Building Digital Banks in the Middle East & North Africa: Local Insights and Success Factors

Unlocking the Digital Banking Opportunity in MENA

The Middle East and North Africa (MENA) region stands at the threshold of a digital banking revolution. With a young, digitally native population, high mobile penetration, and ambitious national visions for digital economies, the appetite for digital banking has never been greater. Yet, the journey to building successful digital banks in MENA is shaped by unique local challenges—regulatory complexity, diverse customer needs, and the imperative to create scalable, resilient digital ecosystems. Drawing on Publicis Sapient’s proven track record, including the launch of Anglo-Gulf Trade Bank (AGTB)—the world’s first fully digital trade finance bank—this page explores the key insights and success factors for digital banking transformation in the region.

The MENA Context: Opportunities and Challenges

MENA’s financial landscape is rapidly modernizing, but complexity abounds. Many incumbent banks are burdened by legacy systems and manual processes, while new entrants must navigate evolving regulatory frameworks and build trust with customers. The region’s diversity—spanning established financial hubs like the UAE to emerging markets—demands solutions that are both locally relevant and globally competitive.

Key Opportunities

• Financial Inclusion: Large segments of the population and many SMEs remain underserved by traditional banks. Digital banks can bridge this gap with accessible, customer-centric services.
• Cross-Border Trade: MENA’s strategic location as a trade corridor between Asia, Europe, and Africa creates demand for seamless, digital-first trade finance solutions.
• Regulatory Support: Forward-thinking regulators, such as those in the UAE and Saudi Arabia, are actively encouraging digital innovation through sandboxes and progressive licensing regimes.

Unique Challenges

• Regulatory Complexity: Each market has its own requirements, from data residency to Sharia compliance, necessitating tailored approaches.
• Legacy Infrastructure: Many banks still rely on outdated systems, making transformation costly and complex.
• Customer Trust: Building trust in digital-only propositions is essential, especially in markets where face-to-face banking remains the norm.

AGTB as a Blueprint: Lessons for MENA Digital Banking

AGTB’s journey offers a powerful case study for digital banking in MENA. As a greenfield bank, AGTB was unencumbered by legacy systems, allowing it to:

• Reimagine client servicing with a digital-first, client-centric approach.
• Embrace innovation by leveraging cloud-native technologies, APIs, and data-driven operations.
• Foster a culture of agility and collaboration across business and technology teams.

Best Practices for Building Digital Banks in MENA

1. Start with the Customer—Not the Legacy
   • Rather than digitizing old processes, successful digital banks in MENA rethink the entire customer journey. This means designing intuitive, end-to-end digital experiences, from onboarding to transaction execution, tailored to local preferences and regulatory requirements.
2. Build a Flexible, Data-Driven Core
   • A modern, cloud-native core banking platform is essential. AGTB’s use of a cloud-native core enabled rapid deployment, scalability, and robust security—delivering the bank at half the expected cost and in half the time of traditional approaches. A single source of truth for client data unlocks real-time analytics, compliance, and personalized services.
3. Leverage Ecosystem Partnerships
   • No single provider can address the full spectrum of customer needs. Publicis Sapient’s approach brings together a curated ecosystem of fintechs, cloud providers, and technology partners. For AGTB, this meant seamless integration with partners via APIs, enabling value-added services like multi-rail payments and real-time transaction monitoring.
4. Navigate Local Regulatory Environments
   • Success in MENA requires deep understanding of local regulations. Publicis Sapient works closely with regulators, banks, and fintechs to ensure compliance with data residency, AML/KYC, and Sharia requirements, while building platforms that can adapt as regulations evolve.
5. Adopt Agile, Cross-Functional Ways of Working
   • Digital transformation is accelerated by agile methodologies and cross-functional teams. By working in parallel streams—across technology, operations, and business—banks can iterate quickly, validate solutions with real users, and scale successful models.
6. Focus on Operational Readiness and MVP Launch
   • Launching with a minimum viable product (MVP) allows banks to deliver immediate value, gather feedback, and iterate. AGTB’s MVP approach ensured operational readiness and provided a foundation for future growth.

The Role of Data, AI, and Agile Methodologies

Data is the engine of modern digital banks. By establishing a single source of truth and leveraging advanced analytics and AI, banks can:

• Automate compliance and risk management
• Personalize customer experiences
• Enable real-time decision-making
• Optimize operations and reduce costs

AI is also transforming compliance, from automating KYC/AML checks to enhancing fraud detection and regulatory reporting. Hyper-personalization, powered by AI and data, is becoming a necessity as customers demand tailored products, services, and interactions. Agile methodologies underpin these advances, enabling rapid prototyping, iterative delivery, and continuous improvement.

Creating Scalable, Future-Ready Banking Ecosystems

The future of banking in MENA is ecosystem-driven. By building open, modular platforms, banks can quickly integrate new partners, launch innovative products, and scale across markets. Publicis Sapient’s SPEED capabilities—Strategy, Product, Experience, Engineering, and Data—enable clients to create resilient, future-ready banking ecosystems tailored to the region’s unique needs.

Why Publicis Sapient?

With a proven, repeatable approach and deep experience in MENA, Publicis Sapient is the trusted partner for digital banking transformation. Our work with AGTB and other regional leaders demonstrates our ability to:

• Deliver digital banks at speed and scale
• Navigate complex regulatory environments
• Build customer-centric, data-driven platforms
• Orchestrate rich partner ecosystems

Ready to Build the Future of Banking in MENA?

The opportunity is clear: digital banks that put the customer at the center, harness the power of data, and build for flexibility and scale will define the next era of financial services in MENA. Connect with Publicis Sapient to start your digital transformation journey and unlock new growth in the region.

Relevant Links

• Anglo-Gulf Trade Bank - Case Study - Microsoft Azure
• Anglo-Gulf Trade Bank - Case Study - Microsoft Azure
• Banca digital y modernización de core: Oportunidades y desafíos para la transformación financiera en México (LATAM)
• Digitized Trade Banking for SMEs in Southeast Asia: Overcoming Regional Barriers and Unlocking Growth
• Open Innovation and Ecosystem Collaboration in SME Trade Finance: The Next Frontier
• Réinventer la Banque de Financement du Commerce en Europe : L’Ère de la Digitalisation (Europe)