Market Trends of Middle-East And Africa Banking-As-A-Service Industry
Rising Volume of Transaction in the Region
With a rise in the number of financial services products and applications volume of digital transactions in banking services is observing a continuous increase. UAE Bahrain, Kuwait, and Saudi Arabia are among the countries in the region with the largest share of adults having bank account owners. As the financial markets of banking, stock exchange, insurance, credit/loans, and Mutual funds are expanding in the region they are leading to a rise in the number of financial transactions being made digitally increasing the adoption of BaaS by fintech and financial service providers. Saudi Arabia, UAE, and Egypt have emerged as countries in the region with the largest annual growth in the transaction volume of mobile payments. With a continuous rise in Internet usage penetration in the countries, more businesses and customers are adopting banking apps for financial transactions resulting in an expansion of BaaS services by the financial services providers.
Increase In Digital Banking
Israel, UAE, Turkey, Saudi Arabia, and Bahrain have emerged as the countries in the Middle East and Africa region with the largest number of digital banking services. The region exists with a share of more than 40% of the global fintech companies and with a continuous increase in their partnership with existing banks in the region digital banking service in the region is observing a continuous increase. With a large segment of the population in the region not having access to banking services, digital banking has emerged as a solution in the region to increase the financial inclusion of the population with banking services. Abu Dhabi Global Market (ADGM), Bahrain FinTech Bay, Fintech Saudi, and FinTech Hive at the Dubai International Financial Centre (DIFC) have emerged as the leading digital payment provider hubs in the Middle East expanding the financial service. Saudi Arabia, Bahrain, Egypt, and UAE have emerged as countries observing a continuous rise in digital payment investment raising demand for BaaS platforms.
