back Back

4 innovative Middle East neobanks making waves in the industry

By Leandra Monteiro

August 10, 2021

  • Bank Abc
  • Cbd Now
  • Mashreq Neo
Share

virtual bank, neobank, smartbank, Middle EastThe digital revolution that has revamped global industries has reached the realm of banking. Recently the Middle East countries have made notable waves in the neobanking sector. Bahrain, Israel, Saudi Arabia, and especially the UAE have witnessed the launch of new digital-only banks during the last three years.

The Covid-19 crisis which arose last year has further pushed banks to undergo digital transformations. Technology promises greater resiliency, innovation and opportunities alongside improved efficiency and customer service.

However, despite the growth in recent years, there is still much potential for further growth in a largely paper-based environment of the Middle east. Driven by changing consumer behaviour and new regulations such as the digital-only banking charter by the Saudi Arabian Monetary Authority (SAMA), here are few neobanks to watch out for-

Bank ABCBased in Bahrain, Bank ABC which stands for Arab Banking Corporation, in early 2018, unveiled its plans to launch a standalone neobank. Keeping to the timeline, in 2019, the bank launched ila Bank, foraying into the digital, mobile-only banking space, beginning with Bahrain with a roadmap to take it across the Middle East and Northern Africa region.

The concept was developed in association with Mobiquty, which is a digital consultancy company. The mobile-only bank offers users an instant virtual card for online transactions, flexible funding options, and an ability to manage a card right from the app, and accounts with extra perks, such as storing funds in foreign currencies and earning even more interest. The neobank aims to leverage its parent’s strength, technology and IT services but will run independently.

CBD NowIn 2017, a neobank proposition from Соmmеrсiаl Ваnk оf Dubаi (СВD) was launched targeting millennials and digitally friendly customers. The bank aimed to tap into the smartphone savvy consumer base.

To further enhance the product, prior to the launch the bank introduced a CBD Now “co-founders” program that involved customers providing inputs insightful during the piloting phase. CBD Now aims to “simple: help co-founders and customers Love the Moment”. Although it was launched with its own branding and website, in summer 2018 it was merged into CBD’s main site.

Mashreq Neo: Mashreq Neo is a bank that looks to answer the day-to-day needs of a world on the move. The digital bank, is completely branchless and is targeted towards the connected generation who are digitally savvy, use mobile devices extensively, and expect convivence above all.

Customer can do all banking services including customer on-boarding, sales, services, transactions and fulfilment are done via online and mobile platforms. Neo mobile banking app, Neo Online, and the Neo Chatbot which is integrated with Facebook Messenger.

Customers will be able to open an account in less than 5 minutes with Mashreq Neo, by downloading the App (from Apple App Store and Google Play Store) and scanning their Emirates ID. Furthermore, Mashreq Neo aims to leverage big data analytics to offer unique insights to its customers on financial management.

PepperLaunched by Israeli Bank Leumi in June 2017, Pepper is a mobile-only banking subsidiary. Pepper offers savings and lending products, with no checking account fees. In September 2019 Pepper launched a new investment app that aims to attract young people to buy fractional shares.

Pepper offers live customer service by professional bankers available around the clock (24/7) via video chat, online messaging, or by phone. Pepper relies on Temenos’ software for its technology, front-to-back office. Temenos’ T24 Transact core banking system underpins the back-office operations, whilst Temenos Infinity supports the front-end.

ALSO READ: Applications of Artificial Intelligence In Banking 2021

Previous Article

August 10, 2021

Santander UK launches CashFlow Manager app created by tomato pay

Read More
Next Article

August 10, 2021

TNM Mpamba partners with Mastercard to transform Malawi’s payment landscape

Read More






IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

October 08, 2024

WealthKernel obtains Spanish license to expand European footprint

Read More

October 08, 2024

Ooredoo and QIB introduce AutoPay service for mobile app users

Read More

October 08, 2024

Fabrick taps Terrapay to innovate cross-border payments in Europe

Read More

Related Reports

Sales League Table Report 2024
Know More
Global Digital Banking Vendor & Landscape Report Q3 2024
Know More
NextGen WealthTech: The Trends To Shape The Future Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More