Dubai: Digital revolution sweeping through the financial services industry is rapidly changing the way the banking industry is interacting with custormes and delivering services”, said Abdul Aziz Al Ghurair, Chairman of the UAE Banks Federation (UBF).
Addressing the second Annual Middle East Banking Forum in Dubai, Al Ghurair said banks should be quick to adapt to changes. “As banks we have always had to be creative to succeed, but in today’s digital environment innovation is more important than ever. Branches are still popular, and customers like to talk to their bankers face-to-face or by telephone. But people and businesses are increasingly conducting their transactions and seeking advice through computers and mobile devices,” Al Ghurair said.
With most businessessuch as travel, retail and news communication adopting digital revolution, bankers said financial services industry has little choice but to offer digital solutions to the new generation customers. “This is not only because technology makes transactions easier, but more importantly the new consumer generation want to organise their banking, shopping, travelling and entertainment that way,” said Al Ghurair.
The trend is catching up fast in the UAE and the region. While many banks are already delivering both personal banking and business banking transactions across a number of digital platforms, bankers said the industry is braced for more innovations to suit the market requirements.
In addition to the innovative solutions offered by individual banks, in the UAE banking sector as a whole is moving towards creating shared digital platforms. One such initiative is the Mobile Wallet initiative.
The project is expected to be implemented over next year in a number of phases. The UBF is coordinating the project with banks such as Abu Dhabi Commercial Bank, ADIB, Commercial Bank of Dubai, Emirates NBD, Mashreq, National Bank of Abu Dhabi and Standard Chartered.
The Mobile Wallet is the financial component of the Smart Government initiative. The project also incorporates the facility for smart phones and other digital devices to be used for cashless purchasing in UAE retail and other outlets, as well as a means to store and transfer money. MasterCard’s recent ‘Cashless Journey’ study indicated that in the Middle East, the UAE is moving fastest away from cash. The study, which looked into how 33 countries are close to becoming cashless markets, found that non-cash transactions in the country account for 26 per cent of consumers payments by value, compared to 19 per cent in Saudi Arabia.
Guest keynote speaker Dan Schatt, Chief Commercial Officer of Stockpile and former General Manager of Financial Innovations, PayPal said, financial sector innovations in digital banking has big scope in the region. “As everywhere else in across the world, digital applications are going to challenge the banks in the region, the way they have been doing business in the past,” he said.
Simon Hills, Executive Director at the British Bankers’ Association, said in the context of digitisation there is huge scope for global collaboration among banks, financial institutions and non-financial services service providers who operate on digital platforms.
