Inside MENA’s Digital Banking Shift With onebank CEO Sherif Elbehery

Once, banking across the Arab world was synonymous with grandeur - marble floors, queues, and paper slips stamped by hand. That world is fading quickly. In its place stands an ecosystem of digital-first banks built on algorithms and ambition, where the most valuable real estate is no longer a physical branch, but the home screen of a phone. This shift marks both a technological upgrade, and a fundamental rewrite of financial culture- who participates, how trust is mediated, and how economies modernize.

Across the region, governments, entrepreneurs, and consumers are collectively reshaping the foundations of Arab finance. What began as cautious fintech pilots has evolved into core pillars of national economic strategies. Saudi Arabia’s licensing of its first digital banks in 2022 aligned with Vision 2030’s push toward cashless payments; the UAE has seen the rise of Wio, Zand, and Al Maryah Community Bank; Bahrain continues to operate as a regional innovation sandbox; and markets like Egypt and Jordan are modernizing despite deep-rooted legacy systems.

Egypt’s turning point arrived in August 2025, when the Central Bank granted final approval to onebank- its first fully licensed digital-only institution. Evolving from Banque Misr’s Misr Digital Innovation (MDI) and set to launch in 2026, the bank represents a structural milestone for North Africa’s most populous market.

To understand this shift from the inside, we spoke with Sherif Elbehery, onebank’s CEO, whose insights clarify not only where Egypt’s market is heading but why the broader Arab world is accelerating toward a more cohesive digital financial future.

Elbehery sees the region’s shift not as the result of one dominant force, but the alignment of several. “There isn’t a single force driving the Arab world’s shift toward digital banking; it’s the convergence of trust, inclusion, and technology that is fundamentally reshaping the region’s financial landscape,” he says.

Demographics are accelerating that trajectory. With nearly 60% of the population under 30 and smartphone penetration surpassing 90% in Gulf markets, young, hyperconnected consumers expect services to be instant, intuitive, and mobile-first. Legacy banks- constrained by aging systems and conservative risk cultures- struggle to meet these expectations. Digital-native banks, meanwhile, start from a blank slate: onboarding in minutes, chat-based support, real-time analytics, and no physical branches.

However, this transition demands more than convenience. In cash-heavy societies where trust was historically rooted in face-to-face interactions, the challenge is cultural as much as technological. “For decades, many Arab markets have been cash-heavy, with trust built around physical branches and human interaction,” Elbehery explains. “As customers move into digital environments, trust becomes the decisive factor. Digital-native banks must demonstrate security, transparency, and reliability from day one.”

This is where regulation has become an unlikely driver of innovation. Central banks- from Egypt to the UAE to Saudi Arabia- are building frameworks that support digital-native institutions. “Clear licensing standards, cybersecurity requirements, and consumer-protection policies are now pivotal,” he states. “They provide the oversight and confidence needed for adoption.”

At the core of the shift lies one of the region’s largest untapped opportunities: financial inclusion. “Around half of adults in several Arab economies remain unbanked or underbanked,” Elbehery notes, adding that digital-native banks can close this gap by offering intuitive onboarding, simplified products, and low-fee services tailored to youth, women, freelancers, micro-entrepreneurs, and gig workers.

This is precisely the gap onebank aims to address. With mobile-first design and modern digital identity verification, millions of Egyptians will be able to perform everyday tasks- opening accounts, accessing payments, managing finances- entirely through their phones. “Digital onboarding and national identity-verification initiatives are removing long-standing barriers,” he says. “They make financial services easier, faster, and more inclusive for millions.”

Still, digital transformation must contend with the emotional and cultural dimensions of money. Trust in the Arab world is relational, value-driven, and often tied to faith. Digital banks are responding with Sharia-compliant offerings, ethical investment options, and transparent pricing structures- ensuring that technological innovation does not come at the expense of cultural intelligence.

At the same time, digital-native banks are reshaping expectations more broadly. “We are moving from a branch-centric financial culture to a digital-first one,” Elbehery says. “Customers will open accounts, make payments, access credit, and manage their financial lives through intuitive mobile experiences.” For a region defined by its youthfulness and connectivity, this represents one of the most profound shifts in how people interact with money.

Underlying all of this is technology- the force that binds trust and inclusion. Next-generation tech stacks, real-time data capabilities, and AI-driven personalization enable digital banks to deliver smarter, faster, and more contextual experiences. As fintech ecosystems strengthen across the region, innovation cycles accelerate, and customer empowerment grows.

Traditional banks are not being replaced, but reshaped. Giants like Emirates NBD, QNB, and the National Bank of Egypt are modernizing apps, launching digital-only sub-brands, or partnering with fintechs. A hybrid “phygital” ecosystem is emerging, blending the stability of legacy institutions with the agility of digital challengers.

The opportunity is immense. Global digital banking revenues are projected to surpass $50 billion by 2030, while MENA’s fintech sector is expected to grow at 35% annually through 2028- over double the global average. But the deeper transformation is philosophical: finance in the Arab world is being rebuilt around experience, empowerment, and equitable access.

As Elbehery puts it: “Trust provides confidence, technology provides capability, and inclusion delivers impact. The future of digital banking in the Arab world is being defined at the intersection of all three.”

In a region where oil long defined economic identity, it may now be digital capital- trust, data, and inclusion- that shapes the next chapter. And as onebank prepares to enter the market, that chapter is only just beginning.