7 Emerging Fintech Trends Reshaping MENA Banking in 2025

MENA banking is transforming in 2025, driven by fintech advancements. Here's what you need to know:

• Mobile Payments & Digital Money: Apps like STC Pay (KSA) and Zand (UAE) simplify transfers, savings, and payments.
• AI Banking Services: Banks like ENBD (UAE) and Warba Bank (Kuwait) use AI for personalisation, fraud detection, and customer support.
• Digital Banks: Platforms like Liv and Mashreq Neo (UAE) cater to diverse groups, from Gen Z to migrant workers.
• Blockchain Payment Networks: Blockchain is improving security, cutting costs, and enabling real-time cross-border payments.
• BNPL Payment Options: Flexible "Buy Now, Pay Later" services are growing, driven by partnerships between banks and fintechs.
• Open Banking: Secure data-sharing systems like DAPI and Fintech Galaxy are enabling innovation and financial inclusion.
• Green Banking Solutions: Initiatives like ADIB’s decarbonisation goals and Fils’ carbon tracking tools support eco-friendly banking.

These trends are reshaping how money is managed, increasing access, and boosting efficiency. For banks and fintechs, staying ahead means investing in technology and customer-focused solutions.

The Top Banking Trends In 2025

1. Mobile Payments and Digital Money

The MENA region is rapidly moving toward digital payment solutions, with the UAE and Saudi Arabia at the forefront of this transformation. Both established financial institutions and fintech startups are launching mobile payment platforms that are changing the way people handle and transfer money.

In the UAE, banks like Mashreq Neo and Al Maryah Community Bank are leading the way with user-friendly apps offering features like instant loan approvals, high-yield savings accounts, and personalised financial tools. Liv, on the other hand, focuses on younger users aged 8–17 with its Liv Young app, combining lifestyle features with financial education and salary-based rewards.

For underserved groups, platforms such as Now Money are making financial services more accessible by simplifying account opening and offering affordable money transfer options for low-income migrant workers. In Egypt, Dopay has revolutionised payroll management by allowing businesses to pay employees electronically, reducing reliance on cash.

In Saudi Arabia, STC Pay is a standout, providing instant transfers, digital bill payments, e-commerce integration, and secure mobile wallets.

Other countries in the region are also making strides. In Bahrain, Benefit has become a key player in electronic payments, streamlining ATM and POS transactions. Kuwait's Weyay Bank, the country's first fully digital bank, offers modern features like customisable debit cards and Apple Pay integration.

Zand, the UAE’s first fully licensed digital bank, is setting a new benchmark by combining digital asset services with AI-driven solutions. This blend of traditional banking and cutting-edge technology highlights the direction mobile payments are heading in 2025.

These digital platforms are reducing operational costs, lowering fees, and increasing competition across the MENA region.

2. AI Banking Services

AI is reshaping banking in the MENA region, with projections showing it could contribute AED 1.17 trillion (USD 320 billion) to the Middle East's economy by 2030. Leading banks are already leveraging this technology to improve operations and customer experiences.

For instance, ENBD, in partnership with McKinsey, developed over 100 analytics models and built a team of more than 70 analysts. Their approach aims to achieve a 5-7x return on AI investments by enhancing operational efficiency and delivering highly personalised services.

In Kuwait, Warba Bank took a bold step in September 2024 by launching "Warba Advisor", an AI-driven personal banking assistant. Mejren Hamad Al-Mejren, Head of the Digital Department at Warba Bank, explains its impact:

"Warba Advisor provides clients with tailored financial recommendations based on their use of the bank's products, such as accounts, credit cards, savings, and investments...eliminating the need for clients to visit branches or contact the call center".

AI's influence on banking is particularly noticeable in these three areas:

These advancements highlight how banks can adopt AI while maintaining a personal connection with customers.

Commercial Bank International offers a great example of this balance:

"CBI shows that technology complements human service, delivering the best of both worlds".

With the GCC's investments in AI expected to boost GDP by up to 13.6% by 2030, the region is clearly committed to this transformation. Banks are also using AI and alternative data to improve credit assessments, reaching underserved groups in the process.

3. Digital Banks and Financial Apps

Digital banks are transforming financial services across the MENA region by using advanced technology to offer user-friendly experiences and improve access to banking.

In the UAE, Liv stands out as a digital bank catering to young professionals, while its Liv Young app focuses on teaching financial skills to users aged 8–17. Liv combines lifestyle features with a fully digital ecosystem to set itself apart.

Digital banks in the region are addressing specific market needs:

These examples highlight how digital banks are customising their services to meet diverse needs and improve financial accessibility in the region.

Other platforms are also expanding digital banking options. For instance, STC Pay in Saudi Arabia supports instant transfers, bill payments, and online shopping. Meanwhile, Wio Bank in the UAE is setting new standards for digital banking. As stated in their mission:

"At the forefront of the financial revolution in the Middle East, neobanks and digital banking arms are reshaping how individuals and businesses manage money. By embracing advanced technologies and prioritizing customer‐centric solutions, these entities are not just innovating financial services but are also democratizing access to essential banking tools."

Specialised digital solutions are also emerging. Egypt's Dopay simplifies payroll for unbanked employees, and Kuwait's Weyay Bank offers tailored debit cards and integrated payment tools. In the UAE, Rise allows low-minimum investments, while Tamara in Saudi Arabia provides buy-now-pay-later services. These branchless models reduce costs and minimise paper use.

4. Blockchain Payment Networks

Blockchain technology is reshaping payment networks across the MENA region in 2025. Banks and financial institutions are turning to blockchain to improve security, speed up transactions, and cut operational costs.

Many banks are actively testing blockchain within their payment systems to enable real-time settlements. These efforts are part of a larger push for digital transformation in the banking sector. By tapping into blockchain's capabilities, the industry is working to simplify cross-border payments and modernise systems for banks, investors, and consumers alike.

As blockchain continues to develop, it will enhance both security and efficiency, paving the way for advancements like BNPL and AI-powered services.

5. BNPL Payment Options

BNPL (Buy Now, Pay Later) services are becoming a prominent part of the MENA banking landscape as financial technology continues to evolve. Many leading banks are now integrating BNPL solutions to address changing consumer preferences. Partnerships between traditional banks and fintech companies are making these payment options more accessible, both online and in physical branches.

Here are some key trends shaping the BNPL market:

• Collaborations between banks and fintech firms to expand BNPL offerings
• Payment plans with flexible instalment options
• Growing popularity of digital BNPL platforms among consumers

Younger customers, in particular, are driving the demand for BNPL services. For businesses, these payment solutions bring several advantages, including:

• Higher transaction amounts
• Reduced cart abandonment rates
• Increased customer loyalty
• Faster, real-time payment processing

To support the growth of BNPL, banks are now using AI-powered risk analysis tools to improve credit assessments. This focus on responsible lending is expected to strengthen data-sharing systems, which will be discussed in the next section.

6. Bank Data Sharing Systems

Open Banking is transforming the financial landscape in the MENA region. Introduced by the UAE Central Bank in February 2023 as part of its FIT Programme, Open Finance is set for full implementation by 2026.

These systems use secure APIs to connect banks with approved third-party providers, ensuring both safety and innovation. Key fintech players include:

• DAPI: Operating in the UAE, DAPI facilitates standardised access to banking data, allowing third-party apps to analyse financial information with customer approval.
• Salt Edge: Provides UAE financial institutions with tools for secure data aggregation and bank-to-bank connectivity.
• Fintech Galaxy: Integrated with over 15 banks in the GCC, the company has raised AED 33 million to expand its operations.

These examples highlight how secure data sharing is enabling new financial services.

Saudi Arabia is also advancing with its Account Information Service framework and the launch of an Open Banking laboratory.

"This partnership accelerates Open Banking adoption across MENA and the GCC, empowering financial institutions to comply faster, transact smarter, and innovate at scale. Together, we are building a more seamless, secure, and interconnected financial ecosystem." - Riyadh Al Zamil, Chairman of Fintech Galaxy's Board of Directors

Several recent developments further showcase the growth in this sector:

• Regional Expansion: Fintech Galaxy's acquisition of Underlie, an Open Banking platform in Egypt, reflects growing consolidation and sector development.
• Regulatory Advances: Bahrain's regulatory sandbox for Open Banking, developed with Tarabut Gateway, has created a competitive and innovative market environment.
• Cross-Border Solutions: Companies like Spare in Kuwait are creating tools for secure data sharing and smooth cross-border payments.

As these systems evolve, it’s crucial for banks to address data privacy concerns and work towards standardised regulations across the region.

7. Green Banking Solutions

Fintech with a focus on sustainability is transforming the banking sector across the MENA region, with the UAE taking a leading role. By combining technology with environmental goals, banks and consumers are finding new ways to align financial services with eco-conscious practices. This movement supports the region's broader push toward digital advancement.

Abu Dhabi Islamic Bank (ADIB) is at the forefront of this shift. In November 2024, ADIB became the first commercial Islamic bank in the region to set decarbonisation targets for specific industries. According to their Net Zero report, they aim to cut operational emissions by 49% by 2030, using 2022 levels as a baseline. The report also outlines strategies for reducing emissions across six key sectors.

The UAE's dedication to green banking extends beyond individual banks. The Sustainable Fintech Pledge, a joint effort by MOCCAE and the MENA Fintech Association, highlights this commitment. Institutions like ADGM, DIFC, and Mastercard have signed on to uphold five core sustainability principles.

Fils, a fintech company focused on sustainability, has introduced a solution that:

• Tracks carbon footprints within payment systems
• Delivers real-time insights on sustainability
• Automates compliance checks
• Verifies carbon credits transparently using blockchain

With partnerships involving Geidea in Saudi Arabia, Mashreq Bank, Magnati, and E& Enterprise in the UAE, Fils now connects with over 1.5 million merchants and 2 million users. This extensive network makes it easier for people to adopt eco-friendly habits through their daily financial activities.

"By embedding sustainability into payments, we've created a frictionless system where every transaction becomes an opportunity for climate action." - Nameer Khan, Founder & CEO of Fils and Chairman of the MENA Fintech Association

The rise of green digital banks is also reshaping banking in the UAE. Nettle Bank, the country's first green digital bank, focuses on offsetting local carbon emissions while offering competitive savings and investment options.

The carbon market's projected growth - from AED 367 billion in 2030 to AED 918 billion by 2050 - shows the economic potential of green banking. More financial institutions are realising that environmental efforts can align with profitability.

"We recognise the urgent need for the financial industry to play a pivotal role in tackling climate change and we are fully committed to leading the way in sustainable Islamic banking and supporting the UAE's national goals for a sustainable future." - Mohamed Abdelbary, ADIB's Group Chief Executive Officer

Conclusion

The fintech wave reshaping the MENA region in 2025 is transforming financial services across the board. These seven trends are driving change in the banking sector as both established institutions and new entrants adopt digital tools to meet shifting customer demands. To stay relevant, banks need to adjust their strategies to keep up with this fast-paced evolution.

Companies like STC Pay and BENEFIT highlight how digital innovation is making a real difference in MENA banking.

To stay ahead, banks should focus on two main areas:

• Technology Integration: Incorporating AI, blockchain, and cloud computing to enable real-time transactions and deliver personalised insights.
• Customer-Centric Innovation: Offering digital platforms that improve accessibility and create a smoother, more user-friendly experience.

Liwwa's journey in Jordan is a great example. By providing collateral-free financing through its digital platform, the company has distributed over AED 169 million to more than 1,000 SMEs since 2015.

"By focusing on customer-centric solutions, these players are addressing gaps in traditional banking services, such as accessibility, speed, and transparency."

The future of MENA banking lies in blending innovation with responsibility. As digital transformation continues, banks must prioritise sustainable practices, financial inclusion, strong security, and transparent operations.

For investors and stakeholders, the focus should be on supporting digital banking platforms that balance cutting-edge technology with customer needs.

"As these institutions continue to evolve, their emphasis on technology-driven solutions is revolutionizing how individuals and businesses manage money, access credit, and build wealth."

These trends mark the beginning of a new chapter in MENA banking, where digital progress and customer empowerment lead the way. Success will hinge on how well institutions seize these opportunities while maintaining ethical and responsible banking practices.