Middle East and Africa Neobanking Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Middle East and Africa Neobanking Market is segmented By Account type (Business Account and Savings Account), By Service (Mobile Banking, Payments & money transfer, Savings account, Loans, and Others), By Application (Enterprise, Personal, and Others), and By Country (Saudi Arabia, United Arab Emirates, South Africa, Bahrain, Oman, Qatar, and Others)

Market Snapshot

middle east and africa neobanking market size
Study Period: 2018-2027
Base Year: 2021
CAGR: >3.5 %
middle east and africa neobanking market trends

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Market Overview

A neobank is a digital bank that does not have any branches. Instead of having a physical presence at a set location, neobanking is entirely online. A broad collection of financial service providers, who primarily target tech-savvy customers, comes under the umbrella of neobanking. Neobanks are financial institutions that give customers a cheaper alternative to traditional banks. You could think of them as digital banks without any physical branches, offering services that traditional banks don’t, and doing so efficiently. They leverage technology and artificial intelligence to offer personalised services to customers while minimising operating costs.

The Covid-19 crisis has further pushed banks to undergo digital transformations. Technology promises greater resiliency, innovation and opportunities alongside improved efficiency and customer service.

The Middle East and Africa is a blossoming region in fintech, especially when it comes to banking technologies. And as far as untapped potential goes, the Middle East and Africa region is perfectly poised to become the next bubbling hub of digital banking innovation. The UAE has become one of the fastest-growing economic and technological hubs, owing to the National Innovation Strategy.

Scope of the Report

Neobanks is a bank that operates online without having a physical presence, it is part of fintech that provides digital and mobile-first services like payments, debit cards, money transfers, lending, and more. Middle East and Africa Neobanking Market is segmented By Account type (Business Account and Savings Account), By Service (Mobile Banking, Payments & money transfer, Savings account, Loans, and Others), By Application (Enterprise, Personal, and Others), and By Country (Saudi Arabia, United Arab Emirates, South Africa, Bahrain, Oman, Qatar, and Others)

By Account
Business account
Savings account
By Service
Mobile Banking
Payments & Money transfer
Savings account
Loans
Others
By Application
Enterprise
Personal
Others
Geography
UAE
Saudi Arabia
United Arab Emirates
Qatar
South Africa
Oman
Israel
Turkey
Rest of the Middle East

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Key Market Trends

Advanced Technology and Security are Driving the Market

Since neobanks operate exclusively online, they leverage advanced technologies to build secure and robust banking structures. With cybersecurity at the forefront of their operations, neobanks aim to increase customer safety and satisfaction. By harnessing the powers of Artificial Intelligence (AI), Robotics Process Automation (RPA) and cloud analytics, they build secure systems that are fast and able to mitigate cyberattacks. 

With security features like biometric verification, 2-factor authorization and encryption, neobanks are safe and convenient to use. Customers can access their bank account and financial information anytime and manage their money more effectively without ever visiting a bank branch.

middle east and africa neobanking industry

Faster Loan Processing, Lower Fees and Higher Interest Rates

The traditional banking system has been infamous for its time-consuming and intricate loan disbursal process. However, neobanks are optimizing the loan process by streamlining the rigid structure of traditional banks. With little or no paperwork and online verification, applying and qualifying for a loan is as easy as signing up on a website. With easy access to the amount and interest rates, customers can choose which loan they want and get instant loans as soon as their credit scores are verified.

Perhaps the greatest advantage neobanks have over traditional banks is their exclusive digital presence. Since neobanks do not have to invest in brick-and-mortar branches and infrastructure, they are able to enjoy lower operational costs. As a result, neobanks are able to pass on these benefits to their customers by way of low or no fees and high-interest rates on deposits. Because of an online-only mode of operation, they are able to offer seamless international payments and money transfers at very low rates.

middle east and africa neobanking market report

Competitive Landscape

The report covers major players operating in the Middle East and Africa Neobanking Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and service innovation, domestic to international companies are increasing their market presence by securing new contracts and tapping new markets. It has major players including Bank ABC, CBD Now, Mashreq NEO, Pepper etc.,

Recent Development

  • May 2022: Mastercard, One Global and i2c have announced a partnership to provide tailored financial solutions that will enable the issuance of digital mobile wallets in the region. Through this partnership, banks, fintech, merchants and wallet providers can now offer consumers in the region easy access to cutting edge, digital-first payment solutions and services.
  • March 2022: United Arab Emirates’ Mashreq Bank has launched Neopay, a unified merchant acquiring and consumer paytech business. Neopay is the brand name of the bank’s new wholly-owned subsidiary, IDFAA Payment Services, which has consolidated all of Mashreq’s existing payment systems into a single platform.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Insights on Various Regulatory Landscape

    5. 4.5 Porters 5 Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Insights on impact of technology and innovation in the market

    7. 4.7 Impact of COVID-19 on the Industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Account

      1. 5.1.1 Business account

      2. 5.1.2 Savings account

    2. 5.2 By Service

      1. 5.2.1 Mobile Banking

      2. 5.2.2 Payments & Money transfer

      3. 5.2.3 Savings account

      4. 5.2.4 Loans

      5. 5.2.5 Others

    3. 5.3 By Application

      1. 5.3.1 Enterprise

      2. 5.3.2 Personal

      3. 5.3.3 Others

    4. 5.4 Geography

      1. 5.4.1 UAE

      2. 5.4.2 Saudi Arabia

      3. 5.4.3 United Arab Emirates

      4. 5.4.4 Qatar

      5. 5.4.5 South Africa

      6. 5.4.6 Oman

      7. 5.4.7 Israel

      8. 5.4.8 Turkey

      9. 5.4.9 Rest of the Middle East

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Bank ABC

      2. 6.2.2 CBD Now

      3. 6.2.3 Mashreq NEO

      4. 6.2.4 Meem

      5. 6.2.5 Pepper

      6. 6.2.6 Liv

      7. 6.2.7 Hala

      8. 6.2.8 ADCB Hayyak

      9. 6.2.9 Opay*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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Frequently Asked Questions

The Middle East and Africa Neobanking Market market is studied from 2018 - 2027.

The Middle East and Africa Neobanking Market is growing at a CAGR of >3.5% over the next 5 years.

Pepper, Bank ABC, CBD Now, Mashreq NEO, Meem are the major companies operating in Middle East and Africa Neobanking Market.

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