However, legacy systems are weighing them down and they find it difficult to adapt to the growing needs of a tech-savvy generation. The Middle East financial landscape is being irreversibly altered by the expansion of a transformative new entity—Neobanks- cater to retail customers, and small and medium businesses, which are generally underserved by traditional banks. They leverage the customer focusing services to differentiate themselves and there by introducing new business models like- Conversational banking, contactless payments, data analytics, banking as a service and applications of different technologies in security and risk aspects to provide superior customer service, privacy and personalization.
The Middle East has experienced consistent growth of digital banks in recent years with incumbent banks grabbing the opportunity and launching their stand-alone digital advancements and Central banks are rolling up their sleeves and familiarizing themselves with the bits and bytes of digital money to drive sustainable growth.