VIEWPOINT
A RECIPE FOR GROWTH PAUL WRIGHT, MANAGING DIRECTOR UK, FR, ME & TURKEY AT APPSFLYER, WRITES ABOUT MOBILE BANKING USER ACQUISITION STRATEGIES TO ACCELERATE RECOVERY OF UAE BANKS IN 2021
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s the UAE emerges from what looks to have been the peak of the pandemic, analysts have started to make predictions about the recovery of the country’s banking sector. While the UAE economy is projected to achieve 2.5% real GDP growth this year, in dollar terms, we’re only expected to see 2019 GDP levels by 2023. For this reason, rating agency Standard & Poor’s has stated that the recovery of the banking sector will be ‘gradual’. This sentiment is echoed by Redmond Ramsdale, Head of Middle East Bank Ratings at Fitch who expects the general business and operating environment for banks to remain as challenging in 2021 as in 2020.
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Against this backdrop, it is imperative that UAE banks find ways to identify and capitalise on every opportunity. And they won’t have to look far for inspiration — according to a recent article which cited Bank of America Merrill Lynch (BoAML) analysts, 2020 was not a terrible year for Saudi banks and many saw strong loan growth driven largely by the consumer and credit card segment. Retail banks in the UAE could accelerate their recovery by growing their base of customers who are now more inclined than ever towards digital payments, contactless cards, and mobile banking. It’s clear a number of UAE banks recognise the importance of going digital, and the transformation of the
sector has been truly impressive. Today, most traditional banks in the UAE offer slick digital banking options and with the latest announcement about the upcoming launch of Zand — the UAE’s first digital bank — it is probably a matter of time before most, if not all, banks go ‘digital-first’. This however makes it a challenging segment to stand out in. But in the rush to avoid FOMO, banks can run the risk of failing to create compelling digital offerings that really stand out — ultimately, it is not the volume and variety of digital services, but rather the quality of digital experiences that customers are most concerned with. The reason every bank would like to believe it is a ‘FinTech’
