As the digital ecosystem becomes increasingly interconnected, consumers now have more ways than ever to make payments. Financial transactions are no longer limited to traditional banks; customers can transfer money instantly through third-party apps, use buy-now-pay-later options, and complete payments without direct interaction with their bank. While open banking and embedded finance are reshaping how consumers pay, they are also unlocking powerful opportunities for banks to grow, enhance customer experiences, and create new revenue streams.
Embracing open banking and embedded finance
Open banking enables third-party providers to securely access customer data through application programming interfaces (APIs). This eliminates the need for customers to repeatedly enter sensitive banking information when making online or in-app payments. Instead, authorized providers can retrieve required data directly and securely from the bank. The rapid adoption of open banking is driving a major shift in the financial services industry, with transaction values growing at a remarkable pace and projected to increase significantly over the coming years.
Building on this momentum, embedded finance is further transforming banking by integrating financial services directly into non-financial platforms and applications. This model expands access to financial products by allowing consumers to access payments, lending, or insurance services within the apps and platforms they already use. The global embedded finance market continues to grow rapidly, driven by strong demand for seamless and convenient digital experiences.
Alongside these developments, flexible payment solutions such as buy-now-pay-later models have gained widespread popularity. These options allow consumers to spread the cost of purchases over time, often without additional fees, offering greater financial flexibility and convenience.
Digital integration redefining banking services
The combined impact of open banking and embedded finance is being felt across the financial ecosystem. Consumers benefit from a wider range of payment options, highly personalized services, and frictionless processes that significantly enhance the overall experience. At the same time, banks and fintech companies are finding new growth opportunities beyond the traditional banking model.
Research shows that most consumers are willing to share personal data in exchange for more tailored and seamless experiences. Similarly, a growing majority of banks now view embedded finance as a critical source of future revenue. This shift is enabling financial institutions to design innovative products that address evolving customer needs and preferences. When executed effectively, embedded finance represents a substantial value creation opportunity for banks willing to adapt.
Adapting to a rapidly changing financial landscape
The future of banking is increasingly seen as a connected network of platforms and financial institutions rather than a standalone system. Strategic partnerships play a crucial role in this evolution, allowing banks and non-bank partners to combine strengths, share capabilities, and leverage advanced technologies for seamless integration.
For non-financial platforms, partnering with a bank adds trust and credibility. Consumers are significantly more likely to adopt embedded financial products when they are offered in collaboration with a regulated banking institution. For banks, partnerships provide access to new customer segments and markets where they may not have a traditional competitive advantage.
At Mashreq, we are actively investing in innovative fintech companies such as NymCard, Touché, and Cashew Payments to unlock new commercial opportunities and support financial inclusion across the MENA region. We have also introduced digital-first platforms such as NEO and NEOBIZ, offering fully paperless onboarding and biometric verification to streamline customer journeys. In parallel, our collaboration with e& in markets such as Egypt is helping expand access to mobile banking. These strategic initiatives have positioned Mashreq at the forefront of digital banking transformation.
The future of retail banking
Retail banking is evolving beyond conventional boundaries to become an integrated part of everyday life—whether customers are shopping, traveling, or arranging insurance. By embracing advanced technologies and collaborating with leading fintech innovators, Mashreq is shaping banking experiences that are intuitive, relevant, and aligned with the expectations of today’s digital-first consumers.
