the GCC and Iraq, said: “We’re pleased to share the valuable insights of this research. It is designed to help those who are interested in this exciting space. Digital banking is being driven by a youthful population driving a transition from internet banking to mobile. As a result, we are seeing an array of potential new avenues as digital banking expands across the region.”
“This sector is poised to continue growing at an accelerating pace. It represents a huge opportunity for dynamic and visionary players.”
In his comments, Jeroen de Bel, the founder of Fincog, said: “Our report highlights the factors that new entrants to the Middle Eastern digital banking market need to consider. There is an underlying growth potential for digital banking players. This is especially true as consumers grow increasingly familiar with compelling digital-only offers for financial products and services. We hope our findings will benefit those interested in the many opportunities being presented in this part of the world.”
BPC has developed a solid reputation for understanding and mastering the context and behaviours around local banking and payments. The company is ready to tackle the inherent challenges of a highly digitised world economy.
Moreover, with 350 clients across 100 countries worldwide, BPC has worked with all types of players within the ecosystem ranging from PSPs (Payment Service Providers) to large processors, tier-one banks to neobanks, start-up companies to ecommerce giants, as well as local hail riding companies to government bodies, thereby encouraging improved financial inclusion through next-generation technology.
