Be safe, stay home and go online
As we fight the Covid-19 pandemic together, the banks in the UAE are encouraging customers to utilise online platforms
To open a bank account or to pop in for a query, we usually run to a bank’s branch. But no more. With limited banking hours and most of the staff working offline due to the ongoing lockdown in several countries owing to the pandemic Covid-19, financial institutes are encouraging customers to turn to online banking services.
As bank helplines are really busy right now, it may be quicker and easier to go with online banking rather than phone banking. Means you can pay bills, set up direct debits or standing orders, transfer money to other accounts, check statements and apply for other services like overdrafts or credit cards.
The Central Bank of the UAE is also encouraging customers to use digital banking practices to curb the spread of Covid-19. In line with this, the Central Bank has also called on the banks in the country to make available more digital and online banking services in the face of an unprecedented public health crisis. In a statement, the Central Bank said that it strongly encourages banking customers to use a contactless payment device in most shops to avoid touching the payment terminal or exchange cash. The also advises the public to link your debit/credit cards to their smartphones or device to utilise mobile payments.
It also advised customers to be vigilant against fraudsters who may try to take advantage of the current situation. “Make sure you’re on the lookout for anything suspicious, including messages about Coronavirus claiming to be from your bank,” it said.
The latest central bank circular suggests important tips for customers to follow to take advantage of digital banking. These include: signing up to online banking and the mobile app; knowing log-on details; and using contactless or mobile payments to avoid touching a payment terminal or exchanging cash at shops.
Like other banks, RAKBANK has also asked it customers to go digital and emphasised that its key priority is the safety of its staff and the customers.
Peter England, Chief Executive Officer at RAKBANK, said: “For customers, we recommend replacing visits to RAKBANK branches with alternative channels available to use remotely at their convenience. Alternative channels include ATMs and EDMs and RAKBANK’s Digital Banking app.”
However, even before Covid-19 struck a blow this year, the UAE was fast embracing digital technologies to encourage online banking simply because of convenience and innovation.
Large banks based in the UAE, one of the Middle East’s leading financial hubs, have been investing in digital transformation projects to compete in an industry with rapidly changing consumer requirements, according to analysis performed by Bloomberg Intelligence.
A number of banks have already announced digital banking initiatives, ranging from separate digital-only banking platforms to strengthening of existing mobile banking services, rationalising branch networks and refocusing staff on value-added services rather than repetitive and less-profitable operations.
Contactless payments
Supporting the Covid-19 cause, the banking sector and the government in the UAE have advised the residents to use contactless and digital banking.
In simple terms, contactless payments are a secure method for consumers to purchase products or services using a debit, credit using near-field communication (NFC) technology. To make a contactless payment, a cardholder just needs to place their card near a point-of-sale terminal (POS) that is equipped with the contactless payment technology. Since contactless payments do not require a card holder to enter a pin at the POS, such transactions are considered by many to be a safer way of paying for items during the current pandemic.
The contactless payment systems are credit cards and debit cards, key fobs, smart cards, or other devices, including smartphones and other mobile devices, that use radio-frequency identification (RFID) or NFC, e.g. Samsung Pay, Apple Pay, Google Pay, Fitbit Pay, or any bank mobile application that supports contactless for making secure payments. Comviva by Mahindra offers PayPlus that empowers merchant partners with a unified payment acceptance platform to accept any payment instrument across multiple channels. PayPlus offers a unified interface for merchants and acquiring entities to manage all instruments, channels and technologies through a single interface and is geared to extract the most out of the recent policy changes with its merchant self-onboarding functionality which significantly lowers the onboarding cost and allows the merchant to start accepting payments by downloading the application.
Juniper Research reports that contactless payments will triple to $6 trillion worldwide by 2024, from about $2 trillion this year, as OEM mobile wallet transactions increase and banks expand the use of contactless cards.
Rise of online shopping
As authorities recommend residents to stay home and reiterate the importance of social distancing, physical shopping outlets have temporarily put on a veil to contain the Covid-19 spread. However, this has given retailers an opportunity to explore digital solutions, while customers can enjoy their usual shopping activities online. Financial institutions, with added secure protocols and double authentication, have made contactless purchases a safe and enjoyable experience.
Residents in the UAE can not only access their favourite clothing and lifestyle brands, but also have fresh produce, ingredients and condiments delivered to their doorstep in a short period of time. Occasions and observations have also adapted to the current situation, as birthdays are currently celebrated virtually, complemented by doorstep deliveries of bouquets and treats.