6 NOVEMBER 2019
Head of e-banking
Qatar National Bank – Egypt
DIGITAL TRANSFORMATION OF BANKING SERVICES IN MENA
technologies are expected to have a profound impact on MENA digital transformation market over the forecast period. The technology helps build several new sources of competitive advantage by leveraging social, cloud, mobile, and big data technologies.
The market is expected to witness substantial growth as it helps enterprises address impact of new technologies on their processes, decision-making, product rollouts, promotions and issues pertaining to customer engagement. Furthermore, digital transformation market with its low entry barrier has been transforming the way enterprises do business, and is expected to favourably impact market growth over the next few years.
Middle East is moving fast towards digital transformation, particularly GCC countries, by adopting a knowledge-based approach. Furthermore, increased ICT spending in GCC countries is expected to contribute towards deployment of emerging technologies. Improved infrastructure & credit environment, ongoing government investments, economic recovery, and increasing trend among ICT operators to offer more comprehensive and integrated IT services is expected to drive market growth extensively.
Digitisation improves management decisions, extends the organisations’ reach and speeds up new product and service development. It also helps transform operational processes through employee enablement, process digitisation and performance management. Presently, companies emphasise more on digitally-transforming customer experience by improving top-line growth, customer understanding and customer touchpoints, which is also expected to positively impact market growth.
This results in a new customer segment called “Digital customer” ..
Who is the digital customer?
With most adults owning smartphones and 40 per cent claiming to have accessed banking services via their device, the digital customer is evolving into the customer; in other words, it is a rarity to find a completely non-digital consumer. Some consumers have ‘gone digital’ completely. Almost 20 per cent of retail banking customers exclusively consume digital offerings that fit within their digital lives. This group, known as ‘digital natives’, represent an important customer segment, approaching peak consumption of financial services whilst demonstrating strong potential for borrowing and deposit opportunities.
The needs of the digital customer:
Enabled by technology, digital natives are comparing, discussing and switching between banks faster than ever before. What digital natives do as part of their daily routine is critical for unlocking the path to purchase. Below, there are several traits that define their needs and decision making when purchasing financial products online.
- Increased desire for on-demand services: 61 % of customers expect products to offer more online interactions (Accenture, 2015).
- Greater use of digital interactions: Average customers have 17 interactions with their main bank per month—10 are online or with a mobile device (Accenture, 2015).
- Greater desire for simplicity: Digital natives are increasingly turning to non-bank challengers for greater integration, with four out of ten financial products purchased outside their main provider.
3 Questions For Belal Abdellatif
Is open banking the silver bullet to reinvent the banking industry?
Yes, it is, by opening up their APIs, banks are able to easily connect other APIs in the market in order to extend their service offerings by introducing native FinTech solutions in a plug-and-play manner.
Open Banking APIs increase the appeal of a bank and enable them to meet the changing demands of existing customers as well as appeal to prospective customers. These APIs can also serve as a unique way to increase customer engagement and attend to customer needs in a secure, agile, and future-proof method.
What is the biggest challenge in banking industry and how can you overcome it?
From my point of view, technology risk becomes the most important challenge nowadays. As financial services businesses become more digitised and the amount of data and information within them explodes. But continuous monitoring helps banks get a single, consistent and transparent view of risk and control performance based on data, metrics and analytics.
This enables banks to proactively identify risks and put risks into perspective.
Continuous monitoring capabilities may not necessarily replace traditional risk measurement techniques, such as risk and control self-assessment or risk assessments, but are increasingly being considered as the primary tool to identify and manage technology risk.
How are day-to-day technologies and AI helping within the retail banking, and what is the future of the banks?
AI has enabled retail banking to expand its range of products and services and improve its efficiency in many ways, such as customer satisfaction, chatbots, detecting fraud or reducing human errors. It has a reflective impact when the machine learning can interact with humans by making decisions and work in a convincing way that encourages customers.
A common trend in banking technology is using an application programming interface (API) to make proprietary data available to anyone who has the consumer’s permission to access it.
Belal Abdellatif is an expert in banking field with 17+ years of experience focusing mainly on Digital Transformation, Digital Banking, Fintech and Operations Management. His experience diversified in several Business areas like Digital Transformation, IT solutions, Core Banking, Mobile Payments, E- Commerce and Business Transformation, Budgeting and Electronic Payments.
4 NOVEMBER 2019
General Manager – Personal Banking Group
Commercial Bank of Dubai
Commercial Bank recognised with "Best Digital Service" is joining the 3rd Annual Retail Banking Technologies Summit, where Amit Malhotra will give a speech about their digital banking transformation journey.
Who is the digital customer?
Commercial Bank of Dubai, one of the leading banks in the UAE, has been recognised with the “Best Digital Service” Award in the special jury prize category at the “Arab Digital Banking Excellence Awards – 2018″, held recently at Hotel Laico – Tunis organised by the Union of Arab Banks.
In its first edition, the Arab Digital Banking Excellence Awards aims to recognise and highlight the efforts of the Arab banking and finance sector in providing digital services and inspiring and motivating all stakeholders to continue providing distinguished services through innovative and digital solutions by utilising the latest technologies to the development of this sector.
Dr. Bernd van Linder, Chief Executive Officer of Commercial Bank of Dubai said, “It is a matter of immense pride that CBD has won the “Best Digital Service” special jury Award at the 2018 Arab Digital Banking Excellence Awards ceremony. Winning this prestigious award is a notable achievement for Commercial Bank of Dubai and a testament to CBD’s drive towards becoming a truly digital bank. It’s also a validation of the significant investment made by the Bank in digital technology and innovation to meet customer needs through innovative services. I would like to thank H.E. Rashed Mohamed Al Mansouri, UAE Ambassador to Tunis, for receiving the award on our behalf.”
Amit Malhotra, General Manager – Personal Banking Group at CBD, said, “We are pleased that UAB has recognised the hard work we have put into our digital banking services. At CBD, customer centricity and convenience lie at the heart of all our initiatives. Understanding today’s busy lifestyle and the need to keep things simple and streamlined, CBD’s digital banking solutions offer simplicity and ease of transaction to its customers, combined with great user experience.”
CBD’s award-winning Mobile App is a next-generation app that offers an exceptional customer experience combined with convenient and value-added services like smart notifications, budget and expense tracker, rewards, offers and more. The app provides seamless on-boarding for customers in a matter of minutes, with same day card delivery, and also allows customers to report and block lost or stolen cards and apply for replacement cards with just one click
Amit Malhotra joined Commercial Bank of Dubai in October 2017. Prior to joining CBD, Amit was Senior Managing Director and Group Retail Banking Head at Al Hilal Bank in Abu Dhabi. Prior to moving to the UAE, he held senior retail and credit roles in Standard Chartered Bank in Singapore, Vietnam and India as well as similar roles in Citibank in Thailand and India. Amit holds a BCom (Hons) from Delhi University and a Post Graduate Diploma in Business Management from the Institute of Management Technology, India.
Amit is a trained Six Sigma Master Black Belt and he was a founding member of www.makemytrip.com, India’s largest online travel company with market cap of over $1.2 billion.