Middle East & Africa – Reimagining banking ecosystems for a digital leap forward

The Middle East and Africa (MEA) region stands at a pivotal moment in its banking evolution. With a young, digitally native population and rapidly growing economies, the opportunity to reimagine banking through ecosystems is immense. This article expands on the ecosystem themes previously discussed, focusing on how MEA banks can harness ecosystem models to accelerate digital transformation, address regional challenges, and build future-ready banking platforms.

The MEA banking landscape: Opportunity amid complexity

The MEA region is characterized by high smartphone penetration, increasing internet access, and a surge in fintech innovation, particularly in countries like Saudi Arabia, UAE, Bahrain, and South Africa. However, banks face significant hurdles including legacy infrastructure, fragmented regulatory environments, and a shortage of skilled technology talent.

The digital banking market in MEA is projected to nearly double from $11.56 billion in 2025 to $22.3 billion by 2030, underscoring the urgency for banks to modernize and innovate.

Reimagining banking through ecosystems in MEA

For MEA banks, ecosystems offer a way to leapfrog traditional banking limitations by partnering with fintechs and technology providers to deliver integrated, customer-centric services. Ecosystems can bundle financial services with lifestyle, commerce, and government services, creating seamless experiences that resonate with the region’s digitally savvy customers.

Key ecosystem approaches in MEA include:

• Collaborative orchestration: Banks act as ecosystem orchestrators, integrating fintech innovations such as AI-driven credit scoring, mobile wallets, and payment initiation services.
• Localized solutions: Ecosystems tailored to regional needs, including Sharia-compliant finance, financial inclusion initiatives, and SME support.
• Open banking platforms: Leveraging regional initiatives like Bahrain’s Tarabut Gateway, which connects banks and fintechs through a universal API, enabling secure, instant, and low-cost transactions.

Technology as the catalyst for MEA ecosystems

Modern technology adoption is critical. Banks must invest in scalable digital platforms that support API integration, real-time data analytics, and robust cybersecurity frameworks. AI and machine learning can enhance fraud detection and customer engagement, but governance frameworks are essential to manage risks. AI-powered personalization is gaining traction, with banks using data to tailor product offerings and improve customer engagement. However, transparency and ethical AI use are essential to build trust.

Opportunities and risk

Ecosystems can unlock new revenue streams by enabling banks to offer bundled financial services and tap into underserved segments. For example, partnerships with fintechs focused on micro-lending or SME banking can drive financial inclusion. Open banking regulation is emerging rapidly in MEA, with Bahrain, Saudi Arabia, and UAE leading the way. Banks must proactively develop open banking strategies to avoid obsolescence and capitalize on new revenue streams.

Talent acquisition remains a major challenge. For example, Saudi Arabia faces a shortfall of approximately 600,000 fintech professionals needed to meet its digital ambitions. Initiatives like Emirates NBD’s National Digital Talent Program aim to nurture future-ready talent, but banks must also invest in continuous upskilling and change management to overcome resistance to new technologies.

However, banks must carefully manage partner integration complexity and regulatory diversity across countries. Maintaining a clear core value proposition focused on trust and customer empowerment is vital to avoid brand dilution.

Practical recommendations for MEA banks

• Leverage modular platforms: Adopt cloud-native, API-first platforms that enable rapid integration of fintech partners.
• Focus on customer-centricity: Use AI-driven analytics to deliver personalized, accessible services that meet diverse customer needs.
• Leverage regional ecosystem infrastructure: Engage with platforms like Tarabut Gateway to expand service reach and innovation capacity.
• Prioritize ESG integration: Develop frameworks to embed environmental, social, and governance principles into ecosystem offerings, responding to growing regional demand.
• Invest in talent and culture: Foster a culture of innovation through training programs and partnerships with academic institutions.

Looking ahead

The future MEA banking ecosystem will be deeply integrated with government digital services, retail, and telecommunications, creating “super app” experiences that transcend traditional banking. For example, a customer could access digital identity verification, loan applications, and utility payments all within a single ecosystem interface.

Central Bank Digital Currencies (CBDCs) are also gaining momentum in the region, promising to reshape payments and liquidity management within ecosystems.

Banks that combine pragmatic technology adoption with strategic ecosystem partnerships will lead the region’s digital leap, delivering inclusive, innovative, and resilient banking services.

References:

¹Accenture, Open Banking in the Middle East: Time is of the essence
²SBS, Hassan Nasser, Digital Banking in Middle East and Africa: Seven Key Trends Shaping the Future