Middle-East And Africa Banking-As-A-Service Market Size (2024 - 2029)

The Middle-East and Africa Banking-as-a-Service market is experiencing significant growth, driven by a large and youthful population that is increasingly adopting technology. This expansion is facilitated by the rising number of fintech companies in the region, which are collaborating with national banks to enhance their service offerings. The market's growth is further supported by the high online banking penetration in countries like the UAE, Israel, and Saudi Arabia, alongside the continuous development of digital financial products. The fintech sector, particularly in payments and remittances, is a key contributor to the market's expansion, with major cities serving as hubs for these services.

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Market Size of Middle-East And Africa Banking-As-A-Service Industry

Middle-East and Africa Banking-As-A-Service Market Summary
Study Period 2020-2029
Base Year For Estimation 2023
Market Size (2024) USD 65.51 Billion
Market Size (2029) USD 100.53 Billion
CAGR (2024 - 2029) 7.40 %
Market Concentration Medium

Major Players

Middle East and Africa Banking-As-A-Service Market Major players

*Disclaimer: Major Players sorted in no particular order

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MEA BaaS Market Analysis

The Middle-East And Africa Banking-As-A-Service Market size is estimated at USD 65.51 billion in 2024, and is expected to reach USD 100.53 billion by 2029, growing at a CAGR of 7.40% during the forecast period (2024-2029).

The Middle East and Africa region is home to around 460 million people. Approximately half the population is under the age of 26. With such a large and young population, the Middle East and Africa Banking-as-a-Service (BaaS) Market is expanding its reach among early technology adopters. The number of fintech firms in the Middle East region is observing a continuous increase over the years rising to more than 460 companies last year expanding the BAAS market size in the region. Qatar National Bank, First Abu Dhabi Bank, Emirates NBD Bank, Standard Bank Group, and Saudi National Bank are among some of the National banks in the Middle East expanding their BaaS services in collaboration with fintech companies in the region.

BaaS has emerged as a service to extend the reach of financial and banking into new geographic markets and it exists as a faster way to bring financial products to market. UAE, Israel, and Saudi Arabia are among the countries in the region with online banking penetration of more than 40% and are observing a continuous expansion of digital financial products and transactions. Payments and exchange companies and the insurance industry (online borrowings, RegTech, online banking, fundraising, blockchain, and cryptocurrency firms) are observing a continuous expansion in the region with the launch of various fintech service products. More than 80% of FinTech enterprises in the Middle East are involved in payments, transfers, and remittance services. Over the period Fawry, Madfooat.com, Optasia, MNT-Halan, Tabby, and Pay Tabs have emerged as the leading fintech providers in the region with a large segment of the customer base existing in the major cities of Damascus, Riyadh, Istanbul, and Turkey, Iraq, Iran and other in the Middle East and Africa region.

MEA BaaS Industry Segmentation

The banking as-a-services (BaaS) market is an end-to-end model that enables digital banks and other third parties to connect directly with bank systems via API, allowing them to build banking offerings on top of the providers' regulated infrastructure while also unlocking the open banking opportunity, reshaping the global financial services landscape.

The baking-as-a-service market is segmented by type, by service type, by enterprise size, and by region. By type, the market is segmented into api-based baas and cloud-based baas. By service type, the market is segmented into payment process services, digital banking services, KYC services, customer support services, and others. By enterprise size, the market is segmented into small, and large enterprises. By region, the market is segmented into South Africa, GCC, Egypt, the rest of the Middle and Africa. The report offers market size and forecasts for the Middle East and Africa banking as-a-services market in value (USD) for all the above segments.

By Type
API-based BaaS
Cloud based baaS
By Service Type
Payment Process Services
Digital Banking Services
KYC Services
Customer Support Services
Others
By Enterprises Size
Large Enterprises
Small & Medium Enterprises
By Country
South Africa
GCC
Egypt
Rest of Middle-East and Africa
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Middle-East And Africa Banking-As-A-Service Market Size Summary

The Middle-East and Africa Banking-as-a-Service (BaaS) market is experiencing significant growth, driven by a young and tech-savvy population and an increasing number of fintech companies. This expansion is facilitated by national banks in the region, such as Qatar National Bank and Emirates NBD, which are collaborating with fintech firms to enhance their BaaS offerings. The service is pivotal in extending financial services to new markets and accelerating the introduction of financial products. Countries like the UAE, Israel, and Saudi Arabia are leading in online banking penetration, with a robust expansion of digital financial products and transactions. The region's fintech landscape is dominated by payment, transfer, and remittance services, with major cities like Riyadh and Istanbul serving as key hubs for these activities.

The adoption of BaaS is further propelled by the increasing volume of digital transactions and the expansion of financial markets, including banking, stock exchanges, and insurance. Countries such as Saudi Arabia, UAE, and Egypt are witnessing substantial growth in mobile payment transactions, supported by rising internet usage and the adoption of banking apps. Digital banking services are proliferating, particularly in Israel, UAE, Turkey, and Bahrain, contributing to financial inclusion efforts in regions with limited banking access. The market is characterized by a fragmented landscape with numerous fintech and financial service providers offering diverse products. Partnerships, like that of Aazzur and Treezor, and initiatives such as Wio Bank's platform launch in the UAE, underscore the region's commitment to enhancing its digital economy and BaaS capabilities.

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Middle-East And Africa Banking-As-A-Service Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rise in Digital Banking the Region

      2. 1.2.2 Rise in Volume of Financial Transaction in the Region

    3. 1.3 Market Restraints

      1. 1.3.1 Higher Cost of BaaS Technology for Some Banking Entities.

    4. 1.4 Market Opportunities

      1. 1.4.1 Rise In Government Initiatives Towards Digitizing Economy

      2. 1.4.2 Rise In Customized Financial Services Products By Businesses

    5. 1.5 Industry Attractiveness - Porters' Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Technological Innovations in the Middle East and Africa Banking-As-A-Service Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 API-based BaaS

      2. 2.1.2 Cloud based baaS

    2. 2.2 By Service Type

      1. 2.2.1 Payment Process Services

      2. 2.2.2 Digital Banking Services

      3. 2.2.3 KYC Services

      4. 2.2.4 Customer Support Services

      5. 2.2.5 Others

    3. 2.3 By Enterprises Size

      1. 2.3.1 Large Enterprises

      2. 2.3.2 Small & Medium Enterprises

    4. 2.4 By Country

      1. 2.4.1 South Africa

      2. 2.4.2 GCC

      3. 2.4.3 Egypt

      4. 2.4.4 Rest of Middle-East and Africa

Middle-East And Africa Banking-As-A-Service Market Size FAQs

The Middle-East And Africa Banking-As-A-Service Market size is expected to reach USD 65.51 billion in 2024 and grow at a CAGR of 7.40% to reach USD 100.53 billion by 2029.

In 2024, the Middle-East And Africa Banking-As-A-Service Market size is expected to reach USD 65.51 billion.

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