GenAI impact on banking in MEA
From hype to real transformation
By: Rakesh Masarapadi, Business Solutions Manager, Digital Banking at Temenos in MEA
The Middle East and Africa (MEA) is fast becoming a proving ground for next-generation financial innovation. From mobile-first banking in Nigeria to digital-only banks in the Gulf, the region is leapfrogging legacy models. Now, with Generative AI (GenAI) entering the mainstream, banks in MEA have the ideal opportunity to reshape customer experience, boost productivity, and respond to increasing regulatory scrutiny. We are already seeing banks across the region take the first steps: piloting GenAI assistants, automating document-heavy processes, and improving fraud detection. But the real promise lies ahead. GenAI represents a shift in how banks can engage, decide, and deliver.
Why GenAI matters now
The potential is staggering. McKinsey estimates GenAI could unlock up to $7.9 billion in economic value for African banks alone. In the Middle East, the AI-in-financial services market is expected to grow from $625 million in 2023 to $4.7 billion by 2032. These signal a major transformation in how banks operate, compete, and serve. Banks in the MEA region are already deploying GenAI in interesting ways:
- Hyper-personalization: Banks in sub-Saharan Africa are creating more targeted, culturally relevant outreach, even using dialect-specific Arabic content in the Middle East.
- 24/7 customer service: GenAI-powered virtual assistants are transforming how banks deliver multilingual support and financial advice across markets with diverse populations.
- Operational efficiency: In Egypt, for example, one bank is using GenAI to draft credit memos. In South Africa, AI supports decision-making across the risk value chain.
- Fraud prevention: Real-time anomaly detection, automated compliance reporting, and better anti-money laundering (AML) controls are enhancing both security and regulatory alignment.
- Product development: With faster insight into market trends and customer needs, GenAI is helping banks design and launch offerings more quickly.
The state of play: Insights from global research
At Temenos, we recently commissioned a global survey of 420 banking executives (18% from MEA). The results show a sector that understands the importance of GenAI and is moving with intent:
- 75% of banks are exploring GenAI
- 36% have already deployed or are in the process of deploying solutions
- 43% of those already using or exploring it plan to increase investment in GenAI in 2025
- 73% believe agentic AI will transform the industry
From this, it is clear that GenAI has become a strategic imperative.
MEA’s unique challenges and opportunities
Of course, regional dynamics matter. Data sovereignty, data quality and fragmentation, Sharia compliance, talent and skill gaps and language diversity all shape how GenAI must be deployed in MEA. Banks need flexible technology partners who understand this context and can deliver accordingly. At Temenos, our focus is on embedding explainable, responsible GenAI directly into our banking platform, so banks can build trust while scaling innovation. Some recent capabilities include:
- Temenos Product Manager Copilot: A GenAI assistant embedded in our retail core banking solution (via Microsoft Azure OpenAI Service) to help banks design, test, and launch products faster through natural-language prompts.
- Natural Language Banking & Business Insight: Empowering internal teams and customers to interact with data, surface insights, and automate reports quickly and securely.
- AI Agent to improve financial crime mitigation: Helping banks meet growing regulatory demands without compromising speed or efficiency.
- Temenos XAI platform and models: Providing transparent, explainable AI solutions for banking, enabling trusted decision-making and enhanced operational efficiency.
Deployment matters too. Some banks in MEA prefer software as a service (SaaS); others require on-premises infrastructure for data localisation compliance. GenAI’s success will depend not just on innovation but also on flexibility, transparency, and trust.
Responsible adoption is non-negotiable
While excitement is high, we cannot overlook the challenges. Our survey shows that data protection (86%) and regulatory compliance (60%) are top concerns for banking leaders. GenAI initiatives must be explainable, auditable, and aligned with local laws, especially in jurisdictions like Saudi Arabia, the UAE, or Nigeria where regulators are sharpening their focus on AI governance. As banks scale their use of GenAI, they must also stay focused on ethical considerations: how algorithms are trained, how decisions are made, and how customers are impacted.
What’s next?
In MEA, momentum for AI adoption is clearly building. The region’s combination of ambitious regulators, digital-first customers, and a relatively unconstrained tech landscape creates a unique launchpad for GenAI leadership. The real question is no longer if GenAI will reshape banking in MEA, but how well will banks execute it. Those who move decisively, with the right controls in place, will gain an early advantage. Those who delay will be left reacting in a market that moves too fast for hesitation. At Temenos, we do not believe in hype. We believe in practical, responsible innovation and in helping banks across MEA navigate this next frontier in a way that’s bold, ethical, and fit for the future.
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