Middle East And Africa Challenger Banks Market Size

Challenger Banks in Middle East & Africa Market Analysis

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.