Tuesday 23 April 2019

UAE leads in digital banking in Mena

DUBAI, March 19, 2018

The UAE is now leading the Middle East and North Africa (Mena) region in digital banking with an impressive 16.4 per cent penetration, according to a report by Al Masah Capital Limited.

The report is titled "Digital Banking - ME Trends”. The UAE is closely followed by its neighbours: Bahrain with 13.6 per cent and Saudi Arabia with 11.5 per cent penetration, reported state news agency Wam.

The report further revealed that digitisation continues to take the global economies by storm. It stated that in order to remain competitive, swift response to the evolving consumer needs is paramount as more and more customers are now expecting their respective banks to be at the forefront of effective and efficient technological transformations.

The Mena region offers compelling and promising opportunities for the banks and other financial institutions, with UAE and Saudi Arabia emerging as two of the most active markets in the development of a digital ecosystem.

Collectively, the Mena region, with 4.1 per cent, seems to be closing the digital gap with North America with 8 per cent and Europe with 6.2 per cent, as players in the Gulf region continue to make meaningful investments in telecom infrastructure, digital readiness initiatives, and competitive arrangements for network providers.

According to Al Masah Capital, the Mena region enjoys a large millennial population, which is expected to further drive the future of digital banking industry.

With cost reduction through digitisation as the main focus for regional banks, major players are now creating ecosystems that will ultimately offer customers multiple interaction-points such as the branch, ATM, online presence (e-banking) and mobile banking apps.

Al Masah Capital Limited report reveals that the Mena region banking and financial sector is undergoing a significant digital transformation in order to keep their customers engaged with next-generation services and offering.

Tags: | UAE | Mena | banking | Digital |

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