The Middle East and North Africa (MENA) banking sector is undergoing a “phygital” customer experience (CX) revolution – blending physical and digital channels to create seamless, omnichannel experiences. In 2025 and beyond, banks across MENA are prioritizing CX as a strategic differentiator, integrating high-tech digital solutions with the high-touch service traditionally offered in branches. This article provides a comprehensive analysis of the current and future state of phygital CX in MENA banking, covering all segments (retail, corporate, private, and Islamic banking) with a focus on key markets. It highlights leading and lagging banks in CX adoption, examining how each is navigating strategy, technology, organization, and customer expectations.
MENA banks are operating in a landscape where 88% of customers prefer digital banking channels over visiting a branch, yet around 70–78% still utilize branches for complex needs. This paradox underscores the need for a phygital approach: customers demand the speed and convenience of digital along with the personal reassurance of human service. Leading banks have secured strong leadership buy-in and hefty investments to transform customer journeys, deploy cutting-edge tools (from AI chatbots to journey analytics), and foster a customer-centric culture. Meanwhile, customer expectations – especially among the region’s youthful, tech-savvy population – are rising fast. As many as 83% of UAE banking customers use mobile apps for banking and 73% are comfortable with AI guidance in finance. Similar trends are echoed in Saudi Arabia and Qatar. Banks must therefore benchmark themselves not only against local competitors but also against global CX leaders in banking, to deliver world-class experiences. The following sections dissect the state of CX strategy, design maturity, technology deployment, organizational enablers, KPIs, and consumer readiness across MENA banking, and explore the trends that will shape the future of banking CX in the region.
CX Strategy and Leadership Commitment
Customer experience has ascended to a board-level priority in many MENA banks. Top executives increasingly recognize that superior CX drives loyalty, cross-sales, and financial performance. In fact, a McKinsey & Company study in Saudi Arabia found that banks rated as CX leaders achieved 116% higher total shareholder return than lower-CX peers. This has galvanized leadership across the region to bake CX into core strategy. Many banks have appointed Chief Experience Officers (CXOs) or dedicated CX units reporting to senior management. For example, Riyad Bank created a Customer Experience Department led by a CXO (Khalid AlKhudair), tasked with systematically capturing and acting on customer feedback. Emirates NBD’s leadership has long championed CX as “a core tenet of the bank’s business model,” backing a multi-year transformation with over AED 1 billion (USD 272M) in investment to build integrated, omnichannel experiences. Similarly, ADIB – Abu Dhabi Islamic Bank’s 2035 Vision explicitly links digital advancement to delivering an “ambitious” customer experience, with the Group CEO affirming an “unwavering commitment to a secure, innovative banking experience”.
Leadership buy-in is also evident in strategic initiatives like The Saudi National Bank – SNB’s (SNB) Vision 2030 alignment. SNB’s executives are leveraging the bank’s post-merger scale to launch new “champion” phygital branches and double down on digital sales – digital loan sales doubled in 2024 as SNB invested heavily in tech and efficiency. In Qatar, QNB Group’s top management has set a goal to “solidify [QNB’s] position as a global leader in digital banking”, as evidenced by the bank’s sponsorship of major tech events and partnerships with Apple, Google, and others. Many banks now embed CX targets into their corporate KPIs and strategy maps. For instance, Emirates NBD’s strategy explicitly tracks Net Promoter Score (NPS) as a measure of CX leadership, resulting in an NPS of 48 in 2025, making it “one of the region’s top banks for Customer Experience”.
Not all banks are equally advanced – smaller and some state-owned banks have been slower to prioritize CX at the board level. However, the overall trend is clear: MENA bank leaders increasingly view CX as critical to competitive advantage. This top-down support translates into allocated budgets, cross-departmental CX programs, and visible initiatives (e.g. CEO-endorsed service excellence campaigns and innovation challenges) aimed at instilling a customer-first mindset.
Phygital Journey Design and Maturity
A key pillar of phygital CX strategy is customer journey design maturity – i.e. how well banks map, reimagine, and integrate end-to-end customer journeys across channels. In the past two years, multiple leading banks in the UAE and Saudi Arabia have undertaken comprehensive journey re-engineering. According to McKinsey, many banks are now “fully digitalizing their customer journeys, from initial touchpoint to fulfillment,” covering retail needs like onboarding, personal loans, credit cards, and even complex products like mortgages, as well as corporate journeys like SME account opening and loan renewals. This involves mapping each step of the customer’s path, identifying pain points, and redesigning processes to be simpler, faster, and often self-service.
Journey mapping has become a widespread practice. Banks such as Emirates NBD and alrajhi bank have dedicated teams to analyze customer personas and journey analytics. Al Rajhi, for example, engaged global consultants to conduct a “ground up review of best-practice customer experience” and conceive a revamped journey model for its branches and digital touchpoints. The output was a strategic model defining new branch formats (flagship, full-service, express) and a harmonized omni-channel journey. By 2022, Al Rajhi launched its first “future-focused” flagship branch in Riyadh’s Al-Ghadeer district, featuring a modern open design and integrated digital self-service options – it was the first in the Kingdom to deliver such a next-gen in-branch experience, earning “universal acclaim” from customers. Emirates NBD, likewise, rolled out a new “tech+touch” branch concept in Dubai, combining paperless digital transactions with on-site advisory; the bank’s digital branch at Dubai World Trade Centre introduced self-service kiosks and tablets, while branch staff serve as “digital ambassadors” guiding customers. These efforts reflect a growing design maturity – moving from siloed channel optimization to truly integrated omnichannel journey orchestration.
A mature phygital journey ensures that a customer can, for example, begin an application on a mobile app, get assistance via call or chat, and finalize in-branch seamlessly. Banks are at differing stages of this ideal. Emirates NBD reports that 93% of new current accounts are now opened through digital channels – 40% entirely via the mobile app and another 53% through “assisted tablet” in branches (where a branch officer helps the customer on a tablet). This indicates a successful merging of digital convenience with human support. Qatar Islamic Bank (QIB) likewise achieved 71% of new accounts opened digitally after revamping its onboarding journey, and over half of its retail product sales now come via digital channels. On the other hand, some traditional banks still rely on partially digitized processes – for instance, requiring a branch visit for identity verification or wet signatures. However, even these laggards (including several Egyptian and Lebanese banks) are now plotting journey digitization roadmaps under competitive pressure.
One marker of journey design excellence is customer effort score (CES) improvements – many banks measure how easy customers feel it is to complete key journeys. Several Gulf banks have won awards for their simplified onboarding: Mashreq Corporate & Investment Banking Group’s digital onboarding was lauded as on par with global digital-only banks, achieving an onboarding NPS of 80 (an exceptionally high score). Mashreq’s NEO app allows residents to open an account in minutes with scanned IDs and a selfie, contributing to Mashreq being named “Middle East’s Best Digital Bank” for five years running. In Saudi Arabia, SNB’s new-account journey became 100% paperless, and the bank opened its first “Champion” branch concept in 2024 equipped with biometric onboarding and instant card issuance (part of SNB’s branch modernization). Alinma Bank in KSA launched a youth-oriented digital platform “^iz” in 2024, offering fully app-based signup, and saw 90,000 customers sign up in the first month – a testament to effective journey design targeting a digital-native segment. Even in conservative segments like Islamic banking, journey innovation is visible: QIB’s pioneering “One Click Financing” lets customers obtain a personal financing approval via app in seconds, fueling 52% of QIB’s retail sales through digital channels.
In summary, journey design maturity in MENA is progressing rapidly among top-tier banks, who are setting the bar with end-to-end digital flows, omnichannel flexibility, and frictionless experiences. Mid-tier and some legacy banks still lag (with more fragmented journeys), but the competitive benchmark is clearly being set by leaders who approach journey design as a science – continuously iterating based on customer feedback and analytics.
Tools, Technologies, and Systems Enabling CX
Delivering phygital CX at scale requires robust tools and technology infrastructure. MENA banks have been aggressively deploying new systems – from CRM platforms and customer analytics to AI chatbots and omni-channel service hubs – to support their CX ambitions. A recent industry survey noted that 48% of banks in the broader MEA region are prioritizing investments in digital banking platforms to modernize legacy systems. Below are key technology domains and how banks are leveraging them:
- Core and Omnichannel Banking Platforms: Many banks are upgrading core systems and adopting omni-channel middleware to ensure a single view of the customer and seamless interactions. For example, Mashreq Bank partnered with Oracle to revamp its core banking (Flexcube) to better support multi-channel customer experiences. Emirates NBD built an omnichannel platform (integrating branch, web, mobile, and call center) so that interactions are synced – if a customer applies online and walks into a branch, the system continues where they left off. Banks like Arab Bank have developed open API platforms (e.g. “ArabiConnect” for corporate clients) enabling embedded banking services and consistent experience across touchpoints.
- Customer Relationship Management (CRM) and Analytics: CRM systems are increasingly used to personalize interactions and manage leads. Banks are coupling CRM with journey analytics and customer data platforms to get insights into behavior. For instance, Riyad Bank uses an advanced CX analytics solution (Verint Experience Management) to analyze over 200,000 customer surveys per year across 75 touchpoints. This system links feedback to specific branches or digital channels and provides real-time dashboards, enabling quick issue detection and service recovery (e.g. their “detractor recovery” program identifies low NPS respondents and triggers follow-up). Such data-driven systems allow banks to track KPIs like NPS, CSAT, and customer effort in granular detail and improve the journey continuously. Several banks (e.g. Emirates NBD, Qatar’s QNB) also employ big data analytics and AI for predictive insights – Emirates NBD reports running 50+ advanced analytics use cases (e.g. predicting churn, next-best offers) as it transforms into a “data-first, digital-focused” organization.
- AI-Powered Chatbots and Virtual Assistants: AI chatbots have become a standard CX tool in the region. Emirates NBD’s chatbot “Eva” and its WhatsApp banking assistant handle hundreds of thousands of queries, providing 24/7 support. The bank has over 750,000 users on WhatsApp banking for conversational services. In Saudi Arabia, banks like Al Rajhi and SNB have launched bilingual chatbots for basic transactions and inquiries. ADIB introduced “ADIB Chat Banking” on WhatsApp as well, leveraging AI to answer customer questions instantly. These bots use natural language processing (Arabic and English) to simulate human-like assistance, reducing load on call centers and delivering quick service. Moving forward, banks are exploring generative AI for even more sophisticated virtual agents – e.g. alinma developed an internal “Alinma GPT” tool to help generate code and potentially could apply similar large-language models to customer interactions. While still early, the intent is that AI will increasingly handle routine service requests and even advisory conversations, freeing human staff for more complex or high-value interactions.
- Self-Service and Branch Tech: On the physical side, banks are deploying technology to make branches smarter and more efficient. Common tools include interactive teller machines (ITMs), self-service kiosks for cash deposit/withdrawal or statement printing, biometric ATMs, and digital appointment systems. Emirates NBD’s “paperless digital branch” concept uses touchscreen kiosks where customers can perform most transactions themselves, with “branch ambassadors” on hand for guidance. Several banks (e.g. Qatar’s QNB, Saudi’s Al Rajhi) have introduced video teller services, allowing customers in smaller branches or remote areas to video-chat with centrally located experts (for example, to get investment advice or apply for a loan not available on-site). Beacon technology and mobile integration are also used – Emirates NBD equipped branches with Bluetooth beacons to send location-based notifications to customers’ phones (e.g. queuing information or personalized offers when they enter the branch). Such phygital integrations blur the line between channels; a customer’s smartphone becomes a tool within the branch environment.
- Omni-channel Contact Centers: Banks are overhauling contact centers to be omnichannel hubs linking phone, email, chat, and social media. For instance, Saudi banks have integrated WhatsApp and Twitter as official service channels, given customers’ preferences. Unified platforms route customer issues from any channel to a single agent desktop showing the customer’s history. Voice analytics and AI-assisted call routing are also being adopted to improve responsiveness.
- Journey Orchestration and Personalization: A few leading banks are experimenting with journey orchestration software that can trigger actions based on real-time customer behavior. For example, if a customer abandons a credit card application online, the system might alert a call center agent to reach out, or send a push notification with assistance – demonstrating true phygital continuity. Personalization engines use AI to tailor content and offers; 79% of customers in KSA/UAE are willing to share personal data for a better experience, so banks are leveraging data to customize product recommendations and even interface layouts. Mashreq’s app, for instance, uses AI to present personalized insights into spending and savings for each user, a feature that 89% of UAE customers find attractive.
- Core Banking and Fintech Integration: Underlying all these CX tools is the need for robust, flexible core banking systems and open APIs. Many incumbent banks have upgraded their core or implemented middleware to allow faster product launches and integration with fintech services (e.g. open banking in Saudi and Bahrain). Qatar National Bank introduced the “QNB Payment Gateway” in 2023 – the first local gateway allowing e-commerce merchants to integrate payments easily. It supports e-invoicing, digital wallets, and even redemption of bank loyalty points online, extending the bank’s reach into customers’ commerce journeys. Such innovations require strong tech capabilities but greatly enhance customer experience by embedding banking seamlessly into customers’ lives.
Collectively, these tools and systems are enabling MENA banks to deliver a true phygital experience – where the physical and digital reinforce each other to serve customers anytime, anywhere. Importantly, banks are not deploying technology for technology’s sake; the focus is on use cases that improve CX metrics (faster resolution, higher NPS, etc.). For example, QNB reports that thanks to its digital integration, over 90% of its customer-facing processes are now digitized, ensuring a “seamless and secure” experience across mobile, online and self-service machines. This heavy investment in technology has earned QNB numerous awards (e.g. “Best Digital Bank in Middle East” 2024) and, more importantly, keeps its large customer base satisfied.
Organizational Structure and CX Culture
Technology alone is not enough – banks are also reshaping their organizations and talent to deliver on CX. An emerging best practice is to establish a formal CX governance structure: this often includes a central Customer Experience unit or “Design and Experience” department that works across silos (branch, digital, operations) to champion the customer’s perspective. Many leading banks now have cross-functional “journey teams” or squads that include product managers, IT developers, operations and compliance staff, and customer service reps working together to redesign a particular journey (e.g. mortgage application or trade finance onboarding). This agile, customer-centric way of working has been adopted at Emirates NBD, Mashreq, and others as part of their digital transformation. It breaks the traditional functional silos and ensures CX improvements are holistic.
Crucially, several banks have created high-level roles to oversee CX. We mentioned the Chief Customer Experience Officer at Riyad Bank who led the pivot from old survey methods to a modern VoC system. Similarly, Emirates NBD has a Head of Customer Intelligence and Experience that reports to upper management and coordinates CX strategy across retail and wholesale banking. These roles signal to the entire organization that “customer experience is everyone’s job.” Banks also routinely train staff on CX principles: front-line employees (tellers, relationship managers, call agents) undergo training in empathy, active listening, and problem resolution. For instance, The Saudi Investment Bank and SABB have conducted service excellence workshops to elevate branch staff’s customer-handling skills in line with new experience standards.
In branches, organizational roles are shifting from transaction-focused to relationship-focused. Many banks are implementing the concept of a “universal banker” or “universal agent.” As McKinsey noted, smart branches require reskilling staff and creating new roles like the universal customer agent who can handle a range of products and services in an advisory capacity. Banks such as Al Rajhi have retrained their branch employees to move away from purely processing transactions (much of which is now self-service) to providing consultations – e.g. helping customers use digital channels, advising on products, and troubleshooting more complex requests. Emirates NBD’s “branch ambassadors” are a case in point: these are multi-skilled employees who greet customers and guide them to either digital self-service stations or provide personalized help, ensuring no customer feels lost in the new high-tech branches.
From a manpower standpoint, banks are also hiring more CX specialists and data analysts. The CX teams often include journey designers, UX/UI experts (to refine mobile and web interfaces), customer research analysts, and service designers. Some banks partner with external design firms – for example, Bank Audi in Lebanon pre-crisis worked with fintech labs to develop its digital wallet and mobile app UX. We also see local banks recruiting talent from e-commerce and hospitality industries, infusing outside-in customer service DNA.
Another organizational aspect is Voice of Customer (VoC) and continuous improvement processes. Leading banks have instituted ongoing feedback loops: e.g. Riyad Bank’s VoC program not only gathers NPS data in real time, but also ties it to employee performance and service recovery. They have 700+ staff users on the VoC platform checking feedback dashboards. The bank even links detractor alerts to branch/relationship manager coaching – if a premium client gives a low score, the assigned manager is notified to reach out and resolve the issue, and managers with consistently high CX scores are rewarded. This integration of CX metrics into performance management underscores a culture where customer satisfaction is a key success criterion at all levels.
Budget and resource allocation is another organizational indicator. Banks in the GCC have dedicated substantial budgets for CX and digital. For instance, as noted earlier, Emirates NBD committed ~AED 1B over 3 years purely for digital CX enhancements. ADIB announced a EGP 1 billion (USD 32M) investment in Egypt for digital transformation by 2025 explicitly “to redefine customer experience”. These funds translate into not just tech purchases but also hiring, training, and marketing around new CX initiatives. Banks lagging in CX often are those that have not allocated specific budgets or have fragmented ownership (e.g. IT driving digital without input from customer service). However, even laggards are starting to catch up as the market clearly rewards CX excellence.
In summary, the organizational trend is toward embedding CX in the bank’s DNA – through leadership roles, cross-functional teams, employee training, and incentive structures that all reinforce putting the customer first. Banks that excel at CX in MENA are those that have made it an organization-wide mission, rather than a one-off project. As a result, they enjoy stronger loyalty and brand reputation, which in turn drives business performance.
Investment Trends and CX Financial Commitment
Investment in customer experience, especially via digital transformation, has surged across MENA banks. With high profitability in recent years (GCC banks have enjoyed ROEs around 15% on average), many banks are channeling funds into long-term CX improvements. An analysis by Celent found nearly half of banks in MEA are prioritizing digital platform investments to meet shifting customer expectations.
Budget Allocation: Large Gulf banks typically allocate a significant portion of their annual IT/operations budget to CX and digital projects. For example, Emirates NBD’s multi-year digital CX program (2016–2020) was one of the region’s largest, at AED 1 billion. Similarly, Saudi banks collectively are expected to invest around $73 billion in digital banking between 2020 and 2026, a threefold increase compared to earlier years. This includes spending on mobile apps, AI, data analytics, and modern branch tech – all underpinning CX. National Bank of Egypt (NBE) and Banque Misr (the big state banks in Egypt) have also sharply increased their tech budgets since 2020, recognizing the need to modernize customer-facing services for a large population. ADIB’s announcement of EGP 1 billion for its Egyptian subsidiary’s digital uplift shows that even outside the wealthy Gulf markets, banks see ROI in CX investment to capture growing consumer segments (in this case, aiming to “lead Egypt’s digital banking revolution”). In Jordan, Arab Bank has funneled resources into its fintech studio and digital banking spinoffs (like Reflect), indicating budget commitment to innovation despite Jordan’s smaller market size.
Use of Funds: How are these budgets being used? A significant share goes to technology vendors and systems integration – for core banking upgrades, CRM systems, mobile app development, and cyber security (an essential investment to maintain trust in digital channels). Another share goes to physical infrastructure: refurbishing branches, equipping them with self-service machines, interactive screens, and comfortable consultation spaces. For instance, Qatar’s QIB and Commercial Bank both invested in new flagship branch designs in the past two years, often featuring digital walls and self-service zones. Human capital is another area – banks are investing in recruiting digital talent (developers, UX designers, data scientists) as well as training existing staff on new systems and customer-centric practices.
ROI and Trends: Banks are increasingly scrutinizing the return on CX investments via metrics like increased digital adoption, reduced cost-to-serve, and improved NPS/CSAT. The trend is that effective phygital CX investments do pay off: more customers shift to digital channels, lowering transaction costs (a digital transaction can be 10x cheaper than a branch one). For example, Emirates NBD noted that 93% of new accounts now come through lower-cost digital or assisted channels, which both improves customer convenience and reduces operational overhead. Similarly, QIB’s digital sales (52% of retail sales) means more efficiency and scalability in growth. These successes encourage banks to continue investing. On the other hand, poor investments (like clunky apps or under-utilized branch tech) can be costly lessons – e.g. a few banks that rushed out chatbot services without sufficient AI training saw low customer satisfaction and had to re-tool them. Thus, we see a trend toward smarter investment: piloting innovations, gathering customer feedback, and scaling up what works best.
Another trend is partnerships and venture investments. Instead of building everything in-house, banks are investing in or partnering with fintech companies to accelerate CX improvements. ADIB launched ADIB Ventures in 2023 to collaborate with fintechs on innovative solutions. Several Saudi banks (e.g. SABB, Al Rajhi) have partnered with fintech startups in payments and personal finance management to enhance their mobile offerings. This not only spreads the cost but also brings in innovative ideas from outside.
Benchmarking Budgets Globally: When benchmarked globally, MENA banks’ CX investment as a percentage of revenue is on par with or exceeding global averages in many cases, especially in the GCC. Banks like Emirates NBD and QNB have been recognized in global forums for their digital spending and innovation. The commitment of GCC governments (through visions like UAE Vision 2021 and KSA Vision 2030) to digital economy has also funneled support to banks – e.g. regulators fast-tracking fintech licenses, providing digital ID infrastructure (BankID, etc.), which in turn makes bank CX investments more effective.
In conclusion, investment in CX is a clear upward trend – budgets are growing and being directed strategically at technology and talent to enable superior customer experiences. Banks leading in CX are those treating these investments not as one-off IT projects but as continual, strategically guided expenditures essential for long-term competitiveness.
Measuring CX: KPIs and Reporting Structures
To steer and validate their CX efforts, MENA banks are rigorously measuring performance through key indicators and embedding CX metrics into their reporting structures. The most commonly used Key Performance Indicators (KPIs) for customer experience in banking include: Net Promoter Score (NPS), Customer Satisfaction (CSAT), Customer Effort Score (CES), first contact resolution rate, complaint resolution time, and various Voice of Customer (VoC) feedback metrics.
NPS (Net Promoter Score) – which gauges customer likelihood to recommend the bank – has emerged as a north-star metric for many banks. It provides a simple number that boards and executives pay attention to. For example, Emirates NBD tracks NPS closely and proudly announced reaching an NPS of 48 in Q1 2025, ranking it among the top banks regionally for customer experience. This is a substantial improvement from previous years and well above the global banking average NPS (which is around 30)customer. In Saudi Arabia, NPS scores tend to be even higher for the strongest brands – Al Rajhi Bank, benefiting from deep loyalty, achieved an NPS of ~74 in KSA, which is world-class by any standard. (By comparison, many leading global banks have NPS in the 40s or 50s.) These scores are not just marketing talking points; banks link them to business outcomes and to internal targets. Al Rajhi’s exceptional NPS reflects its decades-long reputation and customer trust, especially in Islamic banking, and it translates into industry-leading customer retention and share of wallet in Saudi. Meanwhile, mid-tier banks often have lower NPS (e.g. we might infer Saudi Investment Bank or SABB have significantly lower loyalty scores), signaling room for improvement.
Customer Satisfaction (CSAT) is another key metric, usually measured via surveys asking customers to rate service or products on a scale. Many banks participate in independent benchmarking studies or commission mystery shopping to gauge CSAT relative to peers. For instance, in Jordan, the annual Bank Customer Satisfaction Survey often places Arab Bank at or near the top, reflecting its continued focus on service quality. Banks structure regular reporting on CSAT at various touchpoints – e.g. branch experience CSAT, ATM uptime satisfaction, call center satisfaction.
Customer Effort Score (CES) measures how easy it is for customers to get things done (lower effort = better). Banks have started using CES especially for digital channel evaluations. For example, if a customer had to go through multiple steps or faced friction in resetting a password, that would reflect in a CES survey. A low CES (meaning high ease) often correlates with higher loyalty. As banks simplify processes (like Mashreq’s one-click investments or QIB’s one-click finance), they are effectively driving CES improvements.
VoC Programs and Dashboards: Many banks have implemented real-time VoC dashboards that compile NPS, CSAT, CES and qualitative feedback from multiple channels. As mentioned, Riyad Bank’s Verint system captures feedback after every significant interaction (ATM transaction, branch visit, digital session) by prompting customers with short surveys. The data is then sliced by branch, channel, customer segment, etc., and reviewed in regular governance meetings. It’s common for banks to have a monthly CX report to senior management that highlights key metrics (overall NPS, top drivers of detractors/promoters, service issues) and an action plan. Some have even tied these metrics into management KPIs and bonus calculations. At one UAE bank, branch managers’ bonuses are influenced by their branch’s NPS and mystery shopper scores – a practice borrowed from retail and hospitality sectors to ensure customer-centric accountability.
Benchmarking and Awards: External benchmarks also motivate banks. Global finance publications and consultancies often rank banks on service. For example, Global Finance Magazine and The Banker have awards for “Best Customer Experience Bank” or similar, and MENA banks have been winning. In 2024, a Gulf Customer Experience Award recognized Riyad Bank for “Best CX Transformation” (following its NPS increase of 25% after revamping feedback systems). Such recognitions, along with published rankings like the annual BankQuality Score (which normalizes NPS into a 100-point scale)bank, push banks to continuously improve. As of mid-2020s, Emirates NBD and Mashreq have often led UAE in such CX rankings, while Al Rajhi and SNB lead in Saudi, and QIB and QNB in Qatar.
Importantly, banks are not just measuring but acting on CX data. They have formal closed-loop processes: when a customer gives a low score or a complaint, the bank follows up individually. When systemic issues are identified (e.g. many customers complaining about mobile app navigation), it triggers a project to fix the issue. This responsiveness is part of the CX culture. For instance, Riyad Bank’s “detractor recovery program” contacts any customer who rates their NPS < 7, particularly focusing on affluent segments to resolve problems and “convert them into promoters”. Many banks also conduct root cause analysis on low CX metrics – if a particular branch has low satisfaction, they audit it for staff behavior, wait times, environment, etc., and then implement corrective measures (training, adding personnel, etc.).
In summary, CX measurement in MENA banks has become sophisticated and integral. NPS is a headline metric now tied to reputation and strategy, CSAT/CES provide diagnostic insight, and voice-of-customer systems ensure real-time listening. Banks that excel in CX use these metrics not just as numbers but as a continuous improvement tool – a way to listen at scale and enhance the experience iteratively. As the old management adage goes, “what gets measured gets managed” – and MENA banks are clearly measuring CX closely to manage it as a core business objective.
Customer Readiness and Digital Adoption by Country
Customer adoption of digital banking and openness to phygital experiences vary across MENA markets, influenced by factors like technology penetration, demographics, culture, and trust in banking. Below we analyze customer readiness and behavior in the key focus countries: UAE, Saudi Arabia, Qatar, Jordan, Lebanon, and Egypt.
United Arab Emirates (UAE) – Tech-Savvy and Demanding
The UAE boasts one of the highest digital banking adoption rates in the region. With a young, cosmopolitan population and nearly 98% smartphone penetration, UAE customers are eager users of digital finance. A 2024 survey found 83% of UAE respondents use mobile banking apps (with most using them at least weekly), and 89% feel more confident using digital banking now than two years ago. Furthermore, 89% of UAE bank customers have “digital-first” accounts – including both local digital neo-banks and international fintechs – indicating broad acceptance of branchless banking. Customers in the UAE are also remarkably open to innovation: nearly 73% said they are comfortable with AI providing financial guidance or making day-to-day financial decisions. This comfort with technology sets high expectations – customers compare their banking experiences to top-notch digital services like Uber or Amazon. They expect instant, personalized, and intuitive service.
At the same time, UAE customers still value the physical touchpoint for complex needs. According to a New Metrics survey, 78% of UAE banking customers still visit branches for certain transactions or advice, despite widespread digital access. The “personal touch” remains important in situations like major investments, mortgage discussions, or problem resolution. The difference now is they expect that branch experience to be efficient and pleasant. UAE banks have responded by making branch visits more consistent and high-service. Indeed, the UAE is cited as focusing on “regional consistency in branch experiences” – likely because banks like Emirates NBD and ADCB ensure even smaller branches offer the same digital amenities and service standards as their flagship ones. Overall, UAE customers are ready and willing digital adopters, but they also hold their banks to global standards for both digital and in-person service. This dual expectation has pushed UAE banks to be among the most advanced in phygital CX execution.
Within the UAE, leading banks (Emirates NBD, ADCB, Mashreq, ADIB, FAB, RAKBANK) all report high digital usage metrics. For example, Mashreq saw a 85% reduction in branch visits after migrating most services to digital – a strategy that resonated with its clientele who gave its app a market-high 4.8/5 rating. Emirates NBD’s youth digital bank Liv Digital Bank. gained hundreds of thousands of users within a couple of years, showing that millennials and Gen Z will gladly opt for lifestyle-centric digital banking. Even expatriate-focused banks like HSBC Middle East note that their clients use mobile banking extensively for everyday needs, though they may still require branches for complex international transactions. In short, UAE customers are among the most digitally ready in MENA, pushing banks to continuously innovate or risk losing them to fintech alternatives.
Saudi Arabia – Rapidly Digitalizing, with an Eye on Trust
Saudi Arabia’s banking customers have undergone a dramatic digital shift in recent years. With strong government encouragement of a digital economy (under Vision 2030) and younger demographics, Saudi customers have increasingly embraced digital banking. A 2024 Capco survey of Saudi retail customers revealed 81% accessed banking services digitally at least once a week, and nearly 88% preferred using digital channels over visiting branches. Moreover, smartphone penetration is high (about 90%) and the population is tech-engaged – evidenced by the quick uptake of new fintech offerings. For instance, STC Pay, a digital wallet and now a licensed digital bank (STC Bank), achieved 55% brand awareness within a short time and garnered millions of users, showing Saudis’ readiness to try non-traditional banking solutions.
However, Saudi customers also emphasize trust, security, and Sharia-compliance. They tend to be loyal to established brands that align with their values. Al Rajhi Bank enjoys enormous trust and patronage – it has a penetration rate of about 42% of consumers (meaning nearly half of Saudi banking customers have an account with Al Rajhi), and it’s often the primary bank for a third of the market. This loyalty stems from Al Rajhi’s long-standing reputation, vast branch network, and Islamic banking leadership. Saudi customers’ trust in their primary bank translates into high NPS as noted (Al Rajhi’s NPS 74). But this trust must be maintained; any digital misstep (like a security breach or service outage) can shake confidence. Indeed, 31% of Saudi consumers cite cybersecurity as a concern when using digital banking. So while they are adopting mobile apps and internet banking quickly, they expect banks to uphold top-notch security and reliability.
Interestingly, despite their digital propensity, 70% of Saudi customers still find physical branches vital for their needs. Branches in KSA often double as sales and advisory centers for the community. Banks like Al Rajhi and SNB have many smaller branches even in secondary towns, and customers value being able to visit and talk to staff, especially for complex products or dispute resolution. The difference now is that leading Saudi banks are enhancing their branch service quality and consistency. The New Metrics report noted there remain “disparities in branch service quality” in KSA (some branches offering superior experience to others), which banks are trying to address. For example, SNB’s introduction of standardized “Champion” branches aims to uplift service uniformly. There is also a cultural aspect – Saudi customers appreciate hospitality and human interaction in service encounters, so banks ensure branches still deliver that personal touch (like majlis-style waiting areas, Arabic coffee served, etc.) even as they add digital self-serve options.
Within Saudi, we see a spectrum of adoption: urban consumers in Riyadh, Jeddah, Dammam are extremely digital-forward, using apps like SNB’s “AlAhli Neo” digital banking or Alinma’s new “iz” app heavily. Rural or older customers are comparatively less digital, but even they are gradually shifting (helped by government initiatives like digital salary payments and the ubiquity of smartphones). The presence of a few fully digital banks now (e.g. D360 Bank, launched 2024 as Saudi’s first digital-only bank, quickly attracted 600,000+ customers in its initial months) will further educate and convert customers to branchless banking models. Saudi Islamic banks historically lagged in digital, but that gap is closing – both Al Rajhi and Alinma now offer apps on par with conventional peers, and QIB’s success in Qatar provides a blueprint for Islamic CX which Saudi banks are following.
In summary, Saudi customers are increasingly digitally ready and enthusiastic, but they insist on security, Islamic compliance, and the option of human interaction. Banks that succeed in KSA will be those that blend cutting-edge digital convenience with culturally attuned, trustworthy service. The trends suggest Saudi consumers will continue to raise their expectations, quickly catching up to UAE levels of demand for personalization and innovation.
Qatar – Affluent Early Adopters with High Expectations
Qatar, with its smaller population (around 3 million) and high GDP per capita, has an affluent customer base that expects premium banking services. Digital adoption in Qatar is high – nearly all banked Qataris and residents use online or mobile banking to some extent. Qatari consumers enjoyed early digital innovations; for example, QNB and QIB have offered full digital onboarding and mobile wallets for several years, and uptake is strong. QIB reported that as a result of its digital drive, 83% of its retail customers are digitally active (using online/mobile regularly). Meanwhile, QNB, the largest bank, has digitized the majority of its services and claims over 90% of customer-facing processes are digital. These statistics show Qatar’s customers readily embrace digital channels for day-to-day transactions.
Customer readiness is also reflected in usage of new features: QIB’s “One Click” digital personal financing became very popular, contributing to the majority of personal loan sales. Qatar’s young professionals and expatriates are comfortable performing even complex tasks (investments, international transfers) through apps. Furthermore, internet and smartphone penetration in Qatar are on par with the UAE (very high), and the government’s smart nation initiatives mean customers are accustomed to digital services in many aspects of life.
Qatar’s banking customers also have access to high-quality physical channels, and they do use them selectively. Major banks maintain elegant branches, and for private banking or corporate banking, in-person relationship management is key. However, for retail banking, Qatari customers often prefer the efficiency of digital unless a situation truly demands a branch. The COVID-19 period accelerated this preference. Now, anecdotally, Qatari banks note reduced footfall in branches except for peak times like salary day or for specific needs. Banks have thus repurposed some branches into advice-centric or digital demonstration centers. For instance, QNB’s new flagship branches feature digital onboarding kiosks where staff assist customers in using the mobile app to open accounts, blending the experience.
Customer satisfaction in Qatar with digital services is generally high. QNB’s mobile app has won “Best Mobile Banking App” awards, and QIB has been recognized as providing the “Best Digital Experience” in Qatar. These accolades align with customer sentiment – Qatar’s banks often rank at the top in regional CX surveys. However, high expectations mean banks must continually update offerings. Consumers expect instant card issuance, real-time payments, and integration with lifestyles (for example, integration of loyalty programs, or the ability to manage multiple financial relationships in one place). Qatar’s relatively small size also means word-of-mouth travels fast – a great CX or a poor one can quickly become common knowledge among the community. Thus, banks like QNB, QIB, and Mashreq (which has a presence in Qatar) are very attentive to VIP customer treatment and quick issue resolution.
In terms of readiness for future innovations, Qatar’s population is a good testing ground. Many are early adopters of things like wearable payments or biometrics. If Qatari banks introduce biometric authentication (e.g. facial recognition for ATM withdrawals, which some have piloted) or even metaverse banking experiences, a segment of customers would try it out of curiosity and convenience. That said, Qatar’s banking sector is dominated by a few big players (QNB, QIB, Commercial Bank, Masraf Al Rayan), and customers tend to trust these incumbents. Fintech challengers are not yet as prominent, so customers haven’t widely shifted outside the traditional bank ecosystem – they expect their primary bank to provide all the modern digital conveniences.
In summary, Qatar’s banking customers are digitally savvy, quality-sensitive, and well-served by banks that have invested ahead of the curve in digital CX. The high digital uptake paired with continued use of branch advisory services indicates a phygital equilibrium similar to the UAE, albeit on a smaller scale. Future CX efforts in Qatar will likely involve even more personalization for this relatively small customer pool, and maintaining the high service bar set both digitally and physically.
Jordan – Gradual Digital Uptake Amid Constraints
Jordan’s banking customers present a mixed picture: the country has a highly educated population and reasonably good technology penetration, but also a tradition of cash usage and in-person banking that takes time to change. About two-thirds of Jordanian adults now have bank accounts (the figure has risen in recent years with financial inclusion drives). Smartphone usage is widespread in urban areas and among youth. Thus, digital banking adoption is growing – most banks in Jordan offer mobile apps and online banking, and uptake is solid among the middle class and younger users. Arab Bank, Jordan’s largest bank, reported substantial growth in digital usage; its Arabi Mobile app is popular and the bank even enabled fully digital account opening via the app (self-onboarding). Additionally, Arab Bank launched “Reflect”, the country’s first digital-only banking brand targeting millennials, in 2022. Reflect, in collaboration with a local telco, gained traction and updates like a linked debit card and loyalty program were rolled out. The fact that Arab Bank expanded Reflect beyond Jordan to markets like Palestine shows confidence in customer readiness for app-only banking in the Levant region.
That said, Jordan’s digital adoption is not as high as the Gulf’s in percentage terms. Many Jordanians still prefer branch visits for various needs, and cash remains common for payments. Cultural and infrastructural factors play a role – older customers often trust face-to-face dealings, and until recently, electronic payments infrastructure was less developed (though it’s improving). Banks have been addressing this by expanding ATM networks and digital service kiosks. Arab Bank and Bank al Etihad have modernized their branches to include digital zones where staff educate customers on using e-banking. The COVID-19 period helped convert many to mobile banking out of necessity, and retention of those users has been fairly good since then.
Customer readiness in Jordan also faces economic constraints. With lower average incomes than the Gulf, Jordanian customers are cost-conscious and sometimes hesitant to adopt new services if they perceive fees or complexities. Banks have responded by making digital channels free or cheaper (e.g. lower fees for online transfers vs. branch). The younger generation in Jordan (teens and 20s) is quite tech-savvy – high social media usage, comfort with apps – so they expect their banks to have decent apps as well. This has pushed even mid-sized banks to improve their digital offerings to attract and retain young customers entering the workforce. For example, Jordan Kuwait Bank and Cairo Amman Bank both launched revamped mobile apps in recent years and saw significant uptake among youth.
In terms of CX expectations, Jordanian customers have historically been somewhat tolerant of bureaucracy (standing in line, paperwork) due to how banking operated in the past. But this is changing as they see what’s possible. The introduction of instant mobile wallets and QR payments (e.g. ZainCash, Dinarak, etc.) has shown Jordanians that banking can be more convenient. As a result, their expectations are rising. Banks now face pressure to reduce wait times and simplify processes. There’s also more competition from regional banks: Arab Bank aside, banks like Housing Bank and Jordan Islamic Bank are upping their CX to stay competitive.
In summary, Jordan’s customers are increasingly ready for digital banking, especially the young, but the transition is gradual. The market still sees substantial branch usage, but each year the digital share grows. With strong examples set by Arab Bank’s digital initiatives (and its record $1 billion profit partly attributed to improved efficiency and service), other Jordanian banks are being nudged in the same direction. We can expect Jordan’s banking CX to continue improving as customer expectations climb – albeit within the economic and infrastructure limitations the country faces.
Lebanon – Maintaining Service Amid Crisis
Lebanon’s banking sector has been in crisis since 2019, which has profoundly impacted customer experience and trust. Historically, Lebanese banks like Bank Audi and BLOM Bank were considered regional pioneers in digital banking – they introduced internet banking in the early 2000s, had mobile apps by the 2010s, and offered services tailored to the Lebanese diaspora worldwide (e.g. Audi’s e-banking was widely used by expat clients). Banque Audi in particular invested in a modern core system “NOVO” and rolled out innovative services like tap-to-pay mobile wallets and personal financial management tools in its app. Lebanese customers, especially in the urban centers of Beirut and Tripoli, were tech-literate and quick to adopt these services, given Lebanon’s high education rates and traditionally strong banking culture.
However, the financial crisis severely eroded trust and changed usage patterns. With capital controls in place and currency devaluation, customers found their digital access restricted (for instance, online transfers abroad were blocked, account values were frozen). In this environment, customer experience suffered in fundamental ways – no amount of digital UX finesse can offset inability to withdraw one’s money. As a result, customers’ focus shifted to basic banking stability rather than advanced CX. Many resorted to branch visits and in-person negotiations to access funds, leading to frustrating experiences and in some cases confrontations. Banks tried to maintain service quality – for example, they kept digital channels running for information and local transactions, and some introduced new features like lira-to-dollar currency conversion tools in apps to cope with multiple exchange rates. But overall, Lebanese customers have been under tremendous strain.
Despite this, banks like Audi and BLOM BANK s.a.l. have tried to keep up with technology to whatever extent possible. They continued offering mobile banking for bill payments, mobile top-ups, etc., and encouraged digital channels to reduce branch crowding. Some banks also pivoted their CX efforts to diaspora and international businesses, where they could still operate normally. Bank Audi, before selling its Egypt subsidiary, had built a solid digital banking platform in Egypt, which was taken over by the acquiring bank. Domestically, Lebanese banks have had to scale back on grand CX projects due to financial constraints. Many experienced staff left the country, affecting service. Yet, the banks maintain helplines, websites, and apps to keep customers informed – an important aspect of CX in crisis is communication, and banks have used digital channels to communicate policy changes or updates.
Lebanese customers, for their part, have a bittersweet relationship with their banks now. They historically valued the personalized service (Lebanon’s private bankers were known for strong client relationships) and the tech conveniences that Lebanese banks offered (like Audi’s mobile app was one of the best in Arabic support and ease of use). Now, trust is low, but as day-to-day service providers, banks still need to function. Customers still expect their banks to provide online statements, currency converters, and perhaps innovative solutions to work around restrictions (some fintech solutions sprouted, like peer-to-peer dollar exchanges). In short, customer expectations in Lebanon have shifted from innovation to stability and transparency.
Going forward, if/when the banking sector normalizes, Lebanese customers will likely demand a return to modern, convenient banking. The diaspora angle is critical – many Lebanese abroad use digital channels to manage accounts at home, so banks will keep those services alive. We can surmise that banks such as Audi and BLOM remain capable of rolling out competitive digital services (they used to win regional awards), but their immediate challenge is regaining trust. Any CX improvement strategy must accompany a reputational rebuild. Until then, Lebanon’s example shows that even the best CX technology is secondary to the fundamental customer need for security of their funds.
Egypt – High Potential, Youth-Driven Digital Surge
Egypt’s banking market is massive (over 100 million population) but historically had low banking penetration – only about one-third of adults had bank accounts as of a few years ago. This is changing rapidly: by 2022 financial inclusion (including mobile wallets) reportedly reached around 65% pay, thanks to a big push by the Central Bank of Egypt. This means tens of millions of new customers entering formal finance, many via digital means. Egypt has a 94% smartphone penetration and a very youthful demographic (median age ~25). As a result, the appetite for digital solutions is huge: consumers leapfrog to mobile wallets and fintech apps even if they never used a bank branch. There are already 35 million mobile wallets in use in Egypt (often telecom-operated wallets), indicating receptiveness to digital finance. The government’s promotion of cashless payments (e.g. salary cards, QR code payments) further primes customers for digital banking.
Traditional banks in Egypt have responded in the last 3–4 years by aggressively rolling out digital offerings. CIB (Commercial International Bank), the largest private bank, launched a completely revamped mobile app and digital onboarding, winning awards for its usability. ADIB-Egypt (Abu Dhabi Islamic Bank’s Egyptian arm) is investing EGP 1 billion by 2025 in tech, aiming to “lead Egypt’s digital banking revolution”. They and others (e.g. Banque Misr, National Bank of Egypt) introduced app-based account opening, instant payments via the national network, and AI chatbots for inquiries. Egyptian customers, especially the young and urban, are quick to try these apps, though there is sometimes a learning curve for first-time banking customers. Education and support (in-app tutorials, call center help) are important to get mass adoption.
Egypt’s customer readiness is a story of contrasts: urban vs rural, young vs old. In Cairo, Alexandria, and other large cities, you’ll find widespread use of mobile banking and digital payments among the middle class. In rural areas, many are just starting with basic accounts or using mobile wallets for remittances and bill pay. The acceptability of digital is high when it adds convenience or access they didn’t have before. For example, someone in a small town receiving a government subsidy on a Meeza prepaid card can now use a mobile app to check balance – a new, empowering experience that increases comfort with digital finance.
Customer expectations in Egypt are influenced by experiences with non-bank digital services (e.g. ordering food via apps, ride-hailing). As these become normalized, people expect similar convenience from banks. That said, many Egyptian banking customers still rely on branches, especially for complex transactions or when trust in digital systems wavers. It’s not uncommon to see long queues in branches on certain days (like paydays) as habits change slowly for some segments. Banks are tackling this by expanding digital transaction limits, educating customers to trust digital receipts, and sometimes incentivizing digital use (lower fees or extra interest for online deposits).
One crucial aspect is language and simplicity. Banks offering Arabic-language intuitive apps gain an edge. Fortunately, most major bank apps in Egypt now support Arabic fully and are simplifying their interfaces, knowing that a flood of new users with varying literacy levels are coming on board. For example, Banque Misr’s app was redesigned with big icons and straightforward steps to cater to a broad base.
A notable development is the planned launch of Egypt’s first digital-only bank (a Banque Misr subsidiary focused on youth) by 2025. If launched, it will target smartphone natives with a seamless experience – likely similar to how STC Pay targeted Saudi youth. This indicates the belief that Egyptian youngsters are ready to forgo branches entirely if given a good alternative.
In conclusion, Egyptian customers represent a huge growth opportunity for phygital CX. They have shown they are ready to leapfrog – embracing mobile wallets, QR payments, and basic digital banking in great numbers. The banks that succeed will be those that can scale user-friendly digital platforms to millions while also maintaining enough physical presence or support for those who need it. Given the momentum (and heavy investment by banks and regulators), we can expect Egypt’s digital banking adoption to accelerate, with customer expectations quickly rising towards what they see in other industries and other countries.
Future Trends Shaping CX in MENA Banking
Looking ahead, several key trends are poised to shape the future of customer experience in MENA’s banking sector. These trends will further blur the lines between physical and digital, and push banks to innovate continuously to meet evolving customer expectations:
- Artificial Intelligence and Hyper-Personalization: AI will play an ever-larger role in both customer-facing and back-end aspects of CX. We will see more advanced AI chatbots and virtual assistants that handle complex dialogues (in Arabic and English), possibly leveraging generative AI to provide human-like service. Banks are already exploring these – e.g. Emirates NBD’s experiments with GPT-3 for customer queries, and Alinma’s “Alinma GPT” for internal efficiency. AI will also drive hyper-personalization: real-time data analysis to offer tailored products, financial insights, and Next Best Actions for each customer. With 79% of regional customers open to sharing data for better offers, banks can harness AI to curate truly individualized banking experiences (for example, sending a personalized loan offer right when a customer’s behavior indicates they might need credit, or proactive financial tips based on spending patterns). AI can also automate routine decisions – one day, customers might get an AI-approved loan in seconds without human intervention, in a fully seamless flow.
- Open Banking and Ecosystem Integration: MENA regulators (Bahrain, UAE, KSA, etc.) are introducing open banking frameworks that require banks to share data securely with third-party fintechs (with customer consent). By 2025 and beyond, this will lead to a more interconnected financial ecosystem. For customers, it means more aggregated experiences – e.g. banking apps that show accounts from multiple banks, or fintech apps that initiate payments from your bank. Banks that embrace open banking can improve CX by offering one-stop-shop “super app” experiences. We may see banks integrating non-bank services (investment platforms, insurance, e-commerce) inside their apps – a trend already in motion (Emirates NBD’s app linking to e-commerce via SkyShopper, or NBD partnering with fintechs for crypto trading). Open banking also spurs competition, pushing banks to up their CX game or risk customers easily switching to a better interface on another app. In the corporate space, open banking APIs will simplify treasury and cash management CX for businesses.
- Expansion of Phygital Branches: The branch of the future in MENA will continue to evolve. We can expect more smart branches with minimal teller counters and more digital zones. Likely, banks will adopt tiered branch formats: a few large experiential centers in key cities (offering full services, wealth advisors, perhaps co-working spaces for SME clients), many small digital-enabled express branches (for self-service transactions with remote support via video), and presence in third-party locations via kiosks. The “universal banker” model will become standard – staff who can assist with any product using tablets. Also, video banking and remote expert consultations will become commonplace, effectively extending the branch’s reach to customers’ homes. Given that a significant chunk of customers still wants physical reassurance, banks will focus on making branch visits a smooth extension of digital journeys: for example, scheduling an appointment via app, doing initial form-filling at home, then visiting branch for 10 minutes to finalize with an advisor who has everything ready. We may also see roaming service agents – bank representatives who can meet customers at offices or public places equipped with a tablet to perform banking (some private banks already do house calls for VIPs; this might extend to more segments).
- Payments Innovation and Cashless Society: Customer experience in payments will become faster and more invisible. Contactless and mobile wallet payments are already mainstream in GCC; next could be biometric payments (using face or fingerprint without a card/phone) and IoT payments (your car or smart device making payments in the background). Banks might integrate payment functionality into wearables (as some have with Garmin Pay, etc.). Also, as Central Bank Digital Currencies (CBDCs) emerge (the UAE and Saudi are piloting “digital Dirham/Riyal”), banks will incorporate them into apps to allow instant, 24/7 cross-border transfers with low friction. All these will make the payment experience more seamless – and banks will compete to ensure their customers can access these innovations easily, which in turn enhances overall CX (fewer failed transactions, faster checkouts, etc.).
- Voice and Multimodal Banking: We may soon talk to our bank as easily as to Siri or Alexa. Voice-enabled banking through home assistants or in-car systems could let customers check balances, pay bills, or even converse about financial advice. Some regional banks have dabbled in Alexa skills (Emirates NBD had one for balance inquiry). As Arabic natural language tech improves, voice banking in Arabic could take off, providing convenience especially while on the go or for the visually impaired. Coupled with voice authentication, this can be secure and user-friendly. Additionally, expect more multimodal interfaces – e.g. the ability to start a conversation by voice, then continue on chat or video with context carried over.
- Customer Experience Management and Analytics 2.0: Future CX will be increasingly driven by predictive analytics. Banks will move from reactive service (fixing issues after they occur) to proactive CX management. For example, the bank’s AI might predict that a customer is unhappy (by analyzing their transaction patterns, complaints, or even tone during calls) and trigger a retention offer or a friendly check-in from a relationship manager. Sentiment analysis on social media and banking interactions will alert banks to emerging pain points. We could see real-time CX score “health meters” for each customer – much like credit scores – that the bank monitors to intervene before the customer defects. This proactive, analytics-driven approach will elevate the level of personalization and care felt by customers.
- Focus on Financial Wellness and Advisory: As basic banking services become commoditized and automated, a key differentiator will be how banks help customers improve their financial health. Expect more CX initiatives around personal financial management (PFM) tools integrated in banking apps, offering spending analysis, budgeting tips, and investment suggestions. Banks might set up virtual financial coaches – combining AI and human advisors – to guide customers in achieving goals (buying a house, saving for education, etc.). Some global banks do this; MENA banks will adopt it to add value. For high-net-worth clients, banks will enhance digital wealth management platforms (like Emirates NBD did with its digital wealth platform launch) so clients can manage portfolios online with ease, supplemented by video calls with advisors. In Islamic banking, we may see digital advisory ensuring Sharia compliance and explaining product structures transparently – leveraging tech to educate and reassure customers, which is a key part of CX for that segment.
- Benchmarking Globally and Regionally: The future will also entail MENA banks measuring themselves against global CX leaders. Banks in the region are keen to match or exceed the likes of DBS (Singapore), BBVA (Spain), or Capital One (USA) in terms of customer delight. This means adopting best practices from around the world – whether it’s seamless omnichannel integration, innovative loyalty programs (like cash-back rewards integrated into apps), or community-building with customers (some banks have created online community forums for feedback). We might see MENA banks participating more in global fintech ecosystems, bringing cutting-edge ideas to their customers quickly. Already, some are partnering with global fintech firms (e.g. Partior for blockchain payments at Emirates NBD, or a digital onboarding tech from a European vendor at a Gulf bank). This trend will continue, ensuring customers in MENA benefit from worldwide CX innovations.
In essence, the future of CX in MENA banking is high-tech, personalized, and increasingly customer-empowered. Banks will seek to eliminate friction, anticipate needs, and embed banking in the fabric of customers’ daily lives – all while maintaining the human touch where it matters. Those that succeed will set new standards, possibly turning the MENA region from a follower to a leader in certain aspects of banking CX (as Gulf banks’ strong financials allow heavy investment in innovation).
Benchmarking MENA Banks Against Global Leaders
As MENA banks advance their CX capabilities, a natural question is how they compare with global best-in-class banks. Historically, global CX leaders in banking (like USAA in the US, DBS in Singapore, or Nordea in Scandinavia) have been known for effortless digital services, high customer loyalty, and robust omnichannel support. MENA banks, particularly in the Gulf, have rapidly caught up in many respects and even lead in some areas, though gaps remain in others.
On customer loyalty metrics, top MENA banks stack up very well. For example, Emirates NBD’s NPS of ~48 is above the global average for banks (which is around 30)customer, indicating a level of customer advocacy comparable to or better than many Western banks. Al Rajhi’s NPS in the 70s is exceptionally high by any global standard – few banks worldwide achieve that. This suggests that when it comes to customer affection and brand loyalty, the leading MENA banks are on par with the best (helped by factors like cultural affinity and relatively lower switching in some markets).
In terms of digital adoption, markets like the UAE are on the leading edge globally. The UAE’s ~83% mobile banking usage rivals usage rates in tech-forward markets like Norway or Australia. The willingness of Gulf customers to use new tech (e.g. high comfort with AI assistance at 73% cap) is ahead of many developed markets where customers are more wary of AI. Mashreq’s radical branch reduction (85% cut) and push to 100% digital services can be seen as a bold move emulating digital-native banks; few traditional banks globally have gone so far. This shows MENA banks’ ambition to leapfrog in digital model adoption.
On technology integration, top MENA banks are often using the same or newer tech than global peers. Cloud computing, AI, blockchain – GCC banks are piloting all of these. QNB’s partnerships with Apple/Google for payments mirror what leading banks elsewhere do. One could argue that in some niche areas like biometric security, MENA banks (faced with security-conscious customers) might even be ahead – e.g. several UAE banks implemented facial recognition login before some Western banks did. And the push into multi-language chatbots (including Arabic NLP) is an area where regional banks had to innovate since global solutions weren’t readily available; this could position them ahead in serving bilingual markets.
However, there are areas where global leaders still outshine many MENA banks. End-to-end product digitization is one – some global banks allow fully digital mortgages or complex wealth management entirely online, whereas in MENA, a number of products still require manual steps or in-person finalization (though this is changing fast for retail products). Service consistency can be another gap: global CX leaders are obsessed with consistency at every touchpoint. MENA banks, particularly outside the top tier, sometimes have variability (e.g. uneven branch service as noted in Saudi, or digital channels that are great but call center lagging, etc.). Bridging those gaps is on the agenda for regional banks.
Another benchmark is innovation culture. Banks like DBS are renowned for continually rolling out innovative features and even non-bank services (like a marketplace in their app). MENA banks are heading that direction – Emirates NBD’s Liv. tries to be a “lifestyle app” – but overall, not all have fully embraced platform models yet. There’s also the question of speed and agility: global fintech leaders release app updates and new features in very short cycles. Some MENA banks still have slower release cycles due to legacy processes. That said, the momentum is towards agile methods, so this gap is narrowing.
From a global recognition standpoint, MENA banks are starting to get noticed. Emirates NBD, QNB, and others now frequently appear in lists like The Banker’s “Top 1000 World Banks” and win regional awards that are essentially global categories (e.g. “Best Digital Bank Middle East” by Euromoney, which is a proxy for world-class in that category). In 2023, QNB was recognized as Best Digital Bank in the Middle East and Qatar, reflecting its ability to set benchmarks in its region. If one looks at customer acquisition and usage metrics of digital initiatives: Mashreq’s NEOBiz for SMEs, or Alinma’s iz youth platform with 90k sign-ups in a month, these rival the success of many global challenger banks in terms of momentum.
Where MENA banks will continue to benchmark globally is on CX governance and culture. The idea of design-thinking workshops, co-creating services with customers, and building digital communities is something global leaders do (for example, some European banks have customer innovation labs). A few MENA banks have started similar endeavors – e.g. Arab Bank’s fintech incubator (AB iHub) fosters innovation and likely engages customers in trials. As this culture deepens, MENA banks will produce more customer-centric innovations organically.
In conclusion, the gap between MENA’s leading banks and global CX leaders has significantly narrowed by 2025. In some cases, MENA banks are equals or even ahead – particularly in meeting the needs of their local context (bilingual service, Sharia-compliant digital products, etc., which global banks don’t do). In other aspects, like breadth of digital product offerings or absolute consistency, there’s room to improve. But given the trajectory and heavy investment, it’s plausible that in the near future, we will see MENA banks rank in the very top tier of global CX metrics. The commitment to world-class CX is evident, and as one UAE bank executive put it: “We aim not just to match global best practices, but to set new ones”. That mindset, backed by resources, could indeed make MENA banks among the CX champions on the world stage.
Conclusion
Phygital customer experience in MENA banking has evolved from buzzword to operational reality. As of 2025, the region’s banks have made great strides in marrying digital innovation with human-centric service, driven by visionary strategies and a recognition that customer experience is the new competitive battlefield. Across retail, corporate, private, and Islamic banking, institutions are reimagining how they engage customers at every touchpoint: a retail client in Dubai can open an account on a smartphone in minutes, talk to a chatbot for queries, and still have the option to receive face-to-face financial advice at a sleek digital branch; a corporate CFO in Riyadh can apply for a loan through an online portal and get prompt support from a relationship manager who already knows their needs; a young saver in Cairo can use a mobile wallet as their first “bank account,” then transition seamlessly to a full bank with a few taps.
Leading banks like Emirates NBD, Mashreq, Al Rajhi, QNB, and Arab Bank have shown what’s possible by committing to CX at the highest levels, investing substantially in technology and people, and relentlessly focusing on customer insight. They have set benchmarks with high NPS scores, integrated omnichannel journeys, and cutting-edge tools from AI to analytics. Lagging banks, while still playing catch-up, are now firmly oriented towards improving CX because customer expectations – fueled by these leaders and by global digital trends – have risen across the board. Even historically conservative segments (Islamic banking) and challenging markets (Lebanon, in its own ways) acknowledge that future success hinges on excellent customer experience.
Each country has its unique context, but common themes emerge: customers want simplicity, speed, personalization, and reliability. They may still love the reassurance of a friendly bank branch, but they demand the convenience of digital for everyday needs. The COVID-accelerated digital adoption has not reversed; instead, it established a new baseline for service. MENA banks are responding with a phygital model that ensures customers don’t have to choose between physical and digital – they get the best of both. Organizationally, banks are more agile and customer-centric than ever, breaking silos and harnessing data to constantly refine experiences.
Looking ahead, the phygital CX journey is far from over – in fact, it’s speeding up. The next few years will likely bring more AI-driven personalization, regional digital bank entrants, cross-industry ecosystems, and proactive service models that anticipate customer needs. Banks in the Middle East are well-positioned to capitalize on these trends, thanks to supportive regulators, relatively healthy finances, and a young, digitally-minded customer base. Challenges will include maintaining the human touch, ensuring security and privacy, and extending great CX to all customer segments including the less tech-savvy. Those banks that strike the right balance will not only lead regionally but could become exemplars globally, as the industry at large pivots to experience-led banking.
In conclusion, the state of phygital CX in MENA banking in 2025 is one of dynamic transformation and optimistic forward momentum. The region’s banks understand that in an era where products commoditize, experience is the differentiator. As they continue to innovate and compete – learning from both local customer insights and global best practices – customers across the Middle East and North Africa stand to benefit from banking experiences that are more convenient, engaging, and empowering than ever before. The race is on, and ultimately the winners will be those banks that most effectively weave together technology’s efficiency with the timeless trust earned through genuine customer care.
