UAE banks 'outsourcing services'

Banks in the UAE are increasingly outsourcing many of their operations - including security, cash management and cheque book printing - in order to concentrate more on their core business, said an industry leader.

Yesterday, the Commercial Bank of Dubai (CBD) signed two agreements to outsource some of its services. The move by CBD is following a market trend, said Mahmood M. Hadi, assistant general manager, systems and operations, CBD.

"We are outsourcing because the people that are taking it on are more experienced at what they do. And this means we can concentrate more on our banking operations and focusing on the customers."

The bank signed an agreement with Group 4 Securitas Emirates to take care of its security and cash management needs in Sharjah, Abu Dhabi, Al Ain and Ajman.

An agreement was also signed with the National Printing Press for it to take care of making the bank's cheques books and delivering them.

The move to outsource security needs for banks is a trend which has already taken off in the U.S. and Europe, said Ray Attard, managing director, Group 4 Securitas Emirates.

Attard believes that the trend is picking up here because banks are beginning to see the advantages of using professionals.

"We are uniquely placed in the marketplace based on our expertise to supply cash management services in line with evolving world trends," said Attard.

Group 4 Securitas Emirates, which is partnered by the Al Hamed Group, was formed in 1995.