Narratiive Tags - Khaleej Times Desktop
Supplements
Logo
 

Digital transformation to boost banking sector

Filed on August 31, 2020

A KPMG study has found that financial institutions that leverage technology and data will be best positioned to grow in the UAE's financial market.

Adapting to new technologies, effectively using digital assets and building a strong risk management strategy will be key to succeeding in the UAE's financial services industry. According to KPMG's fifth annual UAE Banking Perspectives 2020 report, the financial services industry is facing unprecedented disruption.

This is being driven by several key factors including the rise of blockchain technology, the emergence of fintechs, digital banking firms and unconventional competitors and a more stringent regulatory and compliance landscape. So too has the COVID-19 pandemic dramatically altered the environment in which banks, fintechs and other players now operate.

The age of digitalisation
Specifically in the UAE, KPMG notes a trend towards consolidation in the market, with prominent mergers including First Gulf Bank and National Bank of Abu Dhabi, Dubai Islamic Bank and Noor Bank and several more.

The report notes that "as we enter an age of tremendous interconnectivity, many banks are keen to digitalise their customer experience, their services and their products, and expand beyond the confines of their traditional bricks-and-mortar service models".

KPMG expects further market consolidation. It also predicts an increased focus on connected banking, using technology to place customers at the heart of development and using data more effectively to drive business growth.

The emergence of the banking ecosystem will also play a crucial role in the transformation of the sector. This will, says KPMG, revolve around an interconnected set of services where customers can fulfil a variety of needs through a single, integrated experience.

It notes that this "may represent the cornerstone of digital banking in the future".

Overcoming disruption
With those challenges and changes in mind, KPMG states that financial organisations that make best use of technology and data, and that are able to navigate the regulatory landscape most effectively, will be the best place to grow.

They will also, it explains, be better positioned to overcome the disruption caused by the global coronavirus pandemic. Rapidly evolving customer expectations are placing considerable strain on the development trajectory of organisations. In addition, increased scrutiny from regulatory bodies is forcing banks to modernise across their entire operations more efficiently.

Abbas Basrai, partner and head of financial services at KPMG, explains: "Banks and other financial institutions are faced with tough times ahead, but technology can help mitigate negative effects for customers and business."


ERROR: Macro /ads/dfp-ad-article-new is missing!
MORE FROM Supplements
MORE FROM Khaleej Times
CurrentRequestUnmodified: /apps/pbcs.dll/article?avis=KT&date=20200906&category=ARTICLE&lopenr=200909312&Ref=AR&profile=1672 macro_action: article, macro_profile: , macro_adspot:
 
 
 
 
 
 
 
KT App Download
khaleejtimes app

All new KT app
is available
for download:

khaleejtimes - android khaleejtimes - ios khaleejtimes - HUAWEI AppGallery