New report by Arthur D. Little estimates BaaS revenues to reach $28bln by 2031 in the Middle East alone

New report by Arthur D. Little estimates BaaS revenues to reach $28bln by 2031 in the Middle East alone

- New report by Arthur D. Little unveils how this segment of the market will grow to reach approximately 4% of total banking income in the region by 2026, and 17% through to 2031

- By leveraging banking as a service, banks can cut time-to-market of new products by as much as 10 times, thus dramatically increasing their competitive offering

- Holding a record 25% CAGR: BaaS will unleash the future of banking in the Middle East

Dubai, UAE: Arthur D. Little (ADL), the world’s first management consulting firm, released an exclusive report exploring banking as a service (BaaS) and its competitive opportunities for the Middle East (ME) region. To date, the BaaS market has remained relatively small and largely at the preserve of digital banks, FinTechs and digital nonfinancial platforms. However, as their traditional markets and margins come increasingly under threat from disruptors, BaaS will be the route to salvation for many incumbent banks.

The report, titled ‘Banking as a Service: at the Heart of the Bank of Tomorrow’ outlines the many signs that BaaS is being adopted by small and midsize banks operating at subscale and, as more do, this segment of the market will grow at a compound annual growth rate