Digital bank licensing in the Middle East

Digital Banks have become increasingly popular globally, as well as across the Middle East (ME) due to their convenience, accessibility, and attractive fees compared to traditional banks. These banks offer a comprehensive suite of banking services exclusively through digital channels, such as mobile apps and web platforms. Neo banks are redefining traditional banking norms and meeting the evolving needs of today's tech-savvy consumers.

Over the last 5 years, the ME digital banking sector has seen:

• Entry of new players in the ME digital banking sector
• Expansion of existing Fintech and telecommunication players into digital banking
• Traditional banks carving out specific digital banking platforms.

Keeping up with the growth wave within digital banking as well as to ensure appropriate regulatory supervision, Central Banks across ME have been issuing regulatory frameworks. These frameworks are for licensing of digital banks to operate as fully authorized financial institutions catering to different segments of customers in the region.

As the Middle East experiences this transformative shift in this rapidly evolving sector, explore key insights, regulatory expectations, and the fundamental aspects of digital banking licensing in the Middle East. 

We offer end-to-end support in digital bank licensing and set-up within the region. We support local and overseas players looking to enter the market, helping them across their entire journey. From development of business and regulatory strategies to license application submission, license operationalization and go-live.

How Deloitte can help:

• Conducting market research and feasibility study.
• Design of business model/ value proposition.
• Development of business plan and financial projections. 
• Development of capital adequacy, liquidity and exit plans.
• Design of technology blueprint.
• Development of target operating model.
• Development of policies, procedures, frameworks, and models.
• Set up agile governance and project management office.
• Preparation or assessment of application pack.
• Support in responses to regulatory queries.
• Set-up or re-organization of key control and support functions.
• Support in systems implementation and integration, solutions, policies, and processes.
• Support with regulatory readiness assessment along with testing pre-launch.
• Offer operations support under project based, managed services and loan staffing arrangements.
• Assist with the ongoing regulatory reporting and independent risk reviews.
• Develop or validate customer and data analytics models/solutions.