As of 2021, the leading South African bank Standard Bank concentrated 22.5 percent of the total value of all bank's deposits. Meanwhile, FirstRand ranked second for the same period, with deposits representing 21.5 percent of deposits reported that year.

As of 2021, the market share of advances of the leading South African bank Standard Bank concentrated 24.7 percent of the total value of all bank's advances. Meanwhile, Absa ranked second for the same period, with advances representing nearly 21.3 percent of advances reported that year.

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).

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.

The Report Covers Digital Challenger Bank in Middle East & Africa Market and it is segmented based on services offered and the end-user type - Growth, Trends, and Forecast (2020-2025)

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.

The South African banking sector is dominated by five major banks, Absa, Investec, Nedbank, FirstRand, and Standard Bank Group. As of March 2023, almost 90 percent of the country's banking assets were held by those banks. Furthermore, local branches of foreign banks had just over six percent of the banking sector's total assets.

The Challenger Bank of Africa market is projected to exhibit a significant growth trajectory, reaching a market size of $X million by 2033, expanding at a CAGR of XX% during the forecast period 2025-2033. Key market drivers include the increasing penetration of smartphones and mobile internet, the growing demand for convenient and accessible banking services, and the rising popularity of digital wallets and other fintech products. The market is segmented based on type (Own Banking License, Partnered with a Traditional Bank) and application (Personal Consumers, Business Organizations). North Africa, South Africa, and the Middle East & Africa region are expected to be the key contributors to market growth. Among the notable companies operating in the Challenger Bank of Africa market are TymeBank, Kuda, Bank Zero, Discovery Bank, Bettr Finance, FairMoney, Prospa, Sparkle, Telda, Dopay, Barko Financial Services (BFS), and Postbank. These companies are leveraging innovative technologies and strategic partnerships to offer a wide range of banking and financial services to consumers and businesses across the continent. The market is expected to face challenges related to regulatory compliance, cybersecurity threats, and competition from established banks, but the growing adoption of fintech and the increasing demand for digital banking services are anticipated to propel market growth in the coming years.

The size of the Challenger Banking in Middle East & Africa Market was valued at USD 74.03 Million in 2023 and is projected to reach USD 148.92 Million by 2032, with an expected CAGR of 10.50% during the forecast period. Challenger banking refers to a new wave of digital-first banks that leverage advanced technology to provide a range of banking services, often entirely online and through mobile apps. These banks, also known as neobanks, aim to disrupt traditional banking by offering more user-friendly, accessible, and affordable services. Unlike traditional banks, challenger banks typically do not operate physical branches, allowing them to reduce operational costs and pass those savings on to customers through lower fees and competitive interest rates. Challenger banks often focus on addressing specific pain points in traditional banking, such as lengthy account opening processes, hidden fees, and limited digital functionality. With streamlined and innovative mobile platforms, challenger banks allow customers to open accounts in minutes, manage their finances in real-time, and access features like budgeting tools, instant spending notifications, and currency exchange without extra charges. Popular examples include Chime, Monzo, Revolut, and N26, which cater to a tech-savvy customer base that values convenience and transparency. Recent developments include: September 2022: New challenger Wio Bank launched in the UAE. Wio Bank, the region's first platform bank, officially launched operations in the UAE, with its headquarters in Abu Dhabi., July 2022: Mashreq launched a new supply-chain finance platform. Part of Titan, a digital corporate banking platform, lets business clients onboard their entire vendor base.. Key drivers for this market are: Increasing Smartphone Penetration. Potential restraints include: Competition from Traditional Banks is Restraining the Market. Notable trends are: Large Unbanked Population in the region.

In 2022, the Islamic banking sector in Morocco held a two percent market share by total assets, falling behind other North African countries. Tunisia had the highest market share with 5.1 percent. It was followed by Egypt at four percent, and Algeria at 2.4 percent. This relatively low share is attributed to the sector's inception in Morocco in 2017. The Moroccan authorities aimed to increase this share to five percent by 2024.

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)

Africa Banking-As-A-Service Market is expected to grow during 2025-2031

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.

The Middle East & Africa (MEA) challenger banking market, valued at $74.03 million in 2025, is projected to experience robust growth, driven by a Compound Annual Growth Rate (CAGR) of 10.50% from 2025 to 2033. This expansion is fueled by several key factors. The region's burgeoning young, tech-savvy population readily embraces digital financial services, creating a fertile ground for challenger banks offering innovative, user-friendly mobile-first solutions. Increased smartphone penetration and expanding internet access further accelerate this adoption. Furthermore, traditional banks' perceived inflexibility and high fees are pushing customers towards challenger banks providing transparent, cost-effective alternatives, particularly for payments, savings products, and consumer credit. The segmentation of the market reveals strong growth potential in both the business and personal segments, with the personal segment likely leading the charge due to high mobile usage among individuals. While regulatory hurdles and competition from established players pose challenges, the overall market outlook remains positive, with significant opportunities for challenger banks to capitalize on unmet needs and deliver superior customer experiences. Specific regional variations will exist, with countries exhibiting higher levels of digital adoption and financial inclusion likely showcasing faster growth. The success of challenger banks will depend significantly on their agility in adapting to the evolving regulatory landscape and offering highly personalized and localized services. The MEA challenger banking landscape is marked by a diverse range of players, including both regional and international fintechs. Established banks are also launching their own digital banking initiatives, intensifying competition. However, the entry barriers for smaller, more agile players remain relatively low, fostering innovation and driving down costs. Key success factors for challenger banks in the MEA region include a strong focus on customer experience, seamless digital integration, robust security measures, and strategic partnerships with local businesses and telecom providers to expand their reach. Furthermore, effective marketing strategies targeting the diverse demographics of the region are critical to achieving significant market share. A deeper understanding of local cultural nuances and regulatory frameworks will be crucial for long-term success and sustainable growth in this dynamic market. The continued growth of mobile money and e-commerce is expected to further fuel the expansion of the challenger banking sector in the coming years. Recent developments include: September 2022: New challenger Wio Bank launched in the UAE. Wio Bank, the region's first platform bank, officially launched operations in the UAE, with its headquarters in Abu Dhabi., July 2022: Mashreq launched a new supply-chain finance platform. Part of Titan, a digital corporate banking platform, lets business clients onboard their entire vendor base.. Key drivers for this market are: Increasing Smartphone Penetration. Potential restraints include: Increasing Smartphone Penetration. Notable trends are: Large Unbanked Population in the region.

Snapshot img

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?

Request Free Sample

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

This statistic presents the revenue of African banks in 2012 and 2017, with a forecast for 2022. The revenue of banking sector in Africa amounted to 86 billion U.S. dollars and was projected to increase to 129 billion U.S. dollars in 2022.

United Bank For Africa reported NGN1.6T in Market Capitalization this July of 2025, considering the latest stock price and the number of outstanding shares.Data for United Bank For Africa | UBA - Market Capitalization including historical, tables and charts were last updated by Trading Economics this last July in 2025.

Africa Video Banking Service Market is expected to grow during 2025-2031

In 2023, the Africa Power Bank Market reached a value of USD 24.06 million, and it is projected to surge to USD 36.24 billion by 2030.

Africa Open Banking Systems Market is expected to grow during 2025-2031