Tuesday 22 November, 2022 | London: Global payment leader BPC and strategy consultancy firm Fincog today announced the launch of a new report on the digital banking market of the Middle East, with a particular focus on the countries of the Gulf Cooperation Council (GCC). Taking into account the existing banking infrastructure, cultural observations and emerging trends, the report analyses the specific characteristics of successful newcomers to the region.
“Digital Banking in The Middle East” provides a holistic overview of the Middle Eastern digital banking market and a sharp understanding of the current competitive landscape. It outlines how technological advancements in finance plus various economic development and diversification strategies across the GCC mean that the Middle East presents many opportunities for newcomers as well as established financial and non-financial institutions.
Here are the key findings:
Islamic finance has become a growing area of interest around the globe, with an estimated 1.9 billion Muslims internationally. The estimated Islamic Fintech market size for the OIC (Organization of Islamic Cooperation) with 57 member countries was roughly $49 billion, set to rise to $128 bn by 2025. While Saudi Arabia’s fintech market is currently worth approximately $17.8bn, it may reach $47.5bn in four years.
“We’re pleased to share the valuable insights of this research, designed to help those who are interested in this exciting space,” said Hany Al Deeb, Managing Director - GCC & Iraq, BPC. “As digital banking continues to expand rapidly across the Middle East, propelled by a youthful population driving a transition from internet banking to mobile, we are seeing an array of potential new avenues available. This sector is poised to continue growing at an accelerating pace and represents a huge opportunity for dynamic and visionary players.”
“Our report highlights the factors that new entrants to the Middle Eastern digital banking market need to consider,” says Jeroen de Bel, Founder, Fincog. “There is an underlying growth potential for digital banking players 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 built a strong reputation for understanding and mastering local banking and payment context and behaviour- and are poised to take on the challenges faced in a highly digitised global economy. With 350 customers across 100 countries globally, BPC has collaborated with all ecosystem players ranging from tier one banks to neobanks, Payment Service Providers (PSPs) to large processors, ecommerce giants to start-up merchants, and government bodies to local hail riding companies, contributing to better financial inclusion using next-generation technology.