Digital banks and financial disruptors in the UAE can achieve stronger, more sustainable growth by focusing on specialised customer segments, industry leaders said at the Banking Innovation and Technology Summit in Dubai. Speakers noted that concentrating on well-defined niches enables institutions to build deeper expertise, operate more efficiently and scale profitably in a competitive market.
Saadaat Yaqub Bajwa, Director and Co-founder of Kamel Pay, said the company’s decision to focus on blue-collar workers was driven by the scale of the opportunity. “In the population of 10 million in the UAE, 50 per cent falls into this category,” he said. “They are underbanked and underserved. It had the biggest potential to expand.”
Bajwa said that competition for customers in the UAE remains intense due to the country’s relatively small population, making focused strategies essential for growth. Kamel Pay has expanded its services to deepen engagement with this segment, including new microfinance products, loans and additional offerings through B2B channels. “We are getting into B2B financing, and we are going to be expanding business,” he said.
He made the remarks during a panel discussion on the rise of digital banks and open finance on the opening day of the three-day summit, organised by Khaleej Times. The fifth edition of the event brought together fintech founders, banking executives and technology leaders to discuss the future of financial services in the region.
Vibhor Mundhada, CEO of Neopay, agreed that niche targeting is valuable but stressed the importance of serving merchants comprehensively. “Given the large scale of Neopay in our core business, which is merchant acquiring, we want to make sure that the platform offers every payment method that’s needed for a merchant,” he said. The goal, he noted, is to ensure merchants can access all essential payment options through a single platform even while the company maintains its specialist focus.
Technology’s role in strengthening competitiveness was another major theme. Fazil Badrudeen, Head of Brand and Marketing at Vision Bank, said automation has allowed smaller institutions to match the capabilities of large incumbents while keeping costs contained. “In today’s age of AI, cross manual processes can be automated, from customer due diligence to certain KYC and transaction monitoring systems,” he said. This has enabled Vision Bank to scale its transaction volumes without expanding its compliance team, he added.
Mohamed Roushdy, CIO of Reem Finance, praised the UAE’s regulatory environment for supporting innovation and helping companies move from specialised financial services into full banking. He said the Central Bank’s framework for approving partnerships, sponsorships and licences is well-structured and balanced, making such transitions possible while ensuring compliance requirements are met.
Speakers said the UAE’s supportive ecosystem, combined with digital-first strategies and smart use of technology, positions niche-focused fintechs and digital banks for strong future growth.
