The Emirates’ “robust” banking sector will remain healthy and stable in the long term, and the effect of financial technology is evident in the changing trends over the past years.
The revenue of UAE banks is expected to surge by 52 per cent to about $25 billion by 2030, with digital transformation playing a key role in boosting operations and customer services.
The share of cash in payments declined to 20 per cent in 2021 from 69 per cent, while the number of digital accounts jumped. They comprised 51 per cent of all bank accounts in 2021 from 7 per cent in 2018.
The UAE is already the “undisputed” top financial hub in the Middle East and one of the top seven globally, he said, and the industry has invested heavily in technology to boost customer bases and bottom line to keep in step with an economy undergoing a rapid digital transformation.
The UAE has long championed the critical role digital transformation plays in its economy and society as the country positions itself as a global hub for innovation.
The banking and financial sector is poised to be one of the main benefactors of this shift, given the critical role it plays in the economy and the opportunities it brings to entrepreneurship.
FinTech, meanwhile, remained the highest funded sector across emerging venture markets — which includes the Middle East in the first half of 2022, more than tripling to almost $1.68bn in the first half of 2022 from a year ago.
Digital trends are set to continue and grow further in the financial sector, and this means more customer data that needs to be processed and protected.
Collaboration with various stakeholders in the ecosystem will unlock greater value for the industry and unleash innovative solutions for UAE customers.