UAE lenders make big leap in latest tech adoption

As fintech is radically changing the finance industry, innovations such as artificial intelligence, machine learning, blockchain technology, biometric identification, cloud computing, and the use of big data are revolutionising the industry, the UAE’s banking sector is making investments in the latest technologies, said Saif Hadef Al Shamsi, Assistant Governor of the UAE Central Bank.

“In the UAE, we are observing that incumbent financial institutions, and banks in particular, continue to make investments in fintech solutions to stay ahead of the curve,” said Al Shamsi.

Both incumbent technology-savvy banks and challenger fintech companies are increasingly offering technologyenabled solutions that enhance the user experience and the ability to target customers with better tailored products. Furthermore, solutions for expanding access to financial services through mobile banking and other forms of branchless banking are an increasing trend, to cater to the needs of customers and drive cost efficiencies.

The strategy includes both the upgrading of their own systems and enhancing their services to enable lower cost of delivery and better customer experience, and strategic acquisitions of start-up fintech firms.

Unbanked segments

Al Shamsi called on banks to utilise technological advances to target the unbanked segments of the population in the country. The challenge, he said, is therefore to design solutions that can successfully address the lack of access and expand the outreach to the people who are excluded from the formal financial system or its essential components.

“Fintech innovation provides an opportunity to find and promote solutions that enhance the deepness of financial inclusion and bring down the costs of cross-border remittances. Solutions such as the KYC utility and e-wallets can be seen as efforts that support the financial inclusion agenda,” he said.