Middle East And Africa Challenger Banks - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Middle East And Africa Challenger Banks Market size is estimated at USD 74.03 billion in 2024, and is expected to reach USD 121.96 billion by 2029, growing at a CAGR of 10.5% during the forecast period (2024-2029).
There is increasing incorporation of digital means by the traditional players in the region and with a sigma to opt for bank credit in this region, unbanked population levels are always recorded high. There has been a decreasing trend in the unbanked population levels in the region. And the present pandemic conditions increased the importance of digital adoption. The main challenge today remains onboarding and customer experience, both of which still need to be more manual and efficient. Digital banks could also open up opportunities for local entrepreneurs. However, barriers to entry and the sheer scale of traditional banks make it difficult to imagine a digital-only challenger bank starting from scratch in the Middle East. Challenger banks and neobanks from the Indian sub-continent, Britain, and the US are expanding into the region. The COVID-19 pandemic slammed shut a decade-long window of opportunity for banks. Banks in the Middle East and Africa faced steep falls but reasonably steady recoveries.
Challenger Banks in Middle East & Africa Market Trends
Large Unbanked Population in the region
Having a bank account and being able to withdraw or transfer money at any time is one of the things that people in developed countries take for granted, like clean water, electricity, or, to a lesser extent, internet access. In many regions of the world, however, access to basic financial services is anything but given, with 1.7 billion people still “unbanked.” Thanks to the rise of digital payment options and challenger bank-friendly regulatory environment in the region. The number of unbanked populations in the region, as a whole, has been reduced over the years.
Regulatory Reforms Will Drive the Market
Before the COVID-19 pandemic, digital transformation was a priority for the majority of Middle Eastern countries, with government and regulatory bodies not only supporting digital banking initiatives but actively advocating for them. The Middle East has a favorable regulatory landscape for the development of digital financial services, as evidenced by the fact that many countries in the region have incorporated fintech innovations into their vision statements. As a result, regulators are striving to accelerate the issuance of financial institution licenses and make the regulatory environment more accommodating to both new and existing participants. The Saudi Central Bank's open banking policy is one example of an initiative that seeks to accelerate the implementation of open banking.
Challenger Banks in Middle East & Africa Industry Overview
The challenger banks in the Middle East and Africa are fragmented, with many players. The report includes an overview of challenger banks operating across the region. We wish to present a detailed profiling of a few major companies which cover product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players fragment the market are Bank ABC, Meem Digital Bank, Hala, CBD Now Bank, and Liv Bank.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
There is increasing incorporation of digital means by the traditional players in the region and with a sigma to opt for bank credit in this region, unbanked population levels are always recorded high. There has been a decreasing trend in the unbanked population levels in the region. And the present pandemic conditions increased the importance of digital adoption. The main challenge today remains onboarding and customer experience, both of which still need to be more manual and efficient. Digital banks could also open up opportunities for local entrepreneurs. However, barriers to entry and the sheer scale of traditional banks make it difficult to imagine a digital-only challenger bank starting from scratch in the Middle East. Challenger banks and neobanks from the Indian sub-continent, Britain, and the US are expanding into the region. The COVID-19 pandemic slammed shut a decade-long window of opportunity for banks. Banks in the Middle East and Africa faced steep falls but reasonably steady recoveries.
Challenger Banks in Middle East & Africa Market Trends
Large Unbanked Population in the region
Having a bank account and being able to withdraw or transfer money at any time is one of the things that people in developed countries take for granted, like clean water, electricity, or, to a lesser extent, internet access. In many regions of the world, however, access to basic financial services is anything but given, with 1.7 billion people still “unbanked.” Thanks to the rise of digital payment options and challenger bank-friendly regulatory environment in the region. The number of unbanked populations in the region, as a whole, has been reduced over the years.
Regulatory Reforms Will Drive the Market
Before the COVID-19 pandemic, digital transformation was a priority for the majority of Middle Eastern countries, with government and regulatory bodies not only supporting digital banking initiatives but actively advocating for them. The Middle East has a favorable regulatory landscape for the development of digital financial services, as evidenced by the fact that many countries in the region have incorporated fintech innovations into their vision statements. As a result, regulators are striving to accelerate the issuance of financial institution licenses and make the regulatory environment more accommodating to both new and existing participants. The Saudi Central Bank's open banking policy is one example of an initiative that seeks to accelerate the implementation of open banking.
Challenger Banks in Middle East & Africa Industry Overview
The challenger banks in the Middle East and Africa are fragmented, with many players. The report includes an overview of challenger banks operating across the region. We wish to present a detailed profiling of a few major companies which cover product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players fragment the market are Bank ABC, Meem Digital Bank, Hala, CBD Now Bank, and Liv Bank.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Smartphone Penetration
4.3 Market Restraints
4.3.1 Competition from Traditional Banks is Restraining the Market
4.4 Market Opportunities
4.4.1 Increasing Adoption of Digital Banking
4.4.2 Challenger Banks have to tap into the Unbanked and Underbanked Population
4.5 Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Latest Technologies Deployed by Challengers in Banking System
4.7 Performance Indicators of Challenger Banks
4.8 Industry Policies And Government Regulations
4.9 Impact of COVID-19 on the Market
5 MARKET SEGMENTATION
5.1 By Service Type
5.1.1 Payments
5.1.2 Savings Products
5.1.3 Current Accounts
5.1.4 Consumer Credit
5.1.5 Loans
5.1.6 Other Service Types
5.2 By End-User Type
5.2.1 Business Segment
5.2.2 Personal Segment
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Company Profiles
6.2.1 Bank ABC
6.2.2 Meem Bank
6.2.3 CBD Now
6.2.4 Liv Bank
6.2.5 Hala
6.2.6 Pepper
6.2.7 Clearly
6.2.8 Mashreq Neo
6.2.9 MoneySmart
6.2.10 Xpence*
7 MARKET FUTURE TRENDS
8 DISCLAIMER
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Smartphone Penetration
4.3 Market Restraints
4.3.1 Competition from Traditional Banks is Restraining the Market
4.4 Market Opportunities
4.4.1 Increasing Adoption of Digital Banking
4.4.2 Challenger Banks have to tap into the Unbanked and Underbanked Population
4.5 Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Latest Technologies Deployed by Challengers in Banking System
4.7 Performance Indicators of Challenger Banks
4.8 Industry Policies And Government Regulations
4.9 Impact of COVID-19 on the Market
5 MARKET SEGMENTATION
5.1 By Service Type
5.1.1 Payments
5.1.2 Savings Products
5.1.3 Current Accounts
5.1.4 Consumer Credit
5.1.5 Loans
5.1.6 Other Service Types
5.2 By End-User Type
5.2.1 Business Segment
5.2.2 Personal Segment
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Company Profiles
6.2.1 Bank ABC
6.2.2 Meem Bank
6.2.3 CBD Now
6.2.4 Liv Bank
6.2.5 Hala
6.2.6 Pepper
6.2.7 Clearly
6.2.8 Mashreq Neo
6.2.9 MoneySmart
6.2.10 Xpence*
7 MARKET FUTURE TRENDS
8 DISCLAIMER
