Does the Middle East’s fintech boom have a blind spot?

Banking in the Middle East is becoming more advanced, but not everyone has equal access to financial services. At the same time, banks are investing heavily in AI, and fintech companies are working to make financial transactions faster and easier.

But are financial institutions really focusing on the people who need their services the most?

According to H.E. Dr. Tariq Bin Hendi, CEO of Botim, the problem lies partly in where fintech companies are directing their attention. While new players continue to target customers who already have access to financial products, a substantial population remains underserved. It is a missed opportunity that could shape the industry’s next phase of growth.

The challenge is bigger than just financial inclusion. As AI changes how banks operate, companies also have to deal with different regulations and partner with established banks to enter new markets. Fintech is moving forward in the region, but it’s still unclear if these changes will lead to better financial services for more people.

THE CUSTOMERS FINTECH IS OVERLOOKING

Dr. Bin Hendi believes this concentration is limiting the industry’s potential.

“What is really interesting, though, is that you’re seeing a lot of internationals move into the market now, and they seem to all be chasing either the same segment or the same product,” he says.

The result, he says, is that “people that are overbanked are becoming even more overbanked.”

For fintech companies seeking growth, the larger opportunity may lie with individuals who have limited access to banking services, affordable credit, and financial products suited to their circumstances.

The World Bank’s 2025 Global Findex findings illustrate how uneven financial access remains across developing economies in the region. In 2024, account ownership reached 43% in Egypt, 46% in Jordan, and just 23% in Lebanon. The figures reflect a broader problem that extends beyond access to payment applications.

The UAE presents a different market, with considerably higher account ownership. The World Bank’s latest available comparable figure for the country was approximately 86% in 2021. But having an account does not necessarily mean customers can access affordable borrowing, suitable savings products, or financial advice.

The UAE’s diverse workforce makes this distinction particularly important. Workers across different income groups have varying financial needs, from sending remittances to supporting families or building a financial history.

Bin Hendi says that fintech companies should pay closer attention to these customers. Although individual transaction values may be lower, the size of the potential market presents a commercial opportunity.

His argument also reflects a growing policy priority.

In November 2025, the Central Bank of the UAE launched its National Financial Inclusion Strategy 2026–2030, developed with the World Bank, OECD, Arab Monetary Fund, and more than 70 national stakeholders.

The strategy includes 12 initiatives, among them expanding access to financial accounts, developing products for underserved groups, and improving financial literacy. It also targets better financial access for entrepreneurs and smaller businesses.

For fintech providers, the commercial challenge is finding ways to serve these groups sustainably, and reaching them requires more than offering another digital application. The products must solve problems that existing financial institutions have not adequately addressed.

AI EFFICIENCY IS NOT THE SAME AS ACCESS

As AI becomes one of the financial industry’s biggest investment priorities, automating complex tasks and improving customer experiences, Miguel Rio-Tinto, Group Chief Digital and Information Officer at Emirates NBD, says, “Banking is going to change more in the next five years because of AI than what it changed in the last 30 years.”

Unlike earlier technologies, generative AI can interpret complex information and support decisions that traditionally depended on human judgment.

Consider a customer applying for car financing. Assessing the application involves understanding income, financial commitments, and other personal circumstances. AI can help banks process that information and support decisions more efficiently.

At Emirates NBD, Rio-Tinto says more than 2,000 people are working on embedding AI across the bank’s operations. The bank now uses generative AI to answer incoming customer service calls, allowing customers to explain their problems conversationally rather than navigate traditional automated menus.

Because banking decisions can have serious financial effects, Rio-Tinto points out that even as banks automate more, employees remain responsible for handling exceptions and outcomes.

For Botim, meanwhile, AI presents an opportunity to make financial information more accessible.

Dr. Bin Hendi says AI now manages over 70% of the company’s customer service and helps with many internal tasks. The platform also has a ChatGPT-powered search feature that users can use for free.

He thinks this is especially helpful for blue-collar workers who might struggle to understand financial products or use services in languages they don’t know well.

Through conversational AI, customers can ask questions in their native language and better understand the options available to them. Ultimately, the real success of AI in banking will depend on whether it can serve customers who haven’t gotten much attention before.

REGULATION COULD LIMIT THE NEXT WAVE OF GROWTH

Even when fintech companies develop products that meet customer needs, Reece Merrick, Managing Director for the Middle East and Africa at Ripple, believes inconsistent regulatory requirements are limiting regional growth.

While he views the UAE and Bahrain as supportive markets for financial innovation, different licensing frameworks across jurisdictions complicate expansion. He wants regulators to work together more so financial companies can operate in different markets without going through separate licensing processes each time.

The challenge is particularly relevant for companies developing digital assets and cross-border payment services.

Ripple, which provides digital asset infrastructure to financial institutions, is exploring opportunities beyond consumer payments, particularly in corporate treasury management.

Merrick highlights the potential for stablecoins, digital tokens designed to maintain a stable value relative to an asset such as the US dollar, to improve international corporate transfers. Stablecoin-based transfers could reduce costs and improve settlement efficiency.

However, cheaper payment technology cannot eliminate regulatory obligations. Companies still need to comply with financial rules governing transactions, customer verification, and cross-border money movement.

Differences between national regulations can make it difficult to scale services, even when the technology supports international transactions.

Traditional banks face similar obstacles.

Rio-Tinto points to data sovereignty requirements as a potential challenge for financial institutions operating across multiple markets.

Emirates NBD operates in 13 countries, he says. If each jurisdiction requires customer information to remain within its borders, the bank may need separate infrastructure to process data and support AI applications.

Markets without adequate computing capabilities could struggle to adopt the same technologies as countries with more advanced infrastructure.

This creates a difficult situation for regional institutions. Digital finance makes it technically possible to serve customers across borders, but regulatory differences can restrict how quickly those services expand.

FINTECH’S NEXT PHASE MAY LOOK DIFFERENT

For Bin Hendi, the industry’s growth may also require a change in how fintech companies approach established financial institutions.

New fintech companies often see themselves as alternatives to traditional banks. But he feels this misses the value of banks’ existing systems, regulatory experience, and customer relationships.

“Too many fintechs come here, and they say, ‘I’m going to displace the incumbents,” he says.

Instead of trying to replace banks, Bin Hendi sees more value in bringing new technologies together with what established banks already offer.

Banks already possess extensive payment infrastructure and regulatory experience. Fintech companies can offer specialized products and faster approaches to development. Working together could allow both sides to reach customers more effectively.

The emerging strategies of established financial institutions support this possibility.

Emirates NBD is incorporating AI into its existing operations rather than building an entirely separate banking model. Ripple’s move into corporate treasury management similarly focuses on introducing digital asset technology into financial processes businesses already use.

Such approaches suggest that collaboration could become more important as the industry matures.

Bin Hendi also anticipates consolidation as fintech companies compete for similar customers and struggle to differentiate their offerings.

But the main question is whether companies can create financial products that underserved customers can afford, while also building businesses that last.

The next big advantage in the industry might not be a new banking feature. It could be about helping customers who have been ignored for a long time — helping them find an easy way to save, borrow, or send money without extra hassle or cost.

Companies that fix these problems may find that fintech’s biggest growth opportunity isn’t the customer with the most products, but the one still waiting for the right solution.