This was stated in a new report issued by the global management consulting company “Arthur D. Little“, which highlighted the pioneering role played by the UAE in shaping the future of digital banking services in the region.
Yassin Mohieldin, Partner in the Global Financial Services Practice at Arthur D. Little, said: The UAE It is not satisfied with merely competing in the banking services sector, but seeks to set global standards for this sector.
He added, “In light of the digital currency strategy launched by the Central Bank and the pioneering steps in integrating blockchain technology, the UAE is redefining the concept of a modern financial center. This is not just a temporary trend, but rather a radical transformation that will constitute a model to be emulated in global markets, as the UAE is working on Building a banking system that combines modern technology with a focus on meeting customer needs.”
He stressed that innovation and progress have achieved great qualitative leaps thanks to benefiting from the experiences of the Southeast Asian market, which range from open banking and integrating financial services into non-banking platforms to advanced data analytics for customized offers, where examples of this include enhancing customer loyalty and harnessing technology and partnerships to target new segments. Of small and medium enterprises.
He stated that the digital banking sector in the UAE has achieved tremendous growth at a compound annual growth rate of 8.7 percent over the past two years, outperforming countries in the region, pointing out that this strong growth is expected to continue at a compound annual growth rate of 4.8 percent from 2024 to 2024. 2029, and the sector will reach $175.7 billion by 2029, as banks in the UAE rely on the latest technology, including artificial intelligence, blockchain, and cloud computing, which sets new standards for banking experience. customers and enhance the efficiency of operational processes.
Yassin Mohieldin added that the UAE, as the first to launch a central bank digital currency strategy, is leading the Middle East region through its transformative central bank digital currency initiative, which lays the foundation for enhancing financial inclusion and innovation in the economic sector.
In turn, Nelson Danam, Senior Project Manager and Member of the Global Financial Services Practice at Arthur D. Little, said that the transformation of the banking sector in the UAE is not only about technology, but is also about changing mentality and thinking. The desire to embrace artificial intelligence, blockchain, and advanced financial technology solutions reflects a culture that embraces change at all levels.
He pointed out that by investing in innovation and the talent needed to lead it, UAE banks are not only keeping pace with global standards, but are working to formulate them, as this proactive approach makes the UAE a role model and places it in a leadership position at the global level.
He explained that 80 percent of UAE banks put digital transformation at the top of their priorities in 2024, which strengthens the country’s position as a leader in financial innovation in the region, noting that through strategic partnerships with innovative technology companies and cloud-based customer relationship management platforms, UAE banks are reshaping Customer experience, and enhances the efficiency of operational processes to provide a distinctive digital banking experience.
