Unlocking the Unbanked: The MENA & GCC Region’s Biggest Challenge

Across the Middle East and North Africa (MENA) and Gulf Cooperation Council (GCC), a defining challenge persists in financial services: unlocking access to credit for the unbanked and underbanked. Despite rapid digital transformation and the rise of Buy Now, Pay Later (BNPL) and fintech solutions, traditional banking models continue to exclude millions due to thin or nonexistent credit files.

The solution lies in alternative data — a shift already reshaping the region’s financial landscape.

The Scale of the Challenge

Only 48% of adults in the MENA region have a financial account, leaving most people without access to formal credit. This “credit invisible” population is often turned away by financial institutions or pushed toward informal lenders, creating a cycle of financial exclusion. For banks, BNPL providers, and fintechs, this represents both a social mandate and a major untapped opportunity.

Why Traditional Credit Models Fall Short

Credit scoring systems were designed for banked customers. In regions with low banking penetration, these models don’t reflect financial behavior. As a result:

• Many creditworthy individuals are rejected or offered high-interest products.
• Positive financial habits, like paying rent or utilities on time, are overlooked.
• Lenders face high acquisition costs and default risks due to missing context.

The Role of Alternative Data

Alternative data refers to non-traditional indicators that help assess creditworthiness, such as:

• Mobile device metadata (geolocation, device specs, app usage)
• E-wallet and telecom transaction histories
• Social signals and digital behavior
• App interactions and form completion patterns
• Utility bill and rent payment records

These signals help build a fuller, more accurate picture of a customer’s financial reliability, even when no formal credit history exists.

How Banks, BNPLs, and Fintechs Are Using Alternative Data

• Onboarding and verification: AI tools use mobile SDKs and eKYC processes to collect behavioral data, verify identities, and flag fraud in real time.
• Credit scoring: Machine learning models assess alternative data to approve new-to-credit or unbanked customers.
• Fraud prevention: Behavioral analytics detect document tampering, synthetic identities, and suspicious activity.
• Scalability: No-code platforms help credit and risk teams build and launch scoring models without heavy tech support.

Real-World Impact

Institutions using AI-powered decisioning and alternative data have seen:

• 5x increase in customer acquisition from unbanked populations
• 40% drop in defaults and non-performing loans
• 90% reduction in onboarding time

Enabling Inclusive Credit With AI and Alternative Data Thanks to Synapse Analytics

Synapse Analytics is helping solve the region’s financial inclusion challenge. Through AI-driven credit decisioning and document automation, we help financial institutions lend faster, reduce risk, and reach underserved markets.

What We Offer

• Konan: Our AI credit decisioning engine automates the full credit lifecycle, from onboarding and verification to instant scoring. Konan enables lenders to integrate a wide range of external data sources—from traditional bureau data to alternative signals like device metadata, SMS, and any customer-consented data.It combines these inputs with behavioral signals and digital footprints, all processed through no-code workflows and pre-trained models. The result: fast, accurate decisions for everyone—including those traditionally excluded from the financial system..
• Alternative Data Enrichment Module: Designed for BNPL and digital lenders, this module collects and analyzes consented data from mobile devices, user behavior, and third-party sources. It improves fraud detection and scoring, especially for customers without traditional credit histories.
• Doxter: Our document automation platform streamlines onboarding with advanced OCR, eKYC, and verification. It reduces manual errors, speeds up document processing, and helps teams onboard more customers in less time.

Proven Results

• 70% reduction in decision-making time
• 40% drop in default and NPL rates
• 5x increase in customer acquisition
• 90% faster onboarding

Synapse Analytics has facilitated over $150 million in loan decisions and processed more than 2 million applications for leading banks and fintechs across the region.

If your team is looking to scale smarter, onboard faster, and serve a broader market, Synapse Analytics has the platform and expertise to make it happen.