The global financial industry has evolved as a result of the widespread digital transformation of traditional banks and the entrance of new digital banks. In the Middle East, the legal framework is slowly developing, which will open up the market to more digital banks.
August 27, 2021 | Sana Louahidi- A new regulation framework will encourage the entrance of more digital banks with innovative offerings and services
- Diverse digital banking models are offered in the region with differentiated value proposition
- The region will offer more opportunities than challenges to digital banks
In recent years, customers expressed high demand for digital banking solutions. The pandemic further amplified the need for online services. Thus, neobanks emerged with new business models to challenge the traditional way of banking.
The United Arab Emirates (UAE), Saudi Arabia, Qatar, and Bahrain are among the key markets in the Middle East. According to the federal competitiveness and statistics authority in the UAE, 90% of its people use digital banking channels. They use internet banking for new products as well as mobile banking for transactions. In Saudi Arabia, digital banks mainly focus on individuals and small and medium-sized enterprises (SMEs) in the medium to long term. Young tech-savvy consumers who make up over 65% of its population are likewise primary target market of digital banks.
In the UAE, the Abu Dhabi Global Market (ADGM) launched in 2015 a regulatory framework for banks applying for a digital banking licence. It focuses on conventional banks seeking to establish digital banks or branches of digital banks, as well as for financial technology (fintech) companies with innovative value propositions. Application for a digital bank licence required a partnership between technology companies and financial institutions.
Saudi Arabia is leading the digital banking market. In June 2021, authorities granted two licences for digital-only bank STC Pay and a firm led by Abdul Rahman Bin Saad Al-Rashed and Sons Company. STC Pay will become a digital bank with a capital of SAR 2.5 billion ($666.7 million). The company will inject an additional $213 million (SAR 802 million) to retain 85% of its share capital. ...
Categories:
Keywords:Digital Banks, Cashless, Neobanks, Digital Platforms, Risk Regulation, Contactless Banking
The global financial industry has evolved as a result of the widespread digital transformation of traditional banks and the entrance of new digital banks. In the Middle East, the legal framework is slowly developing, which will open up the market to more digital banks.
August 27, 2021 | Sana Louahidi- A new regulation framework will encourage the entrance of more digital banks with innovative offerings and services
- Diverse digital banking models are offered in the region with differentiated value proposition
- The region will offer more opportunities than challenges to digital banks
In recent years, customers expressed high demand for digital banking solutions. The pandemic further amplified the need for online services. Thus, neobanks emerged with new business models to challenge the traditional way of banking.
The United Arab Emirates (UAE), Saudi Arabia, Qatar, and Bahrain are among the key markets in the Middle East. According to the federal competitiveness and statistics authority in the UAE, 90% of its people use digital banking channels. They use internet banking for new products as well as mobile banking for transactions. In Saudi Arabia, digital banks mainly focus on individuals and small and medium-sized enterprises (SMEs) in the medium to long term. Young tech-savvy consumers who make up over 65% of its population are likewise primary target market of digital banks.
In the UAE, the Abu Dhabi Global Market (ADGM) launched in 2015 a regulatory framework for banks applying for a digital banking licence. It focuses on conventional banks seeking to establish digital banks or branches of digital banks, as well as for financial technology (fintech) companies with innovative value propositions. Application for a digital bank licence required a partnership between technology companies and financial institutions.
Saudi Arabia is leading the digital banking market. In June 2021, authorities granted two licences for digital-only bank STC Pay and a firm led by Abdul Rahman Bin Saad Al-Rashed and Sons Company. STC Pay will become a digital bank with a capital of SAR 2.5 billion ($666.7 million). The company will inject an additional $213 million (SAR 802 million) to retain 85% of its share capital. ...
Categories:
Keywords:Digital Banks, Cashless, Neobanks, Digital Platforms, Risk Regulation, Contactless Banking
