Banking is undergoing steady transformation as digital innovation continues to reshape customer expectations. As digital innovation redefines what customers expect from financial services, traditional models are giving way to more dynamic, integrated ecosystems. Success in this environment won’t come from going it alone – it will depend on working together.
At Mashreq, we see partnerships not as optional enhancements but as essential building blocks of a modern banking experience. Whether it’s fintechs, big tech, or startups, collaborating with external players enables banks to stay ahead of disruption and deliver better outcomes for customers.
From Silos to Synergy
The rise of open banking, BaaS, and embedded finance is rapidly reshaping the industry. These models are pushing banks to integrate with a broader digital ecosystem, moving away from product silos and toward platform-based delivery.
Today’s banking is not just about offering products – it’s about embedding services into people’s lives. The rapid growth of embedded finance is one example: over 40% of financial institutions now offer embedded finance solutions, enabling customers to access payments, loans or accounts without ever visiting a bank.
Fintechs, meanwhile, continue to outpace traditional banks in growth, expanding at a 15% annual rate, nearly triple that of incumbent players. The implication is clear: banks must integrate with the wider ecosystem or risk being left behind.
This shift also reflects how customer expectations are changing. More than ever, users want seamless, contextual, and digital-first experiences – whether they’re booking a ride, shopping online, or managing their finances. Banks that partner to deliver these experiences will not only remain relevant but lead.
Driving Access, Innovation and New Value
Strategic partnerships extend beyond customer experience – they’re also vital for financial inclusion. Some 1.4 billion adults remain unbanked globally, many of whom can be reached through digital-first platforms that combine fintech agility with the scale and trust of established banks.
Partnerships can also unlock new business models. For instance, our collaboration with non-banking platforms allows Mashreq to embed financial services within sectors like telecom and e-commerce, creating added value for both customers and partners. In doing so, we turn everyday moments into banking opportunities – seamless, secure, and highly personalized.
These alliances also offer access to advanced technologies – such as AI and blockchain – and data-driven insights, enhancing both product development and decision-making. For example, partnerships now enable innovations like real-time payments, daily banking, and AI-driven credit scoring that improve speed, accessibility, and customer experience.
Collaborating with fintechs allows banks to reach underserved markets – such as SMEs and unbanked populations – through cost-effective and digital-first solutions. Separately, our partnership with E& in Egypt – a major telecom player – illustrates how strategic alliances with non-banking platforms can embed financial services into customers’ everyday experiences, creating new value and income sources. From AI-powered credit scoring to data-driven personalization, partnering with tech innovators helps us anticipate needs, reduce friction, and deliver smarter solutions.
Aligning with Regulation to Scale Responsibly
This transformation is being encouraged by forward-thinking regulation. In the UAE, initiatives like the Central Bank’s sandbox environment and the DIFC Innovation Hub are creating space for secure experimentation. At the same time, open banking mandates across the region promote interoperability and customer-centric innovation by requiring secure data sharing.
Such regulatory support is a powerful enabler – helping institutions like Mashreq work with fintechs in a compliant, scalable way. It also signals a wider shift in mindset, from guarding market share to growing it through collaboration.
Making It Work
Effective partnerships aren’t just built on APIs & SDk’s – they require cultural alignment. Banks must be willing to adopt more agile, entrepreneurial ways of working, while fintechs need to navigate complex compliance and risk frameworks. Shared goals, clear governance, and mutual trust are all essential.
It’s not without its challenges – regulatory complexity, data security, and integration hurdles are real. But these can be managed through open communication, robust data protocols, and a willingness to learn from each other.
A Future Shaped by Collaboration
This isn’t just about signing deals – it’s about building ecosystems that benefit customers, partners, and the broader financial sector.
Banking’s next chapter will be written not by those who try to do everything themselves, but by those who understand the power of co-creation. The future belongs to those who partner smartly, act boldly, and innovate together.
We welcome the opportunity to build that future – alongside those equally committed to reshaping finance for a digital-first world.
