South Africa holds an outstanding role in the African banking industry. As of 2022, the aggregate tier 1 capital from the major South African banks reached **** billion U.S. dollars. The South African Standard Bank Group had alone a capital worth roughly **** billion U.S. dollars, ranking as the leading bank in the continent. Egypt, Morocco, Nigeria, and Kenya followed in terms of aggregate tier 1 capital, composing the main banking markets in Africa.

The return on equity (ROE) of the banking industry in South Africa oscillated over the observed period. As of January 2024, the ROE for the sector was reported at about 14.6 percent, down from almost 14.9 percent compared to the prior year. Since 2013, the ROE has been highest in 2016, while it reached its lowest level in 2020.

The Middle-East and Africa Banking As A Service Market Report is Segmented by Type (API-Based BaaS, Cloud Based BaaS), by Service Type (payment Process Services, Digital Banking Services, KYC Service, Customer Support Services, Others), by Enterprise Size (SMEs, Large Enterprises), and by Region (South Africa, GCC, Egypt, Rest of Middle-East and Africa).

The objective of the thesis is to analyse and understand the interaction between the banking sector and the economy in South Africa. To do so, we evaluate the historical evolution of productivity in the South African banking industry in chapter 2, by calculating a measure of productivity through a descriptive exercise. In chapter 3, we introduce labour dynamics of the banking industry by developing a model that links the productivity of the banking sector and macroeconomic outcomes. In chapter 4, we analyse how banking sector regulation affects the relationship between the banking sector and the macroeconomy and the contribution of banking sector regulation in determining efficiency of the sector.

Market Analysis: South Africa Real-Time Payments Industry The South African real-time payments industry is experiencing significant growth, with a projected CAGR of 37.97% from 2019 to 2033. In 2025, the market is estimated to reach a size of $0.41 million, reflecting the increasing adoption of digital payment solutions and the drive towards a cashless society. Key drivers include the rise of e-commerce, digital wallets, and the introduction of new payment technologies. Key Trends and Market Dynamics The real-time payments industry in South Africa is witnessing several key trends: the adoption of contactless payments due to the COVID-19 pandemic; the growth of mobile payments, driven by smartphone penetration; and the increasing use of instant payment services for cross-border transactions. Additionally, the establishment of the Instant Payments System (IPS) by the South African Reserve Bank has facilitated seamless and rapid interbank payments, further boosting the growth of the industry. Restraints to market expansion include regulatory compliance, cybersecurity concerns, and the availability of reliable infrastructure. Recent developments include: March 2023: The South African Reserve Bank (SARB) has announced the launch of PayShap, a real-time rapid payment platform that aims to provide South Africans with safer, quicker, and noticeably more comfortable payment choices. BankservAfrica, the Payments Association of South Africa, and the South African banking community collaborated across industries to create PayShap to modernize the domestic payments business., February 2022: ACI Worldwide partnered with one of South Africa's leading financial services providers, Nedbank, to drive its digital transformation journey, including real-time payments. As part of the migration, Nedbank was expected to utilize ACI Low-Value Real-Time Payments, enabling the bank to offer real-time mobile payments to its customers.. Key drivers for this market are: Increased Smartphone Penetration, Falling Reliance on Traditional Banking; Ease of Convenience. Potential restraints include: Lack of a standard legislative policy remains especially in the case of cross-border transactions. Notable trends are: BFSI is Expected to Drive the Market.

As of September 2022, the South African banking industry's return on assets (ROA) reached **** percent. Compared to the previous year, this was slightly higher from **** percent. Return on asset (ROA) is used to assess profitability in relation to assets.

South Africa Banks: Return on Equity data was reported at 15.880 % in Jan 2025. This records an increase from the previous number of 15.820 % for Dec 2024. South Africa Banks: Return on Equity data is updated monthly, averaging 15.460 % from Jan 2009 (Median) to Jan 2025, with 193 observations. The data reached an all-time high of 20.650 % in Jan 2009 and a record low of 6.950 % in Feb 2021. South Africa Banks: Return on Equity data remains active status in CEIC and is reported by South African Reserve Bank. The data is categorized under Global Database’s South Africa – Table ZA.KB018: Banking Performance Indicator.

As of September 2022, the net interest margin for the South African banking industry reached **** percent, up from **** percent in December of the previous year. The index is calculated using the interest income minus the interest paid divided by interest-earning assets.

The Middle East and Africa (MEA) digital banking market is experiencing robust growth, driven by increasing smartphone penetration, rising internet usage, and a young, tech-savvy population. A compound annual growth rate (CAGR) exceeding 3.50% indicates a significant expansion of this market, projected to reach substantial value over the forecast period (2025-2033). Key drivers include the governments' initiatives to promote financial inclusion through digital channels, the increasing adoption of mobile banking and payment solutions, and the growing demand for convenient and personalized banking services. The market is segmented by account type (business and savings), service offered (mobile banking, payments & money transfers, loans), application (enterprise and personal), and geography (UAE, Saudi Arabia, Qatar, South Africa, Oman, Israel, Turkey, and the Rest of the Middle East). Competition is fierce, with established banks like Bank ABC and ADCB Hayyak alongside fintech disruptors such as Mashreq NEO, Pepper, and Liv vying for market share. The shift towards open banking APIs is also a significant trend, facilitating innovation and collaboration within the ecosystem. However, challenges remain, including cybersecurity concerns, data privacy regulations, and the digital literacy gap in certain segments of the population. Addressing these challenges will be crucial for sustaining the market's growth trajectory. The market's substantial growth is fueled by a confluence of factors. The increasing preference for contactless transactions and the convenience offered by digital platforms is significantly impacting customer behavior. Furthermore, the introduction of innovative digital banking features, including personalized financial management tools and AI-powered chatbots, is enhancing the user experience and attracting new customers. While the UAE and Saudi Arabia currently dominate the market, other countries in the MEA region are witnessing rapid growth as digital infrastructure improves and financial inclusion initiatives gain momentum. The sustained investment in fintech startups and the increasing collaboration between traditional banks and fintech companies is fostering innovation and driving market expansion. This competitive landscape fosters a dynamic environment that pushes boundaries and accelerates the adoption of advanced technologies such as blockchain and biometric authentication, further strengthening the digital banking ecosystem's resilience and growth potential. Recent developments include: May 2022: Mastercard, One Global and i2c have announced a partnership to provide tailored financial solutions that will enable the issuance of digital mobile wallets in the region. Through this partnership, banks, fintech, merchants and wallet providers can now offer consumers in the region easy access to cutting edge, digital-first payment solutions and services., March 2022: United Arab Emirates' Mashreq Bank has launched Neopay, a unified merchant acquiring and consumer paytech business. Neopay is the brand name of the bank's new wholly-owned subsidiary, IDFAA Payment Services, which has consolidated all of Mashreq's existing payment systems into a single platform.. Notable trends are: Advanced Technology and Security are Driving the Market.

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Community Banking Market Size 2025-2029

The community banking market size is forecast to increase by USD 253 billion at a CAGR of 5.8% between 2024 and 2029.

The market is experiencing significant shifts driven by the increasing adoption of microlending in developing nations and the rising preference for digital platforms. The microlending, a segment of community banking, is gaining traction in developing economies due to its ability to provide small loans to individuals and small businesses who lack access to traditional banking services. This trend is expected to continue, fueled by the growing financial inclusion efforts and increasing economic activity in these regions. Simultaneously, the community banking sector is witnessing a surge in the adoption of digital platforms.
The digital community banking services, such as mobile banking and online lending, are becoming increasingly popular due to their convenience and accessibility. This trend is particularly noticeable among younger demographics, who are more likely to use digital channels for banking. However, the market also faces challenges. One of the most significant obstacles is the lack of awareness about community banking services. Many potential customers, particularly in rural and underserved areas, are unaware of the benefits and availability of community banking services. Addressing this challenge will require targeted marketing efforts and community outreach programs.

What will be the Size of the Community Banking Market during the forecast period?

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The market continues to evolve, with advanced technology playing a pivotal role in shaping the landscape. Financial institutions, both large and small, are integrating microfinance, mobile banking, and remote deposit capture to cater to diverse customer needs. In the micropolitan areas, community banks have gained prominence, offering personalized services to rural and agricultural sectors. The economic recession led to a surge in digital adoption, with mobile banking becoming increasingly popular. However, the competition remains fierce, with big banks also investing heavily in technology to retain their customer base. The ongoing market dynamics underscore the need for continuous innovation and adaptation to stay competitive.
Community banks, with their focus on local markets and relationships, are well-positioned to leverage these trends and offer competitive rates and fees to attract and retain customers. The integration of advanced technology enables seamless transactions and enhanced customer experience, further bolstering their position in the market. The future of community banking lies in its ability to balance tradition and innovation, offering personalized services while embracing digital transformation.

How is this Community Banking Industry segmented?

The community banking industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Area

  Metropolitan
  Rural and micropolitan


Sector

  Small business
  CRE
  Agriculture


Service Type

  Retail banking
  Commercial banking
  Wealth management and financial advisory
  Others


Delivery Model

  Branch Banking
  Online Banking
  Mobile Banking


Institution Type

  Credit Unions
  Local Banks


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    UK


  Middle East and Africa

    UAE


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Area Insights

The metropolitan segment is estimated to witness significant growth during the forecast period.

In the dynamic world of financial services, community banks in the US continue to gain traction among consumers, particularly in rural and micropolitan areas where Big Banks may have a limited presence. While Big Banks dominate the market with their vast resources and broad reach, Community FIs cater to the unique needs of their local clientele. With the rise of advanced technology, Community banks have embraced digital banking solutions, including Internet banking, mobile banking, and remote deposit capture. Small businesses and agricultural sectors, integral to rural economies, benefit significantly from Community banks' personalized services and expertise. Despite the economic recession, these institutions have managed to maintain deposits through their strong relationships with customers.

Microlending, a niche offering, further distinguishes Community banks from their larger counterparts. Rates and fees remain crucial factors for customers, especially in a competitive market. Community banks often offer more competitive rates and lower fees compared to Big Banks, maki

South Africa's ******************* was the largest bank in Africa as of 2024, with total assets worth nearly *** billion U.S. dollars. Operating in 20 countries on the continent, the bank group also led the African banking sector by tier 1 capital. Ranking as the second-biggest bank in Africa, the National Bank of Egypt accumulated an asset value of around *** billion U.S. dollars in 2021. Overall, South Africa concentrated four out of the top 10 institutions with the largest assets in Africa. Main banking markets As of 2021, the total assets of the banking sector in Sub-Saharan Africa corresponded to **** percent of the region's GDP. The ratio, which offers an insight into the relationship between services provided by banks and the economy' size, increased substantially compared to previous years. Among countries, South Africa dominates the African banking industry with financial assets worth around *** billion U.S. dollars in 2021. Additionally, the aggregate tier 1 capital of major South African banks reached roughly **** billion U.S. dollars in 2022. North African nations, such as Egypt and Morocco, follow as main players in Africa’s banking sector. Financial inclusion has improved in Africa Around **** out of 10 Africans had a bank account in 2023, according to Statista forecasts. The banking penetration rate on the continent almost doubled compared to 2013 and might keep increasing in the coming years. By 2025, the share of people with a bank account is expected to reach ** percent. Among financial institutions, the Standard Bank Group and the National Bank of Egypt counted the highest number of customers in Africa, each with around ** million clients in 2020.

Middle East and Africa Neobank Market is segmented By Account type (Business Account and Savings Account), By Service (Mobile Banking, Payments & money transfer, Savings account, Loans, and Others), By Application (Enterprise, Personal, and Others), and By Country (Saudi Arabia, United Arab Emirates, South Africa, Bahrain, Oman, Qatar, and Others)

In this qualitative study, the following files have been uploaded to give further illustration of the research findings regarding the impact of modern credit regulations on financial inclusion within the South African Small to Medium Enterprise: included are- interview recordings stored in WAV file format. - interview transcriptions and consent statements

The Report Covers Tissue Bank Companies and the Market is Segmented by Product (Equipment and Media and Consumables), Application (Therapeutics, Medical Research, and Other Applications), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The Market Values are Provided (in USD Million) for the Above Segments

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Open Banking Market Size 2024-2028

The open banking market size is forecast to increase by USD 57.66 billion at a CAGR of 27.2% between 2023 and 2028. The market is witnessing significant growth due to the increasing demand for advanced Financial Management Tools that offer real-time access to Financial Data from multiple Financial Institutions. Open Banking Solutions, which utilize Open Banking APIs, enable automated savings, real-time transactions, and enhanced security features. The integration of Artificial Intelligence (AI) into these services further streamlines financial management and enhances personalized customer experiences. However, the handling of sensitive personal financial data necessitates strict adherence to guidelines and regulations to ensure data security and privacy. Key market trends include the growing preference for faster and more seamless payment processing, increased focus on data security, and the potential for increased competition among Financial Institutions as they adapt to the Open Banking landscape.

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Open banking, a financial services model that enables third-party providers to access customers' financial data through APIs, is revolutionizing the payment ecosystem. This innovative approach allows for more customer-centric services, personalized financial offerings, and informed financial decisions. Broadband connectivity plays a crucial role in the open banking landscape, ensuring seamless access to real-time data for machine learning algorithms and AI applications. These technologies are integral to the open banking model, as they enable advanced data analytics and the development of innovative financial services. Security is a top priority in the market. Financial institutions are investing heavily in advanced security measures to protect sensitive customer data from online fraud. AI and machine learning algorithms are being employed to detect and prevent fraudulent activities in real-time. E-commerce and open banking are natural partners, with the former benefiting from the real-time financial data access provided by the latter.

Further, open banking APIs are the backbone of this new financial services model, allowing for seamless integration between financial institutions and third-party service providers. These APIs enable the sharing of financial data in a secure and standardized manner, facilitating the development of innovative financial services. Personalized financial services are a key benefit of open banking. By leveraging big data analytics and AI, financial institutions can offer customized offerings tailored to individual customers' financial needs and preferences. In conclusion, open banking is transforming the payment ecosystem by enabling real-time data access, advanced data analytics, and the development of innovative financial services. With a focus on security and customer-centricity, this model is poised to disrupt traditional financial services and reshape the industry landscape.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD Billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Service

  Banking and capital markets
  Payments
  Digital currencies


Deployment

  On premise
  Cloud


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK


  APAC

    China


  South America



  Middle East and Africa

By Service Insights

The banking and capital markets segment is estimated to witness significant growth during the forecast period. The market is revolutionizing the banking and financial services sector in the global payment ecosystem. Through strategic collaborations and innovative service offerings, Open Banking is enhancing payment processes, expanding investment accessibility, and promoting financial inclusion. In June 2024, Euronet, a leading financial technology and payments provider, partnered with Fintech Galaxy to introduce a new Banking as a Service (BaaS) offering. This collaboration aims to deliver faster, more secure, and cost-effective account-based transactions for banks, fintechs, and merchants. Key features of this service include card as a service, real-time payment processing, and advanced fraud detection. By integrating with consumer bank accounts, this solution reduces transaction costs and promotes financial inclusion, while also driving the adoption of digital transactions in the European region.

The integration of Artificial Intelligence (AI) and Machine Learning (ML) in Open Banking is further fueling the growth of the market. Big data analytics is enabling financial institutions to gain valuable insights into customer behavior and preferences, leading to personalized services and improved customer experience. The use of Open Banking is

The Cell Banking Outsourcing Market Report is Segmented by Bank Type (Master Cell Banking, Working Cell Banking, Viral Cell Banking, and More), Cell Type (Stem Cell Banking, Embryonic Stem Cells and More), Outsourced Service (Cell Line Development, and More), End User (Biopharma & Biotech Companies, and More), and Geography (North America, Europe, and More). The Market Forecasts are Provided in Terms of Value (USD).

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Retail Banking IT Spending Market Size 2025-2029

The retail banking it spending market size is forecast to increase by USD 14.64 billion at a CAGR of 4.6% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing need for greater customer satisfaction through personalized services and digital offerings. This trend is further fueled by the incorporation of advanced analytics into third-party banking software, enabling institutions to gain valuable insights into customer behavior and preferences. However, this digital transformation comes with challenges, particularly in the areas of data privacy and security. As financial institutions continue to invest in IT solutions to meet evolving customer demands, they must also prioritize security measures to protect sensitive customer information. Companies seeking to capitalize on this market opportunity must stay abreast of the latest technologies and regulatory requirements, while also addressing the growing concerns around data privacy and security. Effective strategic planning and operational execution will be crucial for retail banks to navigate these challenges and succeed in this dynamic market.

What will be the Size of the Retail Banking IT Spending Market during the forecast period?

Request Free SampleThe market is experiencing significant growth as financial institutions prioritize technology investments to enhance customer experience, operational efficiency, and competitive position. With increasing interest rates and inflationary pressure, net interest margins remain a crucial revenue stream for retail banks. However, customer satisfaction and service propositions are key differentiators in a market where external stimuli, such as digital transformation and changing consumer preferences, continue to shape the landscape. IT spending in retail banking is focused on IT hardware and software, with a shift towards cloud solutions and mobile banking to improve accessibility and convenience. Data analytics and cybersecurity measures are also critical investments to mitigate risks and provide personalized offerings. Retail banks are embracing IT services to stay competitive, with a focus on digital transformation and the implementation of innovative technologies such as artificial intelligence, autonomous banking, blockchain technology, and biometric authentication. The integration of these advanced IT solutions aims to streamline banking operations, enhance security, and create value propositions that cater to evolving customer needs.

How is this Retail Banking IT Spending Industry segmented?

The retail banking it spending industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeIT servicesIT hardwareIT softwareApplicationApplication development and maintenanceSoftware deployment and supportInternal operationsChannel managementOthersGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyThe NetherlandsUKAPACChinaIndiaJapanMiddle East and AfricaSouth America

By Type Insights

The it services segment is estimated to witness significant growth during the forecast period.In the retail banking sector, IT spending continues to be a significant investment area, driven by factors such as interest rates, net interest, inflationary pressure, and customer experience. IT services, including application development and maintenance, system integration, IT consulting, software deployment and support, and hardware deployment and support, dominate IT spending. IT consulting services experienced a 10% year-over-year growth in 2023, surpassing the overall IT services spend growth of 8.8%. Key players, such as Accenture, Capgemini, Cognizant, EPAM, Grid Dynamics, and HCL Tech, expanded their artificial intelligence (AI) capabilities in Q2 2023, with many collaborating with Google Cloud to enhance their offerings. Technological advancements, consumer preferences, economic developments, and revenue streams influence retail banking IT spending. IT workforce, cloud spending, production volume, and operational efficiency are essential components of retail banking IT spending. Digital transformation through technologies like artificial intelligence, data analytics, cloud native ecosystem, infrastructure as code, cloud migration, containerization technologies, threat detection, prevention technologies, data encryption, blockchain technology, and fraud protection are shaping the retail banking landscape. Customer relationship management, online transaction systems, mobile banking, and digital banking are crucial customer experience propositions. Consumer expectations for seamless digital experiences and enhanced security are driving the adoption of these technologies.

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The Middle East and Africa (MEA) Banking-as-a-Service (BaaS) market is experiencing robust growth, driven by the region's increasing digitalization and the rising adoption of fintech solutions. The market's expansion is fueled by several key factors. Firstly, the burgeoning mobile penetration and increasing smartphone usage across MEA are creating a large pool of potential BaaS users. Secondly, the region's governments are actively promoting financial inclusion initiatives, which directly contribute to the wider adoption of digital banking services facilitated by BaaS platforms. Thirdly, the cost-effectiveness and scalability offered by BaaS solutions are attracting both large enterprises and SMEs, accelerating market penetration. Furthermore, the growing demand for personalized financial products and services is pushing BaaS providers to innovate and offer more tailored solutions, further stimulating growth. Competition is intensifying with both established financial institutions and new fintech entrants vying for market share. However, challenges remain, including regulatory hurdles, cybersecurity concerns, and the need for robust infrastructure development in certain regions. Despite these, the overall market outlook for MEA BaaS is overwhelmingly positive, with significant potential for expansion in the coming years. The forecast period of 2025-2033 is expected to witness a continued expansion of the MEA BaaS market, propelled by increasing investments in digital infrastructure, supportive government policies, and evolving consumer preferences. The segments showing the most significant potential for growth include API-based BaaS due to its flexibility and integration capabilities, and Digital Banking Services driven by the rising demand for convenient and accessible financial services. Geographically, countries with high smartphone penetration and a young, tech-savvy population, like the UAE, Saudi Arabia, and Egypt, are expected to be key growth drivers. The adoption of BaaS by SMEs will also be a critical contributor to overall market expansion as it allows them to offer competitive financial products without significant upfront investment. However, maintaining customer trust and addressing concerns regarding data security and privacy will be crucial for continued growth and market stability. The market is likely to see further consolidation as larger players acquire smaller firms, leading to a more concentrated yet dynamic landscape. Recent developments include: In March 2022. Aazzur partnered with Treezor which exists as a European firm in Banking-as-a-Service (BaaS). The partnership will increase Aazzur's client base and develop its BaaS offering in the region by supplying its payment infrastructure for account and card management, while Aazur will provide front-end layers, integration, and value-added products for front-end and wealth services., In September 2022, Wio Bank launched its "platform bank" in the UAE, with its offering of apps, embedded finance, and BaaS. The launch of the platform bank is in line with the aim of UAE’s digital economy strategy to double the contribution of the digital economy to the country’s GDP.. Key drivers for this market are: Rise in Digital Banking the Region, Rise in Volume of Financial Transaction in the Region. Potential restraints include: Rise in Digital Banking the Region, Rise in Volume of Financial Transaction in the Region. Notable trends are: Rising Volume of Transaction in the Region.

Some of the recent competitor trends and key information about competitors include: The South Africa auto finance market is moderately consolidated, with a few dominant players led by major commercial banks and captive finance entities. However, the growing presence of non-banking financial companies (NBFCs) and digital lending platforms is gradually reshaping the competitive dynamics, especially in underserved and informal segments. Key players includeWesBank, Standard Bank Vehicle and Asset Finance, Absa Vehicle Finance, MFC (Nedbank Division), Toyota Financial Services, andSA Taxi Finance. Competitive Landscape in South Africa Auto Finance Market