How Fintech Is Transforming Retail Banking In The GCC

Sandeep Chouhan, EVP – Group Head of Operations & Technology at Mashreq Bank – tells us how the bank is investing technology for the future of banking.

As the retail banking landscape evolves at a dramatic pace, it is imperative that banks start to think like technology companies. The reason for this is the rise of fintech. At Mashreq Bank, technology has always been a key focus area for us.

The Gulf region, led by the U.A.E., is rapidly moving towards a cashless society and we are witnessing fintech increasingly disrupting the payments and financial industry. Digital payments offer unprecedented economic benefits and provide greater convenience for stakeholders in the economy, and adoption of digital payments is increasing faster than ever.

Keeping in mind the shifting consumer demands, banks need to be quick on their feet to reinvent themselves by introducing new technology. If our competition is technology then that is where we would like to prepare ourselves. I firmly believe that competition is unlikely to come from banks in the future.

When it comes to retail banking, this disruption is transforming the customer experience. Working with fintechs, rather than against them, banks can substantially elevate their customer experience. For instance, through fintechs customers can have 24/7 access to banking services. In essence, the bank can go to where the customer is. Fintechs, unlike traditional banks, focus on ubiquity and omni-channel offerings.

This technology can enable banks to provide other innovative solutions, such as lending for customers with poor credit scores. Using technology to arrive at alternative credit-decision methods, data analytics and non-traditional data sources to calculate risks, banks can consequently deliver quick customer-centric lending processes, while reducing operating costs. In the end, the customer will ultimately benefit through all these advancements.

Digital disruption has had a substantial impact on retail banking, and it is evident that we need to evolve and come up with new innovative solutions to maintain customer relationships and bottom lines. Initiatives such as Startupbootcamp, which has developed the world’s largest network of fintech accelerators, and where Mashreq is a key partner, is a fantastic way to stimulate the fintech ecosystem in the region, by bringing together financial institutions, and local and regional startups on one platform.

At Mashreq, we are playing a leading role by supporting and encouraging fintech companies to enhance their business models, with the aim of ultimately deploying new solutions and technologies in the U.A.E. and beyond. Furthermore, as we invest in fintechs we also gain a stake in fast-growing technology companies. These investments could be a source of new revenue streams and allow us to serve our retail banking customers in innovative ways.

While fintech companies generally focus on a single service, their effect can be felt across every area of finance. Be it loans, payments, insurance, banking or asset management, fintechs can play a decisive role in the entire financial industry.

Fintech has altered our interaction with money, while bringing about greater efficiency to companies. With the rapid pace at which technology is developing, it is fairly challenging to forecast future developments, however, the trends to watch in the industry are decidedly blockchain, biometrics and artificial intelligence. The future of banking will be drastically different than most believe.