MEA Finance - December 2020

December 2020

A clear view of the path ahead Hisham Alrayes, CEO and Board Member, GFH Financial Group

December 2020

A clear view of the path ahead Hisham Alrayes, CEO and Board Member, GFH Financial Group 14 Banking & Finance | 24 Technology | 48 Advisory View | 56 Legal Perspective | 64 Awards

Congratulations to of the MEA Finan

s to all the winners ance Awards 2020

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In this issue...

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elcome to the December 2020 Awards Issue of MEA Finance, where those banks, financial businesses, technology companies and individuals in the region who have shone in this past year are showcased.

It has proved to be a challenging year for the banking industry and for the region as a whole. Rather than dwell too much on 2020, in the December issue of MEA Finance, we also look at the opportunities that next year could bring.

Our cover story this month is an interview with Hisham Alrayes, CEO and Board Member, GFH Financial Group.

MEA Finance’s banker of the year talks about the prospects and requirements for some of the key sectors of the regional economy, how GFH has fared in the past year and where he sees future opportunities for GFH. You can read the full interview from p32.

“For 2020, we expected a continued shift towards equities due to the low interestrate environment supported by soft monetary policies and that is impacting the return on bonds,” says Masroor Batin, CEO Wealth Management, Middle East & Africa at BNP Paribas Wealth Management.

The coronavirus put a dampener on those plans, but he and Mohamed Abdelbary, Group Chief Financial Officer at ADIB, discuss their key objectives for 2021. You can read their thoughts from p14.

Elsewhere in this issue, we explore digitisation and data security. To pick just a few highlights, have a look at Peter Smith, Managing Director, Head of Strategy, Policy and Risk, Dubai Financial Services Authority who talks about data security (p26); Nicolai Solling, CTO, Help AG, who explains that digitisation of banking services is no longer a feature on the financial landscape, it is the financial landscape (p28); Li Shi, President of Cloud and AI Business Group, Huawei Middle East, who provides insight into how cloud services will bring greater efficiency and effectiveness (p36); and Krishnaswamy Subbarao, Head – Product Management, Infosys Finacle, who writes about the innovation journey at the Bank of Muscat (p38).

All this, as well as our write up of the MEA Finance Awards 2020 (p63), views from advisors – KPMG and AMERELLER – and opinion pieces from National Bank of Fujairah and Boston Consulting Group on top of our regular coverage of deals across the region, make this a bumper issue.

Enjoy!

Adrian Murdoch mea-finance.com

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CONTENTS

CONTENTS 32

MARKET NEWS

6 12

Nasdaq Dubai welcomes listing of USD 600 million Checkout.com report shows e-commerce and digital payments set for major growth in 2021 across the MENAP region

LOOKING AHEAD

16

BNP Paribas Wealth Management see 2021 as a year of continued change and growth.

18

Heading robustly into the future

DATA SECURITY

24

Data strategy in business transformation

26 28

The evolution of data security The increasing role of Data Security and Data Management

OPEN BANKING

30

Every bank should initiate its Open Banking initiative (Why? and How?)

COVER STORY

32

MEA Finance (a MEA Business supplement) WEB: www.mea-finance.com EMAIL: info@mea-finance.com PUBLISHED BY: Creative Middle East Media FZ LLE, 19th Floor, Creative Tower, Fujairah Creative City, PO Box 4422, Fujairah, UAE EXECUTIVE DIRECTOR AND PUBLISHER : Kenneth Mitchen Email: ken.mitchen@mea-finance.com

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Banking and Finance news in the MEA market

A clear view of the path ahead

BANKING TECHNOLOGY

36

In the post-epidemic era, cloud computing will accelerate the digital transformation of global industries

38

The pandemic fuels digitization like never before

40

Every Experience Matters

36 38

DIGITAL TRANSFORMATION

44

A digital past, present & future

CITY CONNECTIVITY & GROWTH

50

Dubai’s position in Global Economy Connectivity

OPINION PIECE

52

Fundamentals of planning your investment journey

54

Deleveraging Data Has Cost Middle Eastern Principal Investors Over USD 6 Billion in Potential Returns on Investment

40

44 52

LEGAL PERSPECTIVE

56

Identifying Issues in Technology M&A in the UAE – Competition Law

AWARDS

64

Honoring the region's top performers in the banking, finance and technology industry

56

50 64

54 mea-finance.com

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MARKET NEWS

Nasdaq Dubai welcomes listing of USD 600 million

Islamic Corporation for the Development of the Private Sector (ICD), Nasdaq Dubai listing

Sukuk by Islamic Corporation for the Development of the Private Sector

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asdaq Dubai has welcomed the listing of a UDS 600 million Sukuk by the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB).

The capital raised from the Sukuk will support ICD’s wide-ranging development activities within its 55 member countries which include creating competition, e n t re p re n e u r s h i p , e m p l o y m e n t opportunities and export potential, as well as encouraging the development of Islamic financing activities such as the debt and equity capital markets.

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The five-year Sukuk was issued at 140 basis points over the mid-swaps rate and was approximately three times oversubscribed, including orders from the joint lead managers. The diversity of the orderbook saw investors from Europe, Asia, and the Middle East. More specifically, the issuance was allocated to investors as follows: 4% of the issuance to UK/Europe, 21% to Asia, and 75% to the Middle East. By investor type, fund managers were allocated 13%, Banks/ Private Banks 57%, Agencies/Central Banks 29%, and Others 1%.

It is ICD’s second Sukuk issuance, following a USD 300 million issuance

Banking and Finance news in the MEA market

i n 2 01 6, w h i c h i s a l s o l i ste d o n Nasdaq Dubai.

Ayman Sejiny, Chief Executive Officer of ICD, stated: “We received strong investor interest in our new Sukuk issuance from a wide range of constituencies including fund managers, commercial and private banks and central banks – demonstrating their confidence and support for ICD’s strategy and initiatives in promoting private sector activity.

ICD’s Sukuk listing on Nasdaq Dubai, as the region’s international exchange, provides the Sukuk with excellent links to regional and international investors on a well-regulated platform attracting global visibility.”

Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “This new listing by a prominent multilateral entity adds further momentum to the growth of Dubai as the global capital of the Islamic Economy, under the initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minster, and Ruler of Dubai. Nasdaq Dubai will continue to build critical mass in the Islamic capital markets sector, extending the scope and scale of the services that we offer to market participants.”

ICD’s latest listing brings the total value of Sukuk listed in Dubai to 74.05 billion US dollars, underlining the emirate’s status as one of the largest Sukuk listing centres in the world by value.

Hamed Ali, Chief Executive of Nasdaq Dubai and Deputy Chief Executive of Dubai Financial Market, said: “In hosting this Sukuk issuance by ICD, Nasdaq Dubai is delighted to facilitate capital raising activity in support of private sector financing and advisory projects across the Muslim world, helping to generate wealth and prosperity. Our growing relationship with the multilateral IsDB Group demonstrates our commitment to serving Sharia’a-compliant issuers based regionally and internationally, providing an effective and high-profile listing platform.”

ICD’s 600 million US dollar Sukuk listed on Nasdaq Dubai on October 15, 2020.

MARKET NEWS

Saxo Bank and Sarwa announce partnership

Steve Weller, CEO Saxo Bank MENA Region

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axo Bank, a fintech and regtech specialist focused on multiasset trading and investment, has agreed on a strategic partnership with Sarwa, a UAE-based fintech firm and the region’s first online investment advisory platform for young professionals, that will support the local company’s rapid growth across the MENA region.

The partnership utilizes Saxo Bank’s innovative platform and technology, allows Sarwa to add new asset classes to their offering, and provides flexibility to tailor products and services more effectively to clients.

The collaboration will also add efficiency for Sarwa, allowing them to scale

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Mark Chahwan, co-founder and CEO of Sarwa said: “We chose to enter this partnership with Saxo Bank as we have been on a positive and fast-paced growth trajectory since our platform launch in Feb 2018. We understood the need for a partner that could help us to scale the business in a seamless matter and enable us to provide more services and products for our clients as we expand into new markets.

“S a xo B a n k sto o d o u t i n o u r evaluations based on the cutting-edge technology, regulatory framework and OpenAPI functionality as well as technical support and intangibles such as consumer trust and experience. As Sarwa continues to evolve and grow, we see the need for a partner that supports us on our journey and expansion into new markets. We are very happy to be working with such a dedicated and professional team.”

S a xo B a n k , w h i c h supports more than 120 White Label partnerships globally, offers a range of partnership options to more than 300 financial intermediaries, off-theshelf solutions, and tailored outcomes to support institutional clients in the financial services sector on their growth path. Through its unique trading and investment technology, Saxo Bank facilitates access to more than 35,000 financial i n s t r u m e n t s a c ro s s Sarwa Founding Team, Nadine Mezher-CMO, Jad multiple asset classes.

Sayegh-CTO, Mark Chahwan-CEO significantly in the future, both in terms of increasing their client base and product offering across multiple asset classes.

Steve Weller, Middle East CEO for Saxo Bank said: “We are very proud to sign this agreement and work with Sarwa, a rising regional fintech with great potential for the future. Our joint agreement is a great example of the power of collaboration when two companies bring together their strengths for mutual benefit.

“At Saxo Bank we are always championing the power of partnerships, believing that financial institutions must explore external partnerships to innovate and improve the customer experience as digital consumption continues its rapid increase. This agreement with Sarwa is a perfect example of the win-win nature of partnerships and I expect we will see more such collaborations across the MENA financial services arena as digitisation increases.”

Banking and Finance news in the MEA market

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MARKET NEWS

SHUAA Capital delivers solid Q3 performance, with Q3 net profit of AED 59 million organizational integration on track, SHUAA has realized 55% of its previously increased synergies target to be achieved by end 2021, this translates to AED 30 million out of the AED 55 million target.

Additionally, the company continues to downsize its non-strategic assets, achieving a 39% reduction in its non-core asset unit (NCU) since July 2019 to date and remains on track to close the unit by end of 2021.

Jassim Alseddiqi, Chief Executive Officer of SHUAA

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H UA A C a p i ta l a n a s s et management and investment banking platform in the region, has announced its financial results for Q3-2020. The company delivered a solid performance, with net profit of AED 59 million for the third quarter taking Q3-YTD net profit to AED 64 million. The Group also saw continued strong EBITDA generation with Q3-2020 EBITDA standing at AED 114 million.

This performance was primarily driven by positive mark-to-market effects on investment portfolio despite a proactive negative valuation adjustment.

SHUAA’s asset management business maintained its solid base and positive trajectory, with assets under management increasing to USD 13.6 billion at the end of Q3-2020 compared to USD 13.0 billion in Q2-2020, driven by net new money, market performance and FX gains.

Continued execution against integration targets W i t h p o st- m e rg e r syste m s a n d

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Continued progress on executing against our strategic objectives The company has made further headway in strengthening and growing its core businesses as well as diversifying its product and service offering within these core businesses. This is following an active quarter which saw SHUAA launch new funds demonstrating clear progress on our plan to increase recurring revenue streams through permanent capital vehicles.

These include the SHUAA Financing Opportunities Fund, which is not only SHUAA’s first dedicated financing fund but also the company’s first fund focused on private Sharia-compliant financing in the GCC. The fund achieved first close on 29 September 2020 with USD 68 million in commitments from investors. In addition, shortly after the period end on 4 October, SHUAA launched three Sharia-compliant funds, the first such funds within an ICC umbrella to launch on the Abu Dhabi Global Market (ADGM), with USD 75 million in commitments received. These products build on SHUAA’s track record of creating innovative investment opportunities for its clients, and further support its commitment to the Islamic investment industry where the company sees strong investor appetite.

Banking and Finance news in the MEA market

Balance sheet and funding profile strengthened by recent bond issue SHUAA recently completed the issue of a new bond, which marks the first high yield issuance in the MENA region since the onset of COVID-19 in March 2020, raising USD 150 million. The bond was admitted to trading on the London Stock Exchange’s International Securities Market on 28 October 2020 and attracted significant institutional interest across the region and beyond, allowing SHUAA to raise the targeted USD 150 million. The bond issue represents a further milestone in executing on the company’s strategic levers by fortifying its balance sheet and strengthening its financial position going forward. With that, SHUAA has completed its funding plan for 2020.

Commenting on SHUAA’s Q3-2020 results, Jassim Alseddiqi, Chief Executive Officer of SHUAA Capital, said: “With a resilient business model in place and a clear strategy to achieve longterm sustainable growth, SHUAA has continued to achieve significant progress in Q3-2020. It is once again testament to our team that despite the considerable ongoing challenges of the current pandemic, we have been able to achieve so much, both operationally – with the successful launch of our new funds in recent months – and financially, strengthening our balance sheet and increasing our earnings visibility going forward.

“Looking ahead, we will remain focused on our strategy, build recurring revenues and fortify our financial position so that, irrespective of the global backdrop, we can continue to succeed and create value for our clients and shareholders.”

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MARKET NEWS

Checkout.com report shows e-commerce and digital payments set for major growth in 2021 across the MENAP region

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he e-commerce and digital payment industries in the Middle East & North Africa, Pakistan (MENAP) region are set for major growth in 2021, according to a report released by Checkout.com, a leading global payment solution provider.

The Connected Payments in MENAP report also reveals that the region, which has historically been dominated by cash payments, presents a significant growth opportunity for the digital payments industry as online shoppers now prefer using digital payments.

The report draws insights from a regional survey, which polled more than 5,000 consumers in September 2020 in the UAE, Saudi Arabia, Egypt, Jordan, Qatar, Kuwait, Bahrain, and Pakistan.

Across the eight countries, 47 per cent of consumers say they expect to shop online more frequently over the next year. Only 15 per cent expect their online shopping frequency to decline, while the remaining 38 per cent expect it to remain about the same as now. The likely surge in e-commerce and digital payments in 2021 is consistent across the countries surveyed, from 49 per cent of the GCC consumers saying they will shop online more frequently, to 48 per cent in Jordan, 47 per cent in Egypt, and 39 per cent in Pakistan.

Online merchants can expect certain demographic groups to drive growth more than others, particularly the most affluent consumers (56 per cent), those already shopping online at least on a monthly basis (55 per cent), men ages 35 and older (55 per cent), and those using digital payments rather than cash or bank

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transfers to pay for their online purchases (54 per cent).

“While there has been a sudden surge in e-commerce and digital payments this year due to the impact of COVID-19, our report suggests what we are seeing today is more than a temporar y change in consumer behavior. Our internal data shows an 86% checkout.com, author of The Connected Payments in MENAP report increase in digital payment transactions The Connected Payments in MENAP on our platform since the start of the pandemic in the region,” said Sebastian report seeks to lay the post-COVID-19 Reis, EVP of Global E-commerce at roadmap, informed by Checkout.

Checkout.com. “This presents a major com’s cumulated depth and breadth of opportunity for businesses across the experience in supporting many local and MENAP region. However, to leverage this global merchants to grow across the shift in consumer behavior and to succeed MENAP region over the past six years.

When asked by MEA Finance about in what’s already a highly competitive space, businesses will need to offer not how the digital payments landscape has only the products and services consumers changed in the past year, Mohammed Ali look for, but also the best online shopping Yusuf, Vice President of MENAP region experience, including payment processes at Checkout.com, answered, “Recent that are safe, secure, and convenient changes in day-to-day payment activity has accelerated trends we’ve long witnessed for consumers.”

The Checkout.com report also shows globally. Today, more consumers are that the region’s consumers have embraced transacting online than ever before. With e-commerce nearly universally, with 90 per that comes complications for the financial cent saying they shop online, including nearly ecosystem which supports eCommerce. half (44 per cent) doing so at least monthly. We believe that payments are no longer a Moreover, 45 per cent say they are now commodity but hold the key to unlocking purchasing products and services online better customer experience and driving more frequently than they did before the business growth. Our data shows that this new way of thinking is here to stay. start of the COVID-19 outbreak.

Banking and Finance news in the MEA market

LOOKING AHEAD

Forging ahead

and asset growth remaining healthy despite the impact of COVID-19, the banking sector is well-positioned to continue leading non-oil growth and diversification in the Gulf in 2021.

Banking sector consolidations

2020 has undoubtedly been a difficult year for the banking industry in the region but there are clear signs that we can expect a more positive 2021, shaped not just by a recovery from Covid19, but also by some of the new directions that have formed from it.

By Walter Sebele

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he outbreak of COVID-19 undoubtedly wrecked plans for most financial institutions across the GCC region this year but several lessons were learned from the pandemic and adjustments were made in anticipation of a better 2021. Reports on the efficacy of coronavirus vaccines from Moderna, AstraZeneca, and Pfizer, projections of oil price stabilizing at an average of $50 per barrel and recovery in regional economies by an average of 2.4% in 2021 are glimmers of light, however, without these things could be even worse for GCC banks.

The UAE central bank recently announced that it was extending until June 2021 the applicability period of key components of a stimulus package to bolster retail and corporate banking customers and accelerate recovery from the COVID-19 pandemic. Moody’s stated that the UAE’s $70 million Targeted Economic Support Scheme and other measures that were introduced to mitigate the impact of the pandemic will

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limit banks’ likely material asset quality deterioration from the virus.

Despite the headwinds confronting Gulf lenders, the financial service industry is coming up with ways to resist external shocks ranging from digitalization, reducing a glut of banks in the region through synergies and sustainable financing.

Digitalisation efforts GCC banks are increasingly digitizing their products and services as well as experimenting, investing and integrating with fintechs. Banks are leading or participating in several accelerators, incubators and training programs to get early access to technology and talent.

“COVID-19 has accelerated the need for more integrated and transformative grow th with a higher degree of standardization, stronger focus on the banking industry’s social role, and meaningful adoption of FinTech,” said Mohamed Abdelbary, Group Chief Financial Officer at ADIB. With financial technology developing rapidly, and profits, soundness indicators

Banking and Finance news in the MEA market

According to Fitch Ratings, given the overbanked nature of the GCC financial service sector, further consolidation could help improve banks’ performance and financial stability in 2021 hence a new wave of merger and acquisition (M&A) might be on the cards.

Analysts expect the impact of the coronavirus pandemic, low oil prices, and the slowing oil demand together with weak economic growth to drive consolidation in the GCC financial services sector as banks seek ways to improve competitiveness and boost capital amid slowing growth.

Masroor Batin, CEO BNP Paribas Wealth Management, Middle East & Africa, said, “As the pressure on the bottom line is increasing, the banking institutions are expected to consolidate to fortify their positions and increase profitability through synergies & gains in market shares.”

In October, Saudi Arabia’s National Commercial Bank (NCB) and Samba Financial Group (Samba) agreed to merge into a $223 billion megabank, in a deal that is valued at $14.85 billion.

The cross-border merger between Kuwait Finance House and Bahrain’s Ahli United Bank that was shelved in April because of the outbreak of the coronavirus maybe revived in 2021. The consolidation is expected to create the largest banking entity in Kuwait with assets of around $94 billion and the sixthlargest bank in the Gulf region.

Emirates NBD is also in preliminary talks to acquire Lebanon-based Blom Bank’s Egyptian unit while First Abu Dhabi Bank is expected to revive exclusive talks to acquire Bank Audi’s Egyptian operations next year. The negotiations were also suspended earlier this year due to difficult market conditions from the fallout from the pandemic.

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LOOKING AHEAD

BNP Paribas Wealth Management see 2021 as a year of continued change and growth.

With expectations for 2020 blown off course by the Covid-19 pandemic, BNP Paribas Wealth Management made adjustments in the year to work with the changed landscape’s new business priorities. These have in turn led to their thoughts for how 2021 may turn out to look in terms of business and the factors that be of influence.

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hat possible events in 2021 do you think will have a positive impact on regional economies?

There are many ongoing developments that may impact the regional economies in the near future and 2021 is very uncertain at this moment. Markets had to grapple with the same risks for several months and the nature of these risks has not changed radically. Some positive factors have dominated the markets in past months as well. In our scenario, a U-shaped growth trend may accelerate in 2021 notably following positive recent news on a vaccine.

Obviously, the evolution of the Covid-19 pandemic will be the main event to monitor at both a global level and for the regional economies. The finalisation and adoption of a vaccine or renewed lockdown measures will definitely impact both the confidence and the regional economies.

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Providing a superior client experience remains a key principle

Banking and Finance news in the MEA market

D o yo u ex p e c t i n c re a s e d consolidation in finance and the wider economy across the region and if so, what is driving it?

The Middle East banking landscape remains quite busy with many local institutions and most of the large international Groups. The consolidation trend in the region has started a few years ago, most notably in the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA), and we expect it to slowly continue in the coming years amid the Covid-19 crisis and the prolonged low oil prices.

The key drivers for consolidation across the region are resilience and early financial success of dominant players, evolution of oil prices, continuing low interest-rate environment, regulatory forces and global banking dynamics like digitalization of services. As the pressure on the bottom line is increasing, the banking institutions are expected to consolidate in order to fortify their positions and increase profitability through synergies & gains in market shares.

Do you foresee ESG investment products taking greater prominence in the coming year?

We clearly can see a great acceleration in the uptake of ESG investing worldwide and notably in the Middle East. UAE government has been very effective in putting sustainability on the country’s socioeconomic agenda. We find that clients in the UAE are more and more engaged to social and environmental issues.

Many investors have adjusted their strategies and shifted towards investments delivering a positive impact.

According to our 2020 BNP Paribas Global Entrepreneur report, 70% of entrepreneurs globally are willing to increase the share of their sustainable investments compared to 2 years ago. Our observation is that companies rated highly on sustainability measures usually perform well in terms of the risk-reward trade-off. So sustainable investments make sense for investors both ethically and financially.

We have witnessed an increased in requests from our clients for developing an independent benchmark that allows them to measure the sustainability of their investments, for that, we have recently implemented a clover rating system on a wide variety of investments and on all the funds we recommend.

The higher the clover rating, the more sustainable the investment is.

Another aspect worth mentioning, is the growing number of investable instruments that are currently available to our clients that allow them to invest according to their risk appetite, sustainability rating and return expectations. Instruments range from Green Bonds to Listed Equity, Private placements to structured investments. We are even able to offer a full discretionary portfolio management tailored to the investors’ needs.

Toward the end of 2019, what were your major expectations for 2020?

2019 eventually demonstrated itself to be one of the best years on record with positive returns across most major asset classes. For 2020, we expected a continued shift towards equities due to low interest-rate environment supported by soft monetary policies that is impacting return on bonds. Obviously, the Covid-19 pandemic was an unforeseeable risk and exogenous shock that has impacted many asset classes including equities, mostly in Q2 2020. Since the start of the pandemic, we have accompanied our clients in these turbulent markets with new investment themes and opportunities, notably on the acceleration of the digitalization.

What are your key objectives for 2021?

BNP Paribas has been present in the region for decades, with a unique footprint. The Middle East remains a particularly important market to develop our wealth management business. We will continue leveraging our global expertise and deep understanding of our clients to accelerate our regional growth strategy. A superior client experience is what drives

Masroor Batin, CEO Wealth Management, Middle East & Africa

our efforts and that comes in many forms, ranging from simplifying client’s interactions with the bank to providing them access to the full breadth of our global and regional capabilities.

We are constantly ensuring that we remain close to our clients, which is why we prioritize a “market-based” approach over a “location-based” approach. Today, our key markets in this region are UAE, Kuwait and Saudi Arabia. Among our key demographics for growth are Non-Resident Indians and Middle Eastern families who live in Europe and in the UK. Our strategy is based on how we can best serve these groups, not from where we serve them.

We are also looking at growing our High Net Worth Individuals (HNWI) & Ultra High Net Worth Individuals (UHNWI) segments, notably entrepreneurs and large families, through our strong partnership with the Group and more particularly the Corporate & Institutional Banking, Real Estate & Asset Management divisions which bring unique value to our customers.

For 2021, we are truly committed to develop a wealth management business with a strong purpose, to keep adapting our client experience and leverage our recent successes such as the latest awards recognitions. We see a long path of growth ahead and we aim for unprecedented results. mea-finance.com

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LOOKING AHEAD

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hat possible events in 2021 do you think will have a positive impact on regional economies?

Heading robustly into the future Like others, ADIB expected 2020 to be a relatively stable year, but events proved otherwise. By prioritising customers and ensuring continuity of operations, Mohamed Abdelbary, Group Chief Financial Officer says ADIB will enter 2021 from a position of strength and further enhance its services through continued digitisation and adoption of modern trading technology and techniques.

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Banking and Finance news in the MEA market

Challenges and uncertainties will persist, but we see encouraging support from the UAE government and central bank. For the past year, the UAE government has implemented great support measures to bolster the financial position of individuals and businesses; similarly, the swift and successful measures taken by the Central Bank of the UAE has maintained confidence in the banking industry and wider economy. ADIB will continue to work diligently with the Central Bank to ensure that our clients have the support needed during these challenging circumstances.

In addition, new technologies are transforming finance to a profound and unprecedented degree. In a post-pandemic era, we expect the digital banking trend to continue as banking behaviours evolve and as more customers grow accustomed to using online and mobile banking channels. This is why we are determined at ADIB to build on this momentum by further enhancing our digital banking proposition.

Throughout this year, our digital offerings have proved invaluable during this time with more than 75% of our customer base using digital channels.

Do you foresee ESG investment products taking greater prominence in the coming year?

ESG investment is a critical vehicle for companies and investors to link their sustainability goals with their financial goals. The value of ESG in investment processes is gaining more recognition, and interest in investment products with features related to ESG has grown exponentially during the past year. In the first half of 2020, we witnessed innovative issuance trends like sustainable, green and hybrid sukuk, which helped attract a wider investor base.

ADIB continues to contribute more and more in the social / green sukuk

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LOOKING AHEAD

space. Both sovereigns and corporates are targeting this space and we are pioneers with some of the innovative ways we are supporting them. So far, our team has achieved a number of firsts, including a central role on the pioneering green sukuk for the Government of Indonesia , Majid Al Futtaim and Ittihad airlines, and we anticipate there to be much more work in the future.

Toward the end of 2019, what were your major expectations for 2020?

The COVID-19 outbreak has resulted in unprecedented outcomes and global macro-economic uncertainty in 2020. Prior to this, the 2020 outlook for the region’s banks was stable amid solid economic growth. With that being said, the GCC’s banking system has been resilient despite the economic impact of COVID-19 and low oil prices for a prolonged period, according to analysts and rating agencies.

What are your key objectives for 2021?

During these challenging times, our focus remains on business continuity and delivering uninterrupted banking services for customers. We are proud of the way our teams have remained committed and dedicated to prioritising

clients have the liquidity needed. The UAE government have put in place farreaching support measures to shore up the financial position of individuals and businesses.

In addition, the bank will accelerate its digital transformation initiatives in response to a shift in customer behaviour and preferences continue. This will allow for safe, efficient, contactless, and uninterrupted banking services, which is set to drive operational efficiencies that will lead to lower costs.

We have noticed several trends across the GCC banking sector.

Which trends do you see shaping the future of the financial s e r v i c e s i n d u st r y fo r t h e seeable future?

New technologies are transforming finance to a profound and unprecedented degree. COVID-19 has accelerated the need for more integrated and transformative growth with a higher degree of standardization, stronger focus on the banking industry’s social role, and meaningful adoption of FinTech.

There is so much potential in the technologies being developed. Not only will they make customers feel more secure, but banks will also benefit from the enhancement of risk analytics.

THERE IS SO MUCH POTENTIAL IN THE TECHNOLOGIES BEING DEVELOPED. our customers, ensuring that all critical functions operate without interruption.

Going into 2021, we will continue to operate from a position of strength in terms of our capital, liquidity and balance sheet, as well as focus on risk and cost management and building a modern and stronger company for the future. We will also continue supporting government initiatives and working closely with the Central Bank to ensure that our

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These can essentially determine a client’s credit quality by analysing their spending and bill payment patterns, for example. Data analytics and artificial intelligence can also enhance banks’ businesses through more targeted marketing initiatives.

Digital banking is a central pillar for the growth of any bank today. This is why we are determined at ADIB to build on this momentum by further enhancing

Banking and Finance news in the MEA market

Mohamed Abdelbary, Group Chief Financial Officer at ADIB

our digital banking proposition, ensuring that customers have full access to ADIB’s comprehensive suite of banking services through our mobile app and online platforms.

What is your organization doing differently to adopt to these trends?

The bank progressed its digitisation agenda with ongoing enhancements of the mobile app, including launching the “Express Finance” service which provides qualifying customers with instant access to personal finance, a KYC update through the app and card application through the app.

ADIB continued to upgrade its digital transaction banking and trade finance platforms with the launch of “ADIB Direct eFX” which enables corporate clients to access foreign exchanges services to support their imports and exports with just a few clicks.

Today, ADIB has become the first Islamic bank to successfully execute trade finance distribution transactions using Blockchain technology, and we will continue to build its strength in digital banking that will allow safe, efficient, contactless, and uninterrupted banking services.

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Jersey: Supporting Shariah-compliant

Solutions for Families We continue to see Shariah-compliant private wealth solutions experiencing a material shift in terms of demand and direction.

A recent report commissioned by Jersey Finance and published

by Hubbis - “The Evolution of Wealth Management in the World of Islamic finance” – found that Islamic finance wealth management is growing in popularity, particularly among young, wealthy individuals within the Middle East, Asia, and Africa, with promoters gearing up to offer a greater array of Shariah-compliant wealth management products and solutions to a client base that is generating private wealth at a remarkable rate.

In fact, projections indicate that Islamic finance assets globally will grow to reach US$3.4 trillion in the next five years (Global Islamic finance Markets Report). This coupled with the first significant inter-generational wealth transfer forecasted to see trillions of dollars of family wealth transferring from the wealth creator generation to the next generation, provides a significant opportunity to ensure the aspirations and expectations of families are managed carefully and with all due consideration, including for cultural, traditional and religious beliefs.

Islamic private wealth management – awaqf, Jersey trusts and foundations Jersey has a long-established history in structuring trusts for global investors due to its tax-neutrality, straightforward and flexible legal system, high level of investor protection and appropriate client privacy.

Due to the similarity of awaqf and trusts, combined with Jersey’s leading reputation for trust expertise, Jersey trusts appeal for wealth and succession planning to multiple family groups and charitable/ philanthropic institutions from the GCC region.

The Jersey Foundation, introduced in 2009, offers high net worth individuals an attractive alternative to trusts for holding wealth with a structure designed to meet their needs, while allowing a greater degree of control than is possible with trusts. Jersey foundations are often used for charitable and philanthropic purposes because they can be tailored to suit individual requirements.

For more information, please contact a member of the Jersey Finance team on: +44 (0) 1534 836000

jersey@jerseyfinance.je

jerseyfinance.je

By Faizal Bhana Director, Middle East, Africa and India, Jersey Finance

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Expertise More specifically, our report revealed that while 59% of people currently using Islamic wealth management products were between the ages of 50–70, the use of such solutions is set to increase in demand over the next five years, driven by the 25–50 age group, in tandem with considerable generational wealth transfer.

It also found that socially responsible investing (SRI) and products offering environmental, social and governance (ESG) standards are rising up the agenda - almost all (92%) respondents said that incorporating new investment principles such as SRI and ESG would help boost the Shariah-compliant wealth management market.

Overall, Shariah-compliant wealth management around the globe continues to expand and grow in sophistication and, despite the global challenges we all face currently, this upward trajectory will persist.

In this context, forward-thinking, well-established international finance centres (IFCs) like Jersey have a real opportunity to step in and offer specialist expertise.

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As a forward-thinking IFC with a longstanding presence in the Middle East region and particular expertise in managing Shariah-compliant structures, succession planning and asset protection, Jersey is well placed to offer the services needed for a young, mindful and driven generation of wealthy clients in the Gulf region, and other Islamic finance markets.

Jersey’s flexible and robust legal and regulatory framework combined with its tax-neutral environment means it is well set up to accommodate all investor types, including Shariah-compliant investors.

In particular, Jersey has not had to amend its laws to allow for particular aspects of Shariah-compliant financial products, thereby ensuring that conventional and Shariah-compliant products are governed, regulated and administered on the same basis, including in: ■ Shariah-compliant asset administration and fund domiciliation ■ Special purpose vehicles (SPVs) and Sukuk structures ■ Shariah-compliant private wealth management Indeed, in recent years, Jersey has seen a significant increase in the use of Shariah-compliant structures from a broad spectrum of investors – from families and corporates to government and quasi-governmental organisations. In all cases, they share a global investment outlook and are looking for a stable platform that can support their objectives and satisfy Shariah principles. Jersey consistently fits the bill.

As Islamic finance continues to grow, Jersey remains committed to supporting the evolution of Islamic finance in all its many manifestations and stands ready to support the needs of Shariahcompliant investors in the Middle East and beyond.

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Over 50 years at the forefront of global finance, Jersey offers Islamic investors a flexible legal system, a forward-thinking regulatory regime and a tax-neutral environment.

Jersey’s flexible and robust laws and regulations allow for Sukuk and other Shariah-compliant capital market products.

We’re proud that a whole range of major financial services firms are based here.

Jersey Trusts and Foundations are routinely used in Shariah-compliant structures and investments by investors and families across the globe.

linkedin.com/company/jersey-finance

youtube.com/jerseyfinance

@jerseyfinance

DATA SECURITY

Data strategy in business transformation The adoption of new technology and the adaptations and development forced by Covid-19 restrictions have led to increased vulnerabilities to cyber-crime, however, the GCC ranks high in the Global Cyber Security Index.

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ccording to Chatham House, Gulf states seek to be leaders in digital innovation, however, the adoption of new technologies leaves them vulnerable to an increasing range of cyberthreats. The outbreak of the COVID-19 pandemic has taken a bitter toll on the economy, but it has also accelerated digital transformation across business models, channels, and touchpoints. KPMG said that underlying digitization is the need for greater organizational agility as well as closer ties with customers in changing world order.

Staying alert The financial services industry is being confronted by the task of balancing the traditional approach to risk management with the need to respond quickly to a crisis that has created massive changes to their operating environment. Cybercriminal activities which include fraud and phishing attacks have increased as more companies are adopting a hybrid working model.

“As financial institutions enhance their operations to provide their customers with a more seamless digital experience, they are finding themselves more vulnerable to a large number of phishing campaigns used by cybercriminals. This, combined with higher numbers of staff working remotely, has increased risks of unauthorized

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access to an institution’s network and IT systems,” said Peter Smith Managing Director, Head of Strategy, Policy and Risk, Dubai Financial Services Authority Amid a transition from an emergency mode which was caused by the measures that were implemented to contain the spreading of the COVID-19 pandemic, C-suite executives in banks need to address new emerging risks such as video and voice communication surveillance with everyone using video conference platforms, data security controls for the use of personal equipment, and cases of third and fourth parties falling victim to cyberattacks.

“We have seen 10 years’ worth of e-commerce adoption in one month.

This has undoubtedly led to an increase in vulnerabilities and exposure, which has subsequently contributed to growth in fraud and data misuse,” said Nicolai Solling, CTO, Help AG. Is GCC cyber resilient?

The GCC region has embarked on policies to unlock the possibilities offered by Big Data. According to Castlereagh Associates, the effectiveness of the steps taken by the GCC countries to develop the resilience of state institutions and business sectors is reflected in their ranking in the Global Cybersecurity Index. The index, which assesses the

Banking and Finance news in the MEA market

preparedness of countries to combat cyberattacks under five pillars including legislation, technical and organizational capabilities, capacity building and cooperation, ranks GCC countries top in the Middle East and highly on a global scale due to their commitment to cybersecurity.

KPMG stated that in an era of dizzying technological innovation, most banks are modernizing every facet of their operations and working on becoming more trusted by their customers. Artificial intelligence (AI), machine learning (ML), and cloud computing can help firms to manage and understand ever-growing data sets while effectively identifying previously undiscovered patterns, which is critical for flagging potentially suspicious behavior.

Smith said that the recently launched DFSA Cyber Threat Intelligence Platform provides enriched cyber threat intelligence information to users and financial institutions and other firms can share information about current cyber threats on this platform to try and stay one step ahead of cybercriminals.

As regulatory bodies such as the DFSA are advocating cybersecurity measures as a priority, progressive institutions recognize that it is not merely a ‘technology problem’ but a wider business challenge that requires business ownership and strategic development. Regional banks are also tapping third parties to facilitate technology implementation, to decrease costs, enhance customer experience, and boost their competitive edge.

The UAE and Saudi Arabia have very strong regulatory compliance requirements from the central banks and government entities, which further acknowledges data as a key asset and reinforces the two countries’ commitment to ensuring that data protection is not only the best in the region but also globally, said Solling.

DATA SECURITY

The evolution of data security The events of 2020 have spurred evolution in the areas of data security. Here, Peter Smith, Managing Director, Head of Strategy, Policy and Risk, Dubai Financial Services Authority answers questions about what might be expected in this area of key consideration for banks

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hat are the main growth areas in fraud and data misuse that banks in the region are currently encountering and what is being done?

The pandemic has accelerated the pace at which financial institutions have had to adopt new technologies in order to respond to new customer and remote working behaviours.

As financial institutions enhance their operations to provide their customers with a more seamless digital experience, they are finding themselves more vulnerable to a large number of phishing campaigns used by cybercriminals. This, combined with higher numbers of staff working remotely, has increased risks of unauthorised access to an institution’s network and IT systems.

It is extremely important for institutions to perform extensive security testing of all existing and new digital solutions (such as mobile applications) before they are launched, and to repeat testing on a regular basis to identify and eliminate vulnerabilities. They must also be diligent in keeping up to date with hardware and software fixes to prevent cybercriminals from leveraging known vulnerabilities

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What are currently the most popular scams or threats - are they popular because of COVID? The DFSA has noticed an increase in scams and other fraudulent activity since the onset of the COVID-19 pandemic. One type of scam on the increase is an Advance Fee Scam. This type of scam involves people being persuaded to advance small amounts of money in the hope of getting access to a significantly larger amount of money. The small amounts of money are for all sorts of fake ‘advance fees’ such as false customs, duties, taxes, or even bribes. The access to the large amount of money is, of course, never realised. Members of the public are advised to heed the old adage: “If it sounds too good to be true, it almost certainly isn’t.”

The DFSA routinely issues scam alerts and advisory notes to investors via the DFSA website.

W h a t key te c h n o l o g i c a l developments do you think will ensure greater data security, privacy and fraud protection for banking clients?

From a technical perspective, financial

Banking and Finance news in the MEA market

Peter Smith Managing Director, Head of Strategy, Policy and Risk, Dubai Financial Services Authority

institutions seem to be well prepared to identify and respond to cyberattacks.

However, threat intelligence is an invaluable tool in preventing cybercrime, especially in an environment of increased threat activity. Launched this year, the DFSA Cyber Threat Intelligence Platform helps to provide enriched cyber threat intelligence information to its users. Banks, firms and other financial institutions, can share information about current cyber threats on this platform to try and stay one step ahead of cybercriminals.

Advances in Artificial Intelligence (AI – refers to the broader application of specific kinds of analytics to accomplish tasks such as identifying a fraudulent transaction) will also improve both cyber defences and fraud detection. AI can be used to reliability automate many checks, such as identity verification, and transaction due diligence for financial institutions providing online services.

What types of fraud have the DFSA encountered - phishing etc.?

The DFSA has observed an increase in attacks leveraging known and new malware and a soaring number of newly registered malicious domains referencing

COVID-19 since March. These insights have been gained through the DFSA’s Cyber Threat Intelligence Platform (TIP).

More recently, the DFSA has observed an increase in the number of phishing campaigns targeting consumers of UAE Banks and telecom service providers.”

Phishing attacks through email, SMS, and other messaging applications remain a common attack vector targeting financial institutions and their customers.

What are the key strengths of AI in fraud detection when compared to human vigilance and experience?

AI and Machine Learning (ML – refers to analytic techniques that learn patterns in datasets) are some of the tools being used in the financial sector. They are helping firms to manage and understand ever-growing data sets, and to effectively identify previously undiscovered patterns, which is critical for flagging potentially suspicious behaviour.

If done properly, ML can distinguish between legitimate and fraudulent

behaviours while adapting over time to new, previously unseen fraud tactics.

This can become quite complex as there is a need to interpret patterns in the data and apply data science to continually improve the ability to distinguish normal behavior from abnormal behavior. This requires thousands of computations to be accurately performed in milliseconds.

However, it is important that a balance between technology used and human intervention is maintained to deliver smart, real-time analysis and actionable insight. Think of the technology becoming the “front line” defence and human expertise as a “second line” of defence.

Further, without a proper understanding of these tools and the risks they are meant to identify, ML algorithms can learn the wrong thing, producing false positives, which need to be investigated and accounted for.

Have the events of 2020 helped or hindered the development of financial technology surrounding data security and fraud?

THREAT INTELLIGENCE IS AN INVALUABLE TOOL IN PREVENTING CYBERCRIME The events of 2020 haven’t hindered the development of technologies to secure data and stop fraudulent activities. They have, perhaps, altered the dynamics.

For example, remote working has meant that financial institutions have had to balance the continued use of IT equipment by staff in multiple locations, ensuring a seamless working experience, without compromising or sacrificing security.

There is no doubt that 2020 has posed new challenges – these challenges have spurred greater innovation efforts and more creative use of technologies.

How do you see the role of data management in banks and financial institutions evolving in the coming year?

Financial institutions have increasingly been finding ways to unlock the value of the vast amount of data they hold, in order to get better insights into their customers’ behaviour and anticipate their needs, and to detect and prevent fraud and cyber threats.

With this increased use of data, financial institutions are having to think about data privacy and security in new ways. The trend towards localisation of data is also an issue, posing challenges especially to globally-active firms.

I n st i t u t i o n s fa c e a d d i t i o n a l requirements, and customer expectations, around data security and privacy.

Therefore new systems and controls are needed to ensure appropriate protection of individuals’ personal data, as well as new reporting requirements to ensure compliance. There is also the potential for large fines and penalties if these regulations are not met. mea-finance.com

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DATA SECURITY

The increasing role of Data Security and Data Management The digitisation of banking services is no longer a feature on the financial landscape, it is the financial landscape. Nicolai Solling, CTO, Help AG explains that it will continue expanding into more areas and further develop in existing parts of the business it manages, making the role of data security crucial to the smooth and efficient functioning of this vital service.

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hat are the main growth areas in fraud and data misuse that banks in the region are currently encountering?

Help AG’s Digital Risk Protection Report showed that Q2 2020 saw a 400% increase in card fraud and the compromise of credit card information.

There are several drivers behind this staggering increase.

T h e C OV I D -1 9 p a n d e m i c h a s exponentially accelerated digital t ra n sfo r m a t i o n a n d h a s fo rc e d

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businesses to move online. We have seen 10 years’ worth of e-commerce adoption in one month. This has undoubtedly led to an increase in vulnerabilities and exposure, which has subsequently contributed to growth in fraud and data misuse.

The primary issue for criminals is to turn whatever they have stolen into something that they can use. The explosion of e-commerce and the increased dependency on credit cards for day-to-day purchases has provided cyber criminals with better capabilities for converting stolen credit card information

Banking and Finance news in the MEA market

into actual goods that can be utilized to order products from online stores.

W h a t key te c h n o l o g i c a l developments do you think will ensure greater data security, privacy and fraud protection for your banking clients?

The driver behind greater data security is Governance, Risk, and Compliance (GRC). Banks worldwide are faced with more stringent regulatory compliance requirements for how they treat data and are to follow certain frameworks, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA). This then allows technology to add greater value to data management.

There are many technologies that are currently being deployed within organizations with focus on data identification and which are primarily driven by data governance frameworks such as GDPR. There is a lot of automation that is happening in that space. The most developed vendors are not only focusing on identifying the data but also on how to deal with it and with its life cycle. Once data

has been identified, a process needs to be established for how to manage it and safely erase it if need be. One of the key attributers of GDPR is that a customer has the right to be forgotten. This translates down to three things that organizations need to be able to do; identify, report, and erase the data for that specific individual.

This is a challenge that has to be dealt with by technology, because a manual process will end up creating so many other areas within the organization that also has access to that data which makes it almost impossible to erase. It must be an automated process where you can restrict the individual that is looking at or processing that data as much as possible.

Help AG has entered into a strategic partnership with a company called SECURITI.ai , which applies big data analytics and machine learning capabilities with an interface that allows the user/ consumer to be able to interact with these systems. Once the consumer has interacted with the systems, the data officer is provided with a limited access to the data allowing them to have it cleared securely.

Banks today are benefiting from digital channels and mobile applications to identify users more effectively and securely, which helps them avoid threats associated with classical issues such as SIM swapping. The whole concept of identity and authentication is something that banks are taking very seriously, which is extremely crucial to ensuring the safety of customers’ data.

What are the key strengths of AI in fraud detection when compared to human vigilance and experience?

The biggest benefit offered by AI, Machine Learning, and the ability to create an algorithm of what is good and bad is that the patterns that a computer can put together are much more complex than what a human can ever be able to process. Dealing with fraud requires the ability to put large patterns together, ask the right questions, and have the right algorithm to make an output on it.

Also, the resources associated with having a manual fraud detection capability will be extremely high when compared to utilizing AI and Machine Learning.

We have a strong partnership with Shape Security (part of F5), which applies AI and ML to one very simple question on whether a user is fraudulent or not. It is constantly learning what the normal behavior is in that specific application, and once you have a self-tuning algorithm in place that allows you to make that kind of distinction between a good and a bad user. There are also specific modules within Shape Security which specifically focus on fraud, such as Shape AI Fraud Engine (SAFE).

If an organization’s technical controls can do the simple distinction between good and bad, its security posture is ultimately improved from a technical aspect and a broader fraud perspective.

Have the events of 2020 helped or hindered the development of financial technology surrounding data security and fraud?

2020 has forced all industries to accelerate digital transformation programs, specifically the banking sector which is extremely risk averse. Therefore,

THE WHOLE CONCEPT OF IDENTITY AND AUTHENTICATION IS SOMETHING THAT BANKS ARE TAKING VERY SERIOUSLY, WHICH IS EXTREMELY CRUCIAL TO ENSURING THE SAFETY OF CUSTOMERS’ DATA.

Nicolai Solling, CTO, Help AG

any digital transformation project should start with security both around data and fraud. Otherwise, your digital transformation project may disrupt your operations, impact your brand reputation, and lead to potential financial losses.

How do you see the role of data management in banks and financial institutions evolving in the coming year?

The role of data management in banks and financial institutions is going to become much more significant, because we are going to see external pressure on organizations to make sure they are adopting data management driven by PII and GDRP data, and especially as organizations start to use the cloud and determine which applications to move online or operate on premises.

The United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA) have very strong regulatory compliance requirements from the central banks and government entities, which further acknowledges data as a key asset and reinforces UAE’s and KSA’s commitment to ensuring that data protection is not only the best in the region but also on a global level. mea-finance.com mea-finance.com

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OPEN BANKING

Every bank should initiate its Open Banking initiative (Why? and How?) Stephane Niango, Managing Partner, Arqitek and Simon Redfern, CEO, TESOBE suggest that MEA banks must make a move on Open Banking.

Learnings from initial efforts in Europe are that open source provides a foundation for pace, standardisation and for minimising launch and operational costs. Arqitek and TESOBE are helping financial institutions across MEA to realise an optimum strategy to Open Banking.

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oftware developers have been building Application Pro g ra m m i n g I nte r fa c es (API) since the 1980’s. The developer provisions an interface through which external developers can consume services or to which an external developer can expose services.

API enablement is the foundation for Open Banking - the secure sharing of data with external, authorised parties.

Given that the underlying idea has been around fora long time we might ask ourselves why the market is moving rapidly towards Open Banking only today? The primary drivers are the increasing pervasiveness of cloud-based services and the continued growth in customer expectations for intuitive digital services. Government organisations are actively encouraging Open Banking because it supports the broader concept of the API economy.

API Economy: Extending Digital across the Ecosystem In the UK, a leading nation in Open Banking, the initiative was driven by

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Stephane Niango, Managing Partner, Arqitek

the Competition and Markets Authority (CMA). It compelled the nine largest banks to provide a common set of services to authorised organisations.

The drivers are vital because an API economy is one in which businesses are able to cooperate with partners and ecosystem members securely and electronically with minimal friction. Companies can evolve by simply leveraging the API services of external parties. In this world, data is truly the primary asset of a company.

The term API economy reflects the tremendous impact this transition will have in terms of economic efficiency.

Banking and Finance news in the MEA market

Simon Redfern, CEO, TESOBE

Here, the already pervasive impact of digital further accelerates as the potential for digital extends outside the perimeter of the enterprise and into the wider ecosystem. In short we are only at the early stages of the digital journey and the pace only accelerates from here.

Banks may find these changes challenging to entertain in the context of their traditional business models, which have their origins in the trusted personal relationship. Nevertheless, the API economy is a reality and market forces are operating globally to bring these concepts to life. This is already

evident within MEA, with government-led initiatives afoot in Bahrain, Saudi Arabia and elsewhere. Against this backdrop, the only viable option for a bank is to step firmly on board, to learn, to understand the ramifications and to evolve.

The challenge then is how to do this? Open Banking brings significant complications, additional security challenges and - worse than that - the revenues will certainly take time to develop.

O p e n B a n k i n g Te c h n o l o g y Considerations Open Banking relies on an underlying software middleware to provide external developers with secure access to customer account details. Immediately, this scenario implies complexity.

The Open Banking software must ensure that user credentials arising through a third party application are authentic. User consents for specific

1: T he Open Banking API must be developed in accordance with the standards issued by the regulator.

2: Those standards will evolve over time and the solution platform must evolve to keep pace.

3: A full open banking solution will extend around 200+ APIs to the developer community and will provide access to the full range of the bank’s core products.

4: T he bank will want to evolve its own APIs in order to serve specific market needs and opportunities.

Most banks are evolving their approach to software development and are using containerisation and other evolving technologies to accelerate the process.

However, even with these measures in place the expertise and effort required to develop and sustain a full solution for Open Banking are a stretch for most MEA banks. But there is a way forward.

Figure: Open Banking relies on an API middleware layer that orchestrates the delivery of services from the banks resources to external customers through thirdparty developer applications.

accounts must be captured and maintained for this developer application.

Subsequently, account data must be captured from legacy banking systems and exposed securely to the application.

The process must be carefully designed and encoded within the bank’s open banking middleware. However, there are other considerations to make:

The Open Source Approach One resolution is to look towards Open Source software. The open source approach enables banks to leverage a shared software asset to address core needs. Software customization is then performed in order to innovate and to serve the specific needs of the banks.

Financial institutions are increasingly

recognising the role of open source. The benefits of cost reduction, reduced timeto-market, lack of vendor lock-in amongst others are self evident.

Open source works for Open Banking for a number of reasons: 1: The primary API services and the core functions of the Open Banking layer are consistent across banks.

2: Although different jurisdictions are evolving their own standards, the variations are such that the impact on the software is relatively minor.

3: T he differentiation for the bank derives from its ability to engage with the ecosystem and to emerge as an Open Banking leader rather than in the software itself.

Practical Steps Forwards Finding a resolution to the software engineering challenges is a prerequisite.

However, beyond this, the bank must bring Business and Technology perspectives together to drive a coherent and evolving strategy. Key steps to making Open Banking a reality for MEA banks are to: 1: Establish a task force combining disciplines spanning marketing, innovation, security and technology; 2: E stablish a framework for Open Banking Governance that addresses such matters as ecosystem engagement, demand management, prioritization, charging structures; 3: Look towards open source solutions as a means of establishing the software foundation with minimal cost and risk; 4: Deliver some early success through collaborative partners with an aspiration of emerging as a leader in this new marketplace.

Open Banking will take some time to take full effect. However, the underlying trend towards the API-economy will certainly take form. European countries are beginning to see the significance of the development. Leading MEA banks learn from the Europe experience and will bring together the teams and approaches required to forge ahead. mea-finance.com

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COVER INTERVIEW

A clear view of the path ahead GFH solidified their presence as a leading financial force in Bahrain with a triple win in the MEA Finance 2020 Awards. Their wins included Best Investment Management Firm in Bahrain, Best Private Bank and Banker of the Year for Mr. Hisham Alrayes, CEO of GFH Financial Group. Here we ask Mr. Alrayes about the prospects and requirements for some of the key sectors of the regional economy, how GFH has fared in the past year and where he sees future opportunities for GFH. Hisham Alrayes, CEO of GFH Financial Group

By Adrian Murdoch

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ou have been awarded Banker of the Year by MEA Finance Magazine.

How do you feel about this?

I am pleased to see that our momentum that we have built over the past 20 years have moved us forward towards even further success for GFH, its shareholders and clients. Our business lines – Investment Management, Real Estate Development, Commercial Banking and Treasury & Proprietary Investments – have allowed us to diversify and multiply value-creation opportunities. Our geographic reach has expanded to encompass GCC, MENA, Asia, Europe and the US markets. Not

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only have our markets increased, but so have the sectors in which we invest – further strengthening our potential to deliver on and exceed investor and shareholder expectations.

Why do you think that the technology sector remains an attractive investment sector, despite price inflation and general uncertainty?

Te c h n o l o g y i s d i s r u p t i n g a n d disintermediating all sectors of business and has become more vital to our lives than ever before and accordingly, the market value of big tech players, in particular (e.g. Amazon, Apple, and Alphabet) has increased to record

Banking and Finance news in the MEA market

levels in recent years. This increase in valuations is driven by significant growth, by low interest rates but also, to some extent, by the hype surrounding and this sector too. In time, as these variables normalize and greater regulatory scrutiny of big technology companies comes into force, so we will see a correction.

On an overall basis, technology and technology enabled businesses will remain attractive to investors, especially the new and emerging technology leaders and certain specific technology sectors such as cloud, enterprise software, payments and cyber security. Independent research suggests that more than 80% of companies across key economic sectors are accelerating automation in response

to Covid-19 and that this has become a secular trend which will continue well past recovery from the effects of the pandemic.

However, it is also worth noting that private equity (PE) players like GFH tend to avoid the most hyped technology segments. For example, enterprise software companies are more resilient in a downturn. GFH’s portfolio companies provide mission critical enterprise solutions or direct-to-consumer lifestyle platforms which are direct beneficiaries of the ever-increasing digital penetration.

How do you think the Real Estate sector in the region can be brought back to good health?

In my view, underwriting requirements of lenders, capital markets and regulatory environments need to evolve still further. This will enhance liquidity and as a by-product incentivize institutional investors such as pension funds and insurance companies to deploy more investment capital into the regional real estate (RE) markets.

Further regional REITs need to be more innovative and selective in terms of what is prime and attractive to retail investors and bring to market sustainable income yielding and placement ready investment portfolios. Sponsors need to promote evergreen and open-ended structures to enhance liquidity as these permit recycling of capital from realizations.

Sponsors need to also re-purpose in segments where there is potential oversupply (e.g. retail and hospitality) and focus on asset classes such as logistics, warehousing, residential and smart & secure office space.

to be more resilient. On the real estate side industrial, logistics, data centers and residential assets are expected to benefit from structural changes due to the pandemic. We consider offices will remain an important asset class although the workplace of the future will look and feel different from a design perspective.

On the other hand, a shift towards online ecommerce means retail may remain under pressure.

What are your expectations for the price of oil in the fiscal year 2021? Do you think that t h ey c o u l d r i s e t o U S $ 6 0 per barrel?

Fiscal stimuli provided by governments and monetary response has been

unprecedented so far and it will also continue to drive faster economic recovery‌ and linked to all these factors are oil prices. However, on the other hand, increasing supply from OPEC and non-OPEC sources and greater focus on alternative energy could mean a glut situation which may keep the oil price in check. Overall while $60 appears achievable, a supply glut and geopolitical challenges may keep prices under pressure. Oil demand is also looking encouraging for FY21 due to the pace at which vaccine development is progressing and what this could mean for a return to normal activities. We would expect a large proportion of the population to have been vaccinated by the middle of next

Covid-19 has disrupted nearly all aspects of business, but there are sectors that have benefitted from the circumstances. Which sectors will experience a longterm investment upturn resulting from the pandemic?

We expect that certain sectors such as healthcare & pharmaceuticals, education, consumer staples and alternative energy mea-finance.com

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COVER INTERVIEW

year which will drive significant growth and pent up demand.

How do you feel about the performance of GFH over the past year and what do you see for the business going forward?

We are pleased with GFH’s continued strong performance and revenue generation despite the unprecedented market conditions under which the Group and our portfolio companies have been operating over the past nine months. Despite these challenges, we are extremely proud to have continued to make progress across the business in line with plans and our focus on further building and diversifying our position in key defensive sectors and in core markets.

Having issued Sukuk during the year, we are in a good position to leverage our strong liquidity and market confidence in our strategy to move forward with opportunities we see for both organic and inorganic growth in our businesses.

Also, while economic conditions remain strained, we have been successful in identifying unique new investment targets and establishing a strong deal pipeline on which we are now ready and intend to capitalise. At the same time, coupled with market confidence in our performance,

forward, we expect enhanced activity in our investment banking and commercial banking businesses as well as treasury and real estate operations to have a positive impact on our performance and results. As always, we are grateful to our

WE EXPECT THAT CERTAIN SECTORS SUCH AS HEALTHCARE & PHARMACEUTICALS, EDUCATION, CONSUMER STAPLES AND ALTERNATIVE ENERGY TO BE MORE RESILIENT. we are also witnessing a renewed appetite on the part of our investors for deals, which together will enable us to close and place more investments in the remaining quarter of the year. We are also pleased with the results of the restructuring of our commercial banking subsidiary and its ability to contribute to profitability over the last quarter. As we go

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Board and the Central Bank of Bahrain for their guidance and to our investors and employees for their continued partnership with GFH.�

At the end of 2021, what will make you feel you have had another successful year at GFH? I am excited to see what we will continue

Banking and Finance news in the MEA market

to achieve in the years to come. Our first twenty years allowed us to solidify our position as a pioneering financial group whose operational agility and diversified offerings allowed us to continue to deliver value to our clients and shareholders. With the continued trust of our shareholders and investors, the ongoing collaboration with our partners, and the persistent dedication of our team.

If you had to offer one piece of advice to anyone who is just starting a career in banking in the region, what would you tell them?

Expect change and be ready to adapt as we live in a time of digital transformation and in region which is economically volatile. In times like these only the resilient will endure. To build endurance and resilience over the years, diversification is key. What seems lucrative today may not be enough further down the line. It is crucial not to rely on one business line.

GFH closes US & global tech opportunities subscription GFH clearly has a direction of travel, and here we highlight recent examples of the strategies behind the momentum of this business

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n November 2020, GFH Financial Group announced that in line with its vision to invest in innovation and growth and to capitalise on secular trends in digital adoption, the Group has invested in a portfolio of pre-IPO stage, high-growth companies that specialise in next generation technologies. The investments have remained relatively resilient during Covid-19 and are expected to perform strongly as the businesses continues to build on the large addressable market opportunity.

The investment portfolio is held through a collective vehicle to provide diversification and comprises minority stakes in Snowflake, UiPath, DoorDash, DataRobot, Samsara, BYJUs and Outreach, among others. The portfolio companies provide mission-critical cloud enterprise software, artificial intelligence and IoT solutions or operate in the directto-consumer e-commerce and edtech verticals. The companies are led by highly capable management teams, have a leadership position in their respective domains and are operating at large scale across multiple geographies.

Most recently, Snowflake had a successful IPO on the New York Stock

Exchange and it’s expected that other companies in the portfolio will also go public and/or may enter into trade deals at an appropriate time. The overall size of the collective investment vehicle is c. US$ 270 million and with GFH holding a minority stake. The investments are expected to generate high double digit returns for GFH and its investors, while providing attractive structural downside protection.

Hammad Younas, Chief Investment Management of GFH said, “We are delighted to bring to market this distinctive opportunity to invest in some of the world’s most exciting growth tech companies out there today. This is in line with GFH’s diversification strategy and continued focus on making investments in businesses that offer attractive returns and are also downturn resistant. We are especially pleased to be investing in partnership with one of the most renowned technology focused advisors and managers globally, who have outstanding credentials and track record in the sector.

We see tremendous opportunity in the sector and through our partnerships we are able to provide unique access to the US and global tech and tech-enabled businesses, which have proven to be more

Hammad Younas, Chief Investment Management, GFH

resilient over the years including during the recent COVID-19 pandemic, yielding premium returns versus key benchmarks.”

Younas continued, “The investment companies have proven business models and competitive advantage that significantly compounds with scale.

With a strong pipeline of investments, we expect to deploy significant capital in the technology sector globally. GFH aims to continue the implementation of its diversification strategy, with tech and tech-enabled businesses a key focus and growing area of investment. We will continue to draw on our deep experience in technology, payments and ecommerce in an effort to build a next-gen, transformational technology investment platform, which currently comprises this investment, a leading life-style app, the Entertainer, and a leading FinTech business, Marshal. We believe tech and tech-driven businesses will become increasingly important during and after the pandemic.” mea-finance.com

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BANKING TECHNOLOGY

In the post-epidemic era, cloud computing will accelerate the digital transformation of global industries As business prepares to move into a postCovid-19 environment, cloud computing will play a key role in assisting growth. Li Shi, President of Cloud and AI Business Group, Huawei Middle East provides insight into how cloud services will bring greater efficiency and effectiveness to some of the world’s most important industries

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n 2020, the COVID-19 epidemic has brought a great impact on people’s lives around the world. As a response to the impact, many enterprises are accelerating their digital transformation and maintaining business and production continuity through remote work and remote collaboration. Cloudbased collaboration software became ubiquitous during the epidemic, allowing billions of teleconferences to be held worldwide every day. Technology is critical to the survival of businesses, according to a new study by Global Data, a well-known research institution, with more than 80 percent of executives saying cloud computing and network are key to helping their businesses get through the crisis.

In fact, a perception is emerging in many industries that entrepreneurs have

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experienced a digital enlightenment during the epidemic. In the post- epidemic era, all industries will accelerate digital transformation, either actively or passively, to better adapt to future market challenges.

The financial sector The financial industry has always been a pioneer in digitalization. According to the IDC Financial Industry Cloud Computing White Paper, the financial industry has reached a consensus that cloudification is top priority. In fact, not just large organizations, more and more small- and medium-sized financial institutions have become increasingly in urgent need for cloud migration. Small and medium-sized financial institutions face challenges in terms of capital, talent and experience.

Financial cloud services can effectively

Banking and Finance news in the MEA market

Li Shi, President of Cloud and AI Business Group, Huawei Middle East

address these challenges due to low investment requirements, quick results, cost saving, and timely service abilities.

The market demand for these financial cloud services will continue to grow in the next few years. Before 2017, most financial institutions were mainly using private

clouds. With the continued development of cloud technologies, financial institutions are now more willing to use public cloud services and build hybrid cloud models. Deploying AI and big data technologies on the cloud platform will help financial institutions achieve precise marketing, intelligent risk control, reduce costs, and improve efficiency. Further maturation of 5G and IoT will help financial institutions gradually build unbounded networks centering on their products and services, achieving financial inclusion.

Healthcare Healthcare has always been an important industry for everyone, especially this year.

Cloud computing and AI technologies have been widely used by medical staffs in the fight against epidemics and vaccine development, providing great value for people’s lives and health. Researchers are using cloud computing-based AI technologies to analyze vaccines in the US, Europe, and Asia, they built models based on a small amount of genomics information about viral proteins, completed a large amount of highperformance scientific computing, used high-precision algorithms to simulate virus models and human cells, and started hundreds of thousands of CPU clusters for computing within half an hour, which effectively shortened the development process of vaccines. Generally, the early drug discovery process takes 4 to 6 years. However, AI and cloud computing can shorten the process to 1 to 2 years.

On the other hand, with increasingly developed communications network technologies, people can access the healthcare cloud anytime, anywhere to obtain transparent, customizable, and cost-effective healthcare solutions and evaluate healthcare outcomes. Cloud computing is helping the healthcare industry move towards value-driven and consumer-centric patient care.

Energy Digital technologies such as cloud c o m p u t i n g a re a l s o p l a y i n g a n

increasingly important role in another area that is closely related to us the energy industry. In recent years, pioneers in the energy industry have begun to leverage cloud computing and AI, coupled with capability such as mobile network technology, to drive enterprise digital transformation.

Ac c o rd i n g to res e a rc h f ro m I E A Digital and Energy, the large-scale application of cloud computing and other technologies will reduce oil and gas production costs by 10% to 20% and increase global oil and gas technology recoverable reserves by 5%. At the same time, digitization can also benefit clean energy technologies such as carbon capture and storage.

From now on to 2025, the digitalization and intelligence of energy technologies will undergo significant changes. By 2025, the global digital market in the energy industry is expected to grow to US$64 billion, including cloud computing, AI, machine learning and big data.

Transportation Tra n s p o r ta t i o n i s a n ot h e r g o o d example. Under the tide of economic globalization, large cities in various countries are becoming an important part of the world urban system, and some international metropolises have become global productive forces, science and technology centers, educational and cultural centers and world trade centers.

However, with the influx of population, large cities face more and more challenges in traffic management, which are difficult to solve by traditional means.

In many large cities around the world, traffic management departments are trying to improve the traffic conditions of cities by using various technologies, including updating intelligent traffic sensing devices to obtain clearer and accurate traffic data by building a unified traffic management system based on the cloud computing platform to coordinate the handling of traffic signals, and emergency cases. The integration of these new technologies

ef fe c t i ve l y i m p rove s t h e u r b a n transportation environment.

In addition to improving benefits for traditional industries and large-scale enterprises, emerging digital technologies such as cloud computing and AI will also provide new opportunities for small and medium-sized enterprises to improve operation efficiency, promote innovation, expand market and financing channels, and facilitate remote operations during the epidemic. In the Middle East, SMEs account for more than 90 % of the total size of enterprises and contribute 70 % of GDP. Helping small and mediumsized enterprises accelerate their digital transformation will bring significant benefits to local economic development.

With the development of vaccines in various countries, businesses will move from addressing COVID-19, to driving sustained growth. They must focus on the three main areas that will shape trends: Consumer-oriented focus, business independence and intelligent delivery.

These trends will have a greater impact when combined, and businesses must focus on meeting social and individual needs around the globe for optimal practice.

Digital transformation is entering the next stage, as intelligence, which is the key strategy for the future development of global cities, industries and enterprises.

Research by Gartner, a leading research firm, shows that the need for business resilience has never been more intense.

CIOs are trying to adapt to changing circumstances and design futureoriented businesses. This requires that the enterprise organization be sufficiently intelligent and reorganized and reformed to be adaptable. The intelligent business architecture and anywhere operations mode that are implemented based on the cloud computing platform, AI, 5G, and IoT technologies are the key to future enterprise development. Only companies that take advantage of the combination of these technologies for continuous digital transformation will have the chance to be the winner of business competition over the next few years. mea-finance.com

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BANKING TECHNOLOGY

CHANGING CHANNELS, ENGAGING CUSTOMERS

The pandemic fuels digitization like never before The recent experience of Bank Muscat, with a clear increase in activity and business following their successful adoption and implementation of channel innovation, points to a better future of banking engagement with clients and customers.

By Krishnaswamy Subbarao, Head – Product Management, Infosys Finacle

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usinesses in the Middle East are no strangers to digital technology, but the pandemic has accelerated adoption beyond all expectations. Digital channels were among the biggest beneficiaries of this wave: a recent survey reported that 53 percent of Middle East consumers said that they were shopping more on their smartphones in the wake of COVID 19. Banking habits have also undergone a similar change. In another consumer survey on payment behavior conducted in the UAE, a sizeable number of respondents said they would continue to use contactless payments inside stores even after the pandemic was over (43 percent), as well as non-cash payments such as digital wallets and (online) cards (48 percent).

With branch visits, and personal interaction down to almost zero during the pandemic, banks in the Middle East need

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to find alternative ways to differentiate themselves. In the digital world, a combination of user experience, platform business model and omnichannel engagement can be a valuable source of competitive advantage. This discussion focuses on the last.

Channel innovation – the key to better engagement Channel innovation is a huge enabler of omnichannel engagement. As digital banking channels evolved in the form of voice assistants, smartwatches and chat-bots, the quality of experience and engagement they delivered also improved. Better engagement is not just a more enjoyable interaction at a bank’s touchpoint; it is a foundational capability, cutting across people, process and technology that enables banks to acquire, interact with, serve and upsell better. This enables their customers to save, borrow, pay, invest and in general, manage their financial lives better.

Seamless acquisition is about making product selection easy through need identification, simulators, comparators,

Banking and Finance news in the MEA market

Krishnaswamy Subbarao

and what-if analysis, and bringing customers on board entirely digitally in a quick and frictionless manner.

Meaningful interaction comes about when a bank understands a customer’s needs, preferences and context and uses that knowledge to nudge him to take the right actions. Efficient service implies self-service on all channels and a seamless transition to assisted service when required. The service journey is user-centric, contextual and automated to minimize turnaround time. Upselling rates improve when offers are personalized to drive additional sales and are also easily consumed on any channel.

It is proven that banks that engage better are more relevant to their customers, who reward them with their business. Engaged customers spend significantly more, remain loyal longer and are even willing to pay a premium

for a better experience. It is reported that personalization – a key factor in engagement – can give a bank US$ 300 million extra revenue for every US$ 100 billion in assets.

The experience of Bank Muscat Bank Muscat experienced something similar in a recent channel innovation implementation. As the leading bank in Oman – where 40 percent of the population is below the age of 25 – Bank Muscat had a large base of young digital-first customers who, like their peers worldwide, had high expectations from their banks, influenced by their interactions with Amazon, Apple, Google etc.

As part of a complete channel transformation, Bank Muscat embarked on a journey to implement best in-class omnichannel mobile and Internet banking in partnership with Finacle from Infosys.

The starting point was to understand the expectations of the digital-first customer; typically, the list included comprehensive features across digital channels, social

CHANNEL INNOVATION IS NO LONGER ABOUT BOLTING ON YET ANOTHER TOUCH POINT. app-like experience, security, and the ability to independently manage financial well-being. To meet these expectations, the Bank built its transformation strategy on two pillars, namely a reimagined user experience and a platform approach. A detailed gap analysis using data from the existing internet and mobile banking channels helped the Bank redesign the customer journeys, interfaces and screens. Gathering customer feedback in an iterative prototyping process, the

Bank built it back into the user experience.

Finacle played a huge role in this entire exercise. The Finacle Omnichannel Hub enabled the Bank to offer a fullfledged, consistent and seamless user experience across online and mobile banking, complete with redesigned interfaces and intuitive navigation.

The Bank’s platform approach hinged on having a scalable digital platform that could connect the omnichannel hub on one side to an external ecosystem via APIs and to its internal systems (core banking, CRM, Cards, Treasury etc.), on the other.

With the new platform, Bank Muscat was able to launch a seamless omnichannel user experience packed with outstanding functionalities. Now customers could directly pay anyone in Oman using their mobile phone and authenticate themselves using biometrics. Corporate and small business clients gained new self-service capabilities, while wealth management customers enjoyed greater personalization. Instant bill payments, instant international money transfers on major corridors (India, Pakistan, Sri Lanka, Philippines and Bangladesh) and personal financial management enhanced user experience further to deepen engagement with the Bank.

The Bank has seen significant outcomes from the transformation.

As digital banking usage soared, the

number of mobile transactions crossed 46 million. Mobile banking registrations have grown by 36 percent over the past year, while transactions grew 91 percent in volume and 95 percent in value in 2020 over the previous year.

Internet banking has also witnessed significant growth.

Summarising the transformation, Ahmed Omar Al Ojaili, Group Deputy General Manager – Technology, Bank Muscat, “Channel innovation is no longer about bolting on yet another touch point. It is a critical element of strategy that perhaps, more than anything else, enhances a bank’s ability to engage better. The Bank Muscat implementation bears testimony to this. We have seamlessly progressed from traditional to innovative digital banking to enhance customer experience, re-engineer business operations and achieve growth. The Bank has successfully leveraged its ongoing partnership with Infosys to launch its new Omni-channel Internet and Mobile Banking experience, which has been well received and appreciated by our customers over the last few months since its launch. We are happy to partner with a global leader in next-generation digital services and consulting like Infosys to provide the best digital banking experience for our customers in an efficient, secure and convenient manner.” mea-finance.com

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BANKING TECHNOLOGY

Every Experience Matters Nidal Abou-Ltaif, President, Avaya International says that in the era of the “Everything Customer”, banks must attend to the full range of needs and wants and tells MEA Finance that whatever the final vision of banking that comes to prevail, digital technologies are here to stay

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hat has changed in the banking sector over the last twelve months?

Across the global economy, we have seen the rise of what Gartner calls the ‘Everything Customer’, and nowhere is this more obvious than in the banking sector.

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The good news is that the banking sector is best placed to address the needs of this new type of customer.

Banks must now be able to meet all their customers’ needs through the entire range of different digital platforms and touchpoints. Many customers do not want to visit a branch anymore, and they

Banking and Finance news in the MEA market

certainly do not want to wait in a queue on the phone. What they do want is much more difficult to ascertain because they want it all. They want to be left alone yet remain connected. They want to be treated equally but served uniquely. And they want any requests to be dealt with instantly and seamlessly.

This is the Everything Customer, and their rise is having profound effects on the way banks approach customer experience. It means an end to physical form-signing and lengthy call-waiting queues. It means embracing digital touchpoints, and extending capabilities such as money transfers, payments and more to the digital apps and services that customers actually use.

The emergence of the Everything Customer has been a long-time coming, but it has been accelerated over the last 12 months due to the COVID-19

pandemic. As both customers and employees have moved online for safety, it has become imperative to deliver a multi-experience that’s just as meaningful in the digital realm as it is in person.

Our work with Mashreq Bank is a great example of this approach in action. We worked with this leading UAE bank to develop an intelligent digital engagement banking bot that can answer customers’ questions, help them find the services they need and assist them with transactions – through whichever touchpoint they choose.

Mashreq customers can now complete service requests almost entirely through this AI-powered ‘agent’. It is a major step on the journey to an entirely digital, branchless banking experience.

All these developments create the backdrop against which financial institutions need to decide how they approach the future of customer experience. There are a lot of challenges to overcome, and at Avaya, we’re addressing those challenges with extensible technologies that help banks to not only personalize each experience for the Everything Customer, but humanize them with a service that’s

Nidal Abou-Ltaif, President, Avaya International

Is Open Banking an opportunity or a threat for regional banks?

Open banking enables banks to share financial information with authorized providers through open application programming interfaces (Open APIs),

A CULTURAL STIGMA AROUND DIGITAL TECHNOLOGIES HAS BEEN BROKEN, THEY ARE NO LONGER THE PRESERVE OF YOUNGER GENERATIONS AND THEIR VALUE HAS BEEN MADE OBVIOUS ACROSS THE BUSINESS SPECTRUM empathetic and trustworthy. The Everything Customer views brands as the sum-total of the experiences that they provide, which is why we have chosen the theme ‘Every Experience Matters’ for our participation at GITEX Technology Week.

and it is leading to some amazing innovations in various markets across the world. We spoke about the possibilities of open banking at GITEX a few years ago, demonstrating a platform that enables banks to not only offer core banking services online, but also become

an aggregator and platform for a raft of other services. And since then, we have seen regional banks move in that direction, offering the ability to manage utility bills or telecoms plans through their online banking platforms.

Banks should continue down this road, or else the opportunity will pass them by. We are seeing service providers move in this direction, too – expanding their offerings to new verticals with new services and selling managed services along with connectivity.

The challenge is that true open banking requires a psychological shift towards working, and sharing data, with third parties to enhance customer experiences. Despite the demonstrated customer loyalty this would provide, so far, we’ve only seen a few key use cases.

Banks are either unwilling, or unable (because of regulatory challenges) to enable the sort of data sharing that creates true customer-centric innovation.

We are helping move the needle as we embrace the API economy. As recently as five years ago, it was next to impossible for organizations to look at the idea of embedding artificial intelligence (AI) or machine learning (ML) into their engagement applications. It required massive investment and rich technology that would shortly become outdated with the quickening pace of innovation. It was unfeasible from an operational, efficiency and financial standpoint. But all of this has changed with the rise of the API economy, which is fuelling an exciting new era of customer experience.

The basic premise is that, through our open platforms, banks can cherrypick services from different providers, getting access to best- of-breed technology for creating unique solutions that drive specific customer and business outcomes.

Will regional banks wilfully e m b ra c e i n n ova t i o n s l i ke Open Banking?

There is certainly an appetite among banks in the region to adopt open banking, mea-finance.com

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BANKING TECHNOLOGY

but the shift will likely be primarily driven by the central banks and the regulators in the industry. There are positive movements across the region, in markets such as Saudi Arabia, and we are seeing an overall global shift to open banking, so we think it is only a matter of time.

With that assumption granted, the focus should be the readiness of traditional banks to embrace open banking. As outlined earlier, embracing the API economy requires a cultural and operational shift driven by digital transformation. The banks that have accelerated their digital transformation – both when it comes to delivering great customer multiexperiences across quickly emerging touchpoints, and internally - will have the first-mover advantage.

The point around transforming internally is an important one. The work we are doing with several banks involves ensuring contact centre agents have everything they need at their fingertips, including knowledge, access to subject matter experts and real-time insights, so that each engagement is effortless. This is especially relevant (and challenging) with home working. As a result, the focus is on creating an integrated workspace, underpinned by AI, analytics and knowledge management, which proactively finds the required contextual information for any customer interaction.

Does the technology behind banks’ digital platforms still matter?

The short answer is yes. And because of this, over the last 12 months, we have seen a much broader acceptance and adoption for cloud-based technologies in the Middle East Banking sector. Traditionally, both business and IT leaders have always seen challenges when moving to the cloud – for example there were questions over data sovereignty, or there were corporate policies that said the institution should own perpetual licenses outright.

But the mindset has shifted as a result of the COVID-19 pandemic.

The security and data sovereignty concerns have not gone away, but

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what has become obvious is that they can be addressed on a personalized cloud journey with a trusted technology partner. At the height of the pandemic, Avaya’s cloud-based solutions enabled Middle East banks to immediately get their staff and contact centre agents working from home, ensuring both business continuity and employee safety. The fact that these deployments were, in many cases, up and running in a matter of hours and days illustrated the power of the cloud.

Of course, we cannot propose a full-scale migration for every piece of on-premises technology to a public-cloud equivalent. But the crisis illustrated how cloud journeys can be personalized to any given organization’s unique needs.

Regardless of the platform a bank chooses, that journey requires two things: Firstly, a trusted technology partner who understands the industry, and has decades of knowledge in helping banks to deliver outstanding customer and employee experiences. And secondly, a provider that can offer the best-in-class technology that enables

Banking and Finance news in the MEA market

banks to compose the solution that works best for them.

Which vision of banking will prevail in the region?

Regardless of which vision prevails we know two things for certain: First, digital technologies will prevail - not only because COVID-19 necessitated them, but because customers demand the convenience that they afford. A cultural stigma around digital technologies has been broken; they are no longer the preserve of younger generations, and their value has been made obvious across the business spectrum.

Secondly, due to the nature of the digital commerce, transparency and trust will be the key factors that will decide customer loyalty and satisfaction. In an all-digital world, trust becomes a new form of currency – and that currency is made up of every micro-experience that the organization offers. The banks who are already figuring out the formula to make every experience matter, building up their trust reserves, will eventually be the ones leading as the world continues marching towards its digital future.

DIGITAL TRANSFORMATION

A digital past, present & future Commercial Bank of Dubai were among the pioneers in the regions move to the digitisation of financial services. Here Dr. Bernd van Linder, CEO and Amit Malhotra, General Manager, Personal Banking Group, answer questions about CBD’s experience of digitisation both as a leader in this and as a bank operating in this region in the world of today.

The Commercial Bank of Dubai Digital Team

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Banking and Finance news in the MEA market

D

igital transformation is an industry imperative.

What has distinguished Commercial Bank of Dubai’s approach to this compared to your peers?

CBD was one of the first banks to start digitizing its services and was the first to launch a digital-only bank in the Middle East, CBD NOW in 2017. This bold initiative was part of a strategy that has been in place for many years, with the aim of making digital technology the main driver of our business development.

CBD aims to be a «default digital» bank, providing all banking functionalities available through online and mobile banking channels, aligned with the needs of our connected customers. CBD has launched several innovative digital products and services, such as the CBD Digi account and CBD Digi Cards, which can be instantly opened by customers from the comfort of their home or office in just a few minutes using only their Emirates ID. CBD also offers real time remittances along with cash pick up and remittances directly to wallets to key countries.

What distinguishes CBD from the rest of the industry is our customer-centric approach and personalization of the offers we provide to our customers. Our customers are the cornerstone of the products and services we provide. At CBD, we always put ourselves in the shoes of customers to truly understand their needs, and design innovative and disruptive solutions that sets us apart from the competition.

CBD’s award-winning Mobile App provides customers with innovative digital banking services designed to help manage their finances and achieve their financial goals. With a few clicks, customers can access and view their accounts, credit cards and deposits, pay their utility bills such as Etisalat, du, DEWA and SEWA, and transfer money globally and locally. Moreover, the app makes banking even more convenient with its smart alerts and

Dr. Bernd van Linder, CEO

notifications, the ability to report and block lost or stolen cards and providing spending insights to enhance financial wellness. The app allows you to tokenize your credit and debit cards and pay using Apple Pay, Samsung Pay and Google Pay.

Amit Malhotra, General Manager, Personal Banking Group

year and we have seen great interest from customers.

Looking at the past 12 months, how has the Covid-19 crisis affected your digitisation plans?

Digitisation can bring noticeable savings to operating costs at a time when banking margins are under pressure. How do you balance the needs of the customer with the needs of the bank when deciding a digitised future?

A focus on Digital has been an integral part of CBD’s strategy well before the current crisis. As technology has developed, there has been a marked rise in customer demand for instant and personalized services. The ongoing pandemic crisis has further reinforced this trend and accelerated the demand for digital banking. Even customers who have traditionally been cautious in terms of digital adoption, have now started to realise the benefits of digital banking.

Capitalizing on this trend, the CBD digi account and instant virtual debit and credit cards have been launched this

There is no dichotomy between customer needs and the needs of the bank when it comes to digitization. Our primary focus is on providing the best possible experience to our customers, through all channels. And nowadays, these channels are first and foremost digital, be it on mobile, tablets, through a chatbot, ATM or online banking. The benchmark for customer experience on digital channels, is set by the likes of Amazon, Google and Apple. Customers are used to getting products and services being personalized and delivered in (near) real-time. These customers are no longer mea-finance.com

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DIGITAL TRANSFORMATION

willing to wait two weeks for an account to be opened or a loan to be disbursed.

We have to make sure we are able to deliver our products and services in the same personalized, real-time way, which requires end-to-end digitization of our processes. This end-to-end digitization of processes in turn, makes a bank more efficient and productive. Hence, the goal of improving customer experience is fully aligned with making the bank more efficient.

Do you think there are regional specific challenges or trends to bank digitisation that other locations will not encounter?

The UAE is one of the most progressive and tech savvy countries in the world.

The UAE Government has a very clear digital focus and is actually driving digital transformation, including a move to become totally paperless by end 2021, at a faster pace than the private sector.

This focus provides opportunities, rather than challenges to digitisation not just in the banking sector but across other sectors as well.

Are there any features of the pre-digital banking era that you will be sad to see disappear as a result of the inevitable changes to the industry?

To be honest, we don’t really see any drawback to the ongoing digitization transformation. Digitization will only result in positive outcomes that will benefit both customers and banks.

As Commercial Bank of Dubai is going through a digital transformational phase, are there any plans in the pipeline to launch digital exclusive branches?

This is something that we are looking at quite actively, although we see these evolving more as a physical branch (viz a mix of digital and physical) as I firmly believe that we will always need physical branches to support customers who need that personal interaction. Further,

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our focus will be to continue to offer more digital banking services, besides retail, especially for the corporate and wholesale banking segment.

CBD DIGITAL TRANSFORMATION – KEY HIGHLIGHTS • Launch of CBD Digital account accessible within two minutes and less than 5 steps through the CBD Mobile App based on only your Emirates ID. CBD Digi account offers attractive benefits such as no minimum balance requirement, free monthly remittances, free debit card, exciting rewards including latest gadgets, air tickets and more.

• CBD’s award winning App offers

to introduce a personalised Credit Card - CBD ONE which empowers the customer to choose their card design, customize benefits and offers options to pause plans or change benefits based on personal preferences.

• CBD has enabled Instant Remittance capabilities across corridors such as India, Pakistan and Philippines where customers can now send money back home within minutes and at attractive rates. In addition, customers also have the option to send money directly to digital wallets or cash pick-up without requiring a bank account in their home country.

• CBD is the first bank to integrate with UAE Pass, which is the governments’

THERE IS NO DICHOTOMY BETWEEN CUSTOMER NEEDS AND THE NEEDS OF THE BANK WHEN IT COMES TO DIGITIZATION.

convenient options to pay utility bills, mobile top ups, Salik with an option to auto top up, track expenses, issue supplementary cards, balance transfer, loan on card, real time redemption, travel notification and much more.

• CBD has enabled instant issuance of Credit Card through the CBD Mobile App based on Emirates ID only offering a real time virtual card, which can be used by adding to wallets such as Apple Pay, Samsung Pay and Google Pay to enjoy contactless payments.

• CBD is one of the first Bank’s in the region and possibly the world

Banking and Finance news in the MEA market

key initiative to enable Digital Identity authentication.

• CBD has launched 11 multi-currency accounts (including a Gold Account) which can be instantly opened through the CBD Mobile App. • CBD launched an AI powered Chat bot to assist our customers on all their product and service-related queries in real-time.

• CBD entered into a partnership with Now Money (Fintech) to offer a fully digital solution including remittance, mobile top ups and more.

• CBD is part of the Norbloc initiative, which digitizes the SME KYC and the on-boarding process.

Stakeholder Endoser of:

Full member of:

ADVISORY VIEW

Changes, challenges and opportunities in a region of great promise Khalil Ibrahim Al Sedais, Office Managing Partner-Riyadh, KPMG, recognises that significant changes can be expected coming from the accelerated evolution of the business environment and techniques, but is optimistic about the investment prospects for the region.

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hat were the main challenges for banks at this time, and how is that reflected in their requests to advisory service providers?

The pandemic was a test for banks’ business continuity management (BCM) and crisis responses and brought new challenges to cyber resilience and digitalization of customer interactions especially during the days of lockdown in major cities of Saudi Arabia. Covid19 did present the largest challenge to the financial industry since credit crisis of 2008; however, the resilience and strength of the Saudi banking system has allowed it to cushion the economic fallouts. Banks that are agile, flexible and willing to transform their business models will succeed, and secure their financial strength for future growth, while those that rest on their laurels will experience the downside in the new competitive landscape. Of late, the Covid-

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19 situation has not only tested the strong capitalization and high profitability of the sector but indicating a dynamic shift in investment towards digital platforms and omnichannel functionalities.

During the immediate fallout of the Covid-19 and its subsequent lockdowns and movement restrictions, the banks played a central role at the instigation of the financial support programs of the government and SAMA, handling the rollout to entrepreneurs, businesses and all that were hard hit. At the same time, the government support for the banking sector has continued to play a vital role in the handling of distressed segments, providing additional liquidity and rapid roll-out of the forbearance measures. Both were testament to the close-knit and high-level dialogue between the government, the regulator and the financial sector. Banks have revisited various facets of their credit loss recognition models, aptly capturing the evolving customer risk profile, industry

Banking and Finance news in the MEA market

outlook and impact of relief programs.

We have observed approaches ranging from ‘light-touch’ to more rigorous ones, essentially depending upon the availability of sufficient and reliable data.

As the Kingdom endeavors to return to normalcy, there is growing optimism that robust regulatory reforms along with the capital built in prior years has enabled banks to have seen the worst through.

We have been largely approached for opportunities in the space of digital transformation, enhanced customer experience, credit and market risk assessments.

How do you see the role of consultancy service providers developing in financial services in the coming years?

Our key predictions for 2021 include continued customer focus through innovation, cost and operational efficiencies to remain a priority, limited asset and profit growth, increasing capital and fundraising activity, further consolidation and rethinking of business models that are fit for new norms. Future sustainability and success of the sector essentially depends on taking decisive actions vis-à-vis optimization of noninterest cost base, enhancement of digital capabilities, capital protection and investment in imperative technologies such as advanced data analytics and cyber security. Moreover, considerations related to environmental, social and governance issues are expected to be central to the

How has the Covid-19 pandemic affected your interactions with clients in the region and the way the offices operate?

Khalil Ibrahim Al Sedais, Office Managing Partner-Riyadh, KPMG

agenda of banks. The service expectations on consultancy firms will grow accordingly and demand for support in the fields of cybersecurity and digital acceleration will grow. The strong emergence of the fintech industry, catalyzed by demand for safe and secure digital payments, will transform the incumbents in the financial industry, with growing demand for services dealing with cloud technologies and digital integration between back- and frontends of the organization. The current year is fast evolving into a monumental year for Kingdom’s fintech space. With two-thirds of the companies active in the payments (with 98% of the userbase), the demand for hygienic, cashless transactions has only increased. An important catalyst for these developments remains the conducive environment, created by the financial sector regulators and complemented by close collaboration between the banking sector and fintechs through the which synergies have been found.

We moved into the new way of working rapidly, shifting many of our operational efforts toward building safe and secure connections for our employees to work from home and to interact with each other and with our clients. Reflecting the global trend, this presented initial challenge, but we were able to adapt quickly to digital collaboration and communication tools.

Currently, client interactions are returning, though we do not expect remote working to move away again considering the efficiency and cost benefits. In the new digitalized world, many features of the modern workplace have quickly become outdated, being inefficient. When life transitions back to ‘normal,’ do not expect the office place to follow it. Organizations see the cost benefits of reducing physical office space and employees no longer want to spend too much time commuting to work – both elements that will lead to the widespread emergence of a remotehybrid future of work. At our offices in Saudi Arabia, we are working from the office on lower capacity, taking all the

constraints in estimating for the long term, rather we expect organizations tuning-up their business plans more frequently as the experience evolving risks.

Already, we have seen new industries disrupt the market and challenge current industries. Covid-19 will likely be one of the key accelerators of the shift away from reliance on natural resources, which have remained the primary source of income for many governments in the region.

While the world will continue to become more interconnected, both governments and companies will revisit their supply chains to ensure their resilience in times of economic stress or states border closures. On a business management level, the pandemic has transformed how leaders view and respond to risks, resetting their priorities and, in many cases, growth trajectories. Business, financial and risk models designed for the pre-pandemic environment are transforming and leaders who were concerned with talent retention are now required to focus more on mental health and future readiness of talent.

As a result, new categories of business and financial risks require clear and

THE CURRENT YEAR IS FAST EVOLVING INTO A MONUMENTAL YEAR FOR THE KINGDOM’S FINTECH SPACE. necessary distancing measures to provide for our staff’s health and safety.

What is your prognosis for the economies of the region in the coming five years?

There is an unswerving realization that Covid-19 is here to stay and accordingly organizations are expected to be agile and prepare themselves for unexpected and unfamiliar disruptions in the value chain. This will continue to pose major

agile thinking. In Saudi Arabia, we have seen most of our clients coping up with the pace of change and delivering even better financial results against most of the developed markets. We relate this triumph to a close coordination with all stakeholders, including the central bank and government. Overall, the Middle East will remain attractive for investment, and we will continue to see transformation in organizations and economic reforms driving many opportunities. mea-finance.com

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CITY CONNECTIVITY AND GROWTH

Dubai’s position in Global Economy Connectivity The globally connected nature of cities gives them better chances of leading recovery and growth following economic setbacks. According to a recent report, Dubai is in the premier network of the worlds connected cities

By Mushtak Parker

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ith the economic, health and social impact of Covid19 showing little sign of abating as resurgent spikes of infection reported across several cities around the world, postpandemic socio-economic recovery is going to be drawn out.

While countries may struggle at the national and macroeconomic level, cities may have a better chance in leveraging their location and geopolitical assets and potential to lead using their connectivity to the global economy to steer towards recovery.

Evidence of this potential is explicit in a new report, The World According to GaWC 2020 released recently by the Globalization and World Cities (GaWC) Research Network, based at Loughborough and Ghent Universities in the UK and Belgium respectively.

U s i n g a u n i q u e G l o b a l N et wo r k Connectivity (GNC) measure based on human geography metrics, the latest data confirm that Dubai is by far the

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most globally connected city in the Gulf Cooperation Council (GCC) region and in the Middle East and Africa.

Winners and losers In a global context Dubai fares even better, ranked as the 7th most globally connected city in the world. London is the most connected city followed by New York, Hong Kong, Singapore, Shanghai, Beijing, Dubai, Paris, Tokyo and Sydney.

“Post-Covid,” explains Michael Hoyler, Reader in Human Geography at Loughborough University, “there may be winners and losers, and these may be unequally distributed globally. In past crises, there has been a tendency for cities at the core of the global economy to recover quicker than those at the periphery. In terms of GNC, as this is shaped by the location decision of advanced producer service (APS) firms, it is the actors in these firms who will make strategic decisions, which when aggregated will then be reflected in changing GNCs in the future.”

Banking and Finance news in the MEA market

Michael Hoyler, Reader in Human Geography at Loughborough University

The GaWC world city network data have been collected since 2000 and provide information on the locational strategies of APS firms – in accountancy, finance, corporate law, advertising and management consultancy. As such, Dubai’s pre-eminent position as a regional and global hub linking the Middle East with Europe, Africa and South and East Asia stands it in good stead in leading the post-Covid recovery in the UAE and the GCC region.

Well positioned The ability of Dubai to attract global corporate titans, generating inward FDI, creating jobs, facilitating cyber connectivity, despite political tensions in the region

and the sluggish global economy, is encouraging. Leveraging this pole position is the challenge going forward!

Regionally Dubai is ahead of Istanbul in 30th position followed by Riyadh in 47th position and Cairo, 68th.

The ranking is used to classify cities into 12 categories from Alpha++ down to cities with sufficiency of services.

London and New York are the only two ranked Alpha++ with Dubai in the next quantile of Alpha + which denotes “a highly integrated city that complements London and New York, largely filling in advanced service needs for Asia Pacific.” “ T h e d a ta ,” m a i nta i n s H oy l e r, “can give us a unique insight into the emergence of a ‘world city network’, the highly integrated circuit of strategically important cities at the centre of the global economy. Collecting these data over two decades has allowed GaWC researchers to monitor and analyse the dynamics of corporate globalisation as it unfolds, and contracts, in cities around the world. Policy makers in cities can use the data to evaluate the position of their city within wider global networks of corporate service provision.”

The GaWC Research Network is the brainchild of the Geography Department at Loughborough University, which focuses upon research into the external relations of world cities. Hitherto research on global cities was based on the existence of world-wide transactions and commercial contracts and focused on studying the internal structures of individual cities and comparative analyses of the same. This latest study, however, focuses on relations between cities.

According to Hoyler, GNC is a measure that indicates how well a given city is integrated in the office networks of leading APS firms which are a proxy for the myriad of flows that economically link cities but for which global data are not available or commercially restricted (electronic flows, capital flows, interpersonal links etc).

The focus here is on advanced producer services as a key sector

enabling economic globalisation. The ranking should therefore be interpreted as one of ‘global service centres’ rather than all-encompassing city-economies.

Cities housing many firms with large offices networks will score high, whereas cities with few firms/firms with smaller networks will score lower.

The rankings of the Middle East and African cities reflect their relative economic strengths.

The position of Johannesburg (Alpha-), Cape Town (Beta), Nairobi (Beta) and Lagos (Beta-) reflects their relative economic strength, with comparatively developed service sectors. Globally connected advanced producer services use these locations as gateways into the South African, Kenyan and Nigerian economies, and this is reflected in the ranking. The same applies for the GCC and other Middle East countries.

financial services and advertisers based in each city. The more firms present in a city, and the more networked they are, the higher the city ranks.

Being home to the headquarters of one of the 175 businesses included in the study, such as Deloitte, Ernst and Young, KPMG, PwC, Epsilon, Experian, Barclays, Capital One, Citi, Deutsche Bank, Goldman Sachs and Merrill Lynch, will increase a city’s score.

The longer term “The longer-term implications of Covid-19,” warns Hoyler “are somewhat speculative at this point – while cities are likely to remain key hubs of economic activity, and complex APS continue to require face-to-face contact in their operations, global office networks may well change, with some cities losing office functions.

Future GaWC data will provide a unique

THE DATA CAN GIVE US A UNIQUE INSIGHT INTO THE EMERGENCE OF A ‘WORLD CITY NETWORK’ For example, DPO the largest online commerce platform operating at scale across Africa, although based in Nairobi, shares its technology hub between Cape Town, Johannesburg and Tel Aviv. DPO is currently in acquisition talks with Dubaibased Network International Holdings plc, a leading digital commerce enabler across the Middle East and Africa.

Standard Chartered Bank (SCB) similarly opted for Nairobi as its Gateway Hub for Africa especially for its Islamic finance subsidiary SCB Saadiq. Dubai Islamic Bank (DIB), one of the UAE’s largest banks in terms of assets and the first Islamic commercial bank to be established in 1975, too chose Nairobi as it’s African HQ. The World According to GaWC 2020 was compiled by looking at the size and function of offices of large management consultancies, law firms, accountants,

opportunity to evaluate the impact, using the 2020 data as a baseline.”

Cities will rise or fall relative to other cities, adds Hoyler. If more globally connected APS firms open offices or move more strategic functions to a city, then its GNC will increase. Likewise, if offices of firms are closed in a city, then that city will go down the list. There is usually more stability at the top end of the list, and more volatility further down (where the location decision of one or two firms carries more weight).

It is important to note, maintains Hoyler, that being further up or down the list is not necessarily good or bad. Cities all have their distinctive characteristics and economic profiles, and some will be more APS-oriented than others. Dubai’s future as a premier globally connected city according to above metrics, can only thrive. mea-finance.com

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OPINION PIECE

Fundamentals of planning your investment journey The basic truths of investment remain a reliable guide to ensuring comfort and prosperity. Here we get a reminder lesson from National Bank of Fujairah on the fundamental principles of sound investing.

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nvestments, as we know, appreciate with time, ensuring valuable returns when it matters the most. While we all have competing priorities and goals in life, having a suitable investment plan empowers us to achieve our ambitions. Therefore, having the optimal investment strategy is key to getting the right investment for you. But what is the right strategy and how do you know what is right for you?

H e re w e w i l l d i s c u s s s o m e fundamentals of investment for beginners and for those planning for retirement.

Investing for beginners Investing can appear to be complicated and out of reach for someone with little or no experience. Here are 10 practical strategies that can be followed to make your money work for you as you seek to begin your journey: 1. Do the math When it comes to investing, it is all

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about understanding your current financial situation, your goals, and your risk tolerance. These three factors act as a guideline for establishing your financial goals and the type of investments you need, which will determine the investment solution best for you.

2. Realistic expectations When setting expectations for any investment, be realistic about the type of returns you expect. Past performance only provides an indicator of historical returns.

3. Information is power Ask lots of questions to make sure that you have all the relevant information, and understand it before making any decision.

4. Have a plan Choose investments that fit your personal objectives and goals – this is better than making investments on an ad hoc basis or investing in single product. Favour diversified holistic

Banking and Finance news in the MEA market

investment solutions that are based on outcomes and goals.

5. Time horizon The longer the time horizon, the more risk you can take. For longterm goals such as retirement or children’s education, consider equity funds, which even though volatile in the short term, are more likely to give you the growth you are looking for. Similarly, for short-term goals, look at money market, or cash funds as they tend to be more stable and predictable.

6. Understand risk and return Higher expected returns are generally associated with a higher degree of risk. Hence, return expectations should be in line with the level of risk taken. For example, equity funds have the ability to provide good returns over the long term but are subject to much wider fluctuations.

7. Diversify Simply put, diversifying is the process of spreading your money across a wide range of investments, (different asset classes). These can be stocks, bonds, real estate, across multiple geographies. One of the best ways of achieving this, is to invest in multi asset fund portfolios. NBF offers a selection of risk based multi asset diversified investment portfolio solutions focused on understanding your profile, risk capacity and ensuring the right solution (conservative, moderate

and aggressive) is recommended for you.

8. There is no right time When the markets are low, you buy more and when the market rises, you buy less. This disciplined investment approach is a successful way of building wealth. A key differentiator for NBF’s investment products is that investors can choose to exit the investment on a weekly basis due to the transparent fee structure and the absence of lock-up and redemption penalties.

9. Keeping emotions at bay A well-allocated portfolio alleviates the need to constantly adjust investment positions to chase market trends and can help reduce the urge to buy or sell in response to the market’s short-term ups and downs.

10. Speak to a financial adviser If you feel you require guidance in deciding what investment solution best fits your objective and goals, engage a professional who will be able to analyse your financial circumstances and goals and consequently guide you to the appropriate investing solution.

For example.

By having an idea of your future needs and the expenses, and by projecting the approximate annual spend, you can derive a rough estimate of the funds you should set aside. Gratuity or corporate savings plans, economy fluctuations, inflation, food and housing costs, even future medical necessities are a few variables that should be considered to ensure an accurate projection.

While this is difficult to predict research shows that on average, individuals at retirement will require somewhere between 50 to 75 % of their last annual income to insure a comfortable financially secure retirement.

The sooner you begin to save for your retirement the greater your income in retirement will be.

Own income-producing assets It is critical to focus on investments that will help generate income in the long run.

To find the right investment for you, first you must: • Evaluate your attitude to risk The longer the time horizon of your investment, the more risk you can afford to take. Higher expected returns are generally associated with a higher degree of risk. Hence, return

WHEN THE MARKETS ARE LOW, YOU BUY MORE AND WHEN THE MARKET RISES, YOU BUY LESS. Want to plan for retirement? Then you will need to make your money work harder From estimating the length of your retirement to taking advantage of compound interest, these tips will help you achieve the future you want: Estimate your retirement years It is important to estimate how many retirement years you need to save for.

expectations should be in line with the level of risk taken.

• Diversify your investments Spread your money across a wide range of investments or different asset classes.

• Grasp the effect of compounding interest Compound interest makes your savings work hard in the background

Moukarram Atassi, Head of Investment Management, National Bank of Fujairah

for you as you progress through your career and life stages.

Compound interest is earned from the initial principal invested, plus all the accumulated interest that is reinvested over the time period effectively earning interest on interest, Einstein called it the 8th wonder of the world.

To demonstrate its power, if you save AED 1,000 per year (total AED 30,000) for 30 years at an interest rate of 10 per cent, this will grow in value after 30 years to approximately AED 200,000. In reality, the actual earnings is AED 170,000.

However, if you save AED 30,000 in a lump sum in the beginning of the 30-year period, the total would instead amount to about AED 525,000 because the interest starts getting calculated on the full amount from day one. This is the power of compounded interest “wonderful” The earlier you start saving—and the more often you save—the better prepared you will be for retirement. mea-finance.com

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OPINION PIECE

Deleveraging Data Has Cost Middle Eastern Principal Investors Over USD 6 Billion in Potential Returns on Investment Markus Massi, Managing Director and Senior Partner, Boston Consulting Group (BCG) explains how rethinking operating models to incorporate data governance, platforms based on modular architecture and a change welcoming culture will bring new opportunitieds to Middle Eastern investors

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rincipal investors in the Middle East – comprising of the likes of Sovereign Wealth Funds (SWFs), family offices, private equity companies, and institutional investors – are experts at identifying and hunting for new investment opportunities through decades of experience in understanding the shifts in the market and putting the right deals together.

However, similar to other industries, the emergence of the pandemic has brought to light the importance of technologies, data practices, and ways of working that investors have traditionally relied on, need to be recalibrated to sustain strong performance. In fact, according to our research, adopting a new focus towards digital, data and analytics can enhance this by USD 6 Billion or 0.2%.

Often, the challenges faced by investors are the fragmentation of data management, leading to a struggle in how to manage and use data in a way

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that can benefit the investor decisions. In the Middle East, however, the challenge is much more profound, where the concept of data usage in investment is not a key consideration. The issue stems from the fact that there is a lack of understanding of how data can be used for investor advantage, such as identifying investment opportunities or track the progress of portfolio companies.

In addition to the under exploitation of data, Middle Eastern investors face two other key challenges:

Agility with a Lack of Focus Middle Eastern investors are more agile in their ways of working when compared to other markets, which has a siloed approach to investment structures.

While this may provide a more seamless approach to investment, it does not provide a concentrated area of expertise, leading to a ‘jack of all trades’ scenario.

Without leveraging technology and data

Banking and Finance news in the MEA market

Markus Massi, Managing Director and Senior Partner, Boston Consulting Group (BCG)

efficiently, this creates waste in frontline capacity, where it can be put to use to hunt for better investment opportunities.

Changing Environment Demands for Disruption With unpredictability and uncertainties surrounding the environment, both in the Middle East and around the world, there can only be two outcomes: opportunities for growth or the dangers of succumbing to those who innovate to adapt to the new future. COVID-19 has shown the power of digital, data, and analytics, and how opportunities can be created by leveraging new technologies. In the current market state, Middle Eastern investors are relying on their expertise of the market to aim at the most visible targets that generate the strongest return, however, it is vital to evolve by involving data and analytics into the decision mix to identify better investment opportunities to hunt for.

To address these challenges, we’ve identified three imperatives that investors can take to build operational resilience. In our experience on case works, addressing these core topics comprehensively can help firms improve assets under management by an average of 5 to 7 basis points. Designing an operating model for the future requires core elements that include technology and platforms, data and insights, and organization and

culture. Middle East investors don’t need to pursue a massive overhaul all at once.

Instead, they can lay the groundwork by focusing on the specific capabilities they need to gain resilience in the post-crisis environment.

1. Move Toward a Modern Platform Based on Modular Architecture.

Shifting to modern platforms can help to deliver greater functionality, agility, and improved cost performance.

From our experience, investment firms can realize average cost savings of 7 to 10 percentage points.

The modular architecture makes it easier for firms to integrate systems end to end, allowing data to be shared across systems and manual tasks to be automated. Many of the modular architecture platforms available today are software-as-a-service subscriptions, which can be less expensive to acquire and maintain since updates are managed by the software provider and require significantly less IT involvement on the investor side. As such, many come with various offerings that can be integrated for a more seamless working environment – such as cloud storage so that investors can access an expansive catalog of services and solutions to support new asset class and investor strategies or even mobile extensions that can facilitate remote work.

While implementing a modern platform is a longer-term outlook, investors can begin by doing the following: • Map the systems, processes, and data flows in each step of the investment decision-making process to identify critical data needs, as well as key bottlenecks in the system • Ensure that the right process controls are in place • Prioritize relatively easy, short-term changes that can help to mitigate acute challenges while longer-term system implementation unfolds.

2. U nlock Insights by Formalizing Data Governance. Establishing a data governance function to align on a “single source of truth” and enforce data management changes is vital to close the knowledge gap and make data easier to access across all functions. For instance, alignment on a common set of data inputs to calculate critical metrics, such as internal rate of return, mark-tomarket valuations, and debt service coverage ratios, can be a helpful place to start. With a common data architecture, investors can process information from external sources easier, and then they can collate inputs, such as volume and trade information, and then feed that data into automated analytical processes. As they refine their data taxonomies and libraries, investors can begin to develop more specialized use cases and algorithms. In the long-run, investor firms can expand their data governance footprint, to create a data center of excellence as a single resource or establishing a hub-and-spoke model, with a centralized unit in charge of core data governance and data stewards housed within the business who work with teams to develop and deploy analytics.

3. C reate an Organization and a Culture That Embrace New Ways of Working. There are three primary areas that investors can adapt to in the organization to win in the postpandemic environment. Firstly, to embrace the agile ways of working to provide a platform of accountability, transparency, and resiliency that is needed to increase productivity and efficiency. Secondly, to structure teams around a specific set of business and customer objectives to create a knowledge-sharing based organization, which pools insights across a function that can foster a shared sense of purpose. Third and the final area is employing cross-training into the standard operating practice to create a flexible firm, which helps to avoid leaving other functions shorthanded. Also, the opportunity to expand professional skillsets is appealing to many employees and one that often results in higher rates of retention and greater recruitment success.

The new reality of the post-pandemic is surrounded by uncertainties, however, the important takeaway is that investors be prepared for this ever-changing and dynamic environment. Rethinking the operating model can provide Middle Eastern investors with the opportunity to be more resilient and responsive, capable of managing through adversity, and delivering sustainable growth. mea-finance.com

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LEGAL PERSPECTIVE

RED FLAG REVIEW:

Identifying Issues in Technology M&A in the UAE – Competition Law With the UAE’s avid technology led development and its position as a leading regional financial hub, it will continue to grow and attract many innovative fintech businesses. As is the nature of such active innovation environments, growth, mergers and acquisitions are part of the sector’s development, sometimes further spurred on by wider market changing circumstances, such as the Covid-19 pandemic. Here AMERELLER’s Jonathan Noble flags some important factors to keep in mind when operating in such a time.

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Banking and Finance news in the MEA market

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he United Arab Emirates (UAE) is host to the most robust tech sector in the Arabic speaking Middle East. Once tech companies reach a certain level of maturity, they frequently continue strategic growth through the acquisition of companies in complementary sectors.

These transactions often trigger the approval of regulators before they can close. The UAE is no exception, and tech companies in the UAE need to be aware of the regulatory framework early in any given transaction.

Focus on Fintech Mergers and acquisitions in the finance sector are exempt from UAE competition law provisions. The Central Bank of

the UAE is responsible for approving all major acquisitions by entities under their regulation, and recently issued new regulations to set firm guideposts for M&A in the field.

The finance sector in the UAE has seen a waive of consolidations in the past 3-5 years. This trend is likely to accelerate as the erosion in the value of banking assets will lead to opportunistic investments.

The need to cut costs, create efficiencies, and innovate will lead to accelerated digitization. Fintech companies, at the forefront of innovative and efficient ideas - but often in search of additional funding, are likely to be acquisition targets.

Buyers of fintech companies will need to first determine whether the potential

FAILURE TO ABIDE BY THE FILING REQUIREMENTS CAN RESULT IN SEVERE PENALTIES. acquisition falls under the purview of the Central Bank or the Ministry of Economy (MOE). Companies established in one of the financial free zones (ADGM or DIFC) may have another layer of regulatory approval to contend with.

T h e UA E C o m p et i t i o n La w Framework Federal Law No. 4 of 2012 (the “Competition Law�) governs anticompetitive practices i n t h e UA E i n c l u d i n g e c o n o m i c concentrations, restrictive agreements, and abuses of a dominant market position. The Competition Law came into force in 2013, with implementing regulations in 2014, and complementary regulations following in 2016.

The Competition Regulation Committee of the MOE is the governmental agency tasked with policing infringements of

the Competition Law. While the MOE is not known as a particularly aggressive regulator, it does play an active role in approving mergers and acquisitions.

A number of sectors and entity types are exempt from the Competition Law. These include businesses defined as small and medium sized enterprises (SMEs).

When is a Merger Notice Filing Required?

Parties to a transaction must submit an application to the MOE any time the transaction threatens to create an economic concentration where there is likely to be an adverse impact on competition or where the overall share of the merged entities will exceed forty percent of the total transactions in the market.

In instances where a merger or acquisition could lead to an economic concentration, the parties need to submit a filing at least 30 days prior to the conclusion of the agreement that would bring about the concentration. Once parties submit a notification including all filing requirements, the MOE will issue a decision on the possible concentration within 90 days (which can be extended by another 45 days). If no decision is issued during this time, the transaction is approved.

Penalties for Non-Compliance Failure to abide by the filing requirements can result in serious penalties. These include a fine of between AED 50,000 and 500,000 as well as temporary closure of the relevant establishment(s) for a period of three to six months. Third parties may also seek relief for damages resulting from violations of the law.

A Buyer’s Checklist Astute legal counsel for a potential buyer will identify Competition Law issues prior to legal due diligence, and will probe key factual issues during the DD process.

A checklist of potential issues includes: 1. Are the parties exempt from the Competition Law? Due to the nascent nature of the sector, most

Jonathan Noble, Local Partner, AMERELLER

M&A deals in the tech sector will be covered by the SME exemption mentioned above. Companies are considered SMEs in the service sector if they have not more than 200 employees or annual revenues in excess of AED 200 million.

2. If an exemption does not apply, does the planned merger create an economic concentration?

A key issue at this stage is defining the size of the relevant market to determine whether an economic concentration may be present. There is little guidance on this point from the MOE, and buyers will need to work with legal counsel to assess technical and commercial details related to the business and broader sector.

3. If issues of economic concentration are present, when do the parties need to apply to the MOE? The parties must determine when negotiations reach a stage that trigger the 30-day filing requirement.

Regulatory approval must also be a condition precedent to any closing.

Caveat Emptor Buyers are likely to bear the brunt of noncompliance with the Competition Law. A bit of initial planning will go a long way to ensure that a promising technology transaction is not derailed by unfortunate regulatory snafus. mea-finance.com

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LIFESTYLE

Making time for Sustainability IWC Schaffhausen underpins leadership in sustainable luxury watch making

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n 1868, the American watchmaker Florentine Ariosto Jones travelled from Boston to Switzerland and founded the International Watch Company in Schaffhausen. His vision was to combine advanced American manufacturing methods with the craftsmanship of Swiss watchmakers to make the best pocket watches of his time.

Industry leading sustainability and reporting IWC leads the luxury watch industry in its approach towards sustainability, sourcing materials responsibly and taking action to minimize its impact on the environment.

It recently released the second edition of its pioneering sustainability report in accordance with Global Reporting Initiative (GRI) standards, and indeed was the first Swiss luxury watch brand to reference these global best-practice standards in 2018.

Reinforcing its commitment to transparent, responsible business practices, in 2017 IWC Schaffhausen set rigorous targets for 2020 including reducing greenhouse gas emissions by 10% and average packaging volume by 30%; for gender equality in training and reducing absentee rates by 10% through promoting health and well-being, and achieving Responsible Jewelry Council (RJC) Code of Practices recertification. These targets were successfully delivered as was its commitment to report biennially on IWC’s

progress in integrating sustainability into decision-making and managing its social and environmental impacts.

IWC was the first luxury watch brand to meet the RJC’s revised 2019 Code of Practices standards, which includes stronger provisions for responsible business practices and supply chain management and was recognized by the RJC to have adopted good practices beyond legal requirements.

It has been a truly inspiring journey and I am proud of IWC’s momentum so far. Acting sustainably is a collective, continuous and collaborative effort with no end state, so we are the first to recognize that even more progress can be made. We will continue holding ourselves accountable in having a positive impact, driven by the same pioneering spirit as our founder in 1868,” explains Christoph Grainger-Herr, CEO of IWC Schaffhausen.

Long Term Value for business and society

A more sustainable future

As makers of watches built to last for generations by combining centuries-old techniques and cutting-edge technology, long-term thinking has always underpinned IWC’s approach to pursuing excellence.

This approach to handcrafting timepieces matches IWC’s holding itself up to the highest standards of sustainability.

IWC works at all levels in its management of environmental impacts – from designing sustainable mechanisms in its state-of-theart Schaffhausen Manufacturing Centre, to sourcing 100% renewable electricity. The company invests in its local community as an employer and was the first luxury watch brand to receive a ‘Great Place to Work™’ certification in Switzerland.

“When we published the watch industry’s first sustainability report to GRI standards two years ago, we provided a window into our world, which had never before been offered by a Swiss luxury watch company.

IWC has set targets for 2022 focused on environmental sustainability and diversity. These include achieving Equal Pay certification, doubling the share of women in management compared to 2017, developing and implementing a Green I.T. strategy, and implementing a blueprint for sustainable events.

Franziska Gsell, Chief Marketing Officer and Sustainability Committee Chair said: “Our ongoing and consistent dialogues with stakeholders help us continuously improve how we manage our social and environmental impact across the value chain. Our commitment to publishing Sustainability Reports biennially is one of the ways in which we are holding ourselves accountable towards managing our impacts responsibly, and we are determined to make further progress in integrating sustainability into our decision-making on an ongoing basis.” mea-finance.com

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October/November 2020

The future of the banking industry Tarek El Nahas, Senior Executive Vice President and Head of the International Banking Group, Mashreq Bank

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Weathering the storm

C

ongratulations to all the Winners in the MEA Finance Awards 2020 and our thanks to all those who supported and participated this year’s event.

This year has been a year like no other in recent memory for the region and the wider world, and it is indeed a commendable achievement that the industry has maintained service and performance during a year fraught with such marked uncertainty. For the financial and banking markets and the technology providers that enable such operations, you too suffered the same impacts on your own lives and work, but you were also faced with, and succeeded in meeting the additional responsibility to attend to the urgent needs of clients and your customers.

The MEA Finance Awards recognize the institutions that have managed to weather the storm with flair, agility and imagination amid the global fallout from the novel coronavirus and plunging oil prices. The financial institutions and technology firms who were conferred with awards, not only navigated a challenging economic climate but also managed to continue the upward trajectory of the industry, with the creation of innovative financial services solutions to better serve their customers.

The MEA Finance Awards have been a true success and we are proud to have had the opportunity to recognise and highlight the tireless efforts and the many achievements of the industry over the past year.

Financial Institutions in the region have always embraced change, making a point to stay ahead of the curve to keep themselves on par with financial institutions in more established markets. We at MEA Finance Magazine will continue to showcase your achievements and award the outstanding contributions that lead the industry forward.

Our congratulations again for all your accomplishments, and we are excited to see what you will showcase in the coming year.

Nap Estampador Commercial Director MEA Finance

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MEA FINANCE AWARDS 2020

Honoring the region's top performers in the banking, finance and technology industry

MEA Finance Magazine’s ultimate goal is to serve the regional banking and financial services sector.

It is committed to providing dedicated news, in-depth interviews, opinion pieces and thought leadership content which covers commercial, retail and investment banking, Islamic banking, technology, and wealth management as well as other areas.

As part of our integral role in the region’s banking and finance sector, MEA Finance has organized an awards programme to recognize outstanding institutions that lead the industry and shape the financial landscape in the Middle East and Africa.

MEA Finance Awards benchmark and promote excellence and standout performance within the banking, finance and financial technology sectors.

It gives due recognition to institutions that have navigated a very challenging socio-economic climate to continue the upward trajectory of the industry, and created innovative solutions to better serve their customers in one of the most trying times in recent memory.

Hundreds of entries were critically evaluated by a panel of judges comprising of prominent industry experts. 50 category winners have been chosen after a rigorous evaluation of their research and knowledge of the market, and assessment of all relevant company financial statements and achievements from the previous year. “Congratulations to all the winners of the MEA Finance Awards 2020. The awards programme honors leaders and organizations who have faced the challenges, embraced the change, and have maintained excellence throughout. We are committed to highlighting these extraordinary examples of excellence as well as reporting the news that matters," said Kenneth Mitchen, Executive Director and publisher of MEA Finance Magazine.

MEA Finance Awards included 4 special individual awards honoring top industry leaders as well as awards for excellence in performance at the height of the Covid-19 pandemic when retail and corporate clients required reliable digital banking solutions for payment facilitation and cash management, and payment relief packages.

Here is the full list of the MEA Finance Awards 2020 winners: FINANCIAL SERVICES

TECHNOLOGY

1. Best Retail Bank (UAE) - Mashreq Bank

30. Best Mobile Banking Solution (Saudi Arabia) - Bank Albilad

2. Best Retail Bank (Saudi Arabia) - Al Rajhi Bank

31. Best Mobile Banking Solution (UAE) - Mashreq Bank

3. Best Retail Bank (Bahrain) - Ahli United Bank Bahrain

32. Best Mobile Banking Solution Provider - Infosys Finacle

4. Best Retail Bank (Egypt) - ADIB Egypt

33. Best Neo Bank - FAB – Payit

5. Best Islamic Bank - ADIB

34. Best Online Banking Service - Bank Albilad

6. Best Commercial Bank (UAE) - Commercial Bank of Dubai 7. Capital Markets Transaction of the Year - Odin Investments 8. Best Global Bank in the Middle East - Standard Chartered Bank 9. Best SME Bank - National Bank of Fujairah 10. Best Takaful Provider - Noor Takaful 11. Best Private Bank - GFH Financial Group 12. Best Wealth Management Firm in the Middle East - BNP Paribas Wealth Management 13. Best Investment Bank - NCB Capital 14. Best Trade Finance Provider - The Saudi British Bank 15. Best Transaction Banking - Standard Chartered Bank 16. Best Cash Management Technology Provider - Infosys Finacle 17. Best CSR Programme – Financial Institutions - Aafaq Islamic Finance

COVID-19 RESPONSIVENESS SPECIAL AWARDS 18. Best Retail Response to the Covid-19 Crisis - Ajman Bank 19. Best Commercial Response to the Covid-19 Crisis - Mashreq Bank INVESTMENT AWARDS 20. Best Private Equity Firm - Alkhabeer Capital 21. Best International Real Estate Investment Firm - Walton International Group Limited 22. Best Brokerage Solutions Provider - ADSS 23. Best Investment Management Firm (UAE) - Century Private Wealth 24. Best Investment Management Firm (Saudi Arabia) - Alkhabeer Capital

35. Best Cybersecurity Implementation - Help AG 36. Best User-Experience - FAB - Payit 37. Best Digital Transformation Technology Provider - Maveric Systems 38. Best Digital Transformation (UAE) - Commercial Bank of Dubai 39. Best Digital Transformation (Saudi Arabia) - Tayseer Finance 40. Best Digital Transformation (Bahrain) - Ahli United Bank 41. Best CSR Programme – Financial Technology Provider - DDCAP Group 42. Best Payment Solutions - Edenred 43. Best Payment Solutions Provider - Temenos 44. Best Cybersecurity Provider - Trend Micro 45. Best Communications Infrastructure Provider - United MAK Group & IPC 46. Best Core Banking Service Provider - Temenos 47. Best Digital Banking Innovation Provider - Avaya 48. Best Islamic Finance Banking Software Provider - Path Solutions 49. Best Islamic Fintech Solutions Provider - DDCAP Group for Ethos Asset Facilitation Platform 50. Special Achievement in Digital Innovation - BPC LEADERS IN BANKING AND FINANCE 51. Outstanding Leadership Award - Ebrahim Oboud Baeshen, Office Managing Partner, KPMG Saudi - Jeddah 52. Banker of the Year - Hisham Alrayes, Group CEO and Board Member, GFH Financial Group

25. Best Investment Management Firm (Bahrain) - GFH Financial Group SERVICE PROVIDERS TO THE BANKING SECTOR 26. Best Investment Consultancy Firm - Century Financial Consultancy 27. Best Research & Consultancy Firm - KPMG 28. Best Digital Transformation Consultancy Firm - Arqitek 29. Best Ratings Agency - S&P Global Ratings

53. Best Technology Executive of the Year for Financial Services Mohammed Kateeb, Chairman & CEO, Path Solutions 54. Best Technology Leadership Award - Ashar Nazim, Founder and CEO, Aion Digital

MEA FINANCE AWARDS 2020

Best Retail Bank

Best Retail Bank

Best Retail Bank

The Best Retail Bank-UAE award was given to Mashreq Bank. Over the past 12 months, Mashreq has increased its investments in technology and innovation to enhance its online offering. The bank created a secure digital ecosystem that harnesses blockchain technology, artificial intelligence, and machine learning to streamline processes and lower transaction costs. In the past year, the bank received recognition for its smart and digital banking offerings which has placed it at the forefront of retail banking services in the UAE amid the COVID-19 pandemic.

In Saudi Arabia, Al Rajhi Bank received the Best Retail Bank award. The Shari’ah-compliant bank is in the top two in terms of assets, the largest number of branches and ATMs, auto loans, personal loans, and mortgages.

With more than nine million customers served by almost 550 branches, Al Rajhi is a retail finance force in Saudi Arabia. Despite the bank’s size and the number of customers it serves, Al Rahji introduced a six months financing payment moratorium and an extension of payment deferment for customers who lost their jobs or took salary cuts in a bid to assist customers that were impacted by the coronavirus pandemic.

Ahli United Bank Bahrain received the Best Retail Bank award in the Kingdom, as the lender was recognized for its extensive digital footprint which is aimed at strengthening customer experience as part of the bank’s response to the impact of COVID-19 on its operations. The bank was also accorded the award for its imaginative approach to benefiting its customers by incentivizing them to save more with their MyHassad Savings Account, which provides year-round cash prizes. Ahli United Bank Bahrain has led in pioneering a customer-centric innovation approach bringing mutually beneficial results to the bank and its retail users.

UAE

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Saudi Arabia

Banking and Finance news in the MEA market

Bahrain

Best Retail Bank

Best Islamic Bank

Best Commercial Bank

ADIB Egypt was the recipient of the Best Retail Bank award in the North African country. The Best Retail Bank award recognized ADIB Egypt as the leader in the sector owing to the Shari’ah-compliant lender’s financial performance and its initiatives to implement digital banking and Smart payment solutions. In 2020, ADIB Egypt launched new products, services, and technological innovations to enhance customer experience in response to the outbreak of the COVID-19 pandemic.

These digital initiates increased the bank’s customer base and further bolstered its market-leading position.

In the Shari’ah-compliant category, Abu Dhabi Islamic Bank (ADIB) received the Best Islamic Bank award. The bank was given the award for being instrumental in some of the high-profile deals and Sukuk issuances in the country including DP World’s $1.5 billion hybrid Sukuk. The lender also invested in the safety of its customers and staff at the height of the pandemic, while providing first in class services and products.

ADIB also introduced new technologies and digital products that are helping the bank’s operations and its clients through these challenging times.

The Commercial Bank of Dubai was honored as the Best Commercial Bank in the UAE. Commercial Bank of Dubai received the award in recognition of how the bank has successfully managed to adapt to the changing operating environment last year including the upgrade to its core banking system, digital transformation, and the launch of a digital-only bank.

The bank remained committed to its core business of providing commercial banking services such as loans, working capital financing, trade finance, and other various products to its commercial as well as small business clients, while unprecedented challenges as a result of COVID-19.

Egypt

UAE

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MEA FINANCE AWARDS 2020

Capital Markets Transaction of the Year

Best Global Bank in the Middle East

Odin Investments was the recipient of the Capital Markets Transaction of the Year award, which was conferred to the investment firm in recognition of the strides that it has made this year in the management of the initial public offering (IPO) process for Egyptian-based Emerald Real Estate Investment in February. The IPO was 17.7 times oversubscribed. The Capital Markets Transaction of the Year award recognizes investment firms that successfully managed IPOs taking a closer look at the size, structure, i n n ova t i o n , o r p e r fo r m a n c e of the listing.

In recognition of its outstanding services and products in the Middle East region, British lender Standard Chartered Bank received the Best Global Bank in the Middle East award.

The award was given to Standard Chartered Bank in recognition of the bank’s global presence and its unparalleled local and regional insights, expertise, and unwavering commitment to the Middle East banking sector through its initiatives such as digital banking, sustainable finance, Islamic banking, Emiratization and youth empowerment, gender equality, and support to regional economies in the fight against the COVID-19 pandemic.

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Banking and Finance news in the MEA market

Best SME Bank According tothe Federal Competitiveness and Statistics Authority, the contribution of the SME sector to the UAE’s GDP was estimated to be around 53% in 2019. In honor of the unwavering support to the sector, the National Bank of Fujairah was awarded the Best SME Bank award.

National Bank of Fujairah remains on the forefront in support of small businesses which is evident in the way the bank established a dedicated SME team that is based in the UAE. National Bank of Fujairah also received the award in recognition of the launch of the Connect Platform and for helping SMEs reduce their financial expenses by deferring liability and interest payments amid the economic fallout from the pandemic. The lender extended incremental facilities to clients who wanted to start businesses and offered financial support through payment of salaries, utility bills as well as rent through short-term bridge facilities.

Best Takaful Provider

Best Private Bank

The Best Takaful Provider award was given to Noor Takaful. The award was given in honor of Noor Takaful’s market leadership in providing Shari’ah compliant services and products. In terms of innovation, Noor Takaful remains on the forefront having recently digitalized its business processes in a bid to allow ease of access to insurance.

Noor Takaful is also enhancing the image of the insurance sector through setting industry standards thereby contributing to change and crisis-ready culture that enabled the company to smoothly switch to its Business Continuity Plan when the COVID-19 pandemic disrupted normal business operations.

In recognition of its top-notch private banking and premium services, GFH Financial Group was accorded the Best Private Bank award. The bank’s excellence is demonstrated by the growth of its business in the last 12 months despite the current operating environment. GFH Financial Group has shrugged off the downward force of the global pandemic and has seen its investments continue to perform well.

The bank successfully invested $120 million in the first six-months of 2020.

Best Wealth Management Firm in the Middle East BNP Paribas Wealth Management received the Best Wealth Management Firm in the Middle East. The award was given in honor of the financial i n s t i t u t i o n ’s p re m i u m w e a l t h management services and products to high net worth individuals (HNWIs) as well as how it has enabled business continuity through the challenges of 2020. Other achievements by BNP Paribas this year includes over $15 billion wealth management commitments in the GCC, the best H1 2020 results in the wealth management sector in MEA history as well as Zero credit losses or provisions related to the outbreak of the coronavirus pandemic.

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Best Investment Bank

Best Trade Finance Provider

Best Transaction Banking

NCB Capital was the recipient of the Best Investment Bank (Conventional) award in the region. The Best Investment Bank award was given to NCB Capital in recognition of the lender’s outstanding performance and resilience amid the economic fallout due to the COVID19 pandemic over the last 12 months.

The investment bank led some of the high profile transactions such as Lead Manager in the Bin Dawood IPO; Sole Financial Advisor and Bookrunner in the Amlak International IPO; Sole financial advisor and debt arranger in the InoChem Debt advisory and Joint Lead Management positions in many other deals.

In the trade finance category, the Saudi British Bank (SABB) was conferred with the Best Trade Finance Provider award. SABB was given the award for being instrumental in facilitating a wide range of cross-border transactions while paying attention to the needs of clients at the height of the containment measures that were implemented by the authorities to curb the spread of COVID-19. The bank was able to maintain top-notch trade finance service to its customers by re-working its operational processing capabilities in line with requirements of the new normal as well as by switching from traditional mail delivery methods of trade-related documents, to digital channels.

Standard Chartered Bank was honored with the Best Transaction Banking award in the region. This award recognized the Standard Chartered Bank’s leading position in offering a wide network and service capabilities in the commercial banking service sector. Additionally, the bank also launched several initiatives to help clients mitigate challenges as a result of the pandemic at the same time bolstering their ability to trade and continue business in these challenging times. Standard Chartered Bank launched a $1 billion financing program to ease the burdens of clients that were affected by COVID-19.

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MEA FINANCE AWARDS 2020

Best Cash Management Technology Provider

Best CSR Programme – Financial Institutions

Best Retail Response to the Covid-19 Crisis

The Best Cash Management Technology Provider award was given to Infosys Finacle in honor of its unwavering support to the banking sector through the augmentation of digital banking. The award was conferred to Infosys Finacle in appreciation of the banking tech giant’s innovative liquidity management solutions that have enabled corporate clients to identify, manage, and optimize liquidity. Infosys Finacle’s liquidity services and products allow corporates to transform their treasury operations, streamline payments and receivables and reimagine in-house banking dynamics.

In recognition of its outstanding services and products to enhance customer experience, the Best CSR Programme – Financial Institutions award went to Aafaq Islamic Finance.

The award was given to Aafaq Islamic Finance in recognition of its initiatives such as service tenure, which reflects on the company’s core value of respect and employee appreciation for their contribution to the overall achievement of the financial institution’s objectives.

Ajman Bank was the recipient of the Best Retail Response to the Covid-19 Crisis award, which was conferred to the retail bank in acknowledgment of the strides that it made throughout the year through the provision of financial relief packages to retail customers who were considerably distressed with the economic fallout amid from COVID-19.

The financial relief package was availed to approximately half of Ajman Bank’s customer base including a quarter of payment waivers. The pandemic brought a whole set of challenges that the whole banking sector was not ready for, however, Ajman Bank digital footprint enabled the bank to serve its customers remotely which prepared the bank to tackle the challenges brought by the pandemic a lot better.

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Banking and Finance news in the MEA market

MEA FINANCE AWARDS 2020

Best Commercial Response to the Covid-19 Crisis Mashreq Bank also scooped the Best Commercial Response to the Covid-19 Crisis award. The award was given to Mashreq Bank in recognition of its efforts to aid commercial clients whose operations were affected by the containment measures that were implemented to curb the spread of the virus. The bank helped its commercial clients by implementing several workable solutions that ensure the prospects of different sectors and the stability of the banking system.

The UAE-based bank has been providing economic solutions to its individual as well as commercial customers who were adversely affected by the pandemic since its outbreak earlier this year.

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Best Private Equity Firm

Best International Real Estate Investment Firm

Alkhabeer Capital was the recipient of the Best Private Equity Firm award.

The award honored Alkhabeer Capital for its track record in capitalizing investment opportunities which has led to the diversification of investment capitals across the GCC and in mature global markets.

The asset management firm specializes in alternative investments and private equity, providing innovative world class investment products and solutions to institutions, family groups and qualified high net worth investors.

In recognition of its ability to implement the best land asset management models that have been instrumental in the distribution of billions of dollars of value to global investors, Walton International Group Limited was honored with the Best International Real Estate Investment Firm award.

The Walton Group of Companies is an international real estate investment company focusing on the research, acquisition, administration, planning, and development of strategically located land across 23 major North American markets.

The company has been in business for over 40 years and its unique investment approach of holding, owning, managing, and monetizing land assets allows it to partner with the largest and best-in-class US homebuilders.

Banking and Finance news in the MEA market

Best Brokerage Solutions Provider ADSS received the Best Brokerage Solutions Provider award in the Middle East. The award was given in honor of the firm’s client support at every stage of the trading journey, its promotion of an active risk and compliance culture to ensure a high level of transparency with partners, and for inspiring confidence in clients and partners through market analysis and initiatives that enable traders to make informed decisions and to minimize risk.

ADSS is regulated under the jurisdictions of the Financial Conduct Authority (FCA) in the UK, the Hong Kong Securities and Futures Commission, and the Central Bank of the UAE. To date, the company’s daily trading volumes have now reached $16 billion, making it the largest trading platform by volume in the Middle East.

Best Investment Management Firm

Best Investment Management Firm

The Best Investment Management Firm-UAE award was given to Century Private Wealth. The award was conferred to Century Private Wealth in honor of its strong heritage in shaping the investment landscape in the UAE, through global expertise in wealth management, advisory on investment and credit, and custody & credit arrangement.

Century Private Wealth has been actively involved in the building of resilient and well-diversified portfolios to achieve superior performance across various economic outcomes.

The management firm does this through strategic asset allocation and intensive research.

In Saudi Arabia, Alkhabeer Capital was the recipient of the Best Investment Management Firm award. The award was given to Alkhabeer Capital in recognition of its commitment to offer investment products that meet the specific needs of institutional investors, family wealth offices, and High Net Worth Individuals (HNWIs).

By supplementing its commitment to financial success with a deliberate set of values that shape our product strategy and ensure the achievement of social responsibilities, Alkhabeer Capital has consistently aligned both its social responsibility and long-term investment strategies, allowing the company to deliver strong, sustainable returns in times of market strength and weakness.

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Saudi Arabia

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MEA FINANCE AWARDS 2020

Best Investment Management Firm Bahrain

GFH Financial Group was the recipient of the Best Investment Management Firm - Bahrain award. The award was presented to GFH in honor of its leading position in the Middle East region for its fundraising and Shari’ah-compliant investment offerings, innovative approach to market opportunities and customized financial solutions that adhere to Islamic banking principles.

The bank’s services and products enable high net worth individuals (HNWIs) and institutional investors in Bahrain to seize various opportunities in several growing sectors.GFH’s innovativeapproach to market opportunities and tailored Islamic compliant financial solutions enables it to originate, structure and participate in opportunities in multiple market sectors.

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Best Investment Consultancy Firm

Best Research & Consultancy Firm

The Best Investment Consulting Firm award was given to Century Financial Consultancy. Over the last 12 months, Centur y Financial Consultancy demonstrated long-term value and best trading experience to businesses in the region, through investment strategies, services, and financial reporting backed with the highest number of certified investment consultants to ensure optimal customer investment experience.

Century Financial Consultancy focuses on client service and ensures that it provides the best trading experience possible which helps to not only attract new business but retain existing clients and provide long-term value to the company.

In the research and consultancy category, KPMG was honored with the Best Research & Consultancy Firm award in the Middle East region in recognition of the institution’s in-depth knowledge and breadth of skills to guide decision-makers with the power of data and technology, supporting businesses as they grow their revenue and increase their efficiency.

KPMG’s dedicated financial services practice in the Middle East offers access to various key financial marketplaces. The consultancy firm delivers leading practice advice and recommendations through an ‘up-to-the-minute’ understanding of the vital issues facing the local and international financial services industries.

The firm helps banks, investment and insurance companies to transform, develop and evaluate the right operating models and strategies to respond to this new financial world.

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MEA FINANCE AWARDS 2020

Best Digital Transformation Consultancy Firm The Best Digital Transformation Consultancy Firm award was given to Arqitek in recognition of the company’s digital milestone. The award also honors Arqitek for successfully delivering a digital architecture that enabled it to achieve a wider digital transformation that matches the company›s operational objectives—improved banking services for optimal customer experience.

Arqitek is founded on several core beliefs that have proven to be critical as digital transformation has assumed the center stage in the banking sector.

Among the beliefs, Arqitek believes that digital enterprises must take control of their enterprise architecture to be successful in the digital economy.

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Best Ratings Agency S&P Global Ratings walked away with the Best Ratings Agency award. The rating agency was given the award for its commitment to help investors, issuers, intermediaries, and regulators to understand industry trends, challenges, and opportunities with cross-country practice and specific industr y commentaries and research. S&P Global is providing critical services in the Middle East region this year as several businesses are exploring new ways of doing business after the fallout from low oil prices and COVID-19 pandemic.

S&P Global hailed GCC governments for the several measures they unveiled to help corporates and retailers navigate the COVID-19 crisis. However, the rating agency said that no regional government has announced wide measures that would reduce credit risk on banks’ balance sheets or inject additional capital.

Banking and Finance news in the MEA market

Best Mobile Banking Solution Saudi Arabia

Bank Albilad was the recipient of the Best Mobile Banking Solution Saudi Arabia award. The award was conferred to Bank Albilad in honor of the lender’s achievements in digital banking and its digital transformation milestone. As the first bank to introduce multiple digital banking innovations in the Saudi market, Bank Albilad’s mobile banking platform has earned a 90% user satisfaction rate, with a 49% year on year increase in registered users and 48% year on year increase in transactions.

Best Mobile Banking Solution – UAE

Best Mobile Banking Solution Provider

Best Online Banking Service

In recognition of its pioneering leadership in the industry with the launch of an AI-powered digital engagement banking bot—the first in the region, Mashreq Bank received the Best Mobile Banking Solution-UAE award.

Mashreq Bank’s mobile banking solution is powered by Avaya and provides the most fluid and intuitive self-service customer experience, a testimony of the bank’s commitment to be an early adopter of new technologies to elevate digital experiences to new heights.

The system securely authenticates customers, uses native-language processing to correctly interpret their inquiries, interfaces with the bank’s back-end systems, and presents relevant details in an appealing visual format.

Infosys Finacle was the recipient of the Best Mobile Banking Solution Provider award, which was conferred to the fintech giant in acknowledgment of the strides that it has made in enabling banks to accelerate their innovation journey with flexible technology, bringing a full spectrum of banking products and services to the fingertips of customers, and achieving the bank’s objective to increase channel usage among its retail and corporate customers.

Finacle has helped banks and payments-focused financial technology companies around the world to reimagine their business with digital technologies to drive new revenue streams. The solution leverages emerging technologies, such as advanced analytics, blockchain, and AI to offer impressive benefits to banks and their clients

Bank Albilad was honored with the Best Online Banking Service award in the region. The award was given to Bank Albilad in recognition of its online banking platform that allows customers to not only facilitate online bills payments and local fund transfers, but carry out international transfers, purchase ‘Adahi’ during the Hajj season, and subscribe to IPOs at the customer’s convenience.

As the first bank to introduce multiple digital banking innovations in the Saudi market, Bank Albilad’s mobile banking platform has earned a 90% user satisfaction rate, with a 49% year on year increase in registered users and 48% year on year increase in transactions.

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MEA FINANCE AWARDS 2020

Best Neo Bank FAB – Payit was the recipient of the Best Neo Bank award. The Best Neo Bank award recognized FAB – Payit for offering financial services that meet the needs of the bank’s customers, especially during these challenging times of the coronavirus pandemic. Due to the health concerns surrounding the pandemic, customers require convenience when making payments, sending, or receiving money which can all be done in one single tap.

Enhancing user experience FAB revamped Payit during the pandemic time, launching key initiatives that are aimed at meeting the needs of the banks’ customers who have different backgrounds and requirements. The initiatives which were introduced by FAB – Payit includes a digital marketplace that allows customers to buy groceries, electronics among other products directly from Payit.

Similarly, newly launched services, money on-demand allow the Ratibi cardholders (Blue-collar workers), to request and receive quick cash in a single tap. Another service, domestic help payment enables users to invite and add their domestic helpers on the app and pay them directly.

The app also boasts of a simplified onboarding process. When opening an account, the revamped FAB – Payit app only requires users to scan the front and back of their Emirates ID—once verified, a user can send money on the go. Additionally, users of Payit can load money using a debit card, cash deposit, and request a friend for a wallet to wallet transfers or local bank transfers.

In a bid to enhance the user experience, Payit allows instant remittances after the opening of an account, unlike other banks that allows remittances 24hrs after the adding of a new beneficiary.

Payments on the go The seamless integration of the Ratibi cards into the Payit wallet allows all WPS customers to use the app to conduct person-to-person (P2P), merchant, and bill payments, as well as a top-up for mobile phones. and it can be used to transfer money internationally to accounts or cash pick up using MoneyGram.

Users can access Payit anytime, anywhere, to send money to a bank account or for cash pick up with a click of a button. The app incorporates AI and machine learning tools to drive customer buying behaviours, spend campaigns, offers and new customer acquisitions.

For partners and merchants, Payit offers easy payment solutions through the use of a QR code and sound-based technology which is seamlessly integrated into POS machines.

The UAE’s mobile payments market is undergoing a massive transformation.

The biggest contributor to this is the cashless vision of the UAE, initiatives of the government and regulators as well as health concerns amid the COVID-19 pandemic.

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Banking and Finance news in the MEA market

Best Cybersecurity Implementation H e l p A G re c e i v e d t h e B e s t Cybersecurity Implementation award in the region, in recognition of the firm’s cutting edge cybersecurity solution designed for the vital protection of critical online portals, applications, networks, and back-end data centers maintained by the region’s largest and most prestigious public and private organizations, and for ensuring their systems are secure against emerging cybersecurity threats.

The cybersecurity solution giant has successfully implemented protection for some of the region’s largest and high-profile public and private organizations for more than a decade.

Best User-Experience In honor of its application whose launch was inspired by the urge to support the vision of a cashless society, FAB – Payit was conferred with the Best User-Experience award.

Compared to other players in the Middle East digital wallet market, Payit boasts of a simplified onboarding p ro c e s s w i t h a f u l l y - fe a t u re d digital wallet designed for utmost convenience—bringing banking at the customers’ fingertips.

The seamless integration of the Ratibi cards into the Payit wallet allows all WPS customers to use the app to conduct person-to-person (P2P), merchant, and bill payments, as well as a top-up for mobile phones. and it can be used to transfer money internationally to accounts or cash pick up using MoneyGram.

Best Digital Transformation Technology Provider Maveric Systems was the recipient of the Best Digital Transformation Technology Provider. The award recognized Maveric Systems’ expertise in creating a secure infrastructure to allow its client to offer an open banking solution that is agile, scalable and robust, and is based on functional and technology principles that meet the regulatory obligations in the countries their client operates.

The open banking solution infrastructure consists of several key components that are grouped into four main segments that include Connector APIs, Security Control & Access Management, Environment enablers and Operations & Reporting. mea-finance.com

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MEA FINANCE AWARDS 2020

Best Digital Transformation

Best Digital Transformation

Best Digital Transformation

In the digital transformation category, the Commercial Bank of Dubai (CBD) was conferred with the Best Digital Transformation - UAE award. The Best Digital Transformation-UAE award was given to CBD in recognition of the lender for being the first digital-exclusive bank for personal banking as well as the creation of a lab to collaborate with fintech startups to effectively leverage emerging technology.

To make banking efficient and convenient for wholesale clients, the CBD launched the “iBusiness” mobile application, that allows customers to view and download account statements, view account summary and details, as well as approve transactions by scanning the QR Code.

Tayseer Arabian Company was honored with the Best Digital Transformation award in Saudi Arabia. The award was conferred to Tayseer Finance in recognition of the firm’s swift and efficient digital transformation, in a bid to offer convenience and increase the base of its Shari’ah compliant service and products to its clients. hugely benefiting its clients to a more efficient array of Shari’ah-compliant services including the Tayseer Finance’s digital services give customers access to flexible financing, easy payment channels, fast approval, and comprehensive insurance-contributing to the growth of the finance industry in the Kingdom of Saudi Arabia.

Ahli United Bank (AUB) was the recipient of the Best Digital Transformation Award in Bahrain. AUB was given the award for successfully transforming into a customercentric financial institution. The bank was the first in Bahrain to introduce Virtual Interactive Voice Response Service, launch AI-supported Chatbot Service on WhatsApp for business, and a next-gen mobile banking application enhanced with multiple functionalities for ease of navigation and optimal user experience.

AUB regularly introduces innovative products and services to make banking simpler and more convenient for its customers. The has been pioneering the spaceof innovation that is customer-centric and enables the customer to interact with the bank in a way the customer chooses to.

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– Saudi Arabia

Banking and Finance news in the MEA market

– Bahrain

Best Payment Solutions

Best Payment Solutions Provider

Best Cybersecurity Provider

Edenred received the Best Payment Solutions award in the Middle East region. The Best Payment Solutions award was given in honor of the firm for contributing to the region’s economic development with smart and genuine payroll business solutions and intuitive products that businesses of all sizes can utilize to improve the quality of life of their employees.

The company offers technologydriven solutions to corporations and their employees through Edenred Online Portal which allows companies to manage the salaries of all their employees efficiently, C3Pay a mobile app linked to a Mastercard that enables employees to manage their money better and C3Pay Card is a Mastercard that allows employees to withdraw money and make purchases.

Temenos was the recipient of the Best Payment Provider-Vendor award.

The award was given to Temenos in appreciation of the company’s efforts in developing a leading banking technology through its investment in Research and Development. The firm’s unique product offers instant payment services, new market services, and payment instruments—which are continuously developed to ensure compliance in the markets that Temenos’ clients serve.

Temenos’s solution is ISO 20022 ready and fully configuration driven, providing payment processing from any channel, source, and message or file format in real-time. The company offers a cloud-native, cloud-agnostic universal payments solution that enables centralization of all payment processing for banks of any size and complexity

The Best Cybersecurity ProviderVendor award was given to Trend Micro. The award was conferred to Trend Micro in recognition of the critical role that the company plays in providing cybersecurity solutions to ensure a safer digital world. Trend Micro’s cybersecurity solutions have blocked over 13 million emails, URLs and malware threats, contributing hugely to a secured exchange of digital information for the current year.

Tre n d M i c ro’s s o l u t i o n s a re particularly relevant as the GCC faces heightened levels of COVID-19-related cyberattacks amid the uncertainties surrounding the availability of a coronavirus vaccine and the trajectory of the pandemic.

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MEA FINANCE AWARDS 2020

Best CSR Programme – Financial Technology Provider DDCAP Group was the recipient of the Best CSR Programme - Financial Technology Provider award. The Best CSR Programme-Financial Technology Provider award recognized DDCAP Group for its outstanding efforts in engaging all stakeholders to review its position as an influence of change within the industry, aligning its CSR objectives with relevant programs supporting quality education, gender equality, industry innovation & infrastructure as well as being a global partner for sustainable development.

Taking Islamic finance to the world Since its establishment, DDCAP has functioned as a leading market intermediary in the Islamic finance industry, providing structuring support and value-added services to connect the global Islamic financial market across a diverse range of products and asset classes, including treasury, capital markets, fund management and consumer banking.

The company seeks to improve functional efficiency and reduce operational risk for the company’s clients through the use of innovative financial technology which led to the development of the ETHOS Asset Facilitation Platform (ETHOS AFP), an asset facilitation and post-trade services platform.

ETHOS AFP is a bespoke, real-time trade and post-trade services platform, that provides 24-hour coverage and operates via a secure web-based portal, that delivers an array of benefits and efficiencies while mitigating risks.

Collective goodwill The pathway to DDCAP’s current sustainability and corporate responsibility initiatives can be traced through the past seven years of “conscious and considered action” to set the industry standard for best practices.

Following the establishment of its Shari’ah Supervisory Board in 2013 and its investment in automation to promote consistency and standardization, DDCAP’s leadership is working towards the development of best practice standards for sustainability and corporate responsibility.

Although the company launched ETHOS AFP as a risk mitigant, the platform was further developed to include additional functionality to address the evolving concerns of the financial marketplace. The increased emphasis by the financial industry on corporate governance, accountability, and responsible actions together with the subsequent evolution of ETHOS AFP showed DDCAP the importance of doing business differently and a means by which to do so.

DDCAP aligns its sustainable and responsible actions with multilateral initiatives to promote responsibility and awareness of the environment, social and governance (ESG) concerns, including the UN Principles for Responsible Investment, the UNEP FI Principles for Responsible Banking and the UN Sustainable Development Goals.

Going forward, DDCAP plans to continue engaging with its stakeholders, reviewing the service it provides to the industry, the key issues that need to be addressed globally and how it can best match its position and skills to meet those needs.

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Banking and Finance news in the MEA market

Best Communications Infrastructure Provider

Best Core Banking Service Provider

Best Digital Banking Innovation Provider

United MakGroup & IPC received the Best Communications Infrastructure Provider-Vendor award in recognition of the company’s ability to provide highly reliable worldwide connectivity that protects client equity even at a time the markets are most volatile, by allowing traders to have immediate remote but secure access to markets and customers.

United MakGroup counts amongst its client 10 of the region’s high profile banks and financial institutions which were helped by the firm to crisis-proof their businesses through an immediate and cost-effective business continuity solution.

In recognition of its unrivaled expertise in banking software, Temenos received the Best Core Banking Service ProviderVendor award. Temenos’ unique product offering is the world’s most widely used digital core-banking solution using cloud native and agnostic technology that provides the most extensive and richest set of banking functionality across retail, corporate, treasury, wealth and payments.

The company’s core banking platform offers flexibility to support existing processes and new innovation for corporate and retail banking activities.

Temenos Transact provides an extensive set of banking functionality across retail, corporate, treasury, wealth and payments with over 1000 banks in more than 150 countries relying on it to provide market leading and innovative products and services to their customers.

Avaya was honored with the Best Digital Banking Innovation Provider - Vendor award in the Middle East region. The award was given to Avaya in recognition of the strides that the tech giant has made in providing organizations with creative and intelligent communications experiences for customers and employees. The award also conferred to Avaya for its managed services that allows business to innovate, grow, and deliver experiences that matter.

Avaya’s open digital platform helps banks offer new compelling experiences, serving up a personalized experience with AI, machine learning, and big data, and connecting with customers on multiple channels seamlessly and securely. mea-finance.com

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MEA FINANCE AWARDS 2020

Best Islamic Finance Banking Software Provider Path Solutions was the recipient of the Best Islamic Finance Banking Software Provider – Vendor award. The award was presented to Path Solutions in honor of its significant role in the digital growth of Islamic banks through its widest range of Shari’ah-compliant banking software solutions and technology-based services.

The fintech digital solution provider’s Islamic core banking platform iMAL is cloud-ready, based on an open platform and supports open banking through open APIs and web services, enabling clients to benefit from the latest technology advances, ensuring business agility, continuity, data integrity and availability, and low downtime delivering a significant and immediate ROI.

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Best Islamic Fintech Solutions Provider

Special Achievement in Digital Innovation

DDCAP Group was the recipient of the Best Islamic Fintech Solutions ProviderVendor award, which was conferred to the company for successfully developing proprietary asset facilitation and posttrade services platform,which has become today’s leading-edge technological advancements within the industry, providing clients with a real-time solution to Shari›ah-compliant transactions.

ETHOS AFP is a bespoke, real-time trade and post-trade services platform, providing 24-hour coverage and operating via a secureweb-based portal,thatdelivers an array of benefits and efficiencies while mitigating risks. The platform’s key elements include trade execution, post-trade services, risk management, governance and compliance, financial control, and availability, security and business continuity.

In the special achievement in the digital innovation category, BPC was honored with the Special Achievement in Digital Innovation award in recognition of its foresight in demonstrating the benefits of inclusive digital transformation, sustained with local and international support, and cost-efficient fully functional digital innovation solutions that understand a company’s business drive and value.

BPC’s SmartVista is a refined and thorough end-to-end payments platform. BPC has over 280 customers worldwide in 90+ countries across five continents, around 20 national switches and central banks and approximately 10 projects with World Bank and USAID.

Banking and Finance news in the MEA market

Outstanding Leadership Award The Outstanding Leadership Award was given to Ebrahim Oboud Baeshen, Office Managing Partner at KPMG Jeddah. Ebrahim has over twenty years of experience in accounting, audit and Zakat advisory. In his capacity as Office Managing Partner, Ebrahim is responsible for providing an array of services including due diligence, corporate finance and accounting advisory to family-owned businesses.

His significant experience in organization design, diagnostic reviews and making recommendations for organizational governance has proved essential during this years’ global pandemic restrictions.

Ebrahim also doubles as a member of the Municipal Council in Jeddah, Chairman of the Committee of Chartered Accountants at the Industrial Chamber of Commerce in Jeddah and Board member of the Saudi Organization of Certified Public Accountants.

He holds a Master’s in Computer Information Systems and Executive MBA from the University of Detroit, a Bachelor’s degree in Accounting from King Abdulaziz University in Jeddah and he is also a Certified Public Accountant and a Certified Arbitrator by the Ministry of Justice of the Kingdom of Saudi Arabia.

Ebrahim’s KPMG journey Ebrahim has extensive experience working at KPMG London, along with his Saudi and Gulf experience in the field of brokerage, auditing and consulting, corporate liquidation, custody and arbitration. He has led several consulting related projects on IPOs, evaluation and acquisition of companies and other important operations.

He is well known for successfully launching initiatives like compliance assessment project, public policy for labor affairs and customer relationship for large consulting projects.

Under his management, the firm has expanded its services through his extensive experience in presenting and discussing the outputs of the various types of consulting operations before government officials, boards of directors, government companies, audit committees and executive departments; and communicating with senior management and senior officials in these entities to discuss and understand the areas of development and propose solutions and improvements in planning and operational processes.

KPMG in Saudi Arabia KPMG launched in Saudi Arabia through its member firm KPMG Al Fozan & Partners and has been present in the Kingdom since 1992. As the Kingdom opens its vast economy to foreign investors and as international companies seek to tap into the Saudi market, KPMG’s blend of international expertise and local knowledge makes it well-positioned to serve clients in this increasingly complex, but exciting market.

The research and consultancy firm has grown to become one of the largest professional service providers in Saudi Arabia. KPMG has a workforce of approximately 1,300 across the country, with offices in Riyadh, Jeddah and Al Khobar. KPMG in Saudi Arabia is part of KPMG International Cooperative’s global network of professional member firms.

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MEA FINANCE AWARDS 2020

Banker of the Year Hisham Alrayes, the CEO of GFH Financial Group was conferred with the Banker of the Year award. Hisham has helped GFH navigate the challenges that were caused by the COVID-19 pandemic as if 2020 was a “normal” year, with significant achievements that include a major acquisition. His drive and ambition for GFH have driven the development and execution of a successful regional and international diversification strategy.

As the CEO of GFH, Hisham is leading the bank on an effective strategy for expansion by growing assets under management (AUM) through organic and inorganic acquisitions, so complementing the business and rewarding it with quick and efficient growth. Hisham also led a major revamp of GFH’s Shari›ah-compliant arm broadening its offerings into a well-diversified financial group with a strong track record.

Before he joined GFH, Hisham was part of the senior management team of the Bank of Bahrain & Kuwait. He currently chairs and holds several directorships in financial, industrial, and real estate companies including Global Banking Corporation, Esterad Investment Company, Balexco, Khaleeji Commercial Bank, Falcon Cement and GFH Capital.

Hisham is a holder of a Master’s degree with honors in Business Administration from the University of DePaul, Chicago and a Bachelor’s degree in Engineering with honors from the University of Bahrain.

Lead from the front Hisham has been instrumental in driving the development and execution of the lender’s regional and international investment strategy and managed its liabilities as Chief Investment Officer before he was appointed Group CEO in 2012. Since his appointment as CEO, Hisham is the driving force behind the Group’s regional and international diversification strategy.

Under Hisham’s leadership, some of the banks’ notable achievements include GFH new strategy and convertible Murabaha program, management of bank’s liabilities and liquidity position, development of investment opportunities and managing investments for exits.

GFH offers the full range of traditional and alternative investment products such as listed equities, real estate, private equity/private credit and liquid assets. The Group’s investments are selected based on extensive due diligence and review of a range of factors including market potential, quality of asset and management, entry valuation, the potential for value creation and multiple arbitrages, cash yield protection and downside protection.

The Group has over $336 million AUM and it has successfully delivered superior investment returns across asset classes and through economic cycles.

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Banking and Finance news in the MEA market

Best Technology Executive of the Year for Financial Services Mohammed Kateeb, the Chairman & CEO of Path Solutions was the recipient of the Best Technology Executive of the Year for Financial Services award in the Middle East region. He has over four decades of entrepreneurial and leadership experience and an unrivaled depth of knowledge and passion for the IT industry.

Kateeb has been instrumental in the development of world-class Shari’ah-compliant software solutions enabling Islamic banks and microfinance institutions to remain competitive and abreast of customer needs. In his capacity as a group chairman and CEO of Path Solutions, he has nurtured a successful culture of innovation by advancing the development of next-generation software solutions and services that keep pace with the new Islamic Fintech landscape.

Spearheading Islamic finance’s tech future Under Kateeb’s leadership, a growing number of Islamic banks and financial institutions have adopted Path Solutions’ iMAL Islamic core banking platform for their Islamic banking operations to drive inclusive growth.

The digital solution provider has nurtured a successful culture of innovation by advancing the development of next-generation software solutions and services that drive differentiation and measurable business value to keep pace with the new Islamic Fintech landscape.

Islamic financing in recent years has seen tremendous growth spurred by more awareness, strong investments, digitalization and increasing financial inclusion in predominantly Islamic countries in the Middle East and Africa.

In a bid to pursue Path Solutions’ vision of being at the forefront of the fintech revolution to foster financial inclusion mainly for millions of Muslims who lack access to financial services around the world, the company developed iSHRAQ Islamic Microfinance, a financial solution that is receiving acceptance by Islamic microfinance companies looking for ways for social sustainability and poverty alleviation. The solution allows Islamic microfinance companies to offer convenient and innovative Shari’ah-compliant services to their customers.

With Kateeb at the helm, Path Solutions has outdone its regional competitors and extend its global footprint by anticipating the emergence of future markets, while at the same time shaping and reinforcing the company’s strategy and vision.

Path Solutions is a member of AAOIFI, CIBAFI, AFRO-ASIAN Fintech Hub and many other standard-setting bodies. Similarly, the company also adheres to the guidelines of Malaysia-based IFSB, in its engagement to ensure the soundness and stability of the Islamic financial services sector through an effective supervisory and legal framework.

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MEA FINANCE AWARDS 2020

Best Technology Leadership Award Ashar Nazim, Founder and CEO of AION Digital was honored with the Best Technology Leadership Award. Formerly a partner and global head of Islamic finance in Ernst and Young, Nazim became eager to transform the current and influence the emergence of new markets more effectively.

His drive and passion led to the founding of AION Digital in 2017 and around eight months after its launch, the digital banking platform unveiled its first Digital Retail Onboarding Solution in the Gulf region, via Jazeel by Kuwait Financial House.

The launch of the Digital Retail Onboarding Solution was just the first of several milestones by Nazim and was followed with other accomplishments including being selected as one of the Fintech 50 for their Corporate Onboarding Solution, the launch of the first Waqfe powered digital banking platform in Bahrain and leading his company in becoming Open Banking compliant.

Building digital banks Aion Digital, previously known as Waqfe, helps banks to leverage the data they have, and access new data that helps them build a deeper relationship with their customers through active engagement. The Aion platform boosts seven services and products that include digital onboarding, retail digital bank, corporate digital bank, Aion Rubix, AI platform, open banking, and lifestyle rewards.

Similarly, Aion’s SaaS platform enables banks to go digital with speed and certainty while being compliant with local regulations. The platform is on track to sign up 10 million end users.

With telecoms and other tech companies entering the banking space, Aion also introduced Banking as a Service (BaaS) in collaboration with its clients who offer their end-to-end financial products. The digital banking solution is already in process of offering BaaS to players in the region.

Aion Digital is customer-centricity, it is focused on enabling customer engagement and impactful user experiences leading to retention, new acquisitions, and growth.

Aion’s support is flexible and supermodular, enhancing core functions as well as ongoing digital banking evolutions.

The company serves financial institutions, telecommunication companies, and government bodies in the Gulf region offering a full-stack digital banking suite servicing both their retail and corporate customers. Aion Digital’s notable clients include Kuwait Finance House Group, Boubyan Bank, Al Salam Bank among others.

EXECUTIVE DIRECTOR AND PUBLISHER Kenneth Mitchen ken.mitchen@mea-finance.com COMMERCIAL DIRECTOR Nap Estampador nap.estampador@mea-finance.com Tel : +971 50 100 5488 SALES DIRECTOR Andrew Cover andrew.cover@mea-finance.com Tel: +971 50 931 3236

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EVENTS AND MARKETING MANAGER Cris Balatbat crissyb@mea-finance.com Tel: +971 58 594 4818 SENIOR DESIGNER Florante Magsakay f.magsakay@mea-finance.com Tel: +971 52 570 1811

WEB ASSISTANT Marie Orayan web@mea-finance.com FEATURE CONTRIBUTORS: Adrian Murdoch, Mushtak Parker, Walter Sebele editorial@mea-finance.com

ADMIN AND FINANCE MANAGER Marilyn Nainque marilyn@mea-finance.com Tel: +971 58 5025836

Banking and Finance news in the MEA market

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