Nearly 90% of people in the UAE now hold a digital-first bank account, and that number is only growing. Joining me now is Nauman Hassan, Regional Director for MENA at Paymentology and a member of the MENA Fintech Association. Nauman, welcome to Wall Street to Mena.
Thank you.
Neo banks operate entirely online with no physical branches. What does Paymentology actually do to power these banks?
Those who are not aware — Paymentology is a payments technology firm. You're probably using a card powered by our technology right now. Whether you're tapping a card in Dubai, using Apple Pay in London, or travelling with a crypto card, there is sophisticated technology working behind the scenes. Paymentology provides that technology to neo banks, banks, and fintechs — through which they can not only issue cards but transact in a very secure fashion. To put it simply: the banks hold the customer relationships, while Paymentology provides the payment experience and the infrastructure behind it.
Nearly 40% of the UAE's banking population is expected to have a neo bank account by 2027. Why is this region adapting faster than anywhere else?
These are exciting times. And let me be bold and say that the Middle East is not following trends — it is redefining them. It's a very young, energetic population. Smartphone penetration is in the high 90s. The regulators are supportive and governments are actively embracing technology. Just look at our lifestyle — we're ordering food, using government services, booking travel, all on our phones. It's about frictionless payments, convenience, and speed. That's why people are moving towards new payment mechanisms. If you look at digital banks in the UK — the likes of Monzo — they're winning not just because they're digital, but because they're better. Frictionless, invisible, and easier on the consumer.
In the UAE, names like Wio and Yap have become well known. But how do you actually measure the success of a neo bank?
A lot of neo banks launch, but very few make it — and by make it, I mean becoming the consumer's primary account. Success is directly proportional to how well you fulfil the consumer's actual requirements. There are thousands of apps in any app store. You don't need another one. You need a financial institution that eases people's lives, understands the problems they're actually facing, and solves them. Whether it's wealth management, embedded finance, or buy now pay later — there's a lot out there. But the secret sauce is understanding customer expectations and fulfilling them with ease and convenience. That's where success lies.
Let's move to Saudi Arabia. D360 Bank picked up 600,000 customers in under two months, and STC Pay has over 10 million users without even being a licensed bank yet. What is happening in Saudi right now?
You've given two great examples — D360 is a bank, STC Pay is a fintech wallet. I always say Saudi is the land of dreamers — they think big. The population is large, technology adoption is high, and the government's Vision 2030 is an enormous driver. The Financial Sector Development Program is one of its biggest pillars. We're talking over $2 billion invested, expectations of $3.5 billion coming into the economy, around 18,000 jobs being created, and 525 fintechs. The transformation isn't just digital banking — it's embedded finance, open banking, and so much more happening in parallel. International companies are coming in because they see real opportunity and a genuine commitment to digital transformation.
Traditional banks are also now launching their own digital arms — we're seeing that with Mashreq Neo, for example. Is this the future — traditional banks going digital?
I wouldn't frame it as digital banks versus traditional banks — it's not a battle, it's about good experience versus bad experience. Traditional banks have trust, scale, and experience. Digital banks have customer centricity, speed, and convenience. And what we're seeing now is a convergence. Digital banks are moving towards more conventional products — wealth management, SME financing. And traditional banks like Mashreq are accelerating their digitisation. The winners will be those who deliver a better, more seamless, one-stop experience. It's about bringing everything closer to the consumer.
AI is showing up everywhere now, including in payments. What does that actually look like in practice?
AI in digital banking should be invisible. Consumers shouldn't think about it — they should just experience something that feels natural. AI is not chatbots. It's far beyond that. It's about decision-making. Fraud management, for example — AI can identify better behavioural patterns and significantly enhance your fraud detection. Customer relationship management, issue resolution, incident management — AI can make all of these faster and more seamless. AI will not replace people, but it will equip people to make better decisions.
Last question — where does digital banking in this region go next?
Three things. First, invisible payments — that's where demand is heading. Second, intelligence — which comes with AI. Third, convergence — deeper cooperation between fintechs and traditional banks. The gap is closing, and the consumer is the winner. You'll get more products, more personalisation, and more power on the fingertips of the consumer. These are exciting times for the Middle East, and I think we should all look forward to what comes next.
And the power is with the consumer — exactly. Thank you so much.
Thank you for having me.
