Use of digital solutions has been reinforced by the Covid-19 pandemic. New normal has had the positive effect of further accelerating digitalisation and pushing its importance to the fore. Importance of progressing to digital capabilities becomes a shared goal, the industry is set to inevitably meet obstacles along the way. The banking sector is challenged by the ever-increasing need to deliver optimised speed, transparency and efficiency; the difficulty in prioritising where to invest; keeping up with the launch and development of new technologies; and being constantly alert to potential new partnerships in a fast-paced world.
Fast-paced digital business world has created a need for fast and efficient domestic and cross-border payments. Banks in the Middle East face the challenge of enhancing legacy systems to achieve faster, more streamlined processes. Central Bank of Bahrain has made considerable progress to date, with a national electronic payments system now in place interconnecting domestic retail banks and their customers. The value of this system was highlighted during the pandemic, with real-time payments surging. In fact, volumes grew more than in any other country in the past year, increasing by 657 per cent. Saudi Arabia has also planned to implement a real-time payments system that will be run by Saudi Payments, a subsidiary of the Saudi Arabian Monetary Authority. UAE brought in an interim real-time payments solution in 2019 called Immediate Payment Instruction. need for efficiency, cost-effectiveness and transparency in international payments is also crucial, particularly as businesses in the Middle East are increasingly operating cross-border. SWIFT gpi is making massive strides in addressing the inefficiencies and lack of transparency that previously impeded cross-border payments. And, because the initiative leverages SWIFT’s existing global infrastructure, it can be implemented by financial institutions (FIs) without a significant overhaul of existing bank systems. Uptake continues to gain momentum across the Middle East, with banks in countries including the UAE, Lebanon, Egypt, Qatar, Turkey and Saudi Arabia participating in the initiative.