Middle East & Africa Banking-as-a-Service (BaaS) Market Size:
The Middle East & Africa Banking-as-a-Service (BaaS) market was valued at USD 66.14 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 7.4%, reaching approximately USD 109.02 billion by 2030.
Middle East & Africa Banking-as-a-Service (BaaS) Market Overview:
The Middle East & Africa (MEA) region has been witnessing substantial developments in the Banking-as-a-Service (BaaS) sector, despite initial perceptions of modest FinTech investments compared to other regions. Venture capital in the MEA region accounts for less than 1% of global FinTech venture capital. However, the region’s young population and growing interest in digital solutions are fueling the expansion of BaaS. Predictions suggest that by 2022, nearly USD 2.1 billion will be raised by 470 FinTech startups in the Middle East, a sharp increase from USD 78 million raised by 30 FinTechs in 2017.
With a young population under 26 years old, the region’s BaaS sector is becoming an attractive destination for early technology adopters. The trend is further supported by the growing interest in digital currencies and embedded finance, positioning BaaS as a key enabler of financial innovation.
Middle East & Africa Banking-as-a-Service (BaaS) Market Scope:
The Middle East & Africa Banking-as-a-Service (BaaS) market is segmented based on type, enterprise size, service offerings, and region. Key segments include:
- By Type: API-based BaaS, Cloud-based BaaS
- By Enterprise: Small and Medium-sized Enterprises (SMEs), Large Enterprises
- By Service: Banking IaaS, Banking as a Platform, FinTech SaaS, Non-Banking Financial Companies (NBFCs)
- By Region: South Africa, GCC, Egypt, Nigeria, and other parts of the Middle East & Africa
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Market Drivers:
- Digital Transformation: As central banks in the region explore Central Bank Digital Currencies (CBDCs), the demand for BaaS solutions is expected to surge. These developments in digital payments support BaaS growth by enabling seamless integration between traditional banking systems and emerging digital payment technologies.
- Young and Tech-Savvy Population: With a significant portion of the population being under the age of 26, the region presents a prime market for FinTech solutions and early adoption of banking technologies.
- Regulatory Support: Governments are increasingly embracing regulatory frameworks that enable the development of innovative BaaS offerings, particularly in markets like the UAE, Saudi Arabia, and Israel.
- Growth of Embedded Finance: BaaS is instrumental in the rise of embedded finance, allowing non-financial businesses to integrate banking services into their offerings, thereby enhancing customer engagement.
Market Trends:
- Rise of Embedded Finance: The embedded finance market is expected to grow significantly, with a projected value increase from USD 22.4 billion to over USD 270 billion by 2027. This shift will help businesses offer banking services such as loans, accounts, and payments directly through their platforms.
- Increased Investment in FinTech: Venture capital funding is growing, with the UAE leading the way as the region’s FinTech hub. Countries like Morocco, Egypt, and Tunisia are also seeing rapid growth in the FinTech space, focusing on remittances, banking penetration, and transaction security.
Segmentation:
- By Type:
- API-based BaaS
- Cloud-based BaaS
- By Enterprise Size:
- SMEs
- Large Enterprises
- By Service:
- Banking Infrastructure as a Service (IaaS)
- Banking as a Platform
- FinTech SaaS
- Non-Banking Financial Companies (NBFCs)
For in-depth information on this study, visit the following link:https://www.stellarmr.com/report/req_sample/Middle-East-and-Africa-Banking-as-a-Service–BaaS–Market-/259
Key Players:
Leading players in the Middle East & Africa Banking-as-a-Service market include:
- Sarwa.co
- Beehive
- NOW Money
- Telr
- Mamo Pay
- Felix
- Jingle Pay
These players are leveraging BaaS platforms to build stronger customer relationships, enhance brand loyalty, and expand their financial service offerings with lower operational costs.
Regional Analysis:
The UAE leads the region in FinTech innovation, with approximately 23.5% of the region’s FinTech firms based in the country. Other key players in the market include Saudi Arabia, Egypt, Morocco, and Tunisia. The UAE’s strategic initiatives to foster a competitive environment through ICT advancements and a robust infrastructure make it a key player in the BaaS market.
Key Questions Answered:
- What is the market size of the Middle East & Africa Banking-as-a-Service (BaaS) market in 2023 and its projected growth by 2030?
- What are the primary drivers and trends influencing the growth of BaaS in the region?
- How is embedded finance transforming the financial landscape in the MEA region?
- Who are the key players in the Middle East & Africa BaaS market, and what strategies are they using to gain a competitive edge?
- What are the key opportunities for BaaS adoption in the Middle East & Africa?
The Middle East & Africa Banking-as-a-Service (BaaS) market is poised for significant growth, with technological advancements, government support, and evolving consumer demands driving the sector forward. As businesses and governments adapt to digital transformation, BaaS will continue to be a pivotal solution for enhancing financial services across the region.
For the complete analysis, visit the following link:https://www.stellarmr.com/report/Middle-East-and-Africa-Banking-as-a-Service–BaaS–Market-/259
Key Offerings:
- Past Market Size and Competitive Landscape (2018 to 2022)
- Past Pricing and price curve by region (2018 to 2022)
- Market Size, Share, Size & Forecast by Different Segment | 2024-2030
- Market Dynamics – Growth Drivers, Restraints, Opportunities, and Key Trends by Region
- Market Segmentation – A detailed analysis by segment with their sub-segments and Region
- Competitive Landscape – Profiles of selected key players by region from a strategic perspective
- Competitive landscape – Market Leaders, Market Followers, Regional player
- Competitive benchmarking of key players by region
- PESTLE Analysis
- PORTER’s analysis
- Value chain and supply chain analysis
- Legal Aspects of Business by Region
- Lucrative business opportunities with SWOT analysis
- Recommendations
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