The future of fintech? It's the big commercial banks!

Bank ABC’s digital-only Ila Bank, launched in Bahrain in 2019, is among a wave of legacy lenders that are quietly shaping the next phase of fintech in the GCC as they strengthen core technology and extend regional footprints. Established players such as Saudi National Bank, First Abu Dhabi Bank and National Bank of Kuwait are doubling down on digital offerings at a time when “all 10 largest GCC commercial banks (ranked by equity size) reported higher operating profits in 2025 than in 2024,” and “all but two reported higher net profits,” according to commentary by Andrew Cunningham.

Direct quote

"Call me old-fashioned, but the future of GCC banking and finance lies with the big, traditional commercial banks, and not with innovative fintech startups," Cunningham wrote, summarising his view that institutional balance-sheet strength will remain central to the region’s financial evolution.

That perspective is illustrated by a number of concrete examples. Emirates NBD’s app-based brand Liv is now nearly 10 years old and "claims half a million customers." Qatar National Bank’s digital subsidiary Empara — spun out of QNB Turkiye and now operating under its own banking licence — reported $3.4 billion in loans and $4.8 billion in deposits at the end of last year. Meanwhile, Bank ABC highlights Ila Bank’s regional expansion and technology upgrades in its reporting.

Cunningham contrasts these incumbent moves with the high-profile standalone challengers that dominate fintech headlines. Names often cited in conversations about digital finance include STC Bank in Saudi Arabia, Dubai-based Zand — now rated BBB+ by Fitch — Wio Bank in Abu Dhabi and Al Maryah Community Bank. He notes that many fintech start-ups focus on payments, transfers and consumer credit, particularly buy now, pay later, even as some expand into broader banking services.

• Wio Bank’s published year-end 2024 figures offer a rare example of transparency: deposits of Dh34,595 million ($9,426 million), loans of Dh767 million ($209 million) and equity of Dh 2,206 million ($601 million).
• Starling Bank, cited for comparison, reported loans of £4.7 billion, customer deposits of £12.1 billion and equity of £1.0 billion in March 2025 — strong for a challenger but still a small share of its wider market.

Cunningham also warns about the limits of public data: "It is often hard to get good financial information on digital banks and brands," he writes, observing that most large banks do not break out balance sheets for their branded digital offerings, with QNB’s Empara an exception. He suggests many fintechs operate with an acquisition exit in mind: build a customer base large enough to attract a major bank, then cash out.

Outlook

Looking ahead, the region’s large commercial banks appear set to keep absorbing fintech advances into mainstream operations — emphasising AI capabilities and sustainable finance while treating app-based brands as channels rather than threats. As Cunningham concludes, he will continue to watch the annual reports of long-established banks to gauge where financial markets are heading, underscoring the idea that innovation increasingly runs through, rather than around, the big institutions.