Bahrain based digital lender ila Bank is assessing expansion opportunities across the GCC and North Africa as evolving regulations create new openings for digital-first banking.
I sat down with the Group CEO, Mohamed Rasheed Almaraj, from Manama at Fintech Forward to unpack the bank’s previous and upcoming expansion plans in the MENA.
Scaling up
“We used to be in project mode, establishment mode in the last five years in ila. Now we are in the scaling up mode,” Mohamed Rasheed Almaraj, CEO of ila Bank and Chief Retail & Digital Officer at Bank ABC, told Finance Middle East.
The lender is conducting a strategic review with its board to determine where it should expand next. While Oman and Qatar are among the markets under consideration, the bank has yet to announce a new launch or establish a timeline for entry.
“We’re looking at them very closely with the other GCC countries and we’re actually going now through a strategic review with our board on which countries to go to and everything is on the table,” Almaraj said.
The bank’s expansion plans reflect a broader shift in the regional digital banking landscape.
Bahrain and Jordan provided early opportunities to establish fully digital operations, but Almaraj said regulatory requirements in other MENA markets had previously constrained the bank’s ability to replicate its model.
Regulation shapes expansion
Bahrain was a natural starting point for ila Bank, which launched in 2020 after being established in the preceding years.
Almaraj attributed the decision to the country’s regulatory environment, which supported cloud-based banking infrastructure, digital customer verification and electronic signatures.
“Bahrain was the first country in the region to allow digital KYC or digital account opening,” Almaraj said, adding that the ability to use digital signatures also allowed the bank to offer lending products through a fully digital model.
Jordan was selected for similar reasons. When the bank assessed its next market, its regulatory framework offered a more straightforward route to establishing digital operations than some other regional jurisdictions.
The bank’s technology infrastructure operates across Bahrain and Ireland on Amazon Web Services.
Cloud rule considerations
Cloud infrastructure requirements have been a consideration in ila Bank’s regional expansion plans, particularly in markets where regulators require banking data or systems to remain within national borders.
Almaraj said the bank had previously been reluctant to pursue markets where an exclusively in-country cloud solution would add cost and operational complexity to its digital banking model.
The bank’s technology infrastructure operates across Bahrain and Ireland on Amazon Web Services (AWS). Requirements around data residency and cloud deployment therefore remain relevant to how ila assesses potential new markets.
Almaraj said geopolitical developments had prompted renewed consideration of whether banks could obtain exceptions allowing the use of overseas cloud infrastructure for resilience purposes. He did not identify specific regulators that had changed their requirements.
“I think we’re going to reassess the GCC countries now,” the CEO said. “We believe that all of them have the right business, let’s say metrics to win from a digital-first solution. We were just waiting for the regulatory aspect to come.”
The bank is now reviewing potential markets with its board, although it has yet to announce a new country entry or timetable.
From deposits to investments
Alongside geographic expansion, ila Bank is broadening its offering beyond deposits into lending, investments and wealth management. The bank has introduced digital gold and silver trading and personal loans through its app, covering both Islamic and conventional financing, with stocks and other investment products in the pipeline.
“We started off with a very deposit-based, focused offering and now what we’ve started doing is launching products under wealth management and investments,” the CEO said.
The strategy aims to extend investment access beyond the high-net-worth clients traditionally served by private banks, reaching a broader customer base through digital platforms.
“We really believe in this concept of what they call democratising access to wealth management and trading solutions.”
The bank plans to develop its lending and investment products in Bahrain as it builds out its regional business.
The case for one financial app
ila Bank is positioning its investment offering as part of a broader relationship with customers, combining deposits, payments, lending and wealth management within a single regulated platform.
“More and more, people are looking for one app for all their needs,” Almaraj said.
The strategy places ila Bank in a market where digital banks and investment platforms are competing to capture a greater share of customers’ financial activity.
Its next phase of growth will depend partly on whether regulatory frameworks across the GCC allow it to replicate its Bahrain model in new markets.
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