Neobanks, Open Banking & AI Readiness: What the Middle East’s Banking Leaders Are Really Talking About

Sparking Real Conversations on the Future of Banking in the Middle East: Highlights from The Digital Banking Club in Muscat and Riyadh 

At Finshape, we believe in bringing the right people together to have the right conversations—especially when those conversations shape the future of digital banking. Over the past weeks, we hosted two exclusive Digital Banking Club events in the Middle East, with moderation by Ewan MacLeod, Founder of New Era Digital Partners  - first in Muscat, Oman, and then in Riyadh, Saudi Arabia—gathering senior banking decision-makers, regulators, and innovators to discuss how the region is responding to the accelerating demands of digital transformation. 

Here’s what we heard, learned, and explored. 

Muscat: Momentum, Openness, and the Road to AI Readiness 

The inaugural Omani edition of the Digital Banking Club set a high bar. Held under Chatham House rules, the event drew representatives from 7 out of the 9 major Omani banks, underscoring the appetite for serious dialogue on the future of digital finance in the Sultanate. 

Key themes from Muscat: 

• From Products to Needs: There was strong agreement that banks need to evolve beyond product-centric thinking and move toward contextual, needs-based customer experiences—particularly as younger, digital-native customers become the dominant segment. 

• AI: From Concept to Execution: Attendees acknowledged the growing buzz around AI, but also the hard truth: operationalising AI at scale remains elusive. Governance, data quality, and cultural readiness emerged as major sticking points. 

• The Slow Burn of Open Banking: With open banking legislation in motion, progress remains cautious. Some banks voiced concern about the lack of urgency—raising the question of whether stronger regulatory nudges are required to avoid disruption from global players like Apple. 

• Modernising for Speed: The session also shone a spotlight on the constraints of legacy systems and siloed governance models. These continue to stifle innovation and slow response times, making partnerships with fintechs and vendors essential—but not easy. As one executive noted

  "Getting into the market as an international player requires relationships and trust—and that means local presence matters.” 

The event also featured dynamic fireside chats, and our own @Tamás Braun shared thought-provoking reflections on Oman’s digital maturity and what it will take to turn talk into tangible progress. 

"There is an energy about the digital banking ecosystem in Oman that is really exciting, and I think we really saw that in the commentary and insights being shared by the participants. I think we'll see a lot more from the banks and FinTech players across the upcoming quarters. " - Ewan MacLeod 

Riyadh: AI-First Thinking Takes Centre Stage

In Riyadh, our second-ever Club in the Kingdom expanded both in size and intensity. Just six months ago, AI was an emerging topic. Today, it is the strategic battleground. The energy was clear and strong, as senior leaders from across Saudi Arabia’s banking ecosystem gathered to assess where they stand—and where they must go. 

Key themes from Riyadh: 

• AI Moves to the Core: If there was one takeaway from Riyadh, it’s this: AI is no longer optional. Institutions are racing to understand, implement, and govern AI systems—with some already well underway, and others still navigating the starting blocks. As one participant put it, “AI is a tool. But a fool with a tool is still a fool.” 

• It All Starts with Data: Before AI can transform customer experience or internal operations, banks must get their data house in order. Structured, API-ready data was recognised as the foundation for any serious AI initiative. 

• Neobanks Raise the Stakes: Several newly licensed digital banks are now live or launching soon in Saudi Arabia, putting pressure on incumbents to streamline operations and rethink legacy systems. The market is no longer hypothetical—it’s competitive, and it’s here. 

• Complexity is the Enemy: Many banks are burdened by fragmented product portfolios and redundant offerings, which create roadblocks for AI integration and seamless customer experiences. A clear call emerged: simplify to scale. 

• Real-time, Real-World AI: Participants debated what’s real, what’s hype, and how to move from experimentation to execution. Guest speaker Ewan MacLeod introduced Ask Martin, an AI agent he uses in daily life, offering a provocative glimpse into the possibilities—and the trade-offs—of an agent-first future. 

"The explosion of digital banking services across the kingdom is not only exciting, but I think an expression of the enthusiasm that we see from the wider Saudi population when it comes to embracing digital services. It was great to hear all of the ideas, opinions and insights from the participants, and I can't wait to be back in the Kingdom! " - Ewan MacLeod 

Why It Matters—and What's Next

Both events reinforced the role of The Digital Banking Club as a trusted forum where leaders can engage in honest, grounded discussion—free from sales pitches or surface-level narratives. These sessions are about challenging assumptions, learning from peers, and identifying what truly moves the needle. 

At Finshape, we’re proud to be creating these spaces—not just in the Middle East, but globally. Whether it’s AI readiness, Open Banking, or customer experience reinvention, our goal is to spark meaningful, real-life conversations that lead to real-world action. 

If you're navigating similar challenges—or just want to stay ahead of the curve—we’d love to see you at the next Digital Banking Club. 

Want to join the conversation? Reach out to us and discover how we’re helping banks turn strategy into outcomes.

András Papp
Head of Growth
andras.papp@finshape.com
+36305885285