The Middle East and North Africa (MENA) region is on the cusp 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-only banks—also known as neobanks—has never been greater. Yet, the journey to launching and scaling digital banks in MENA is uniquely shaped by local regulatory environments, 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 deep dive explores the opportunities, challenges, and best practices for building digital-only banks in the region.
Large segments of the MENA population, including many small and medium-sized enterprises (SMEs), remain underserved by traditional banks. Digital-only banks can bridge this gap by offering accessible, customer-centric services that reach beyond the limitations of physical branches.
MENA’s strategic location as a trade corridor between Asia, Europe, and Africa creates demand for seamless, digital-first trade finance solutions. Digital banks are uniquely positioned to serve this need with innovative, real-time services.
Forward-thinking regulators in markets like the UAE and Saudi Arabia are actively encouraging digital innovation through sandboxes and progressive licensing regimes. This regulatory openness is accelerating the launch of new digital banking models.
Each MENA market has its own regulatory requirements, from data residency to Sharia compliance. Digital banks must tailor their approaches to meet these diverse and evolving standards, often requiring deep local expertise and flexible technology architectures.
Many incumbent banks in the region are burdened by outdated systems and manual processes, making transformation costly and complex. New digital entrants, while unencumbered by legacy, must still build trust and operational resilience from the ground up.
Building trust in digital-only propositions is essential, especially in markets where face-to-face banking remains the norm. Digital banks must invest in robust security, transparent communication, and seamless customer experiences to win over skeptical users.
The launch of Anglo-Gulf Trade Bank (AGTB) offers a powerful case study for digital banking in MENA. As a greenfield bank, AGTB was able to:
AGTB’s use of a cloud-native core banking platform enabled rapid deployment, scalability, and robust security—delivering the bank at half the expected cost and in half the time of traditional approaches. Seamless integration with ecosystem partners via APIs allowed AGTB to offer value-added services like multi-rail payments and real-time transaction monitoring.
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.
A modern, cloud-native core banking platform is essential. It enables rapid deployment, scalability, and robust security, while providing a single source of truth for client data. This unlocks real-time analytics, compliance, and personalized services.
No single provider can address the full spectrum of customer needs. Successful digital banks curate ecosystems of fintechs, cloud providers, and technology partners, integrating seamlessly via APIs to deliver a broad range of value-added services.
Success in MENA requires a deep understanding of local regulations. Working closely with regulators, banks, and fintechs ensures compliance with data residency, AML/KYC, and Sharia requirements, while building platforms that can adapt as regulations evolve.
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.
Launching with a minimum viable product (MVP) allows digital banks to deliver immediate value, gather feedback, and iterate. This approach ensures operational readiness and provides a foundation for future growth.
Data is the engine of modern digital banks. By establishing a single source of truth and leveraging advanced analytics and AI, digital banks can automate compliance and risk management, personalize customer experiences, enable real-time decision-making, and optimize operations. Cloud-native platforms are critical for scalability, resilience, and regulatory compliance, especially as banks expand across markets with varying requirements.
The future of banking in MENA is ecosystem-driven. Open, modular platforms allow digital banks to 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.
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:
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.