Middle East & Africa Banking-as-a-Service (BaaS) Market: Industry Analysis and Forecast (2024-2030) by Type, Enterprise, Service and, Region

Middle East & Africa Banking-as-a-Service (BaaS) Market Overview:

BaaS funding in the Middle East area may look modest at first glance particularly in comparison to certain other leading regions. FinTech venture capital investment in the area accounts for less than 1% of worldwide FinTech venture capital. However, venture capital statistics do not tell the entire picture, and emphasizing that level of investment in the economy obscures several other crucial demographic patterns and industry-related events that are very supportive of BaaS development in the region. Middle East & Africa BaaS Market report is analysed on the basis of segment analysis, such as type, enterprise, service and region.

Around 460 million people live in the Middle East and North Africa area. Approximately half of the population is under the age of 26 years old. With such a large and young population, the Middle East & Africa Banking-as-a-Service (BaaS) Market for early technology adopters is appealing and rising. According to predictions, 470 Middle Eastern FinTech businesses would raise nearly US$ 2.1 billion in venture capital investment by 2022, compared to 30 FinTechs that raised almost US $78 million in 2017.

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Much of the capital invested in the region has gone to the more active FinTech segments. Payments and exchanges businesses, as well as the Insurance industry, online borrowings, RegTech, online banking, fundraising, blockchain, and cryptocurrency enterprises, are all gaining traction in the region. However, the payments industry continues to get the great bulk of funding: around 80% of FinTech businesses in the Middle East region work in payments, transfers, and remittances.

Middle East & Africa Banking-as-a-Service (BaaS) Market Dynamics:

As per the Bank for International Settlements, 80.5% of central banks are involved in some manner with central bank digital currency projects, with half of them now at the experimental or pilot stage. Countries in the Middle East, such as Israel, the United Arab Emirates, and Saudi Arabia, have shown popular interest in this trend. They can keep up with a rising digital economy while keeping regulatory control by introducing a central bank digital currency as a new form of payment and helps great in the Middle East & Africa Banking-as-a-Service (BaaS) Market growth

While central banks strive to create a functional digital currency, firms outside of the financial sector are also attempting to benefit from digital developments. Embedded finance, also known as Banking as a Service (BaaS), enables non-financial companies to provide added value to their clients through online banking. According to FinTech TV's analysis, the embedded finance industry is predicted to rise five times its present value by 2027, from $22.4 billion to over $270 billion. A firm that does not have a banking license can use embedded finance to incorporate products like checking accounts, consumer small loans, and identity management services directly into their business while relying on the legislative permits of another banking institution.

Middle East & Africa Banking-as-a-Service (BaaS) Market Segment Analysis:

By Service, the Fintech segment dominated the Middle East & Africa Banking-as-a-Service (BaaS) Market in 2023. It is expected to grow at a CAGR of 8.1% in the forecast period. The number of FinTechs per country across the Middle East also changes considerably. The UAE is the leader in FinTech innovation, comprising some 23.5% of the FinTechs in the region. Both Morocco and Egypt follow, with 12.5%, and Tunisia with 10.3% of FinTechs. In terms of the segments likely to most benefit from FinTech across the entire region include remittances, banking penetration, the security of transactions, and compliance.

The number of FinTechs in each nation varies greatly across the Arab globe. The UAE is the region's FinTech leader, accounting for over a quarter of all FinTechs. Morocco and Egypt are in second and third, respectively, with 12.5% and 10.5% of FinTechs. S&P Global identifies transfers, banking adoption, transaction security, and adherence as the sectors most likely to gain from FinTech across the region.

Companies are already using BaaS platforms to develop closer relationships with their customers and increase brand loyalty. White-labeled debit cards, for example, enhance the number of contact points between a customer and their preferred brand while also offering more information about the customer's purchasing patterns. Before the rise of FinTech in the Middle East, obtaining regulatory licenses and putting in place the necessary IT infrastructure to provide financial services was both expensive and time-consuming. Businesses are increasingly using their existing client ties to provide these services at a cheaper rate.

Middle East & Africa Banking-as-a-Service (BaaS) Market Regional Insights:

Findexable, which produces the Global Fintech Index, considers the UAE a bet in terms of FinTech. UAE is also ranked seventh among the top ten wagers. The UAE is now the world's 25th most competitive country in terms of Middle East & Africa Banking-as-a-Service (BaaS) Market players, up to two places from the previous year. Significant increases in ICT use and skills - perhaps the most crucial drivers of FinTech development possibilities - helped it gain traction. These cornerstones, according to the WEF, complement the UAE's long-standing competitive advantages, which include a stable macroeconomic climate, a strong product market, and a well-developed infrastructure.

The purpose of this research is to provide stakeholders in the industry with a thorough insight into the Middle East & Africa Banking-as-a-Service (BaaS) Market. The study includes an analysis of difficult data in simple language, as well as the industry's historical and current state, as well as anticipated market size and trends. The market report examines all segments of the industry, with a focus on significant players such as market leaders, followers, and new entrants. The report includes a PORTER, PESTEL analysis as well as the possible influence of microeconomic market determinants. External and internal elements that are expected to have a favorable or negative impact on the firm have been examined, providing decision-makers with a clear future vision of the industry. The research also aids in comprehending the

Middle East & Africa Banking-as-a-Service (BaaS) Market dynamics and structure by studying market segments and forecasting market size. The research is an investor's guide since it depicts the competitive analysis of major competitors in the Middle East & Africa Banking-as-a-Service (BaaS) Market by product, price, financial situation, product portfolio, growth plans, and geographical presence.

Breakthroughs in the industry are discussed, as well as organic and inorganic growth plans. Various companies are focusing on organic growth strategies such as new product releases, product approvals, and other items such as patents and events. Inorganic growth strategies used in the industry included acquisitions, partnerships, and collaborations.

Middle East & Africa Banking-as-a-Service (BaaS) Market Scope:

Middle East & Africa Banking-as-a-Service (BaaS) Market Players:

• Sarwa.Co
• Beehive
• NOW Money
• Telr
• Mamo Pay
• Felix
• Jingle Pay