UAE: 72% survey respondents prefer mobile banking apps

Driven by customers’ growing appetite for seamless digital and in-person services, the UAE banking sector is undergoing a profound transformation, according to a new study.

Conducted with 24 UAE banks by Arthur D. Little (ADL), the survey released on Wednesday reveals that 72 per cent of UAE respondents now prefer mobile apps as their primary banking channel, drawn to their convenience, intuitive interfaces, and personalised financial tools. This digital surge reflects a broader global trend, with the UAE’s mobile banking adoption rate outpacing many developed markets, where mobile app usage averages 65 per cent, per a 2024 Statista report.

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Despite this digital dominance, physical branches remain vital for complex financial needs. Around 35 per cent of UAE customers still visit branches for services like loan applications and mortgages, valuing the trust and expertise of in-person interactions. High-income customers, in particular, show a nuanced preference: 70 per cent favor digital solutions for routine banking but rely on face-to-face advisory for high-value decisions. Additionally, 43 per cent of respondents regularly use self-service kiosks for tasks like cash withdrawals and account inquiries, indicating a demand for hybrid solutions that blend automation with human touch.

Mobile wallet adoption is also on the rise, especially among younger and tech-savvy middle-income groups. The UAE’s mobile payment market is projected to grow by 8.2 per cent annually through 2030, driven by innovations like contactless payments and digital remittances, according to a 2025 PwC report. This trend underscores the need for banks to enhance digital self-service options, such as advanced kiosks for loan processing and card issuance, alongside robust mobile wallet functionalities.

Martin Rauchenwald, partner and global head of financial services at ADL, said by integrating advanced digital platforms with high-quality in-branch advisory, banks can build trust and loyalty. Seamless omnichannel strategies are key to meeting evolving customer expectations.”

Rezwan Shafique, principal at ADL Middle East, added that investments in AI-powered personalization and digital literacy programs are critical to bridging the digital divide and enhancing user experiences across mobile apps, online portals, and branches.

The survey highlights the growing demand for “phygital” banking — merging digital efficiency with personalized human interactions. UAE banks are urged to adopt hybrid models, leveraging AI-driven wealth management tools and optimised remittance platforms while maintaining trusted in-branch consultations.

According to banking industry experts, with the UAE’s financial sector contributing 14.2 per cent to the national GDP in 2024, per the UAE Central Bank, these strategies are essential for banks to stay competitive.

Issac John

issacjohn@khaleejtimes.com