According to an Australian financial website Finder, the digital bank revolution in UAE is picking up pace as the nation is aiming for a penetration of 41 percent by the year 2027.
They have initiated multiple level steps to make sure digital banking reaches each and every citizen of the UAE.
A worldwide survey of 1,015 participants conducted by Finder stated that the banking consumers of the UAE are the most interested in using digital banking technologies.
The UAE banking sector is considered to be one of the biggest in the world which has shifted to fintech services as it ranks Sixth among other countries in the adoption of digital banking technology.
UAE’s Digital Banking Industry Wants To Have A Better Penetration Rate
The UAE Banks Federation is spearheading the digital transformation movement in the UAE. They said that they are confident in bringing about innovative changes in the digital banking sector of the nation and this would further improve the overall banking experience of the UAE customers.
A webinar on the theme of “Accelerating digital banking and fintech in UAE 2022” was organized recently in which the director general of UAE Banks Federation Jamal Saleh said that they are fully equipped and devoted to the purpose of setting up digital and Neo Banking system in the UAE under the direct leadership of Central Bank of the UAE.
Saleh also made it clear that they are striving towards creating a digital banking transformation that would enable the customers in the UAE to make use of all the new and exciting features that the neo-banks had to offer. This would be done by thoroughly analyzing the trends of digital banking across the world.
For this purpose, they are providing multiple platforms that would encourage discussions, experiences, and solutions that would help them implement the best and most innovative practices enabling high-end security and user experience.
Saleh also added that digitization is one of the most important aspects of the world economy and by conducting a webinar on digital banking is part of the efforts to create a more organized and consolidated leadership that is more enthusiastic and farsighted in learning and analyzing trends happening in the global market.
Digitization is the future of the service sector and banking being one of the core parts of the economic service sector, has to definitely update itself according to the changing times.
The major digital banks of UAE like Liv, Mashreq Neo, Amwali, etc. have all started their operations in the UAE and have been successful in moving towards a completely digitized environment. Yap is the first independent digital banking platform in the UAE. Zand Bank is also planning to offer its own digital banking platform soon in the Emirates.
The payment index 2022 of MasterCard has found that 29 percent of UAE customers used less cash for their payments in 2021. The Covid pandemic had turned the tide in favor of digital banking as more and more customers shifted to an online banking mode during the lockdown.
Because of this huge leap in fintech, banking services have to now adopt a digitized platform and provide a more intuitive user experience for consumers. The UAE has one of the world’s largest smartphone penetration with a staggering 97 percent.
This also further makes UAE a perfect platform for introducing the latest neo-banking trends in the region.
The Neo banks in the UAE offer a wide range of services when compared to digital services offered by banks in other parts of the world that includes various security services and a completely paperwork-free banking environment.
This makes digital banking an important tool in fintech, investing in gold, stocks, and forex can also be done using digital banking as this would be a one-stop shop.