Joseph Abraham, Group CEO, Commercial Bank of Qatar • Interview
Despite having won awards for its digital innovation in the Middle East, Commercial Bank of Qatar continues to enhance its digital capabilities to quickly come up with new innovations and products.
How has the bank evolved in the four years since you took office?
The bank has always had a strong franchise and brand, with a 45-year history. What we have done over the last four years is re-energize that franchise by focusing on a number of key client experience and creativity projects primarily in the digital environment. We have won several awards for our digital innovation in the Middle East, and we expect more and more transactional banking to be done on a self-service basis through automation and digital access. We have also transformed our core operations and technology engine and created our own dedicated subsidiary, namely Commercial Bank Innovation Services, to manage our technology and operations in a unified manner to enhance our digital capabilities so that we can come to market quickly with new innovations and products. This agility provides a long-term competitive advantage. The third area of focus is ensuring everyone understands that risk control and compliance is everyone’s responsibility and has to be embedded in the DNA of the bank. Part of a prudent risk approach is diversification by sector, and we have increased our business with the public sector from less than 6% of our loan book to 12% currently, the target being 16-20% in the next four-year period. We also have subsidiaries and associates in Turkey and Oman with whom we work much more collaboratively today. Finally, four years ago we had a cost-income ratio of 45%, which was higher than the market average, but today we are at 28%, which is much better and closer to the market average. We will continue to focus on each of these areas.
How has COVID-19 accelerated digital initiatives within the banking sector?
COVID-19 has accelerated the adoption of digital technology, products, and services by clients across all age groups. For example, we have implemented an online appointment system that allows clients to select the service they need in advance and the date and time that is most convenient for them. This helps us become more efficient, better manage peak hour traffic, and reduce waiting times for our clients, and brought about a rise in client satisfaction. We will also introduce more digital capabilities related to wealth management, brokerage, and fund investment services.
What are your growth plans in terms of new products and services to enhance your retail and corporate experience in Qatar?
Digital adoption will continue, so we will also continue to roll out new products and services to make transaction banking easier. For example, we were the first in Qatar to launch digital deposits of checks, where customers just have to take a photo of the front and back of a check to deposit it into their account.
Our goal is for customers to do 100% of their banking transactions without having to visit a branch. As people diversify their investments and wealth from real estate, they are now looking at alternate forms of savings and investment options, whether it is equities, bonds or annuities through insurance products. We have to be ready for this type of customer behavioral change. In Qatar, we have one of the highest concentrations of high-net-worth individuals as well as many expatriates working here for 20 years who have built up savings. We have to focus on this diversity in demographics with different needs. Regarding corporate clients, COVID-19 will drive changes in capital structures, and they may be looking at longer maturity dates in bonds and other issuances, which will change their focus from only bank debt. Across both retail and corporate, people will look at their cash flows, wealth, and investments more carefully, and we are there to support them with a better understanding of their needs and relevant new products and services.
“Across both retail and corporate, people will look at their cash flows, wealth, and investments more carefully, and we are there to support them with a better understanding of their needs and relevant new products and services.”