November 2024

Ready for a New World Ready for a New World

Fatima Ahmed Rashid Qasimi Partner & Member of the Board at Secura International

ROADMAP TO EMBARK ON THE GLOBAL HORIZONS

As one of the leading business banking partners in the UAE, National Bank of Fujairah takes pride in being the best Trade Finance Bank in the region to provide tailored trade finance solutions, helping our clients to grow their business on the world map. With nearly four decades of expertise, we provide innovative banking solutions using our digital platforms that are designed to complement your business and offer banking services that meet your working capital and term financing requirements in a simplified manner.

Industrious Industry

Tous the word industry conjures images of hissing steam pistons, furnaces spewing fountains of molten sparks and the thunderous thump of hammering steel into shape. Though often used when collectivising banking and finance in commentary, “the banking industry”, it still seems ill fitting to me. Though maybe stereotypical, to us banking is more suits and laptops, less hammers and rivets. But, as is the way of words, they often have subtle nuance or more meanings so, allowing that the word “industry” can also mean hard work, maybe it is fitting after all, given that banking and finance is growing busier as our region’s role as a global financial hub further solidifies. We feel this too at MEA Finance as, being duty bound to reflect the region’s banking industry, we hold increasing numbers of events and add more content to our platforms as we keep pace.

This industriousness is reflected here in the November 2024 issue of MEA Finance, where from page 44 you can read the coverage of the latest MEA Finance roundtable hosted with GBM and Cisco. Entitled - Elevating Digital Experience, this lively debate forged the path balanced between digital conveniences and security.

Our cover story features Fatima Ahmed Rashid Qasimi, Member of the Board at Secura International, hammering home their global and regional expansion plans and outlining why our region is a lead location in an emerging new world for wealth.

This month our market focus is on Jordan where the nation’s resilience and stability attracts international investment, earning upgrades to its credit ratings as the

government advances reforms to improve the business environment. Then at page 14, opportunities for investors in mitigating the effects of our industrial legacy is covered. Following from page 24, we look at the role of the workforce in the age of AI, where the challenge is how to optimise human talent to meet the potential that the combination of person and machine promises, then on to page 28 where Mohammad Al Mortada Al Dandashi, Group MD of Al Ramz, explains how they are transforming the trading experience.

The welding together of fintech and banks is closely investigated from page 58 with coverage of another MEA Finance event - the Banks and Fintech Forum, held in partnership with DWTC’s Fintech Surge 2024, featuring riveting debates with speakers from the heart of this financial industrial revolution. And our events production line of churns on, with a report from Editor at Large, Oscar Wendel’s, “Global Stratalogues”, held at the Capital Club in the DIFC, featuring diverse conversations on technology, design and the fabric of business, industry and society -see page 41.

Ayesha Abbas, Managing Director, Head of Affluent and Wealth for EMEA, Pakistan and UAE, answers questions about and details the shared benefits of financial inclusion - page 22, then Sriranga Sampathkumar, VP and General Manager – Middle East and Africa, Infosys Ltd., emerges from the workshop on page 32, asking how can banks reimagine the core of their organisation to provide the right platform for delivery of their business strategies. Following from page 38, Sailesh Malhotra, General Manager, GCC Region, shows how Geidea is not a run of the mill payments business as he explains their strategies for expansion in the UAE.

So, as you exit the factory floor, untie your apron, rest your hammer on your anvil, set aside your welding goggles and read all about your highly industrious industry in this edition of MEA Finance.

The MEA Finance Banks and Fintechs Awards 2024, were presented following the Banks and Fintechs Forum, held at the DWTC’s Fintech Surge

The MEA Banks and Fintechs Forum 2024 highlighted the innovations and achievements of the region’s top banking, fintech and financial technology companies

GIB Saudi Arabia enhances payment solutions by joining the Buna platform

Gulf International Bank – Saudi Arabia (GIB Saudi Arabia) has announced its integration with Buna, a cross-border and multi-currency payment platform managed by the Arab Regional Payments Clearing and Settlement Organisation (ARPCSO) which is owned by the Arab Monetary Fund (AMF)

This move strengthens GIB Saudi Arabia’s payment capabilities by enabling faster, more efficient transactions directly with over 120 banks in the Arab region without intermediaries.

Buna, established by the AMF in 2018, allows financial institutions and central banks in the Arab region and beyond to process payments securely and costeffectively in multiple currencies, all within a transparent and controlled environment. GIB Saudi Arabia’s participation enhances its ability to offer clients seamless payment solutions, contributing to the Bank’s strategic focus on optimizing its payment ecosystem.

Khaled Abbas, Chief Executive Officer of GIB Saudi Arabia, commented, “Our integration with Buna reflects GIB’s commitment to improving payment services for our clients. By leveraging Buna’s platform, we offer faster, more cost-efficient payment options, aligning with our goal

to enhance our payment ecosystem and better serve our customers across the region.”

Mehdi Manaa, Chief Executive Officer at Buna, stated, “We are happy to welcome Gulf International Bank in the Buna network of participants. We are more than ever committed to deliver a seamless cross-border payment experience across the Arab region in multiple currencies. We look forward to working closely with GIB to provide tangible value to all payments’ users, in line with the highest international standards.” He added, “On this occasion, I would also like to extend my appreciation to the Saudi Central Bank for their support to Buna.”

This partnership marks a significant milestone in GIB Saudi Arabia’s efforts to optimise its product capabilities and deliver innovative payment solutions. By leveraging advanced technology, the Bank strengthens its leadership in digital banking, further reinforcing its position as a leading financial institution in the region.

Khaled Abbas, Chief Executive Officer, GIB Saudi Arabia

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Citi commemorates 60 Years in the United Arab Emirates

Citi commemorated its 60th anniversary in the UAE in an exclusive event in the presence of CEO Jane Fraser attended by Citi’s global and local executives as well as many government, business and industry leaders in the UAE

Commenting on this major milestone, Ebru Pakcan, Middle East & Africa Cluster and Banking Head said: “Our long-standing relationship with the UAE is a testament to our strong and ongoing commitment to this thriving market. Citi’s journey here has been impressive, marked by solid foundations and decades of steady achievements. We are poised for even greater growth,

and I am excited about the opportunities that lie ahead for our business in the UAE and the Middle East.”

Citi’s partnership with the UAE started on January 25, 1964, when Citi, then called the First National City Bank, opened its first branch in Dubai, followed by Abu Dhabi in 1971, becoming the first American Bank to establish a presence in the country.

This was a significant milestone that laid the foundation for a strong

relationship with the UAE. In 1976, Citi opened one of the first trading floors in the country and inaugurated its first gulf headquarters in Dubai in 1983. Since then, the bank has expanded its presence in the country with the establishment of regional offices at the Dubai International Financial Centre (DIFC) in 2006 and Abu Dhabi Global Market (ADGM) in 2018.

“Throughout these 60 years, we have remained steadfast in our commitment to our clients, catering to international and local companies and providing them with world-class financial solutions and services and access to our global network,” commented Maria Ivanova, Citi Country Officer and Banking Head for the UAE, who reaffirmed the bank’s commitment to the country. “We have built many successful stories through the dedication and hard work of a great team made up of many talented people.”

Shamsa Al-Falasi, Citibank N.A., UAE CEO Onshore said: “I’m extremely proud to be part of Citi’s promising journey in the UAE. From pioneering innovative financial solutions to facilitating economic growth, Citi has been an integral part of key sectors in the UAE, serving as a catalyst for development and prosperity.”

Today, the UAE has a growing presence as one of the global financial hubs for Citi and the boarder financial services industry. Citi UAE offers a full spectrum of financial services including Corporate & Investment Banking, Capital Markets, Sales & Trading, Transactions Services, Private Banking and Commercial Banking. In addition, it serves as one of Citi’s four global Wealth Management centres and continues to be a major player in local consumer services.

Making Determined Progress

Jordan’s resilience and stability attracts international investment and has garnered upgrades to its credit ratings as the government advances reforms to improve the business environment

Jordan’s King Abdullah II swore in a new Cabinet in September, tasked with advancing reforms backed by the International Monetary Fund (IMF) and accelerating economic modernisation efforts crucial to reverse a decade of stagnant growth.

“The authorities are determined to step up the pace of structural reforms to achieve robust growth and generate more jobs, which is particularly important given that unemployment remains high, particularly among the youth and women,” said the IMF.

Jordan’s structural reforms are designed to attract more investment by improving the business environment. The reforms aim to enhance competition, increase labour market flexibility, maintain

macroeconomic stability and promote sustainable long-term growth.

The Hashemite Kingdom’s political stability has attracted international attention and investment. Both Western and regional powers have long valued their relationship with the country due to its strategic importance in the Middle East.

Unlike other Middle Eastern countries with abundant oil and gas reserves, Jordan’s comparative advantage lies in its stable political environment and strategic location. Despite years of slow economic growth and high unemployment under IMF programs, the country is gradually recovering.

Jordan’s economy demonstrated resilience in 2024 despite challenges from regional geopolitical tensions and

trade disruptions in the Red Sea. The country has maintained a consistent average growth rate of 2.5% over the past decade, supported by effective fiscal and monetary policies, international support and robust growth in the tourism sector.

However, growth is projected to slow slightly to 2.4% in 2024, owing to the impact of the geopolitical conflict on tourism, trade, transportation and construction.

Jordan is implementing a threetrack, 10-year political, public sector and economic modernisation agenda that was launched in 2021. The IMF applauded the government for maintaining macroeconomic stability amidst a challenging environment.

The Kingdom has successfully navigated a series of severe shocks, including the pandemic, geopolitical tensions, the influx of Syrian refugees, disruptions to key export markets and a higher-for-longer interest rate environment over the past two years.

Weathering the storm

Jordan’s economic outcomes have proven resilient in the face of a series of macroeconomic challenges in recent years. Despite disruptions caused by the

pandemic, regional geopolitical tensions and global inflation, the country has maintained a relatively stable economic performance, with growth projected to average 2.6% post-conflict in 2025/26.

While external support is vital, the Kingdom has plans of its own. The government in Amman continues to capitalise on its identity as proWestern and stable to attract foreign direct investments.

Jordan’s fiscal consolidation efforts resulted in a significant reduction of its budget deficit to 5.1% of GDP in 2023. The decline was driven primarily by lower government spending, which offset a decrease in revenue from taxes and foreign grants.

Similarly, the country has made substantial progress in reducing its current account deficit. The government aims to further strengthen its fiscal position by decreasing public debt to 80% of GDP by 2028.

To achieve this goal, Jordan is implementing a gradual fiscal consolidation plan, including limiting the central government’s primary deficit (excluding grants and transfers to public utilities) to 2% of GDP in 2025.

“The authorities are firmly committed to continuing to implement sound macroeconomic policies to maintain stability and to advance structural reforms needed to strengthen the resilience of Jordan’s economy further and to improve people’s living standards, as also envisaged in their Economic Modernisation Vision,” according to the IMF.

CREDIT

THE RECENT UPGRADES

TO

JORDAN’S

RATINGS, THE FIRST IN OVER 20 YEARS, TESTIFY TO THE CREDIBILITY OF THE AUTHORITIES’ ECONOMIC POLICIES

– The International Monetary Fund JORDAN

Setting macroeconomic targets for 2025, the Economic Modernisation Vision initiative seeks to raise the growth rate of Jordan’s GDP to 3%, gradually increasing the volume of exports to approximately $13.7 billion (JOD 9.7 billion) and net direct foreign investment to around $1.53 billion (JOD 1.09 billion).

Jordan approved its state budget for 2024 in January and the government in Amman projected a fiscal deficit of $2.9 billion (JOD 2.06 billion) or 2.1% of the GDP. The budget estimates current expenditures at $14.9 billion (JOD 10.6 billion) and capital expenditures at $2.4 billion (JOD 1.7 billion), bringing the total public spending to $17.4 billion (JOD 12.4 billion).

The Hashemite Kingdom expects public revenues of about $14.5 billion (JOD 10.3 billion) – JOD 9.6 billion in domestic revenues and JOD 723.7 million in grants. Moody’s and S&P Global upgraded their credit ratings for the country, citing its strong fiscal and monetary policies and ability to withstand economic challenges.

“Successive reforms since 2019 have widened the government’s domestic tax base while fostering an improved

business environment, which has structurally improved Jordan’s growth potential and will likely put debt on a declining path,” said S&P Global.

The rating agency commended Jordanian authorities for effective policymaking and the support the country has received from international organisations and donors, which have helped maintain economic stability despite the challenging global conditions. S&P Global projected that the macroeconomic stability will continue even if Jordan faces future challenges.

The IMF said the recent upgrades to the country’s credit ratings, the first in over 20 years, testify to the credibility of the authorities’ economic policies.

Lending a helping hand

Jordan maintains strong external financial support. The US and the GCC countries see maintaining the country’s stability as a vital foreign policy objective due to its strategic location between Israel and other Middle Eastern nations.

The existing MoU between Jordan and the US covers the fiscal year 2023/29 and under this agreement, the US committed to providing the Kingdom with $1.45 billion in annual budgetary and military assistance.

“The US Congress has consistently approved higher funding than pledged due to cross-party solid support for Jordan among US lawmakers, most recently observed in the $200 million top-up of the December 2023 grant,” S&P Global said in September while projecting that the US will continue these supplementary grants.

Fitch Ratings

Jordan and the UAE signed a Comprehensive Economic Partnership

Agreement (CEPA) in October, which is aimed at boosting bilateral trade and investment, fostering growth in key industries, generating jobs and fortifying supply chains.

The signing of a bilateral trade agreement between the countries follows the signing of an MoU in November 2023, which established a $5.5 billion framework for investment collaboration in strategic sectors, such as infrastructure and development initiatives.

Under the framework, Jordan signed a $2.3 billion investment agreement with the UAE in September to build railways in the Kingdom linking Aqaba port to mining areas in Shaidiya and Gawr as-Safi.

The IMF and Jordan initiated a new four-year extended fund facility (EFF) worth $1.2 billion earlier this year. The financial assistance seeks to bolster the country’s fiscal consolidation efforts, with the goal of reducing government debt to 80% of GDP by 2028. By supporting investor confidence and maintaining a steady pace of reforms, the EFF seeks to stimulate economic growth in Jordan.

The Hashemite Kingdom also secured a new macro-financial assistance program worth EUR 500 million from the European Union. The financial aid will help the country address its external financing needs, bolster its fiscal consolidation efforts and support structural reforms.

Jordan is set to receive significant financial and technical cooperation from multilateral and bilateral partners, with total foreign assistance projected to reach $3.5 billion in 2024, according to Fitch Ratings. The financial aid represents a substantial portion of Jordan’s GDP, equaling 6.5%.

Simultaneously, Jordan is committed to accelerating structural reforms to foster more robust economic growth and create more jobs, which is particularly important as the rate of unemployment remains high, particularly among the youth and women.

The country’s structural reforms seek to advance the business environment to attract foreign investment by enhancing competition and labour market flexibility

while further strengthening the social safety net. The government is also focusing on streamlining regulation and digitalisation of government services, including tax and customs administration.

The Central Bank of Jordan (CBJ) recently reported that foreign direct investment (FDI) in the country reached $364 million in June 2024, a record increase compared to $135.5 million in the previous quarter.

Fiscally fit

Jordan’s gross foreign reserves stood at $18.7 billion as of June 2024, sufficient to cover approximately 6.8 months of future current account payments. The healthy level of reserves is expected to support the stability of the exchange rate peg.

a capital adequacy ratio of 17.6% and a liquidity ratio of 138.8% by mid-2024, well above the central bank’s regulatory requirement of 100%.

“The CBJ will continue its close monitoring of banks’ asset quality, including ensuring sustained application of prudent accounting, reporting and provisioning standards,” said the IMF.

Digital transformation is the future of Jordan’s banking sector. The country’s financial services sector is undergoing a significant transformation as fintech firms are disrupting traditional banking models. The convergence of legacy systems with innovative fintech solutions necessitates substantial technological investments and a supportive regulatory framework.

IN JORDAN, NOTABLE

ADVANCEMENTS

HAVE BEEN MADE, INCLUDING THE ESTABLISHMENT OF DEDICATED FINTECH ENTITIES BY BANKS AND INNOVATIVE MOBILE APPLICATIONS OFFERING ENHANCED

CONVENIENCE AND PERSONALISED DATADRIVEN SERVICES

– KPMG

“The Jordanian dinar’s peg to the US dollar has supported price stability and contained inflation,” said S&P Global. However, the pegging has restricted CBJ’s ability to implement monetary policies that are tailored to the country’s specific economic circumstances, as the apex lender effectively follows the lead of the US Federal Reserve.

CBJ enacted its first interest rate cut since the early days of the COVID-19 pandemic in September, slicing half a percentage point off the benchmark rate in lockstep with the Federal Reserve. Meanwhile, Jordan’s banking sector, in particular, has been a significant source of strength, with the industry recording

KPMG said notable advancements in Jordan have been made, including the establishment of dedicated fintech entities by incumbent banks and innovative mobile apps offering enhanced convenience and personalised data-driven services.

While maintaining macroeconomic stability and advancing fiscal reforms to enhance employment, economic growth and competitiveness remain crucial, the IMF emphasises that bringing the Jordanian economy onto a higher growth trajectory is essential. Prioritising structural reforms, maintaining macroeconomic stability and swiftly implementing the Economic Modernisation Vision are crucial for achieving sustainable progress.

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CLIMATE TECH INVESTMENT

Where There’s a Will…

Despite a lowering in investment in 2023, the region presents opportunities for investors to generate financial returns while driving positive change, with an active sustainable sukuk market and proactive governments and organisations supporting climate technology start-ups

The impact of climate change is starkly evident in the GCC countries, as the Middle East experiences some of the most rapid temperature increases globally. The Intergovernmental Panel on Climate Change projected that the temperatures in the region are projected to rise by 1.3°C under a best-case scenario and by a staggering 4.7°C in a worst-case scenario by the end of the century.

Global consulting firm BCG said the Gulf region is facing dire threats of climate change and is laying the groundwork for decarbonisation. However, the region is making the political, social and

financial commitments that are required to accelerate the green transition and mitigate carbon emissions.

While the economies of GCC countries are still heavily reliant on oil revenues that made the region super-rich, they are proactively allocating a portion of their wealth to support startups pioneering innovative solutions to mitigate the climate crisis.

“The key enabler of climate progress is finance – developing countries will need an estimated $2.4 trillion every year by 2030 to keep the 1.5°C goal within reach,”

Majid Al Suwaidi, COP28 Director General and CEO of ALTÉRRA said at World Bank-

International Monetary Fund (IMF) Spring Meetings in Washington in April.

Climate technologies – innovative solutions that expedite decarbonisation –are indispensable for achieving global net-zero emissions by 2050. The COP28 President played a pivotal role in establishing the Innovate for Climate Tech Coalition, an initiative that seeks to foster the development and widespread adoption of climate technology solutions, with a particular emphasis on the Global South.

Meanwhile, green bonds and sukuk, as fixed-income securities, offer a viable avenue for investing in climate technology projects. Investing in climate technology through green, social, sustainability and sustainability-linked bonds is an emerging trend that is leveraging financial instruments to fund sustainable technologies and green initiatives.

Green and sustainable bonds, along with sukuk, have gained significant traction in the GCC region as the region aligns with global efforts toward sustainability. Following a record issuance of $10.6 billion in 2023, Moody’s projected sustained growth in the sustainable sukuk market.

Strong investor appetite and a growing number of countries seeking to diversify their funding sources are expected to drive this expansion.

A launchpad for innovation

The first global stocktake of the Paris Agreement concluded at COP28 in Dubai last December 2023 reaffirmed that the world is not on track to limit global warming to 1.5°C and the window for meaningful change is quickly closing.

McKinsey said climate technology has the potential to cut global carbon emissions significantly amid growing interest from governments, institutional investors and venture capital (VC) firms that are eager to adopt innovative solutions to combat global warming.

While investment in climate technology startups plunged by more than 80% to $152 million in 2023, according to VC data firm Magnitt, the Middle East region has shown substantial growth in climate technology funding over the past decade.

Magnitt said from 2018 to 2022, climate technology achieved an impressive compound annual growth rate of 62%, culminating in a peak of $270 million in capital deployment in 2022.

Abu Dhabi’s Hub71 welcomed seven climate technology startups, including France’s Plenesys, to its 15th cohort in September, where they will have access to tailored resources and support packages to help them develop innovative solutions for a more sustainable future.

Hub71+ ClimateTech, backed by a $680,000 (AED 2.5 million) investment from ADNOC Group, offers startups an initial AED 250,000 cash incentive along with additional perks.

ENGIE Factory, the venture capital arm of the ENGIE Group, opened its venture studio in the Middle East earlier in 2024 to foster innovation, accelerate the energy transition and speed up decarbonisation in the Investcorp region.

Furthermore, Bahrain’s Investcorp introduced a new climate solutions investment platform in December 2023 to

invest in companies that offer products, services and technology designed to reduce carbon emissions and mitigate the effects of climate change.

The Dubai Future District Fund also allocated $54.5 million (AED 200 million) to support climate technology and innovation during COP28, which accounts for 20% of the fund’s total value of AED 1 billion.

PwC Net Zero Future50 - Middle East report 2023 revealed that investors from the Middle East are leading the way in climate technology investment, both domestically and internationally.

decarbonisation, the region has vast pools of untapped capital to invest in innovative decarbonisation solutions.

Green finance gathers pace

Over the years, sustainable investing has expanded beyond equities into the fixed-income market, driven by investors’ shift from non-environmental, social and governance (ESG) to ESG core bond holdings as they seek to enhance the sustainability of their investment portfolios.

“While funding climate transition and adaptation remains a priority in the region,

CLIMATE TECHNOLOGIES HAVE THE POTENTIAL TO CUT GLOBAL CARBON EMISSIONS SIGNIFICANTLY AMID GROWING INTEREST FROM GOVERNMENTS, INSTITUTIONAL INVESTORS AND VENTURE CAPITAL

FIRMS THAT ARE EAGER TO ADOPT INNOVATIVE SOLUTIONS TO COMBAT GLOBAL WARMING

– McKinsey

Middle Eastern investors’ global spending on climate technology-related deals tripled in just one year to reach $5 billion by September 2023.

Similarly, domestic climate technology funding in the region has seen a steady rise, attracting around $1.85 billion in global investments since 2018. “The widespread adoption of cutting-edge technologies is critical to driving zero carbon growth and reaching global climate goals,” Adnan Amin, CEO of COP28 UAE, said, adding that the Innovate for Climate Tech will drive rapid innovation to combat climate change and build a sustainable future.

The GCC region offers a unique opportunity for climate technology startups. With its sovereign wealth funds, a strong network of venture capitalists and investment funds, favourable regulations and corporates keen on

given the exposure to hydrocarbons, sustainability issuances have risen in 2024 compared with only green projects previously,” said S&P Global.

Sustainable bond issuance in the Middle East, encompassing green, social, sustainability and sustainability-linked bonds (GSSSB), totalled $16.7 billion in the first nine months of the year. S&P Global said the issuance represents an 18% decline compared to the same period in 2023, likely influenced by a post-COP28 market normalisation.

Similarly, the sustainable sukuk market is growing steadily. Global issuance of sustainable sukuk increased by 21% year-over-year to reach $6.8 billion in the first half of 2024, according to Moody’s. The GCC region accounted for 82% of green sukuk issuance during this period, with UAE issuers playing an increasingly prominent role.

GCC countries and companies domiciled in the region have adopted ambitious sustainability goals. Governments are rapidly implementing large-scale economic transformation programs to align with their National Visions, aiming to diversify and sustain their economies.

The issuance of sustainable bonds in the GCC region continues in 2024, as evidenced by Qatar’s debut green bond issuance of $2.5 billion in May and Sharjah’s second sustainable bond offering in February.

While the UAE boasts a more diverse range of issuers, Saudi Arabia is rapidly closing the gap.

Sustainable bonds have been issued by various entities in the recent past, including banks – Dubai Islamic Bank (DIB), Abu Dhabi Commercial Bank and Al Rajhi); corporates –Saudi Electricity Company, DP World, Masdar, TAQA and Aldar Properties; and sovereign funds – Mubadala and the Public Investment Fund (PIF).

Moreover, the issuance of sustainable sukuk is on the rise. It is expected to gain momentum in response to global decarbonisation efforts, offering a unique avenue for financing climate technology projects while adhering to Islamic financial principles.

The nexus between sustainable sukuk and climate technology offers several advantages ranging from ethical financing to impact investment to risk mitigation. Green Islamic bonds provide a Shariah-compliant way to invest in climate-friendly projects, ensuring that the financial instruments adhere to ethical and moral standards.

Saudi Arabia’s PIF issued its second sukuk in March 2024, raising $2 billion in the process. Abu Dhabi’s Mubadala issued its 10-year $1 billion debut sukuk in April 2024, taking advantage of robust investor demand for sustainable debt. Last year, the PIF also issued $3.5 billion sukuk in an offering that was more than seven times oversubscribed.

Several banks in the GCC region also issued debut sustainable sukuk in 2024,

FROM 2018 TO 2022, CLIMATE TECH ACHIEVED AN IMPRESSIVE COMPOUND ANNUAL GROWTH RATE OF 62%, CULMINATING IN A PEAK OF $270 MILLION IN CAPITAL DEPLOYMENT IN 2022

– Magnitt

including DIB’s $1 billion green sukuk issued in March, Emirates Islamic Bank issued $750 million in sustainable sukuk in May and Qatar International Islamic Bank tapped the market with $250 million green sukuk in July.

Sustainable Islamic bonds cater to both Islamic and conventional investors who seek to implement sustainable investment strategies, said Moody’s, adding that a key appeal is that the instrument provides transparency in its use of proceeds.

Creating an enabling environment

Climate change caused by the emission of greenhouse gases is an urgent challenge. With $5 trillion required annually by 2030 to achieve net-zero emissions, climate technology in the GCC region remains a largely untapped opportunity.

GCC countries are implementing ambitious national goals and regional initiatives to diversify their economies and tackle climate change, including the UAE’s and Oman’s commitments to net zero by 2050, as well as Saudi Arabia’s commitment to net zero by 2060 and the launch of the Middle East Green Initiative.

Policies should prioritise green growth opportunities, such as green hydrogen, carbon capture, renewables and new industrial technologies, BCG said in a report, adding that some climate technology has significant green premiums relative to conventional solutions.

Regulatory and legal hurdles, as well as securing sufficient funding, remain significant challenges for climate technology startups in the GCC region.

However, new policies that are being implemented, such as carbon pricing, renewable energy subsidies and research and development incentives, create favourable conditions for groundbreaking technologies that can address climate change.

“Governments and national champions are continuing with an aggressive buildout of renewable energy infrastructure that will accelerate the energy transition in the region, relying heavily on existing and new climate technology to drive this success,” said PwC.

Furthermore, GCC countries are establishing innovation hubs and incubators to foster collaboration between startups, researchers and investors. These hubs provide a supportive environment for climate technology development.

The GCC region continues to exhibit strong motivation and innovation in the face of climate change despite the scarcity of local funding opportunities. To help regional climate startups scale up and accelerate their innovation, PwC said governments could work to boost the startup ecosystem and galvanise efforts to scale up innovative small companies.

The growing urgency of climate change and the increasing demand for climate technology solutions have created a favourable environment for innovators working towards a net-zero future. Despite an 80% decline in climate technology investment in 2023, climate technology startups in the GCC region continue to attract significant support and attention.

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How finance teams that modernise with GenAI can lead their business to market dominance

According to PwC’s analysis unit, Strategy&, the GCC region is set to reap US$23.6 billion in economic impact from generative artificial intelligence by 2030. In what analysts called a “conservative top-down estimate”, Saudi Arabia will see US$12.2 billion in value and the UAE US$5.3 billion. The rest will be shared among Qatar (US$2.6 billion), Kuwait (US$1.6 billion), Oman (US$1.3 billion) and Bahrain ( US$600 million)

The second-highest ranked industry in Strategy&’s projection was banking and financial services, which is predicted to see a US$3.5-billion bump. The Gulf’s BFSI sector has long been a trendsetter in technology adoption. With a savvy eye on consumers’ shifting preferences, legacy banks have been quick to cater. There are many examples, from the rise of digital banks — Emirates NBD’s Liv, Mashreq Neo, Gulf International Bank’s meem and Bank ABC’s ila — to the roaring trade in FinTechs, such as Dubai’s PayTabs, Optasia and Sarwa, Abu Dhabi’s NymCard and Kuwait’s One Global.

As the BFSI-tech union continues to deepen, it is clear that GenAI has a part to play. But it also has a broader role in the finance function across industries. In many ways, large-language models (LLMs) were made for financial professionals. When it comes to arduous, cyclic tasks like preparing quarterly reports, reconciling ledgers and aligning with regulatory standards, GenAI models can do the work of dozens of people in a fraction of the time. A reduction in sweat and tears means happier employees. Greater accuracy means happier regulators. And enhanced efficiency means happier board members.

What GenAI brings is a means to plug gaps and overhaul juddering processes. Legacy systems and manual workflows are routinely accompanied by silos — a sinister word that in the business world denotes inefficiency. GenAI can essentially become a field marshal for change in five main areas.

Sid Bhatia, Area VP & General Manager, Middle East, Türkiye & Africa, Dataiku

1. Market intelligence

Market intelligence is a labor-intensive process at the best of times, but where data silos are present, it becomes maddening; and if information is not current, the task is impractical. With GenAI, finance departments can automate gathering and collation of data from sources as diverse as market reports, social media and news pages. AI is a natural pattern-matcher, so weeding out emerging trends, where challenging for a human, is a trivial exercise for GenAI, which can quickly provide a buffet of actionable insights that lead to shrewder decision-making.

2. Compliance

The Gulf region is exceptionally business-friendly, but governments are pragmatic in their attitudes to regulation. To protect consumers and economic security, mandates are periodically introduced that change enterprises’ risk profiles. In seconds, GenAI can consume and commit to memory gargantuan chunks of information — a task that would take weeks for a human professional to complete. GenAI can then automate the extraction of information from a range of sources and classify it in line with regulatory requirements. From employees’ payroll information to customers’ PII, automation increases accuracy and speed and takes a lot of the headache out of compliance management.

3. Contract interpretation

What GenAI can do for compliance extends to contract management. It can extract key clauses and present advice to decision-makers with considerably less risk of missing the fine-print than if a human had performed the task. GenAI can speedily discover and arrange salient information such as payment terms. It is also ideally placed to retrieve information that human agents would have difficulty in committing to memory, like supplier-specific clauses. GenAI allows employees to

focus on negotiation and compliance, thereby (once again) improving risk management.

4. Social listening

Customers live digitally and share their experiences with everyone. For commercial entities like banks, this sharing may be with the brand in the form of direct feedback, or it may be with other consumers on social media. For a bank with millions of customers, it would be impractical to have employees trawl even the company’s own feedback data in search of insights. LLMs, however, are very much up to the challenge. They can sift through surveys, reviews and social pages rapidly. They can find

burden on finance professionals who need only fine-tune the commentary. The labor saved by GenAI puts time back into the hands of innovative humans who can use it to strategise and create.

GenAI

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AI’s power lies partly in its ability to cover a wide range of use cases. GenAI amplifies this power because of its ability to take on such a wide range of previously human-centric activities. The benefits of GenAI for finance teams are plentiful and obvious. The main challenge for organisations eager to avail themselves of these advantages will lie in how to securely integrate GenAI into their workflows. Every

WHAT GENAI BRINGS IS A MEANS TO PLUG GAPS AND OVERHAUL JUDDERING PROCESSES

connections and recurring themes, recognise sentiments and tie comments back to specific products or product lines. And they do so without bias, ensuring more accurate insights. This is the kind of information businesses can use to improve offerings and delight customers.

5. Financial summaries

Documentation, when done manually, is one of the most time-consuming tasks in an employee’s daily workload. Financial commentaries are orders of magnitude lengthier and more complex. But when GenAI takes over data synthesis and analysis of trends, performance and risk, it can rapidly produce initial drafts of deliverables such as quarterly performance summaries or marketoutlook reports. This alleviates the

finance manager wants more accurate forecasts and faster processing. The enterprise must take care during procurement to ensure the chosen AI partner can integrate GenAI with full security, governance and operational controls, so customers and regulators can both be satisfied with the result. A finance team equipped with GenAI will be a strategic leader within any organisation, whether in the FSI sector or elsewhere. The capability to lubricate the machinery of finance, and therefore of business, comes as standard. And when team members become comfortable with their AI colleague, the business will be setting standards of excellence for others to follow — in compliance, customer experience, employee experience and product innovation.

What a Second Trump Presidency Means for Gulf Economies

Oscar Wendel Editor-at-Large of MEA Finance, looks at the potential impact on the GCC as Donald Trump returns to the White House. This second term raises questions about currency dynamics, energy policy and geopolitical partnerships. Could the Gulf Cooperation Council (GCC) be entering an era of accelerated opportunities under a businessfocused Trump administration?

President-elect Trump’s ‘America First’ agenda signals a shift away from regulatory constraints towards a business-friendly, entrepreneurial landscape, aligning with Gulf economies’ goals to diversify beyond oil, strengthen diplomatic ties and foster a freemarket environment. However, there is a risk that populist rhetoric could bring protectionism, potentially shrinking global trade. For GCC nations aiming to expand their economic footprint, skilfully navigating Trump’s protectionist policies will be vital to capitalising on any benefits his administration might bring.

Impact on the Gulf’s Banking and Finance Sector

The anticipated dollar surge and resultant higher U.S. interest rates could significantly impact the GCC’s banking sector, raising borrowing costs and

Oscar Wendel Editor-at-Large of MEA Finance

potentially reducing credit availability for small and medium-sized enterprises (SMEs). SMEs are central to the GCC’s diversification strategies, and restricted credit could slow economic growth, limiting the shift away from an oilcentered economy.

Trump’s pro-business policies, however, could open new pathways for GCC banks to collaborate with American institutions. Regulatory easing may encourage Gulf banks to expand in areas like trade finance and venture capital. Collaborations with U.S. fintech companies could also help GCC banks gain access to advanced technologies, supporting the Gulf’s ambition to become a regional financial hub.

Following Trump’s victory, the U.S. dollar has strengthened, driven by expectations of higher bond yields and increased foreign investment. This has mixed implications for the Gulf, where most currencies are pegged to the dollar. A strong dollar reflects a robust U.S. economy, enhancing opportunities for GCC investors in American markets. However, it also makes oil more expensive for foreign buyers, potentially reducing demand for oil exports in the Gulf.

As GCC central banks may follow the Federal Reserve’s interest rate hikes, borrowing could become more costly for businesses and governments. This could impact the Gulf’s diversification efforts by increasing the cost of financing domestic projects. Tightened liquidity in Gulf financial markets may also affect growth in non-oil sectors vital to the region’s future.

The Pros and Cons of Trump’s Free-Market Focus

Trump’s emphasis on deregulation is expected to strengthen U.S.-GCC trade relations, especially in energy, defence and technology. Reduced red tape could encourage Gulf investments in renewable energy, infrastructure and technology, fostering joint ventures and co-investment opportunities.

This free-market focus could also spur entrepreneurship within the GCC. By supporting policies that favour privatesector growth, the Gulf can position itself as a leader in emerging sectors. With a Trump administration prioritising economic freedom, GCC businesses may face fewer barriers in the U.S. market, allowing for a favourable environment for Gulf investments.

For oil-driven Gulf economies, Trump’s support for domestic U.S. oil production presents both an opportunity and a challenge. The likely reinstatement of sanctions on Iran could restrict its oil exports, benefiting Gulf producers by reducing regional supply and potentially boosting oil prices. This could bring shortterm financial gains to GCC economies like Saudi Arabia and the UAE.

However, Trump’s plans to ramp up domestic drilling could result in a market glut, pushing prices lower. For oil-dependent Gulf economies, this could threaten revenue stability. Gulf leaders must balance their strategic partnership with the U.S. while managing oil production carefully to avoid market disruptions that could harm their financial stability.

Geopolitical Stability as an Economic Catalyst

Under Trump’s leadership, a renewed focus on economic and geopolitical stability could benefit the Gulf. His transactional approach to diplomacy, particularly in military cooperation and arms sales, promises to enhance regional security. Regional stability is foundational for economic growth, and GCC nations could benefit from

WITH INCREASING TIES TO ASIAN MARKETS, PARTICULARLY CHINA, GULF LEADERS FACE A DELICATE BALANCING ACT IN MAINTAINING PRODUCTIVE RELATIONSHIPS

WITH THE U.S. AND CHINA

advanced defence capabilities, including potential F-35 jet sales to the UAE.

Trump’s reluctance to involve the U.S. in foreign conflicts may reduce military interventions, emphasising diplomacy—a philosophy that aligns with the GCC’s objective of maintaining stability without heavy reliance on a foreign military presence. Such potential stability could attract foreign investment, fostering a climate where Gulf financial markets can thrive.

Trump’s hardline stance on China presents challenges for the GCC, which counts China as a significant trading partner and oil buyer. Rising U.S.-China tensions could slow Chinese growth, impacting Gulf oil demand and revenues. Tariffs on Chinese goods could also drive inflation, complicating GCC financial planning.

With increasing ties to Asian markets, particularly China, Gulf leaders face a delicate balancing act in maintaining productive relationships with the U.S. and China. As Trump’s policies might widen the U.S.-China divide, the GCC will need diplomatic tact to avoid becoming entangled in a global trade dispute, which could have a ripple effect on their economies.

An Assertive GCC and Strategic Diversification

Trump’s populist rhetoric has encouraged Gulf states to assert their national interests more confidently and pursue alternative alliances and partnerships. This trend, coupled with the GCC’s pivot towards Asia, signals a desire to diversify economically and diplomatically. Saudi Arabia’s quick congratulations to Trump on his election victory indicates

the Kingdom’s intent to strengthen U.S. ties. However, Gulf leaders remain cautious about Trump’s unpredictability regarding policy.

The Gulf’s focus on diversification is crucial. By investing in non-oil sectors, forging new partnerships and enhancing resilience, GCC countries can mitigate risks associated with any sudden Trump policy shifts. Such a strategy will enable the Gulf to position itself as more self-sustaining, reducing reliance on traditional alliances and adapting to global shifts.

A Trump presidency offers Gulf economies both potential benefits and challenges. Trump’s pro-business ethos aligns with the GCC’s ambitions to modernise and diversify, yet his protectionist stance and unpredictability mean that Gulf states must prepare for sudden shifts. Strategic agility and robust alliances within the region and globally will be essential to turn Trump’s term into an era of growth and resilience for the GCC.

As Gulf countries advance, strengthening ties in Asia, managing U.S.China relations and carefully navigating diplomatic landscapes will be critical to seizing opportunities while minimising risks. Through strategic investments in both traditional and renewable energy resources, fostering entrepreneurship and pursuing economic diversification, GCC leaders are positioned to leverage Trump’s presidency for sustainable, long-term prosperity. By capitalising on Trump’s free-market principles, the Gulf can solidify its role as a dynamic, forward-looking centre of global business and investment amidst a shifting geopolitical landscape.

Actioning Accessibility

Ayesha Abbas Managing Director, Head of Affluent and Wealth for EMEA, Pakistan and UAE points out that Standard Chartered Bank credits much of its success to a long-held commitment to financial inclusion and that the benefits of such inclusivity ultimately spread widely across society

How does your organisation define financial inclusivity?

At Standard Chartered, we define financial inclusivity as the effort to provide tailored, affordable financial products and services to individuals and businesses that have limited access to capital. We believe that financial inclusion is essential for fostering sustainable and resilient capital markets, emerging economies. Our goal is to empower these underserved groups to participate in the financial system, thereby driving economic growth and resilience.

Our strategy involves harnessing technology and digital platforms, coupled with strategic partnerships, to extend financial services to diverse market segments. This approach not only integrates the unbanked into the financial system but also equips them with essential financial tools such as credit, insurance and investment opportunities.

A core aspect of our strategy is promoting financial literacy. By educating communities on how to effectively use these services, we aim to create a more inclusive financial ecosystem. Through innovations such as mobile money and

partnerships with fintechs and telecoms, we strive to support sustainable economic development on a global scale.

Where does financial inclusion rank on your current list of business priorities?

Financial inclusion is a top priority for us, particularly in emerging markets

Ayesha Abbas, Managing Director, Head of Affluent and Wealth for EMEA, Pakistan and UAE

where many individuals and businesses remain underserved. Recognising the economic and social value of reaching this unbanked segment, we actively pursue strategies to enhance digital access to financial services. Our efforts focus on expanding our reach through innovations like mobile money and partnerships with fintechs, targeting low-income communities and microenterprises.

Investing in financial education, digital infrastructure and collaborative partnerships is essential to this journey. As we bring more people into the financial system, we not only fulfil our social responsibility but also create sustainable revenue streams, solidifying financial inclusivity as a core business objective.

It’s worth noting that without a strong commitment to financial inclusion, Standard Chartered would not have achieved its success across emerging economies, where we have a robust presence such as Asia, the Middle East and Africa.

Do you expect to see new products launched specifically for the attention of the unbanked and low paid?

We are continuously innovating, partnering with key providers and introducing new products designed specifically for the unbanked and lowincome individuals, as addressing this gap presents a significant growth opportunity. A prime example is the SC Shilingi Funds, Kenya’s first fully digitalonly-money-market fund platform. Integrated with Standard Chartered’s mobile app, it offers young, low-to-middle income individuals with a seamless way to access money-market funds. The platform is designed for tech-savvy individuals who seek convenient investment solutions and enables them to manage their finances directly from their mobile devices at very low investment values. This approach not only simplifies access to investment products but also empowers users to

make informed financial decisions that can improve their standard of living and contribute to Kenya’s economic growth. By launching such targeted products, we aim to extend financial services to underserved populations and facilitate economic independence.

What might the medium to longterm business benefits be for banks arising from greater inclusivity?

Greater financial inclusivity offers banks several medium to long-term business benefits. In countries like the UAE, banks receive substantial regulatory support

This will not only increase revenues but will also reduce risk through diversification. Third, banks that engage in financial inclusion efforts will build social trust, enhancing their goodwill and reputation.

Will financial inclusivity bring noticeable upsides to regional economies?

Absolutely. Financial inclusivity will play a transformative role in the economic landscape of the region. With many countries looking to diversify their economies beyond oil and gas, expanding financial access is crucial to fostering

IT’S WORTH NOTING THAT WITHOUT A STRONG COMMITMENT TO FINANCIAL INCLUSION, STANDARD CHARTERED WOULD NOT HAVE ACHIEVED ITS SUCCESS ACROSS EMERGING ECONOMIES, WHERE WE HAVE A ROBUST PRESENCE SUCH AS ASIA, THE MIDDLE EAST AND AFRICA

and guidance to modernise and innovate, focusing on efficient fintech solutions and digital banking infrastructure. This support not only expands access to financial services for all but also enhances the economies of scale across various sectors. For banks, this inclusivity leads to the growth of a broader and more robust client base, which directly contributes to their bottom line.

There are three major benefits from financial inclusivity. First, the push for inclusivity will drive the development and enhancement of better fintech systems, ensuring they remain competitive and efficient. Second, banks will profit from the strengthened economy, gaining access to a more extensive and diverse client base.

entrepreneurship and supporting startups across various sectors. This diversification reduces dependency on natural resources and stimulates growth in other industries.

As more individuals and businesses gain financial access, governments can reinvest the increased revenues into infrastructure, manufacturing and services, boosting both domestic and foreign investments. This not only strengthens economic stability but also builds investor confidence, promoting sustainable, long-term growth. By focusing on financial literacy and a more inclusive ecosystem, we at Standard Chartered, help create diversified, resilient and thriving economies.

Revisioning Roles

AI is established as the future of banking and finance, with the benefits it brings business and customers well understood. The additional challenge however is how now to optimise human talent to meet the potential that the combination of person and machine promises.

Few industries have been as quick to adopt digital technologies as financial services. While digitalisation and automation aren’t new to banking, the trend has taken on new significance with the rise of fintechs and the growing popularity of innovative operating models.

Digitalisation is essential for banks to thrive in the modern financial landscape, enabling them to cut costs, boost revenue, stay ahead of the curve and optimise operations.

“With the more recent shift toward automation, banks and financial service providers need to modernise their banking strategies,” IBM said, adding that the growing demand for artificial intelligence (AI), Internet of Things (IoT) and blockchain are among the other

technologies banks must consider when creating a digital transformation strategy.

There is no question that AI is revolutionising the banking industry. By automating processes and leveraging innovative technology use and deployment, financial institutions will reduce their reliance on manual labour and lower operating costs. Rapid advancements in both traditional and cutting-edge AI technologies, such as generative AI (GenAI), are transforming the delivery, the adoption and daily use of banking services.

A study by Forbes Insights revealed that the majority of c-level banking executives consider legacy infrastructure to be the main challenge impeding their organisation’s business growth, which underscores the push for financial

institutions to fully accelerate their modernisation efforts to harness the transformative power of AI.

According to S&P Global, banks have been leveraging AI for decades to advance risk management processes, loss mitigation, fraud prevention and customer retention as well as to deliver efficiency gains and profit growth.

However, the automation and digitalisation of the banking sector also opens up new vulnerabilities and amplifies existing risks. Cybersecurity, a near constant concern, remains at the top of the threat agenda and banks executives are allocating more resources and investments to update and strengthen their defences.

However, the situation is not entirely bleak. AI is transforming the sector, from enhancing risk management and fraud

detection to helping combat money laundering, and ultimately leading to a more robust and secure financial ecosystem, keeping pace with bad actors.

New ways of working

Historically, banking has relied on cumbersome, time-consuming processes and excessive paperwork. However, the emergence of fintech and digital-only banks has fundamentally shifted customer expectations, with a strong preference for the convenience, speed and accuracy of digital banking services. Banking automation has now transitioned from a desirable feature to an essential component of modern banking operations.

“Disruption from players such as digitalonly banks, fintech firms and Big Tech companies threaten to upend the banking industry as we know it and to encroach on traditional banks’ market share in the process,” said Hitachi Solutions.

It is well understood that AI-powered automation has revolutionised banking operations by automating routine tasks, freeing up the workforce to focus on higher-value activities, leading to substantial cost savings, improved operational efficiency and has much reduced instances of human error.

Banking automation technologies have significantly reduced workforce response times while boosting productivity, according to Automation Anywhere. The software firm notes that automation has positively impacted most banking and financial services across front, middle and bank offices.

Questions persist however about how the AI revolution in banking and finance will evolve the workforce in these institutions and ultimately reshape working cultures. We are in the midst of a watershed moment and as more necessary, yet mundane tasks are mastered by automated services, will it necessarily follow that the human workforce will be cast aside, or will they be re-skilled to build out or bolster other areas of increasing focus such as customer engagement

and experience, ESG, inclusivity or in human resources? This will likely depend on individual institutions but it seems improbable that there will be mass ejections of workers. It is more likely to be a mix of natural wastage and refinement of newly required skills for the modern banking system with staff taken on directly to manage these, and with others being retrained as needed.

“With their increasing IT investments, the banking and finance industry has evolved significantly over the past few decades,” Infosys BPM said in a report while noting that software solutions such as enterprise resource planning (ERP) and customer relationship management (CRM) support bank workforce by streamlining some of the most crucial operational workflows, allowing banking institutions to focus on their core services.

WITH THE MORE RECENT SHIFT TOWARD AUTOMATION, BANKS AND FINANCIAL SERVICE PROVIDERS NEED TO MODERNISE THEIR BANKING STRATEGIES

– IBM

Banks in the GCC region are leveraging AI automation to enhance customer service across various touchpoints. For instance, AI-powered chatbots provide self-service support for basic inquiries, while in-branch interactions benefit from AI-driven insights to assist with complex issues.

“AI-powered automation can streamline processes like loan processing, fraud detection and customer service,” EY said in a blog post, adding that studies show the transformative role of AI in wealth management, focusing on its potential to democratise services, enhance operational efficiency and providing deeper insights into client behaviour.

To stay competitive and deliver personalised customer experiences, incumbent banks can take a page out of neobanks’ playbook by leveraging banking automation technology to tailor products and services to the unique needs of each customer.

McKinsey forecasts that GenAI, a subset of deep learning technology or traditional AI, will revolutionise banking, adding $200 billion to $340 billion annually to the industry’s bottom line, equivalent to a 9 to 15% profit boost attributed mainly to the technology’s productivity gains.

Financial institutions are harnessing the power of AI and data, both internal and external, to optimise operations and enhance customer experiences. By leveraging advanced techniques such as predictive modelling, bankers or the workforce can analyse massive datasets to identify trends, forecast future behaviours and proactively meet customers’ evolving needs.

GCC banks have been gradually adopting AI solutions to streamline operations and improve efficiency, driven by the innovative technology’s potential to automate routine tasks, optimise resource allocation and ultimately, reduce operational costs.

Hyper personalisation

Banks have a growing number of options for the advancement of customer experience, such as effective self-serve options and personalised customer journeys using data and analytics. However, the use of AI in the financial services industry can drive true end-toend digital transformation.

The use of AI allows the workforce to transition from reacting to queries to proactively solving problems, thereby improving the customer experience even more. Hyper customisation is a big trend within the banking sector as today’s more savvy customers are looking for a

personalised, tailored service rather than a one-size-fits-all approach.

“Traditional AI and predictive analytics will decide on the prompts and the messages to deliver to the customer while GenAI will deliver those prompts and messages in a nonintrusive, human-like and personalised manner,” said BCG.

GenAI is expected to create ‘focused financial offerings’ for individuals within retail and private banking channels and for corporate banking tailored to their specific needs and interests, which is a differentiator that can drive new forms of competitive advantage.

“GenAI can help the workforce improve and grow your customer service experiences, from no-touch interactions like self-service help with chatbots to high-touch situations like working through complex issues in a branch visit,” according to Salesforce.

The ‘gold mine’ of customer data that incumbents have accumulated over the years is a key value differentiator that is unlocked by the potential of GenAI.

The depth and breadth of data a bank has on customers, as individuals and groups with common preferences, allows them to create recommendations for bespoke financial products to an individual’s specific needs at a far greater scale through digital services than has been previously possible.

The International Monetary Fund (IMF) said GenAI’s ability to process very large and diverse data sets is proving very useful in enhancing efficiency and advancing customer experience, risk mitigation and compliance reporting for financial providers.

With the rapid evolution of AI in financial services in recent years, banks are striving to deliver hyper-personalised experiences that empower customers to enjoy banking to the fullest while minimising any hassles. Today’s banking customers seek more than just financial services; they desire true partners who understand their unique needs and aspirations.

Risk management

Due to the nature of their business, which involves handling financial assets, investments and the liabilities that come with them, banks are inherently exposed to risks.

A joint study by EY and the Institute of International Finance revealed that cybersecurity has remained at the top of the list of near-term risks for

and the UAE, are driving the adoption of advanced technologies like AI and digital ID to combat financial crime and enhance customer due diligence.

Banks, which have been at the forefront of technological innovation in fraud prevention, must now consider how to adapt their risk management frameworks to effectively empower their workforce to address the risks and opportunities

DISRUPTION FROM PLAYERS SUCH AS

DIGITAL-ONLY BANKS, FINTECH FIRMS AND BIG TECH COMPANIES THREATEN TO UPEND THE BANKING INDUSTRY AS WE KNOW IT AND TO ENCROACH ON TRADITIONAL BANKS’ MARKET SHARE IN THE PROCESS

– Hitachi Solutions

banks around the world for the second consecutive year amid unprecedented levels of volatility, geopolitical tensions and global uncertainty.

While traditional fraud investigation methods struggle to keep pace with today’s complex schemes, AI’s ability to adapt and learn from evolving patterns makes it a powerful tool for detecting both known and unknown types of fraud.

“Thanks to AI, spotting fraud and assessing risks has become a whole lot easier and more effective. By crunching through vast amounts of data, AI systems can identify anomalies that might signal fraud before it happens,” according to the London School of Business and Finance.

AI-powered fraud detection systems can analyse massive datasets in real time, identifying suspicious patterns that signal fraudulent activity.

GCC banks can harness GenAI to proactively identify emerging risks, bolster resilience and improve risk management practices. Central banks in the region, including Qatar, Saudi Arabia

presented by emerging AI technologies, as highlighted by a recent US Treasury report. This provides a realm of potential opportunity for banks to become better honed when dealing with fraud and at the same time enhance workforce skills.

AI’s ability to rapidly process enormous quantities of data allows it to detect patterns and trends that human workers would take much longer to spot. Redeploying workforce members away from such repetitive and time-consuming duties to areas of human interaction that AI either will not or cannot yet manage, will strengthen the overall risk management operations of banks.

On balance we believe AI and automation are transforming the banking industry by improving customer experience, enhancing operational efficiency and enabling the development of innovative products and services. By embracing these technologies, banks can stay competitive and meet the evolving needs of their customers, and by thoughtfully considering their workforces role in the new world of banking, can further enhance their overall performance.

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Empowering Everyday Investors

Mohammad Al Mortada Al Dandashi, Group Managing Director of Al Ramz, discusses the driving vision behind Al Ramz’s innovative Trading Platform, explaining how their commitment to financial inclusion, advanced AI tools and user-centric design are transforming the trading experience. With a focus on empowering everyday investors and ensuring their security, Al Ramz aims to set new standards for accessible, responsible investing in a rapidly evolving financial landscape

What inspired Al Ramz to develop a trading platform that emphasises financial inclusion for regular investors?

At Al Ramz, we see a transformative opportunity to redefine the trading landscape, with a strong commitment to financial inclusion for everyday investors. Leveraging our 25 years of experience as a UAE-based financial leader, we are uniquely positioned to champion this cause and drive meaningful change in the industry. Our strategic review underscored a challenge: while we have a robust customer base, scaling our personal touch without compromising quality required us to reimagine our service model. Digitalisation became not just a solution but a catalyst for broader access.

In designing our trading platform, several stark realities came to light, the rise of high-risk CFD platforms, escalating losses among digital investors, events like GameStop and the emergence of questionable “free trading” models. These highlighted a critical gap: the need for a reliable, investor-centered platform that empowers and protects regular investors.

Our response is rooted in a vision to elevate investor returns as the foundation of our mission. We reject risk-amplifying structures like CFDs and avoid trade aggregators. Instead, we provide powerful tools, including generative AI, to empower informed decision-making and cultivate a collaborative investor community where education and shared insights thrive. Furthermore, we are dedicated to creating a “digital financial mall”—a platform where investors at any experience level can effortlessly access the resources, insights and market opportunities essential for their success.

How does the integration of AI and Robo Advisory in your platform benefit individual investors compared to traditional advisory services?

Our approach to robo-advisory stands apart from typical offerings, which often

act merely as fund or ETF selectors. We’ve crafted a proprietary solution that is both interactive and personalised, enabling users to receive answers to financial questions, explore insights on listed companies and gain clarity on broader financial concepts. Our platform

minimum investments, aligning with our commitment to financial inclusion. It offers rebalancing features, advanced customisation options and operates at a significantly lower cost while adhering to strict regulatory requirements, including custody. Notably, it’s the only such tool licensed in the UAE, allowing investment decisions at the security level, rather than just funds or ETFs. This approach enables individual investors to access sophisticated advisory services typically reserved for institutional clients.

What key features in the platform make it easier for new or smaller investors to optimise their portfolios and make strategic decisions?

NOTABLY, IT’S THE ONLY SUCH TOOL LICENSED IN THE UAE, ALLOWING INVESTMENT DECISIONS AT THE SECURITY LEVEL, RATHER THAN JUST FUNDS OR ETFS

empowers individual investors by helping them construct tailored portfolios aligned with their unique objectives, leveraging advanced quantitative models to enhance decision-making.

This robo-advisory tool essentially democratises asset management services that traditionally require high

Our platform is designed to empower new and smaller investors by providing deep insights into all listed securities, including real-time news, fundamental data, technical analysis, advanced charting tools and analyst reports. Additionally, a social forum enables users to discuss the market and individual securities, creating a community where ideas and insights are shared. These are typically features reserved for institutional clients, yet we’ve made them accessible to all investors on our platform.

What further sets our platform apart are unique features licensed only to Al Ramz in the region, such as a roboadvisory tool and a copy book feature. These tools complement the wealth of information available, giving users access to resources that are traditionally available only to asset managers or institutional investors. Together, these features ensure that all investors, regardless of their experience level, have the knowledge and support needed to make informed, strategic decisions.

How does copy book serve the needs of everyday investors and align to Al Ramz financial inclusion emphasis?

Copy Book is a powerful tool that empowers everyday investors by allowing

Mohammad Al Mortada Al Dandashi, Group Managing Director of Al Ramz

them to view the portfolios, historical performance and risk profiles of more experienced investors on our platform. Users have the option to allocate funds to “copy” the trades of these investors, giving them a practical way to engage in strategies typically reserved for asset management, but with more accessibility and transparency.

Aligned with Al Ramz’s commitment to financial inclusion, Copy Book effectively democratises asset management by making sophisticated investment strategies available at lower fees. It fosters an environment for freelance asset management while maintaining essential controls, including the disclosure of historical performance, risk profile assessments and transparent portfolio composition. This feature offers users unique insights into the market, helping them learn from seasoned investors and gain a clearer understanding of capital market dynamics.

How does your platform ensure that all users, regardless of investment size, have access to high-quality financial insights and portfolio management tools?

Our platform is designed to level the playing field for all investors by providing high-quality financial insights and portfolio management tools typically reserved for institutional clients. Key features like the social forum, Copy Book and robo-advisory enhance both the learning experience and investment decision-making for users of all levels. Through the social forum, our community engages in meaningful discussions, exchanging insights on market trends and specific securities. This shared learning environment fosters a collaborative atmosphere, helping users to build their financial knowledge and confidence.

Additionally, we’ve removed minimum investment barriers, making advanced tools accessible to everyone, regardless of their portfolio size. Features like our robo-advisory offer tailored guidance that adapts to each user’s goals, while

the Copy Book allows users to track the strategies of more experienced investors, providing a transparent look into professional-level decision-making. These tools ensure that every investor, regardless of experience or capital, has the resources to make informed and strategic investment choices. Al Ramz is committed to financial inclusion, and this platform is a significant step toward giving all users a comprehensive and empowering investment experience.

What measures does Al Ramz take to maintain user security and data privacy, particularly given the advanced technologies powering the platform?

At Al Ramz, we prioritise user security and data privacy as fundamental pillars of our platform, particularly in the digital age where concerns around data misuse are prevalent. We understand the apprehension that users feel regarding the potential sale or misuse of their personal and trading data, as

By securing user data with state-of-theart technology and adhering to strict data privacy standards, we aim to foster an environment of trust where users can focus on their investment journey with confidence, knowing their personal and financial information is fully protected.

How does Al Ramz plan to continue innovating its platform to meet the evolving needs of the average investor?

At Al Ramz, our commitment to continuous innovation is driven by a vision to empower every investor with advanced, accessible tools that adapt to their evolving needs. We are actively enhancing our robo-advisory tool to offer an “active mode” feature, a next-generation solution that acts as a proactive companion for users. When activated, this feature not only provides timely guidance on investment decisions but can also execute transactions on behalf of clients, ensuring they never miss critical opportunities, even when they’re away from the platform.

OUR GOAL IS TO DEVELOP A “DIGITAL FINANCIAL MALL”, A PLATFORM WHERE INVESTORS OF ALL EXPERIENCE LEVELS CAN SEAMLESSLY ACCESS THE RESOURCES, INSIGHTS AND MARKET

OPPORTUNITIES

THEY

NEED TO SUCCEED

many platforms increasingly monetise aggregated user information for targeted advertising and other commercial purposes. Our approach is different: we are committed to transparency and protecting user data.

To uphold this commitment, we ensure that every user’s data is handled with the utmost confidentiality, free from hidden clauses or small print that compromise privacy. Al Ramz does not sell or share any form of client data, and we deploy robust security protocols to safeguard all information within our platform.

Looking ahead, we are also broadening the scope of available asset classes and expanding into new markets to create a comprehensive digital financial ecosystem. Our goal is to develop a “digital financial mall”, a platform where investors of all experience levels can seamlessly access the resources, insights and market opportunities they need to succeed. This forward-thinking approach allows us to stay agile in a rapidly changing financial landscape, ensuring that Al Ramz continues to be a leader in delivering innovative solutions for the modern investor.

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Build your own Next-Gen Core Platforms SHAPING BANKING’S NEXT IN MEA:

How can you reimagine the core of your organisation that gives you the right platform to deliver on your business strategies? What next-gen principles are essential to be future-ready? What approach gives you the flexibility to pick and choose the right components to scale your ecosystem strategy? Which parameters should guide your evaluation? In this article, Sriranga Sampathkumar, VP and General Manager – Middle East and Africa, Infosys Ltd delves into these questions and shares insights from contemporary financial institutions in the region.

The banking sector in the Middle East and Africa (MEA) is at a pivotal moment, facing an accelerated pace of change that presents opportunities and challenges. As banks gear up to adopt next-generation technologies and business strategies, the success of these initiatives hinges on the strength and adaptability of their core technology platforms.

New and Existing Players in the Banking Ecosystem Need a NextGen Core to Make a Difference

The banking ecosystem in the MEA region continues to evolve with new industries and players steadily making inroads. As incumbent banks adopt innovative business models, composable capabilities and sustainable practices, their legacy systems are not just insufficient—they’re one of the biggest obstacles to future success.

Banks need a contemporary technology platform which empowers them to evolve and fine-tune various components at varying speeds, providing the essential agility, flexibility and resilience to excel and be future-ready. Such a platform fosters collaboration within the ecosystem, which is crucial for thriving in today’s dynamic landscape.

Key Trends Shaping the Region:

• Fintechs Making Further Inroads:

A ccording to McKinsey, MENAP fintech revenue could nearly triple from $1.5 billion in 2022 to $3.5-$4.5 billion by 2025, boosting fintech’s share of financial services revenue from less than 1% to 2-2.5%.

• Blurring Lines Between Industries: Telecom, e-commerce giants and players from other industries continue to embed financial services into their platforms by partnering with banks. They are gradually building credibility with central banks to secure banking licenses. This trend extends into the corporate banking segment, where modern digital banks are seamlessly integrating services such as cash management, supply chain finance and more, directly into primary corporate journeys.

• Gro wth via PSB/PSP Licenses: Incumbent Tier 1 and Tier 2 banks are increasingly adopting new entities with PSB/PSP licenses to drive growth across multiple geographies.

• Emergence of Payment Service Providers: Banks are setting up local Payment Service Providers or their own Payment Hubs to ensure faster compliance with evolving payment rails.

The Drivers for Core Transformation Remain Pertinent

The MEA region continues to witness rapid digital adoption, driven by initiatives like Saudi Arabia’s Vision 2030 and the UAE’s Digital Economy Strategy. This is putting pressure on banks to modernise their systems to meet the growing scale of digital transactions. At the same time, resilience has become critical in the wake of recent security breaches.

Sriranga Sampathkumar, VP and General Manager – Middle East and Africa, Infosys Ltd.

While AI and cloud integration present opportunities, data utilisation remains a significant challenge.

Next-gen core systems provide the infrastructure necessary to navigate these complexities.

To succeed in this evolving landscape, banks need a platform that is not only resilient and scalable but also agile enough to co-create tailored products with ecosystem partners. Such platforms must support real-time processing, BIANcompliant open APIs and an event-driven architecture, enabling banks to adapt quickly and efficiently to the ever-changing industry demands. Further, the platforms should be cloud-native and cloud-agnostic, capable of being deployed on private, public or hybrid clouds including AWS, MS Azure, Google, Oracle, IBM and more. They should also seamlessly integrate a wide range of embedded AI use cases into business workflows across various user journeys.

Clarifying Market Confusion: Core Banking Systems Explained

As banks look in the market for the right core, they are confronted with various terms like coreless core, composable core, thin core and Gen 4 core. Understanding the nuances and differences is crucial for banks looking to modernise their core systems.

• Coreless Core: A system with no central core, relying on loosely coupled modular components. This allows for independent updates, fostering faster innovation and reducing reliance on legacy systems.

• Composable Core: A flexible, modular system where components can be added, removed or replaced without disrupting the entire system, enabling rapid adaptation and customisation.

• Thin Core: A lightweight core system that handles essential operations, with additional services provided by external applications.

• Gen 4 Core: The next generation of core banking systems, leveraging cloudnative technologies, microservices and APIs to offer unprecedented scalability and integration capabilities.

While each of these core types has its strengths, the key is investing in a platform that can scale and adapt as the bank’s business grows.

The Solution: Build Your Own NextGen Core Platform

Given the unique strategies and requirements of each financial institution, a one-size-fits-all approach won’t work. Both new and incumbent banks need to be empowered to build next-generation cores tailored to their needs. Fortunately, core solutions in the market are evolving to support this journey.

When evaluating core systems, banks should focus on the following architectural principles:

• Cloud-Native and Cloud-Neutral: Flexibility to deploy on public, private or hybrid clouds.

• Proven Scalability: Ability to handle growing volumes from both organic and inorganic growth.

• Pr oduct-as-a-Configuration: Facilitates rapid development, rollout and personalisation at scale.

• API- and Events-Driven: Supports ecosystem innovation and emerging business models.

• Componen t-Based: Enables progressive modernisation.

• End-t o-End DevOps Pipeline: Accelerates new developments.

• Robust Security: Ensures protection across all layers of the platform.

• Modern Data Architecture: Optimises AI utilisation.

• Multi-Capability Support: Handles global projects with multi-channel, multitenancy, multi-currency, multilingual and multi-time zone features.

Here we look at the case of some of the innovative players in the market.

Zand Bank, UAE’s first AI-powered digital bank, embraces a distinctive approach to corporate banking, offering innovative products and services to support businesses at every stage. Leveraging Finacle’s cloud-native solutions on Microsoft Azure, Zand accelerates innovation with modular suites and extensive Open APIs,

positioning itself as a leader in the evolving digital finance landscape. Michael Chan, Chief Executive Officer of Zand, said, “This strategic move to partner with Infosys Finacle empowers us to fortify our position at the forefront of innovation, enabling seamless deployment of digital assets, AI and blockchain technologies.”

Zenpay Limited, a fintech subsidiary of Zenith Bank Plc., is leading digital innovation and payments with Infosys Finacle. Using Finacle’s solution, Zenpay is offering a scalable Payment Service Bank to provide wallet services aimed at the unbanked population in Nigeria and Ghana. The initiative will gradually expand to Gambia and Sierra Leone in phase two, with plans to reach North Africa in phase three. This collaboration aligns with Zenith Bank’s vision of delivering seamless and contactless experiences across every customer touchpoint, driving the future of banking through digital transformation.

A leading Indian bank harnesses the power of Finacle’s Next-Gen Now platform to process over a billion API calls every day. On peak days, Finacle processes over 150 million API calls on a single client, more than 50% of which originate on ecosystem interfaces.

Choosing the Right Technology Partner

Selecting the right technology partner is crucial in this journey. Banks should consider factors like functional richness, market-specific experience, long-term viability, customer references, operational performance, partner ecosystem flexibility and total cost of ownership, including the use of open-source components and economical maintenance options.

Conclusion

As the MEA banking sector continues to evolve, it’s essential for banks to cut through the noise and evaluate core banking solutions based on their specific needs. By embracing a Next-Gen Platform that gives the flexibility to pick and choose the right components to scale your ecosystems, you can ensure immediate and long-term success.

Ready for a New World

Fatima Ahmed Rashid Qasimi Partner & Member

of the Board at Secura International tells us how the company’s comprehensive global and regional expansion plans are progressing and provides a detailed account of why our region is an attractive location in an emerging new world for wealth

What makes the region an interesting proposition as a location for Secura International?

The Middle East, located at the crossroads of three continents: Asia, Europe and Africa, benefits companies as the region bridges the time zone gap between Asia, Africa and the West. These factors contributed to the growth of an expatriate population in the region that needs to be catered to with global investment solutions that can be accessed from anywhere in the world. To attract the rich, the UAE developed infrastructure, deployed significant tax incentives, encouraged tolerance and understanding to allow the Western luxury lifestyle to prosper and offered ample investment and funding opportunities. With its taxefficient environment, global connectivity and ease of setting up a business, the region became a destination to park wealth. Expatriates from all parts of the world like Middle East Asia, Africa and Europe, are boosting demand for wealth management services. Therefore, global financial institutions are expanding their private banking and wealth management divisions around the Gulf to cater to the growing needs of the Middle East’s affluent segment. While the UAE remains the prime market for Wealth Management in the Middle East, the financial service providers are also looking to build networks in neighboring countries, especially in Saudi Arabia, Qatar, Kuwait, Bahrain and Oman. The UAE is increasingly a destination for international flows of capital and a gateway to more global opportunities. The Capital flow is happening in UAE from India, from the UK, for tax purposes mainly, and increasingly from Africa, as UAE has become the convenient regional meeting point, which is why, for example, more

Fatima Ahmed Rashid Qasimi, Partner & Member of the Board at Secura International

family offices from Africa are setting up in the region. The UAE is also strong in tourism, media, has the world’s fourth largest port and is increasingly a gateway to trade in other parts of the Middle East, South Asia and Africa. It is a regional hub for start-ups and entrepreneurs, a key attraction to wealth managers and banks. To modernise and diversify its economy, the establishment of the DIFC & ADGM are examples of its moves to broaden the economy to be driven by the rise in affluent and high-net worth individuals, who increasingly seek the support of professional fund managers to protect and grow their personal wealth. This is a natural progression as these wealthy investors – many of whom are business owners juggling multiple demands –increasingly appreciate the value of expert advice. The move to diversify and broaden economies by UAE, coupled with growing investable wealth, are encouraging wealth managers and private banks to invest in the region more, as they expect wealth generation to increase and spread across sectors and demographic groups. Banks are not just bringing in new headcount, but investing more in the skills of existing staff, recognising that increasingly savvy and affluent clients in the Middle East expect a high level of expertise from relationship managers. Almost all financial services providers are enhancing their technology in multiple ways, ranging from front-end client facing services such as mobile portfolio access, automatic portfolio rebalancing and dealing through automating back office and administrative functions. Nevertheless, the “human touch” remains vital in such a relationshipfocused business. Succession planning is another top-of-mind priority for them. They are concerned about the transfer of wealth and their businesses to the next generation. The DIFC & ADGM are alive to these issues, aware of the importance of keeping up with the needs of its wealth management industry stakeholders. It has recently enacted an updated trust law and introduced a

new foundation structure designed to help with wealth and family business succession planning which it said would ‘set a new global standard’ in the field of succession planning and “insolvency remote” corporate structures, wealth transfer between generations.

Growing millennial wealth is also leading banks and wealth managers to place greater focus on philanthropy in their service offerings. The growing sense of philanthropic engagement, especially among NextGen clients who tend to be more socially and environmentally minded and influenced by social media and opinion makers, are driving financial service providers to innovate more solutions that combine succession planning along with market participation.

to the growing demand for wrap solutions that combines access to global financial markets with the facility of nominating beneficiaries for a seamless transition of wealth.

What are the major challenges for international clients globally?

Overcoming political instability –Clients would like to base their wealth in a jurisdiction which is protected from political threats to safeguard their generational wealth for continuity.

Securing the safest legal jurisdiction –For example clients would like to park their wealth in a territory which has strict privacy, is reputed and safe and has a robust legal system with global acceptability.

SECURA INTERNATIONAL PARTNERS PREDOMINANTLY WITH BANKS AND LICENSED WEALTH FIRMS IN THE REGION AND THESE ENTITIES DISTRIBUTE THESE INVESTMENT SOLUTIONS TO THEIR CLIENTS

With the level of intergenerational wealth transfers set to rise sharply, we anticipate that the next generation will be more willing to drive change and will also seek deeper engagement while giving.

Secura International, headquartered in Abu Dhabi Global Market [ADGM], a local entity with a global outlook focuses solely on arranging financial solutions for international clients which offers wrap solutions that provides access to global financial market and facilitates a seamless transfer of wealth through a Jersey trust structure protected by English common law. These financial solutions arranged by Secura International are distributed through regulated banks and licensed wealth firms in Middle East, Africa & Aisa to cater

Obtain easy access to world-class investments – Various global investment choices including asset allocation strategies across asset classes, with ease of execution, liquidity and ability to access from anywhere in the world is the major criteria.

Safely secure family’s legal interest upon passing – For example Wealth Transfer Benefits that offers financial protection and control over accumulated wealth, through nomination of beneficiaries to facilitate intergenerational wealth transfer for seamless distribution of assets. And Probate Shelter to avoid lengthy litigation process or dispute for legacy transfer. Around the world the inheritance laws vary, which can complicate succession wishes.

How can investment solutions arranged by Secura for the global client base bring peace of mind for investors?

Financial Solutions arranged by Secura International are protected through a Jersey trust structure and present the opportunity to invest in a wide array of investment choices

Global Market Access : Various investment choices including asset allocation strategies, multi-manager funds and traditional mutual funds. The availability of more than 300 funds from leading asset managers around the world provides a diverse menu of investment choices.

Flexibility Benefit: Adaptability to change investment choices when needed leads to cost effective wealth planning.

Asset Protection: Wrap Products typically maintain assets in segregated accounts that are protected from other creditors and accounts of the investment company through a strong regulatory framework based on English Common Law.

Risk Mitigation: Diversification into various asset classes, Automatic Rebalancing, Dollar Cost Averaging, Trigger Switching, Model Portfolio Solutions help in preservation of wealth. Privacy: There is no public register of trusts and no requirement for the trust instrument or trust accounts to be disclosed or filed with a regulatory body in Jersey. Accordingly, confidentiality is provided for the settlor and beneficiaries.

Tax Planning: Jersey has a tax- free environment. Offshore trusts are frequently used to legitimately mitigate worldwide taxation liabilities. Jerseybased trusts profit from various tax benefits such as those relating to capital gains, wealth and inheritance, among others.

Wealth Transfer Benefits: Offers financial protection and control over accumulated wealth, through nomination of beneficiaries to facilitate

intergenerational wealth transfer for seamless distribution of assets. Provides Probate Shelter avoiding lengthy litigation process or disputed legacy transfer.

How can international clients wishing to adhere to “Shariah Principles” benefit from financial solutions arranged by Secura?

Shariah Compliant financial solutions arranged by Secura International provide access to Shariah compliant funds with Multi Asset Strategies using Shariah compliant building blocks that complies with principles of Shariah and the Shariah standards of Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). The transaction structure relating to the investment solution(s) has been approved by the Shariah Supervisory Board of Amanie Advisors Ltd.

Shariah wealth solutions help families, with a flexible, efficient and diversified ways to pursue their multi-generational wealth goals by investing in strategies to lock in wealth, with benefits of an asset allocation strategy through broad diversification with high level of desired discretion. Through these Shariah wealth solutions, international investors achieve a lifetime of financial security.

How can clients gain access to financial solutions arranged by Secura?

Secura International partners predominantly with banks and licensed wealth firms in the region and these entities distribute these investment solutions to their clients. The bank or wealth firm’s financial advisor discusses the opportunity with the client and based on the needs and willingness to proceed with subscription of the financial solution, the necessary paperwork is initiated by the advisor. The client has complete flexibility on the choice of the product arranged by Secura International, selection of investment choices, asset allocation strategies, nomination of beneficiaries,

portfolio selection, rebalancing frequencies etc. The completed paperwork along with supporting documents are electronically sent to the licensed trustee in Jersey by the bank which then completes the review and approves the client onboarding. Post that the contract is issued and the money is wired by the bank to the trustee for the benefit of the sub- trust which is created for the investor of the plan. The money is invested as per the mandate of the respective client and the relevant contract is issued by Secura International through the trustee. All contracts and investment details can be accessed by the client from anywhere in the world 24/7. The online activation of information is completed within 48 hours of placement of the funds into various investment strategies. There is complete flexibility for the client to change his investment choices or asset allocation strategies at any point in time without paying any additional charges. Additionally, there are opportunities for partial surrender available in the financial solution or complete liquidation in case of emergency.

What unique features

does Secura provide its distributors to give them an edge in our competitive market?

The most important advantage for distributors would be the opportunity of white labelling and customisation of financial solutions through Secura. The opportunity to access both conventional and shariah solutions through the same service provider is quite unique in the region, allowing distributors to work with a single tie up for multiple product offerings for catering to different segments of the bank.

The other crucial benefit is the timely booking and servicing of investments for clients through Secura’s administrator and the trustee in coordination with their respective offices based in Dubai, Malta, Mauritius, Bermuda and Jersey, who cater to different global time zones based on the requirement of the client.

The distributor also gets additional comfort with regulatory overview of both

local and international regulators like Financial Services Regulatory Authority [FSRA] from ADGM and Jersey Financial Services Commission [JFSC].

What is your view of the future for the regional wealth market comprising of Middle East, Africa & Asia?

The rich have always been welcomed in Switzerland, offering reliable, specialist advice on managing and investing their money. The country’s stability and geopolitical neutrality combined with its strict adherence to banking discretion, supported a thriving and world-leading wealth management industry. But, in recent years, those foundations have begun to crack and rivals in Asia and the Middle East are looking on to offer a more appealing financial services infrastructure to global clients. Under international pressure, Switzerland has been weakening banking secrecy laws that restrict banks from passing on details about their clients to governments. And the country’s decision to sanction Russian oligarchs following Moscow’s invasion of Ukraine has dented its reputation for international neutrality. Meanwhile, the collapse last year of

Credit Suisse, the country’s secondbiggest bank, has cast a shadow over Switzerland’s claim to a sturdy financial services sector. In 2017 Switzerland signed up to the international automatic exchange of information standard, requiring Swiss financial institutions to share client details with the countries where they are tax resident. More than 100 countries are signed up to the same standard, impacting Switzerland’s allure for protection of taxation liabilities.

Financial centers like UAE, Hong Kong, Singapore are aggressively competing, making great progress for the offshore wealth management crown held by Switzerland. Other financial centers would benefit if Switzerland were to restrict its ability to maintain a leading presence abroad. Switzerland’s reputation for neutrality on the world stage has proved enticing over the decades for the global and mobile rich, especially in times of geopolitical tension. A recent report from the Swiss Bankers Association lobby group identified Switzerland’s adherence to international sanctions regimes as the top geopolitical risk facing the country’s wealth managers.

Swiss banks have recognised that although their country’s reputation as the

world’s center for wealth management has taken a hit in recent years, they can still dominate in rival financial hubs. It is estimated Singapore, Hong Kong & UAE are going to be more and more important competitors to Switzerland as global financial centres. Hong Kong is set to overtake Switzerland as the world’s biggest offshore wealth hub by 2028, with Singapore following. Hong Kong would then account for $3.2tn of the total $17.1tn in global offshore wealth assets, compared with $3.1tn for Switzerland and $2.5tn for Singapore, according to Boston Consulting Group estimates.

What are Secura’s global expansion plans in the coming years?

Established in 2021 and headquartered in Abu Dhabi Global Market [ADGM], Secura intends to go global in near future, opening branch offices in Singapore to be regulated by Monetary Authority of Singapore & in GIFT City in India to be regulated by International Financial Services Centres Authority. Later, the company plans to establish a footprint in the Latin American market by opening a coverage office in Miami, which is currently at a preliminary stage of discussion. Our ADGM office will have coverage for Middle East & Africa and would remain the global headquarters catering to countries like UAE, Bahrain, Qatar, Kuwait, Jordan, Oman, Saudi Arabia, Kenya, South Africa, Ghana, Uganda, Botswana, Zambia and Nigeria. It will also be the hub for promoting the shariah solutions for the entire region. The Asia office based in Singapore will have coverage for Singapore, Hong Kong, Malaysia, Indonesia, Thailand etc., with Malaysia becoming the major focus for promoting shariah solutions. The GIFT City office will have coverage to major cities in India like Mumbai, New Delhi, Bengaluru, Chennai, Hyderabad, Pune, Chandigarh, Kolkata, Jamshedpur, Kochi etc. The Miami office will have cover to countries in Latin America including Brazil, Mexico, Uruguay, Argentina and others.

Clarity of Vision

Providing a clear overview of their business and core mission, Sailesh Malhotra, General Manager, GCC Region at Geidea tells us about their strategies for expansion in the UAE and how they are distinguishing themselves in this growing and competitive market

Company Overview and Vision: Ho w would you describe Geidea’s core mission and vision, particularly in the context of the evolving financial technology landscape in the region?

Geidea’s core mission and vision are centered around empowering businesses through seamless, secure and accessible financial technology solutions. The company strives to simplify digital payments and financial services, ensuring that enterprises of all sizes, from SMEs to large corporations, have the tools to compete and thrive in an increasingly cashless economy. Geidea envisions a future where financial technology is an enabler of economic growth, not just in the UAE, KSA or Egypt but across the entire MENA region.

In the context of the evolving financial technology landscape, Geidea recognises the rapid digital transformation taking place, accelerated by factors such as consumer demand for convenience, government initiatives to promote cashless societies and the need for secure, scalable solutions. As fintech becomes more integrated into daily business operations, Geidea’s vision is to be at the forefront of this evolution by offering state-of-the-art payment solutions, comprehensive merchant services and a commitment

to innovation that supports businesses’ digital journeys.

The company is driven by the belief that fintech should be inclusive and accessible to all, transcending traditional barriers and ensuring that even small and medium enterprises (SMEs) have access to high-quality technology that was previously only available to larger businesses. This vision aligns with the wider regional push towards economic diversification and a greater emphasis on technology-driven growth.

UAE Expansion Strategy: Could you elaborate on Geidea’s strategic approach to expanding its operations in the UAE market? What unique opportunities and challenges does the UAE present for a financial technology company?

Geidea’s strategic approach to expanding its operations in the UAE market is built upon a deep understanding of the unique business environment and consumer behaviour in the region. The UAE’s fintech landscape is thriving due to governmentled initiatives, such as the National Innovation Strategy and Vision 2021, which aim to position the country as a global leader in digital transformation. Geidea has leveraged this supportive ecosystem by prioritising strategic partnerships, regulatory compliance and localised solutions tailored to the specific needs of UAE businesses.

One of Geidea’s key strategies has been forming alliances with local and regional partners, including banks, e-commerce platforms and financial institutions, to offer comprehensive and integrated payment solutions. By partnering with established entities, Geidea is able to extend its reach, tap into new customer segments and provide seamless services that align with the UAE’s high standards of convenience and reliability.

Additionally, Geidea places significant emphasis on meeting the region’s regulatory requirements, ensuring that its solutions comply with the UAE Central Bank’s mandates and align with local data protection laws. This commitment to compliance not only enhances trust but also positions Geidea as a credible and reliable partner in the financial services space.

The UAE market presents a wealth of opportunities due to its tech-savvy population, high smartphone penetration rate and significant government investment in digital infrastructure.

Sailesh Malhotra, General Manager, GCC Region at Geidea

Businesses in the UAE are eager to adopt cutting-edge payment solutions to cater to consumer preferences for contactless, mobile and digital transactions. These factors create fertile ground for Geidea’s innovative and scalable payment platforms.

However, the UAE market is not without challenges. The fintech sector is highly competitive, with both global giants and local startups vying for market share. To address this, Geidea’s strategy includes continuous investment in technology, product differentiation and a focus on exceptional customer support. Additionally, the regulatory landscape, while supportive, can be complex and dynamic, requiring fintech companies to stay agile and adaptable to any changes in compliance standards.

Key Solutions and Services: What are Geidea’s flagship solutions and services, and how do they differentiate the company from its competitors in the region?

Geidea offers a range of flagship solutions and services that set it apart from competitors. Primarily, Geidea provides innovative payment processing solutions, including point-of-sale (POS) systems and online payment gateways, tailored for businesses of all sizes. Their flagship product, the Geidea POS terminal, combines advanced features such as contactless payments, e-wallet integration and real-time transaction tracking, enabling merchants to enhance their customer experience and operational efficiency.

Additionally, Geidea distinguishes itself through its commitment to financial inclusion. Their services extend beyond traditional payments, offering micro-financing solutions and valueadded services like invoicing and loyalty programs, which empower small and medium-sized enterprises (SMEs) to thrive in a competitive market. Geidea also emphasises security and compliance, utilising state-of-the-art encryption technologies to protect transactions and ensure customer trust.

Another critical differentiator is Geidea’s adaptability and local expertise. With a deep understanding of regional markets, the company tailors its solutions to meet specific cultural and regulatory needs, providing a level of customisation that many international competitors may lack. Their robust customer support and strategic partnerships further enhance their market position, allowing them to respond swiftly to client needs.

Market Dynamics: What are the primary trends and challenges shaping the financial technology market in the UAE, and how does Geidea position itself to capitalise on these opportunities?

The fintech market in the UAE is evolving rapidly, driven by several key trends and challenges. One primary trend is the increasing adoption of digital payments, accelerated by the pandemic and the government’s push for a cashless economy. This shift has led to a surge in demand for innovative payment solutions, making it essential for companies to provide seamless and secure transaction experiences.

Another significant trend is the rise of neobanks and digital wallets, catering to tech-savvy consumers seeking convenience and better user experiences. This shift challenges traditional banks to innovate and adapt quickly to changing consumer preferences.

However, the fintech landscape also faces challenges, including regulatory compliance and cybersecurity risks. Navigating the complex regulatory environment while ensuring robust security measures is critical for success.

Geidea is strategically positioned to capitalise on these opportunities by leveraging its advanced payment solutions tailored to the local market. The company’s focus on providing comprehensive digital payment systems, including POS terminals and e-commerce gateways, aligns well with the growing demand for cashless transactions. Moreover, Geidea’s commitment to financial inclusion through services like micro-financing and support

for SMEs positions it favourably amidst the growing emphasis on supporting local businesses.

Strategic Alliances: What strategic alliances or collaborations has Geidea formed to strengthen its market position and expand its reach?

Geidea has strategically positioned itself in the fintech market through several key alliances and collaborations that enhance its service offerings and expand its reach.

1. Collaboration with Fils: In a pioneering move, Geidea partnered with Fils, a leader in climate action solutions. This collaboration enables businesses to integrate climate-positive initiatives into their payment processes via Fils’ API. By aligning with Fils, Geidea demonstrates its commitment to sustainability, fostering environmental consciousness within the fintech sector. This partnership is set to impact various industries, including banking and eCommerce, positioning Geidea at the forefront of the movement towards carbon neutrality.

2. Presence in Key Regional Events: Geidea has significantly enhanced its visibility and market presence by participating in major regional events. As the official payment provider for the United Nations Climate Change Conference (COP 28), Geidea showcases its commitment to sustainability and its role in supporting global initiatives. Additionally, the company collaborates with MDLBeast, an entertainment company rooted in music culture in Saudi Arabia, to provide payment solutions that enhance the experience at major music festivals. Geidea also participated in Ramadan Nights at Expo, further solidifying its presence in culturally significant events. These engagements not only boost Geidea’s brand recognition but also reinforce its commitment to supporting local communities and initiatives.

Technology and Design Strengthening the Fabric of Business, Industry and Society

The recent Global Stratalogues, hosted by MEA Finance, convened industry leaders to explore the transformative potential offered by the synergy between AI, telecom, finance and tokenisation. The discussions highlighted the importance of responsible design and regulatory oversight to harness these advancements for inclusive progress so no one is left behind

Convergence of Telecom and Finance Enabling Financial Inclusion

The first panel addressed how telecommunications expand access to financial services, particularly in regions with limited banking infrastructure. Samer Bishay, Founder and CEO of Karrier One stated, “We’re building the largest decentralised telecom network using Web3 and blockchain technologies to bridge the digital divide, helping to connect the unconnected and bank the unbanked.”

Jawad Abbassi, Head of MENA for GSMA, highlighted the success of mobile wallets in underserved areas, remarking, “In 2024, over five billion people globally will be cellular users, and mobile wallets have revolutionised access to financial services in areas where traditional banking remains inaccessible.” AI is also seen as a game-changer in advancing telecom-banking services.

A recurring theme was the importance of regulatory frameworks to protect consumers and preserve industry integrity. Bryan Stirewalt, MENA Financial Services Regulatory Leader, EY, commented on the evolving regulatory landscape: “The traditional model of regulating institutions may need to evolve into regulating the services themselves. We’re witnessing a landscape where financial services can increasingly operate outside traditional banking models.” However, Andrew Cover from MEA Finance brought a different perspective, pointing out that for many, traditional banking services remain satisfactory. “Who’s leading this?” Cover questioned, reflecting on whether telecom-banking services are truly driven by consumer needs or the tech industry’s push for profit. He remarked, “I just don’t want to be embarrassed when I present my card at the checkout,” underscoring the importance of reliable, straightforward service over flashy, feature-rich options.

Oscar Wendel, of Global Stratalogues , highlighted: “What consumers want is efficiency and accessibility. Transactions shouldn’t cost anything. This convergence is about making services more efficient and cutting out intermediaries that drive up costs.”

Abdullah Al Ashram, CEO of 7x , underlined the need for adaptability in the rapidly shifting landscape of telecom and finance: “What’s relevant to the market today might not work tomorrow. Post-COVID, we’ve seen how fast things can change. We must stay adaptable, focusing on innovation, regulation and

WE BELIEVE THAT ISSUING STABLECOINS IN A REGULATED MANNER IS KEY TO BRINGING CUSTOMER PROTECTION, ESPECIALLY FOR PAYMENTS AND TRADE FINANCE USE CASES

–

Charlotte Nedir, SEO of Paxos

policies to truly meet the evolving needs of payment, logistics and telecom.”

Tokenisation in Finance—A Path to Broader Access

The second panel focused on tokenisation’s potential to democratise finance, enabling fractional ownership and increasing asset liquidity. Moderator John Lillywhite highlighted tokenisation’s ability to broaden access: “Tokenisation allows us to merge this new emerging infrastructure with existing legacy financial instruments, making high-value assets accessible to a broader base.”

Claudia Abbas, Co-Founder of C9Tech underscored tokenisation’s relevance in economies like Brazil, where inflation drives demand for alternative assets: “Tokenisation offers a way for people to hold digital assets securely and with greater autonomy.”

Charlotte Nedir, SEO of Paxos , provided a perspective on stablecoins’ role in financial stability, especially in trade finance. “We believe that issuing stablecoins in a regulated manner is key to bringing customer protection, especially for payments and trade finance use cases,” she stated. Nedir emphasised that well-regulated stablecoins could provide transparency and security, ensuring consumers feel confident about digital currency usage.

Gabrielle Inzirillo, Head of Ecosystem Development at Abu Dhabi Global Market (ADGM) pointed to the UAE’s balanced regulatory approach to protect the environment and ensure trust, ”But we also need to consider use

cases that solve real-world problems.” Inzirillo highlighted how tokenisation supports real-world applications like remittances and trade finance, especially in regions where blockchain technology can stabilise financial channels. The proliferation of mobile payments brings a new level of visibility to transaction monitoring with more data on trends, risk assessment and even KYC, which keeps the banking sector safer for everyone. The panel also explored practical applications of tokenisation, from Brazil’s social coins that allow government benefits distribution without fees, to Bitpanda’s security tokens for commodities. Walid Benothman, Managing Director of BitPanda , described Central Bank Digital Currencies (CBDCs) as a “game-changer” for cross-border trade by enabling realtime, peer-to-peer transactions between central banks.

AI and Accessibility—Building an Inclusive Environment

The third panel addressed AI’s potential to create accessible environments in both digital and physical spaces. Uthman Ali, Global Chief Responsible AI Officer at BP, stressed AI’s capacity to bridge accessibility gaps but cautioned about current biases. Ali discussed braincomputer interfaces as transformative for individuals with disabilities, highlighting, “Imagine being able to control a computer with just your thoughts. For people with paralysis, this could be revolutionary, but we must approach neuroethics with the same pace as these advancements.”

Dr. Rukiya Deetjen Ruiz, Editorial Board of PriMera Scientific Publications, echoed these sentiments describing how AI can “equalise the human experience for people of determination by creating personalised learning environments. Aaron McDaid, Principal at Design Confidence, spoke about AI’s role in embedding accessibility from the outset in architecture: “The future of design is universal, and AI is helping us ensure accessibility is embedded into design from the beginning.” Dr. Marwan Al Zarouni, CEO of AI for Dubai Economy and Tourism, discussed Dubai’s approach to accessible tourism, with initiatives like Braille guides and voice-activated elevators, positioning Dubai as “a global standard for accessible tourism.”

Ethics and Regulation: The Key to Responsible Innovation Ethics emerged as a crucial element, with panelists stressing the importance of balancing technological advancement with ethical considerations. Ali cautioned, “AI ethics failures often come from unintended consequences, especially when we don’t consider the full scope of its impact.” Dr. Rukiya stressed the importance of data privacy when using AI to serve vulnerable populations: “We must be very careful with how we use AI to gather data, especially when serving people with cognitive disabilities.”

Inzirillo echoed the need for responsible regulation: “Our role is to ensure that innovation serves a purpose and that consumers are safe.” While

TO ENSURE THESE INNOVATIONS

CREATE EFFICIENCIES, DRIVE INCLUSIVITY AND REMOVE BARRIERS, WE MUST WORK TOGETHER

– Oscar Wendel, Global Stratalogues

regulation should adapt to support emerging technologies, it must ensure ethical and responsible usage.

Anu Jain, CEO of Nexus Cognitive and former lead of IBM’s Watson program expanded on regulation’s role in building public trust. ”A collaborative approach with clear regulatory guidelines will create a safer environment for both consumers and innovators.” Jain pointed to the importance of transparency and consumer protection to foster trust in new technologies.

The panels underscored the collective need for cross-sector collaboration to harness technology— whether in finance, telecom or accessibility—in ways that promote inclusivity and responsibility. As tokenisation democratises financial access, telecom and banking converge to expand inclusivity and AI enhances accessibility, the event emphasised the regulator’s role in safeguarding innovation. Oscar Wendel concluded that technology’s societal impact relies on a shared commitment: “To ensure these innovations create efficiencies, drive inclusivity and remove barriers, we must work together.

Elevating Digital Experience

MEA Finance Magazine partnered with GBM and Cisco for a roundtable in Dubai during October 2024, discussing how and why the digitisation of the banking sector calls for banks to invest in cutting-edge security solutions to protect customer data and build trust. But a way must be found to create balance between convenience and security

The banking sector is undergoing a radical transformation driven by the rapid adoption of artificial intelligence (AI), advanced data processing and storage technologies and cloud computing, which are unlocking unprecedented opportunities.

Digitalisation is a strategic priority for the financial services industry as banks strive to improve customer service and upgrade their technology platforms. Banks in the GCC region understand the critical importance of digital transformation.

“Digital transformation isn’t new to the banking sector, but it has become more relevant as fintech and new operating models have gained in popularity,” said IBM. Personalisation is key to delivering exceptional customer experiences. Banks that can effectively tailor their offerings and interactions will thrive in today’s competitive landscape.

MEA Finance , in partnership with GBM and Cisco, hosted an exclusive

roundtable titled Elevating Digital Experiences: An Improved Approach to Driving Technology with Resilience in Dubai. The gathering of senior leaders from the UAE’s financial services sector underscored the shift towards digital banking in the GCC region.

The discussion highlighted the growing customer expectation for seamless, round-the-clock banking experiences that cater to their evolving needs.

“The knowledge and experience around this table are immense, and I’m confident that through open, positive interaction, we can generate proactive discussions that will drive us deeper into our expertise and lead to more focused, effective solutions,” Ossama Ossama El Samadoni, General Manager at GBM said in his welcome remarks.

Today’s tech-savvy customers demand seamless, personalised banking services that are secure and accessible 24/7. Customer experience is paramount in the banking industry, and emerging technologies such as Generative AI (GenAI) are reshaping engagement strategies.

“We are witnessing a shift from systems of record to systems of engagement. Our customers are evaluating us every day based on the quality and variety of their interactions with us. The days of

banking customers visiting branches are long gone,” Ossama El Samadoni said, while noting that the challenge for banks is to integrate seamlessly with each customer’s unique digital world –whether that’s on Snapchat, Instagram, or other platforms.

Meanwhile, the accelerated adoption of cutting-edge technologies in finance, driven by digitalisation and the entry of big technology companies, is creating new vulnerabilities and exacerbating existing risks within the banking system.

and trust architecture offer significant potential benefits, McKinsey warns that these technologies are prone to cybersecurity risks and financial institutions must address the cyber threats using emerging and existing security measures.

The cloud expands banks’ technological footprint, increasing their exposure to cyberattacks. To mitigate these risks, banks in the GCC region should implement robust cybersecurity measures across seven critical domains,

WE’ RE WITNESSING

A

SEISMIC SHIFT IN THE TECHNOLOGY LANDSCAPE, ONE THAT HAS PROFOUND IMPLICATIONS FOR EVERY INDUSTRY, ESPECIALLY BANKING

Mohannad Abuissa

–

Ossama El Samadoni underscored the paramount importance of cybersecurity in the financial services industry. He highlighted the inherent risk associated with the proliferation of digital channels, as each new connection point presents a potential entry point for cyber threats.

While cloud computing, generative AI

including network and infrastructure security, data protection and governance and risk and compliance.

“We’re witnessing a seismic shift in the technology landscape, one that has profound implications for every industry, especially banking,” said Mohannad Abuissa, the Head of Solutions Engineering – MEA at Cisco.

Abuissa noted that industries have traditionally operated under constraints, seeking to maximise output with limited resources. However, he believes the advent of AI and data science marks a potential shift towards a future of abundance.

He emphasised that the new era brings an avalanche of data and remarkable AI capabilities that augment human potential at an exponential scale.

“Every organisation aims for a smooth, seamless digital experience for users, but the reality is often a fragmented and complex landscape,” said Abuissa. “Two challenges remain. Firstly, maintaining visibility into the entire user experience lifecycle is still difficult,

and secondly, monitoring and controlling the infrastructure, especially as it becomes more complex, is a continual challenge.”

Digital experience assurance

The GCC banking sector is undergoing a significant transformation driven by several trends including emerging technologies, ecosystem partnerships, digital assets, talent acquisition and regulatory changes.

From a business perspective, Abishek Jajodia, Head of Digital Experience at First Abu Dhabi Bank (FAB) said when it comes to cash management, clients prioritise complete visibility of their funds – not just regionally, but globally.

Jajodia said achieving this transparency is a key goal for FAB. However, regulatory restrictions, such as data protection laws in Saudi Arabia and India, can limit access and add complexity to providing a unified global view for our clients.

“Internally, as a business, we are committed to continually improving the customer experience. We want to fully understand our customers experience journey so we can enhance it, but several challenges arise,” he added while noting

that “transitioning completely to newer technology requires significant investment, and organisations are often reluctant to take an all-at-once big bang approach.”

The evolving financial landscape is forcing banks to reinvent themselves, expanding beyond traditional banking to address the needs of consumers, investors, corporations, and capital markets.

Dr. Devid Jegerson, Banking Technology Expert said that today, it’s possible to quickly set up a digital bank from scratch. “By leveraging Application Programming Interface (APIs) and external components, you can create an entire digital framework on the move.”

However, Jegerson underscored that the main challenge is that financial

institutions lack control over outsourced components, which can impact visibility and make it harder to safeguard your infrastructure.

“From an IT business perspective, having clear visibility into potential risks within your infrastructure is crucial for maintaining reputation and ensuring operational stability,” he said.

Banks in the Gulf region hold a unique position as intermediaries between customers and their financial services. With comprehensive visibility into payment and transaction data, these banks have the potential to expand their offerings along two key dimensions: customer control and financial literacy.

INTERNALLY, AS A BUSINESS, WE ARE COMMITTED TO CONTINUALLY IMPROVING THE CUSTOMER EXPERIENCE. WE WANT TO FULLY UNDERSTAND OUR CUSTOMERS EXPERIENCE JOURNEY SO WE CAN ENHANCE IT, BUT SEVERAL CHALLENGES ARISE

– Abishek Jajodia

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Yash Raval, Chief Risk Officer at Vision Bank said as an upcoming digital bank registered with Abu Dhabi Global Market, there’s a significant difference between what customers see as banking products and the internal operations supporting them.

“Our focus includes extensive risk management, budget analysis and especially crisis management, ensuring that every aspect - from APIs and software vendors to business continuity plans - is up to date,” said Raval.

“Regulators now expect banks to operate 24/7, not just during traditional hours. Meeting this expectation requires a robust infrastructure and well-prepared resource staffing. Since we are delivering a digital-first solution, maintaining

redundancy and ensuring backups is crucial to our strategy.”

From a digital bank perspective, Zaheer Mubarak Shaikh, Chief Information Security Officer at Al Maryah Community Bank shared how the bank is advancing user experience, while highlighting the ups and downs that the bank has encountered since its founding in 2021.

“As a digital-first bank, instead of investing in traditional branches or smart setups, we leverage existing infrastructure. To accelerate our timeto-market and make services more accessible, we partnered with Al Ansari Group,” said Shaikh.

He underscored that through API integration, testing and validation, Al

FROM AN IT BUSINESS PERSPECTIVE, HAVING CLEAR VISIBILITY INTO POTENTIAL RISKS WITHIN YOUR INFRASTRUCTURE IS CRUCIAL FOR MAINTAINING REPUTATION AND ENSURING OPERATIONAL STABILITY

– Dr. Devid Jegerson

Maryah Community Bank went live at 215 locations, allowing customers to deposit checks conveniently at any Al Ansari Exchange. The strategic partnership empowers the digital community bank to revolutionise its customer journey, automating key processes and delivering a superior banking experience.

“Just to add to his point, the global transformation market is projected to reach a staggering $4.6 trillion by 2030, representing a substantial annual growth rate of 25%. Data is the key driver of this growth,” Maadhavi Bhhatia, Global Business Strategy, Compliance Leader and Digital Transformation Expert weighed in.

Building on that, David Kelly, Unit Head, Financial Infrastructure Transformation at Commercial Bank of Dubai underscored the transformative potential of data in the banking industry. He explained that together with open finance, data can unlock a wealth of customer insights, empowering banks to offer personalised and innovative financial solutions.

“By incorporating AI, banks could analyse data trends and anticipate customer needs – whether it’s recognising recurring product requirements or

seasonal service demands. There’s vast, untapped potential here that could fundamentally transform customer engagement in banking,” said Kelly.

The advent of AI is fundamentally altering the banking landscape, weakening the structural components of traditional financial institutions and enabling the development of innovative operating models.

Temitope Ogundare, Head of Enterprise Relationship and Project Management Office at NBF, asserted that open data and open finance have the potential to fundamentally transform the banking industry. He highlighted the significance of not only predicting customer preferences but also proactively offering relevant financial products.

Data analysis has emerged as a catalyst for transformative change, redefining the operational and strategic landscape of the banking sector.

Sudarshan Seshadri, Head of Retail Banking at National Bank of Umm Al Quwain, emphasised the symbiotic relationship between data and user experience.

“A meaningful digital experience means enabling customers to act how, when and where they choose. Open banking will be crucial for levelling the playing field and enabling hyper-customisation, allowing banks to transform each interaction into a unique experience.”

He stressed that digital strategies should prioritise customer experience over technology, shifting the focus from technological limitations to consumer needs.

Global consultancy firm EY said by integrating AI technologies, banks are setting new benchmarks for operational efficiency, client engagement and sustainable growth.

International, emphasised the importance of a proactive approach and a focus on customer experience. He highlighted that these elements need to evolve continuously to meet changing needs.

REGULATORS NOW EXPECT BANKS TO OPERATE 24/7, NOT JUST DURING TRADITIONAL HOURS. MEETING THIS EXPECTATION REQUIRES A ROBUST INFRASTRUCTURE AND WELL-PREPARED RESOURCE STAFFING. SINCE WE ARE DELIVERING

A DIGITAL-FIRST SOLUTION, MAINTAINING REDUNDANCY AND ENSURING BACKUPS IS CRUCIAL TO OUR STRATEGY

– Yash Raval

Pradeep Negi, Vice President & Portfolio Delivery Manager at RAKBANK, highlighted a paradigm shift in the banking industry. Unlike traditional approaches that prioritised product development over user experience, modern banks are now focused on delivering exceptional customer experiences.

“Banks must seize the opportunity to engage customers within these platforms, even for short periods. By prioritising seamless integration and exceptional user experiences, banks can thrive in the digital age,” said Negi.

Somu Roy, Managing Director and Country Head UAE at Network

Roy used Al Maryah Bank’s partnership with FICO as an example. Despite having an advanced AI scoring system, the digital bank recognised the need for more efficient customer communication. To address this, Al Maryah Bank implemented WhatsApp Banking, which enables instant notifications and realtime transaction validation.

Lalit S., Technical Manager - Cloud Infrastructure Solutions at GBM, concurred with Roy while highlighting the importance of leveraging internetbased channels such as WhatsApp for efficient communication, especially when customers are traveling abroad.

He stressed the need for banks to closely monitor user experiences across mobile and internet platforms. By identifying and addressing the top ten user pain points, businesses can leverage AI to significantly enhance the overall digital experience.

GCC banks are uniquely positioned to leverage AI to outpace global competitors, driving growth with adaptive product management and cost reductions.

Hariprasad Chede, the Chief Information Security Officer at National Bank of Fujairah, challenged

“The future of banking lies in consolidation and collaboration. Open banking is paving the way for a more unified and seamless banking experience. As technology advances, we can look forward to innovative aggregators that simplify our financial lives.”

Ghaus Ikram, the Head of Financial Crime Compliance at United Arab Bank, highlighted the need for a delicate balance between enhancing customer experience and ensuring robust financial crime compliance in the context of digital transformation.

THE FREQUENT SWITCHING BETWEEN NETWORKS AND THE USE OF UNMANAGED DEVICES HAVE CREATED NEW VULNERABILITIES. DESPITE THESE

CHALLENGES, SEVERAL ORGANISATIONS IN THE UAE HAVE MADE SIGNIFICANT STRIDES IN CYBERSECURITY READINESS

– Fady Younes

the status quo of banking app overload. He argued that while innovation is essential, it should not compromise the user experience.

Chede called for a simplified approach that empowers customers and streamlines their interactions with banks.

“To enhance their ability to combat financial crime, many banks are prioritising digitalisation within their financial crime compliance frameworks.”

Dimitris Vergos called for a proactive approach to digital transformation. “By understanding customer behaviour

and leveraging data-driven insights, organisations can anticipate future needs and deliver innovative solutions,” he said, adding that customer data is the key to unlocking the future of digital experiences.

“By leveraging AI and machine learning, organisations can gain valuable insights into system failures and their manifestations. This data-driven approach enables faster investigations and resolution, ultimately enhancing service delivery,” said Vergos.

Going forward, banks must embrace data-driven transformation to build a resilient future. By industrialising data and scaling AI, they can streamline operations, automate reporting, enable intelligent decision-making, accelerate digitalisation and fortify cybersecurity.

Fady Younes, Cybersecurity Senior Director, EMEA Service Providers and MEA at Cisco, during his presentation on cybersecurity said, “Cisco has been conducting a global Cybersecurity Readiness Index for several years. This year, we expanded the study to include the UAE.” Adding that while the hybrid work model has yielded numerous benefits, it has significantly increased complexity.

The UAE’s hybrid work environment is a double-edged sword. While it offers flexibility, it also exposes organisations to heightened cybersecurity risks.

“The frequent switching between networks and the use of unmanaged devices have created new vulnerabilities. Despite these challenges, several

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organisations in the UAE have made significant strides in cybersecurity readiness,” said Younes.

He emphasised that achieving the highest levels of maturity requires a relentless focus on emerging threats and the adoption of advanced technologies such as AI and machine learning.

Cybersecurity

Cybersecurity continues to be a top priority and key area of attention for

banking executives and regulators in the GCC region as financial institutions navigate the rapidly evolving technological landscape.

A Cisco representative emphasised the critical role of AI in addressing emerging cybersecurity threats. He commended Cisco’s Talos team for leveraging advanced AI tools to gather, analyse and mitigate threats, thereby enhancing both customer and organisational security postures.

WHILE INTEGRATING SECURITY MEASURES FROM

THE OUTSET IS ESSENTIAL, IT’S EQUALLY IMPORTANT TO ENSURE THAT CUSTOMERS ARE AWARE OF THEIR ROLE IN MAINTAINING SECURITY

– Rashid Al Muawada

He said Talos is on the front lines of the cyberwarfare, constantly analysing new attack techniques.

“By understanding the full scope of attacks, we can build more robust defences. Our proactive approach ensures that we can protect our customers from the latest threats, no matter how sophisticated,” he added.

Al Maryah Community Bank’s Shaikh said there’s no one-size-fits-all solution to cybersecurity – it requires multiple layers of controls.

“One effective strategy is to deter cyber attackers by implementing measures such as conditional access. For instance, restricting access to your business services to users within the UAE can significantly reduce your vulnerability,” he added.

Hani Abdul Karim Bani Amer, Head of Information Security at Al Etihad Payments, concurred with Shaikh, stating

that today’s primary cybersecurity challenge often stems from banking customers, who can be the weakest link in the security chain.

“Rather than directly targeting systems, attackers often exploit user vulnerabilities. This emphasises the importance of user awareness. By empowering users to identify and report fraudulent activities, we can create a robust first line of defence,” said Amer.

Rashid Al Muawada, Chief Information Security Officer at Ajman Bank, raised a crucial point about the shared responsibility in cybersecurity.

“While integrating security measures from the outset is essential, it’s equally important to ensure that customers are aware of their role in maintaining security,” Al Muawada said, while posing the question whether are banks adequately educating customers about the risks associated with their choices

and providing them with the necessary training to protect themselves?

He emphasised that, in addition to enhancing the customer experience, banks must prioritise raising customer security awareness.

Global central bank body, BIS, said the increasing sophistication and frequency of cyber threats, along with the advent of innovative technologies such as the cloud and AI, introduce novel risks and challenges to the cyber

ONE EFFECTIVE STRATEGY IS TO DETER CYBER ATTACKERS BY IMPLEMENTING MEASURES SUCH AS CONDITIONAL ACCESS. FOR INSTANCE, RESTRICTING ACCESS TO YOUR BUSINESS SERVICES TO USERS WITHIN THE UAE CAN SIGNIFICANTLY REDUCE YOUR VULNERABILITY.”

– Zaheer Mubarak Shaikh

security frameworks of regulatory and supervisory authorities.

Though multi-cloud technologies offer immense potential, banks must prioritise data protection to mitigate risks and capitalise on opportunities. By safeguarding sensitive information, financial institutions can build trust, differentiate themselves and drive sustainable growth.

Jacques Stephan, Unit Head of Regulatory & Sanctions at Al Masraf, explained that the bank’s multi-cloud setup, which includes Azure and AWS, presents a challenge when deploying a payment architecture initially built on Azure.

“The incompatibility of Azure Defender with AWS limits our ability to apply the same security and scanning measures across both platforms. As a result, we are faced with two less-than-ideal options: either connecting the two cloud environments for unified scanning or

duplicating the architecture on AWS and scanning it independently,” said Stephan.

Mehul Thanki, Regional Head of Digital Channels Wholesale, MENAT at HSBC, weighed in, suggesting that a cloudnative solution, independent of specific cloud infrastructure, would be a more effective approach.

“Rather than prioritising the cloud provider, the focus should be on the use cases, security requirements and application locations. This approach enables seamless deployment and management across various environments, including on-premises and multiple public clouds,” said Thanki.

“While multi-cloud environments offer tremendous benefits to organisations, they create greater complexity that can lead to security gaps and inefficiencies, making it difficult for organisations to achieve the full benefit of cloud economics,” according to Cisco.

WHILE MULTI-CLOUD

OFFER TREMENDOUS

ENVIRONMENTS

Multi-cloud security allows comprehensive data protection across multiple cloud platforms, including both private clouds and public clouds such as AWS, Azure, Google Cloud and Oracle Cloud.

Bhhatia emphasised the need for central bank approval to ensure regulatory compliance during product onboarding.

“Given the increasing emphasis on cybersecurity by central banks, banks must adhere to these standards, particularly when dealing with non-UAE based products or partners,” she said.

Fabian D’Mello, Infrastructure Architect at GBM, emphasised the importance of simplifying security measures.

“While advanced technologies and robust controls are essential, overcomplicating systems can lead to unintended consequences, as evidenced by recent security incidents that caused disruptions. In today’s interconnected world, security and availability are inextricably linked,” said D’Mello.

He emphasised that monitoring system availability is a critical security practice, adding that “achieving the right balance between strong security and seamless operations is crucial for building resilient and effective systems.”

Experts who attended the MEA Finance-GBM-Cisco roundtable concurred that technology is both a boon and a challenge for financial institutions. As banks leverage emerging technologies, they must prioritise security and compliance to protect customer data and minimise operational risks.

The GBM & Cisco Roundtable held at The Mandarin Oriental Hotel Dubai was attended by the following senior executives:

Rashid Al Muawada

Chief Information Security Officer Ajman Bank

Syed Sajjad Jaffar Rizvi

Senior Cybersecurity Officer Ajman Bank

Hani Abdul Karim Bani Amer Head of Information Security Al Etihad Payments

Madhavi Bhatia

Global Business Strategy & Compliance Leader | Digital Transformation Expert

Zaheer Mubarak Shaikh

Chief Information Security Officer

Al Maryah Community Bank

Jacques Stephan

Unit Head Regulatory & Sanctions

Al Masraf

David Kelly

Unit Head, Financial Infrastructure Transformation Commercial Bank of Dubai

Fuad Mohamed

Chief Operating Officer

Emirates Islamic Bank

Zafar Kazmi

Head of Digital Banking Emirates Islamic Bank

Abishek Jajodia

Head of Digital Experience First Abu Dhabi Bank (FAB)

Mehul Thanki

Regional Head, Digital Channels Wholesale, MENAT

HSBC

Dr. Devid Jegerson Banking Technology Expert

Hariprasad Chede

Chief Information Security Officer National Bank of Fujairah

Temi Ogundare

Head of Enterprise Relationship & Project Management Office - Information Systems & Technology National Bank of Fujairah

Sudarshan Seshadri

Head of Retail Banking Division National Bank of Umm Al Quwain PSCNBQ

Somu Roy

Managing Director and Country Head UAE Network International

Pradeep Negi

Vice President & Portfolio Delivery Manager RAKBANK

Dimitris Vergos

Area Vice President of Solution Engineering, Southern, Eastern Europe & META Splunk

Savera Menezes

Head of IT Infrastructure

Sukoon Insurance

Ghaus Ikram

Head of Financial Crime Compliance

United Arab Bank

Yash Raval

Chief Risk Officer

Vision Bank

Fady Younes

Cybersecurity Senior Director, EMEA Service Providers and MEA

Cisco

Mohannad Abuissa

Head of Solutions Engineering - MEA

Cisco

Fabian D’Mello

Infrastructure Architect GBM

Lalit S.

Technical Manager - Cloud Infrastructure Solutions GBM

Ossama El Samadoni

General Manager GBM

Andrew Cover Director

MEA Finance Magazine

The MEA Finance Fintech Awards

2024, were presented following the Banks and Fintechs Forum, held at the DWTC’s Fintech Surge

From the 2010’s until the advent of the global pandemic which accelerated the adoption of digitisation and the readiness of both banks and the public to adopt new methods, fintechs have been a presence. Additionally, now with newer more technology accustomed generations entering regional markets as customers and entrepreneurs, fintech became fully embedded. Early commentary focused on the disruptive or expected adversarial relationship between fintechs and banks, but now the prevailing atmosphere is one of cooperative collaboration and mutual advancement.

On the 15th of October 2024, MEA Finance partnered with Dubai World Trade Centre, the organisers of Fintech Surge, the top annual fintech exhibition in the UAE, showcasing the leaders in the world of fintech, to host its Banks and Fintech Forum, showcasing four incredibly well debated sessions, graced with a diversity of leading expert speakers from across the banking and fintech spectrum.

Then, following the conclusion the MEA Finance Banks and Fintechs Forum, MEA Finance presented our Fintech Awards, arranged so as to recognise excellence and achievement in the essential role of this now vital organ in the body of banking and finance, and the positive influence it has on regional economies.

The winners, coming from across the range of fintech services, are key individuals and businesses, and the innovations that are building are delivering

smarter, more agile and inclusive financial services and facilities across the region that will transform economies and positively affect the lives of people and businesses across the region.

These well anticipated, awards recognised key individuals and businesses, and the innovations that are building the new, smarter and a more inclusive payments ecosystem in the region that will transform economies and positively affect the lives of people and businesses across the region.

The high number of nominations received, underwent evaluation by a panel of judges comprised of industry experts in order to match these prestigious awards to deserving winners.

Eleven category winners were selected for their achievements in understanding and satisfying the needs of the market, clients and customers.

Here follows the full list of the MEA Finance Banks and Fintechs Awards 2024 winners:

Best Bank and Fintech Collaboration

Best Bank and Fintech Collaboration –SME Al Maryah Community Bank Best Fintech Company for Loans Magnati Fintech Leadership Award Saad Ansari, Founder and CEO of Xpence

Symbiotic Relationship

The interactions between fintechs and banks, once predicted to be prickly, are actually creating more agile, convenient and inclusive services for customers and clients that actively assist economic growth. On the 15th of October, the MEA Finance Banks and Fintech Forum, in partnership with Fintech Surge 2024, organised by World Trade Centre, debated the ways that this alliance of new blood and conventional operations is revolutionising the banking world

The financial services sector is undergoing a profound digital transformation, extending far beyond customer experiences. Banks are modernising their entire technological infrastructure to adapt to evolving regulations, combat escalating cyber threats and navigate shifting macroeconomic landscapes.

To maintain a competitive edge in this rapidly changing environment, banks in the GCC region are increasingly turning to fintech partnerships to harness innovative technologies such as artificial intelligence (AI) and stay ahead of the curve.

“Whereas fintechs have been in longstanding competition with the banking sector, evolving market conditions are increasingly driving banks to forge mutually beneficial alliances with fintechs,” according to Visa.

Since their inception in the early 2010s, fintech firms have rapidly expanded their influence beyond payments, revolutionising all aspects of financial services, including traditional sectors such as wealth management and corporate banking.

MEA Finance hosted its Banks and Fintech Forum in partnership with the Dubai World Trade Centre during the Fintech Surge 2024 in Dubai.

The event brought together top-tier banking and technology professionals from the Middle East, who explored how the relationship between incumbents and fintechs, which was once predicted to be adversarial, has evolved into partnerships that are providing consumers with more convenient, flexible and accessible financial services.

“The success of this event is a testament to the strong partnership between MEA Finance and Fintech Surge,” said Oscar Wendel, Editor-atLarge at MEA Finance. “By uniting the banking and finance community with fintech innovators in Dubai, we’re fostering collaboration that will drive industry transformation.”

A new era of cooperation has emerged in the financial industry, as banks and fintechs recognise the benefits of partnering. Through mergers and acquisitions, joint offerings, referral partnerships, white labelling and licencing and other strategic alliances, these firms are working together to create innovative solutions and capture new opportunities.

The nexus between financial digitalisation and enhancing inclusion is clear. Fintech firms are advancing financial inclusion by breaking down barriers to access to banking while empowering individuals and businesses, particularly those traditionally underserved by traditional banking systems.

The GCC fintech market remains a hotbed of innovation and growth. Despite a downturn in funding and valuations, venture capitalists in MENA continue to see significant potential in the industry. Fintech deals accounted for 37% of

WE’RE BOTH COMPETITORS AND COLLABORATORS. BUT THIS DYNAMIC ISN’T UNIQUE TO BANKS AND FINTECHS. EVEN WITHIN THE BANKING SECTOR, COMPETITION AND COLLABORATION COEXIST

– Ronit Ghose

total financing in the region during the first nine months of 2024, according to MAGNiTT.

AI is revolutionising the fintech industry, enabling the development of innovative applications such as embedded finance, Open Banking, buy-now-pay-later (BNPL) and robo-advisory. By leveraging AI’s powerful data analysis capabilities, fintech firms can unlock new opportunities and improve customer experiences.

A new era of collaboration

Banking customers in the GCC are increasingly turning to digital financial services, signalling a fundamental shift in consumer behaviour within the region’s financial services industry. Partnerships between banks and fintechs, such as Mashreq and Fils or First Abu Dhabi Bank and Gilded, are driving the widespread adoption of digital financial tools.

Moderated by Saad Ansari , Chief Executive Officer at Xpence, the Coopetition panel explored how fintechs can foster collaborative partnerships with banks, leveraging competition to drive innovation while identifying areas for mutual benefit.

The discussion had the participation of Praveen Sekar , Chief Strategy Officer at GSS Group; Nabil Ismail , Executive Director, Head of Fintech for Gulf Capital; Ronit Ghose , Global Head of Future Finance at Citibank and

Andrew

McCormack

, Chief Operating Officer at Al Etihad Payments.

Ansari kicked off the panel by asking Citibank’s Ghose whether fintechs and banks are transitioning from competition to cooperation.

Ghose said he often thinks of banks and fintechs as “frenemies.” “We’re both competitors and collaborators. But this dynamic isn’t unique to banks and fintechs. Even within the banking sector, competition and collaboration coexist. Here in the UAE and globally, banks actively vie for market share while also forming strategic alliances.”

“Citi recognises the strategic value of fintech innovation. Our venture arm, Citi Ventures, has invested in over 150 fintech companies, with 115 active partnerships today,” he added while noting that the partnerships not only provide financial support but facilitate strategic collaboration and knowledge sharing.

McKinsey said fintech firms, once perceived as disruptors, are now becoming strategic partners for incumbent banks, and the collaborative approach is accelerating innovation, particularly in the payments sector.

The convergence of fintech and traditional banking is transforming the financial industry, creating new opportunities and improving customer experiences. Bank-fintech partnerships are a powerful catalyst for innovation and efficiency.

From a payment perspective, Al Etihad Payments’ McCormack emphasised the diverse nature of their partnerships. As

a central operator of real-time instant payment solutions, Al Etihad collaborates with various financial institutions, including incumbents, exchange houses and new digital wallets.

“The collaborations give us a unique vantage point on the market and its evolving needs,” said McCormack.

“We launched the instant payments service, known as Aani, a year ago. Aani’s platform is enabling significant advancements in the payments industry.

National Bank of Fujairah’s recent launch of a QR code payment acceptance scheme, facilitated by Aani and an Indian fintech partner, is a testament to this.”

By combining conventional financial expertise with cutting-edge technology, banks can accelerate innovation, enhance customer experience and stay ahead of the curve in a rapidly evolving industry.

“Digital innovation has sharpened the knife of inertia and the collaboration between traditional banks and fintech companies is becoming crucial for competitive differentiation,” according to Bank of America.

Quizzed about how Gulf Capital evaluate fintechs’ cooperation with banks, Ismail said when looking at fintechs, it’s essential to adopt an investor’s perspective, whether that’s from a venture capital, growth or buy-out lens.

“The timing of partnerships between fintechs and banks is crucial. Earlystage startups often benefit more from strategic partnerships than outright acquisitions. Securing long-term contracts with banks can validate a fintech’s potential and attract additional investment from venture capitalists,” Ismail added.

The partnership between incumbents and fintechs marks a pivotal move toward scaling digital innovation in the financial industry. By leveraging each other’s strengths, banks and fintechs can offer better solutions, simplify operations and deliver augmented value to their clients.

Sekar concurred with Ghose while noting that banks, with their focus on risk management and stability, often struggle to match the innovation and agility of fintechs.

“While both sectors target similar customer segments, fintechs excel

at customer engagement and crossselling. To remain competitive, banks, particularly CIOs, must embrace digital transformation and bridge the gap between traditional and modern approaches,” he said.

Sekar said banks and fintechs, while distinct, are increasingly interdependent.

“Banks, guided by regulations, focus on leveraging their established infrastructure to serve traditional markets. Fintechs, agile and innovative, identify emerging opportunities and develop niche solutions,” he added.

THE TIMING OF PARTNERSHIPS BETWEEN FINTECHS AND BANKS IS CRUCIAL. EARLYSTAGE STARTUPS OFTEN BENEFIT MORE FROM STRATEGIC PARTNERSHIPS THAN OUTRIGHT ACQUISITIONS. SECURING LONG-TERM CONTRACTS WITH BANKS CAN VALIDATE A FINTECH’S

POTENTIAL AND ATTRACT ADDITIONAL INVESTMENT FROM VENTURE CAPITALISTS

– Nabil Ismail

Sekar emphasised that regulators play a crucial role in facilitating this dynamic, ensuring a level playing field that benefits both sectors and, ultimately, consumers.

Banks in the Gulf region are also actively fostering innovation by launching accelerator programs. These initiatives provide fintech startups with valuable resources, including mentorship, funding and workspace, to accelerate their growth and development.

Fostering financial inclusion

The fintech industry is evolving at a blistering pace, reshaping the financial services sector while creating new opportunities for businesses and individuals alike. Innovative technologies such as AI and the cloud are democratising the finance sector, making digital financial services more accessible and affordable for a broader population.

The discussion titled, The Realities of Inclusion , was

moderated by Saleem Ahmed , Chief Operating Officer at GSS Group.

The panel was joined by Amith Rajan , Executive Vice President, Head of wholesale Digital Banking and CEO at NeoVentures with Mashreq; Asim Chohan, Vice President of Global Operations and COO at Morgan Stanley; Christoph Koster , Chief Executive Officer at Ruya; George Hojeige, Chief Executive Officer of Virtugroup and Gabrielle Inzirillo, Head of Ecosystem Development of Fintech at ADGM.

Quizzed about innovative strategies that Ruya is implementing to advance the fintech ecosystem and foster financial inclusion, Koster emphasised the digital Islamic bank’s commitment to digital transformation.

By building its infrastructure from the ground up, Ruya can seamlessly integrate cutting-edge technologies and deliver a superior digital experience to its customers,” Koster said.

“Our advantage lies in our ability to create digital experiences from the ground up. Technology has been a tremendous asset in advancing our financial inclusion agenda because it serves as a great equaliser.”

Digital finance has made transactions safer, faster and more accessible, empowering individuals and businesses worldwide. The digitalisation of the financial sector is not only accelerating economic growth but also fostering a more inclusive society.

Inzirillo underscored ADGM’s proactive approach to financial inclusion. The regulator has been instrumental

INCLUSIVE VENTURE LABS ARE CRUCIAL FOR FOSTERING INNOVATION AND FINANCIAL INCLUSION. BY PROVIDING EARLY-STAGE CAPITAL, MENTORSHIP AND NETWORKING OPPORTUNITIES, THESE LABS EMPOWER FINTECH STARTUPS TO DEVELOP PRODUCTS AND SERVICES THAT ADDRESS THE NEEDS OF UNDERSERVED COMMUNITIES, INCLUDING SMALL BUSINESSES,

MINORITY-OWNED ENTERPRISES AND THE UNBANKED

in adapting its regulatory framework to support smaller firms and foster a more inclusive financial ecosystem.

“By connecting these businesses to the broader economy and exploring innovative financing options for SMEs, ADGM aims to drive economic growth and social prosperity,” she said.

From a regulatory perspective, Inzirillo said the ADGM understands the challenges small businesses face in accessing affordable credit.

“To bridge the financing gap, we’ve created Numou, a regulatory-backed platform that leverages technology to streamline the lending process. By providing a reliable source of verified information, we aim to reduce the cost of debt financing and increase access to capital for SMEs,” added Inzirillo.

Digital financial inclusion encompasses a range of services, including digital payments, digital lending, marketplace lending, mobile money and mobile banking. Financial inclusion has long been recognised as a powerful tool for economic growth and social development.

Morgan Stanley’s Chohan emphasised that financial inclusion is essential for multicultural organisations and venture labs to promote diversity, equity and access to financial resources.

“Inclusive venture labs are crucial for fostering innovation and financial inclusion. By providing early-stage capital, mentorship and networking opportunities, these labs empower fintech startups to develop products and services that address the needs of underserved

– Asim Chohan

communities, including small businesses, minority-owned enterprises and the unbanked,” Chohan added.

He underscored that many promising startups face hurdles in securing earlystage funding, but venture labs are addressing this challenge by providing not only financial support but also invaluable mentorship and guidance. “By fostering a supportive community and promoting financial literacy, these labs empower entrepreneurs,” said Chohan.

Though the Middle East has historically faced challenges in this space, the six GCC countries are now taking proactive steps to address these issues. By expanding access to financial services, governments aim to empower individuals, stimulate entrepreneurship and ultimately improve the overall well-being of their citizens.

Rajan emphasised the importance of fintech collaboration, stating that banks cannot operate in isolation.

“By partnering with specialised fintech firms, banks can offer a broader range of tailored financial solutions,” Rajan added. He stressed the significance of financial education in promoting financial inclusion. “NEO NEXT, a product designed by Mashreq to educate young people about banking, is being implemented across the UAE and is expanding into other regions.”

Rajan stressed that the convergence of open finance and AI promises to revolutionise the financial services sector.

“By empowering consumers to share their financial data, these technologies will unlock new opportunities for innovation and accessibility. This level playing field will enable a diverse range of players, from banks to fintechs, to offer tailored and personalised financial solutions,” he explained.

The World Bank said fintech is expected to fill gaps in both payments and lending,

WITH A FOCUS ON FINTECH AND OTHER DISRUPTIVE TECHNOLOGIES, WE HAVE INVESTED IN 36 PROMISING STARTUPS, INCLUDING EIGHT IN THE UAE

– Fairooz Mohamed

especially where the traditional delivery of financial services is less available.

Fintech solutions such as mobile money, mobile POS devices, and crowdfunding have revolutionised financial services by offering affordable, efficient, and accessible ways for individuals and businesses to manage their finances.

Hojeige highlighted the challenges SMEs face in securing banking and financing. “The emergence of challenger banks has disrupted the traditional banking landscape, forcing incumbent banks to adapt to new technologies and customer expectations. These digital banks offer streamlined processes and innovative solutions, empowering SMEs and driving industry transformation,” added Hojeige.

Industry experts at the MEA Finance Banks and Fintech Forum are optimistic about the future of the fintech industry. They believe fintech companies in the GCC region will continue to drive financial inclusion and empower individuals and businesses.

Catalyst for transformation

GCC bank-fintech collaborations offer a glimpse into a future where partnership and healthy competition fuel growth and innovation. Over the past decade, fintechs have revolutionised the financial sector

with technology-driven innovation, and AI is propelling this digital transformation.

Bryan Stirewalt , Financial Services Regulatory Leader at EY, in which were included Fairooz Mohamed, Middle East Lead at SC Ventures; Mohammad Amin Osman, Head of Strategic Partnerships & Initiatives at Emirates Foundation; Pradeep Negi, Vice President & Portfolio Delivery Manager at RAKBANK; Kazmi , Head of Digital Partnership at Fintech and Ventures at Visa and Mamoun Alhomssey, Chief Technology Officer at Ajman Bank.

The GCC fintech industry is poised for explosive growth, driven by the disruptive power of Generative AI (GenAI) and other cutting-edge technologies, coupled with the region’s surging demand for innovative financial solutions.

EY’s Stirewalt highlighted that following the global financial crisis, the tightening of bank regulations created opportunities for innovative solutions. Fintech firms capitalised on this, leveraging technology to offer new and efficient financial services, challenging the status quo of traditional finance.

In response to a question about the impact of AI on the fintech and banking landscape, SC Ventures’ Mohamed said the venture arm of Standard Chartered has rapidly expanded its global reach to Asia, the Middle East, Africa, Europe and the Americas.

“With a focus on fintech and other disruptive technologies, we have invested in 36 promising startups, including eight in the UAE,” said Mohamed.

“We’re firm believers in the power of partnership. By working together,

we can overcome challenges, seize opportunities, and achieve more than we could ever do alone. We’re eager to collaborate with like-minded individuals and organisations to drive innovation and growth,” he said in closing.

The adoption of GenAI, a subset of artificial intelligence, offers significant potential for banks and fintechs alike to drive earnings growth, improve decisionmaking processes and strengthen risk management frameworks.

Kazmi weighed in, saying that the symbiotic relationship between fintech and banking has evolved significantly. “Banks, with their extensive customer base and vast data resources, are

THE RISE OF GENAI HAS FURTHER STRENGTHENED THIS PARTNERSHIP, AS BANKS LEVERAGE FINTECH SOLUTIONS TO BUILD

MORE AGILE AND RESPONSIVE ECOSYSTEMS

– Pradeep Negi

partnering with fintechs to modernise their offerings. Fintechs, in turn, benefit from the scale and stability of banks,” he said.

Kazmi expects the emergence of GenAI to further cement the partnership between banks and fintechs as both sectors collaborate to harness the power of AI to enhance customer experiences and streamline operations.

AI is driving a paradigm shift in financial services, enabling innovative product and service delivery models. The innovative technology has the potential to revolutionise financial services, offering unprecedented opportunities for efficiency, security and personalised experiences.

RAKBANK’s Negi said fintechs act as catalysts for banks, bringing specialised expertise and driving innovation. “By partnering with fintechs, banks can streamline operations, accelerate growth and enhance customer experiences,” he said.

“The rise of GenAI has further strengthened this partnership, as banks leverage fintech solutions to build more

While RAKBANK is dedicated to building its own platforms, Negi believes that strategic partnerships are crucial for accelerating innovation.

“By developing a platform with preanalysed data, we aim to reduce timeto-market for fintechs, enabling them to quickly integrate with our systems and deliver innovative solutions to customers. We recognise the value that fintechs bring in enhancing customer experience and are committed to fostering these partnerships,” he added.

“AI is evolving into the linchpin of the embedded finance revolution, thanks to advancements in GenAI, large language models (LLMs), and deep learning,” according to Arthur D. Little.

The innovative technology is revolutionising the fintech industry, offering a wide range of benefits that

drive business growth and enhance customer experience, from advanced data analytics to personalised service delivery.

“Today, there’s less need to build solutions from scratch because many fintechs already offer the services banks are looking for, particularly around AI and data. Many of these solutions are readily available from fintechs and can be easily implemented within banks,” said Alhomssey.

The CTO of Ajman Bank said the bank has adopted a strategy of leveraging existing solutions rather than developing them in-house. In the open finance era, this strategy allows Ajman Bank to seamlessly integrate with fintechs and service providers to deliver innovative solutions.

He stressed that the bank seeks fintech partnerships that bring unique value to our customers. “To identify agile and responsive ecosystems,” added Negi.

promising fintechs, we assess their ability to differentiate our offerings and ensure their long-term sustainability and technological capabilities,” said Alhomssey.

With 42% of financial firms allocating 5-20% of their digital budget to analytical AI, according to McKinsey, fintechs can benefit from automation, optimised processes, efficiency and significant cost savings.

AI-powered technologies are transforming customer service in the fintech industry, enabling banks and fintechs to deliver exceptional customer experiences, foster loyalty and drive positive word-of-mouth referrals.

“Rather than viewing AI as a threat, we see it as a catalyst for innovation and growth. While AI may automate certain tasks, it also creates new opportunities,” said Emirates Foundation’s Osman.

“We understand the value that AI brings and the adjustments required to leverage it effectively. We are prepared to adapt to the changing landscape and seize the opportunities presented by AI.”

WE RECOGNISE THE VALUE THAT FINTECHS BRING IN ENHANCING CUSTOMER EXPERIENCE AND ARE COMMITTED TO FOSTERING THESE PARTNERSHIPS

– Pradeep Negi

AI is revolutionising the fintech industry, transforming traditional financial practices and paving the way for innovative advancements. By leveraging AI, fintech is creating a more efficient, secure and inclusive financial landscape for businesses and consumers.

Embracing fintech revolution

Globally, the banking sector stands on the cusp of profound digital transformation. The race for supremacy in corporate banking is being increasingly defined by technological prowess.

The discussion on The Business of Business was moderated by Mike Sigal, Founder of Sigal Ventures.

Participating in this panel were Srinivasan Sampath, Group CIO, First Abu Dhabi Bank; Hani Idris, Chief Executive Officer, International Development Bank; Krishna Kumar, Chief Operating Officer at Emirates Development Bank; Anshu Sharma Raja , Chief Transformation Technology Operations Officer, Africa and Middle East at Standard Chartered and Giovanni Everduin, Chief Strategy and Innovation Officer, Commercial Bank International.

Corporate and commercial clients’ expectations for digital experiences are rapidly rising. While traditional banking services remain essential, financial institutions must innovate to deliver seamless digital solutions that go beyond basic lending and credit.

THE CONVERSATION SURROUNDING DIGITAL SOLUTIONS IN SECTORS SUCH AS TRADE FINANCE, TRANSACTION BANKING, AND CROSS- BORDER PAYMENTS HAS EVOLVED BEYOND MERE DIGITISATION. THERE’S

A UNIQUE

OPPORTUNITY TO LEAPFROG TRADITIONAL APPROACHES AND IMPLEMENT GROUNDBREAKING INNOVATIONS

– Giovanni Everduin

Sampath said corporate banking is undergoing a digital revolution. “Clients demand personalised, digital solutions tailored to their specific needs, regardless of industry, size or location. A one-size-fits-all approach is no longer sufficient,” he added.

He highlighted that more than 95% of FAB’s corporate payments are processed digitally via Straight Through Processing (STP), with this number continuously increasing. “We are committed to providing a unified platform for all

corporate banking needs, simplifying the user experience,” said Sampath.

Sampath explained that while some CFOs may be more conservative, many large corporate clients demand rapid technological adoption, which presents a challenge for banks as they must balance innovation with security and regulatory compliance.

“To remain competitive, banks must find ways to accelerate their technology adoption process without compromising on risk management,” he said in closing.

To meet corporate clients’ evolving demands, incumbent banks are modernising their digital experiences by partnering with fintechs. The integration of innovative technologies is transforming corporate banking, enabling automation, data-driven insights and the development of sophisticated financial products.

Idris emphasised that the International Development Bank prioritises meeting the unique needs and expectations of its corporate clients. He said in today’s digital age, this means providing convenient, real-time online access to banking services anytime and anywhere.

“Corporate clients, particularly those involved in trade finance, expect realtime processing for instruments such as letters of credit, guarantees and bill discounting, along with comprehensive online tracking capabilities,” said Idris.

“To deliver this seamless experience, a robust digital platform integrated with

advanced technologies like AI is essential for real-time processing, transaction efficiency and speed.”

Digital transformation is as much a cultural shift as it is a technical one, Idris said while noting that it requires a holistic approach that prioritises people, technology and innovation.

“We’ve identified six key pillars: governance, people development, technological investment, strategic partnerships, innovation and operational transformation. We’re focused on creating a digital-first culture, investing in our staff and upgrading our core banking system,” he added.

The convergence of traditional banking and fintech is accelerating the adoption of advanced technologies, such as AI, machine learning (ML) and blockchain, to optimise processes and deliver innovative financial products.

For decades, the retail banking sector has often grabbed headlines in fintech adoption narratives, but corporate banking is steadily incorporating these advancements into its operational framework.

Emirates Development Bank’s Kumar said the banking landscape has undergone a dramatic transformation over the years.

“Once synonymous with conservatism, banks are now compelled to adapt to a rapidly changing environment. Even regulators, previously seen as obstacles to change, are now embracing innovation.”

Kumar said Emirates Development Bank leverages its unique position in the market as a corporate and SME bank, free from the constraints of retail banking.

“By prioritising customer needs, we conducted in-depth research to understand the specific challenges faced by SMEs, micro-SMEs and startups, who often struggle to secure dedicated investment,” he added.

By integrating fintech solutions into their operations, banks can improve risk management, enhance fraud prevention and provide real-time insights to their corporate clients.

The application of big data and ML techniques is transforming corporate banking, enabling banks to extract valuable insights from vast datasets and deliver highly personalised financial services. Predictive analytics, powered by fintech, allows incumbents to forecast future trends, optimise resource allocation and improve customer satisfaction.

Raja explained that digitalisation not only enhances client convenience but also significantly empowers self-service capabilities, allowing clients to access services at their convenience, untethered to a desktop computer.

“The prospect of scaling these digital solutions across various geographies is particularly exciting for a bank of our size. Our goal is to cater to corporate clients operating in multiple markets, each with its unique structures, such as subsidiaries or main entities,” said Raja.

products and services, expanding into new markets or demographics and enhancing existing processes to improve efficiency significantly.

“The conversation surrounding digital solutions in sectors such as trade finance, transaction banking, and cross-border payments has evolved beyond mere digitisation. There’s a unique opportunity to leapfrog traditional approaches and implement groundbreaking innovations,” said Everduin.

Everduin said Commercial Bank International’s ‘Innovation Banking’ approach aims to create a comprehensive ecosystem that addresses the critical challenges faced by startups.

“We’re focused on simplifying processes such as account opening and maintenance, which are often major hurdles for entrepreneurs,” he added.

Real-time transaction processing, powered by fintech, is improving

ONCE SYNONYMOUS WITH CONSERVATISM, BANKS ARE NOW COMPELLED TO ADAPT TO A RAPIDLY CHANGING ENVIRONMENT. EVEN REGULATORS, PREVIOUSLY SEEN AS OBSTACLES TO CHANGE, ARE NOW EMBRACING INNOVATION

– Krishna Kumar

He highlighted that while advancing customer experience is a priority, banks must not neglect the back office and this calls for robust digital infrastructure to ensure seamless operations and STP.

Furthermore, fintech solutions enable banks to offer omnichannel banking experiences, allowing customers to interact with their financial institutions across multiple channels, including mobile, web and physical branches.

Everduin highlighted that innovation in the banking sector must focus on three key areas: developing new

operational efficiency and enhancing customer satisfaction by reducing wait times and providing instant access to funds.

The future of finance is likely to be shaped by the continued collaboration between banks and fintechs. At the MEA Finance Banks and Fintech Forum, banking professionals and technology experts concurred that the “coopetition” between banks and fintechs presents incumbents with a unique chance to enhance innovation and efficiency in service delivery.