Redefining Banking Norms Across The Financial Landscape in MEA
Future-Proofing Customer Loyalty in a Shifting Financial Landscape across MEA
Caroline Gitonga, Business Solutions Consultant: Digital Banking, Temenos in Africa
Across the Middle East and Africa (MEA), loyalty in banking is no longer measured solely by the number of years a customer has held an account or the frequency of transactions. Those were yesterday’s parameters. Today, loyalty is earned when a bank makes customers feel valued, evolves with them, anticipating their needs at each stage of life, reducing friction across journeys, and positioning itself as a trusted financial partner rather than just a product vendor. This shift is unmistakable across the region, but its practical application varies in every market.
What is changing and why it matters
Customer values have changed, and this is having a direct impact on who they bank with and remain loyal to. Three forces are reshaping the expectations of banking customers. The first is access to technology. In the Gulf, high smartphone penetration and rapidly maturing open banking frameworks are driving banks toward seamless, mobile-first experiences. In many African markets, however, last-mile access often still means USSD, agent networks, and wallet-based ecosystems. Here, “mobile-first” does not always equate to “smartphone-first.” The common thread is meeting customers where they are with channels that fit local realities.
The second is demographics. MEA has one of the youngest populations globally, and these younger customers demand transparency, simplicity, and personalization. They are willing to switch providers if the experience falls short of their expectations.
The third is culture and trust. In the Middle East, reputation and word of mouth remain powerful, reinforced by a growing appetite for values-based, Shariah-compliant products. In more remote African markets, community savings groups and informal lending circles still anchor financial trust. Banks that can demonstrate reliability through low-cost access and everyday usefulness are better positioned to build long-term loyalty.
McKinsey’s State of the Consumer highlights persistent value-seeking behaviors and rising expectations for convenience and transparency across income brackets. Comarch’s analysis of customer loyalty in MEA reinforces that successful strategies go beyond points and cash-back to blend digital convenience with cultural relevance and community engagement.
From loyalty points to purpose
For years, loyalty programs were equated with transactional rewards. But across MEA, this model is fading. The conversations I have with banks increasingly revolve around making banking useful in the moments that matter most. That could mean smoothing a household bill cycle, helping a family save painlessly, or guiding an SME through a cash-flow squeeze.
Two shifts stand out. The first is the move toward behaviour-based loyalty. This rewards good financial habits, such as regular saving, on-time repayment, or choosing greener investment options, and aligns a bank’s incentives with its customers’ goals, building trust over time. The second is financial empowerment as a service, for instance, proactive advice, micro-savings that automatically round up small transactions, or easier routes into investing.
Personalization that respects context
Personalization in MEA is not a one-size-fits-all formula. In practice, this means using data responsibly to provide timely and relevant support. Done well, this moves the bank’s approach from static customer segments to dynamic personas shaped by life events and evolving risk appetite. For example, when medical spend spikes, a timely coverage check can offer reassurance; when unusual late-night transfers occur, a safer hedging product can restore trust.
This kind of relevance requires not only advanced data capabilities but also sensitivity to local realities. In Africa, where feature phones still dominate in many markets, personalization must work across USSD and agent-led channels as effectively as it does through apps. In the Gulf, it must seamlessly extend into open banking ecosystems, where lifestyle services are increasingly integrated into financial journeys.
What good looks like
We are already seeing banks across MEA winning loyalty by addressing end-to-end pain points rather than tackling them in isolation. One regional bank, for instance, focused on the underserved SME segment by making it easier to access liquidity, digitizing onboarding, simplifying payments and reconciliations, and providing multi-channel service. The result was tangible: fewer delays, faster resolution of issues, and a broader SME client base that felt recognized and supported. This is loyalty built on service and trust, not lock-in.
Another regional bank transformed its retail operations by implementing an end-to-end digital customer lifecycle, launching the first fully digital bank in its country. In a market where 24/7 banking was previously rare, this innovation significantly improved accessibility, convenience and engagement for customers. The results were immediate and impressive: 1,000 new accounts were opened every day, and loan approvals that once took months were completed within minutes.
Loyalty is about how banks simplify everyday life for their customers. In one MEA country grappling with cash shortages, a regional bank responded by introducing prepaid payment cards and an e-wallet, enabling customers to purchase goods via their mobile devices. This initiative resulted in a 40% increase in customer volumes and a 40% rise in Assets Under Management.
Loyalty built on customer-centricity always wins.
How Temenos helps
At Temenos, we are enabling banks to make these loyalty shifts practical. In markets with mature digital infrastructure, we help clients deploy AI-assisted, explainable personalization by using real customer behaviour, with consent, to create relevant and auditable outcomes. This directly addresses what McKinsey has highlighted: that customer loyalty today hinges on convenience and transparency, not just price.
In less mature ecosystems, we bridge the digital divide to ensure that digital transformation is inclusive from the start. Our platform supports smartphone apps and USSD or agent-based models simultaneously, ensuring that banks do not risk excluding customers who remain dependent on basic channels. This approach aligns with Comarch’s conclusion that loyalty in the MEA region is most successful when technology is tailored to the cultural context and community engagement.
Recognising that loyalty is earned over time, Temenos enables banks to modernize in a modular way. Clients can address their most urgent priorities first, for example, customer onboarding, SME lending, or dispute resolution. Underpinning this is our open, composable digital banking platform, designed to uphold data integrity, maintain security, and support ecosystem partnerships.
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