October 2024

Formidably Focused Formidably Focused

Niels Zilkens Head of Wealth Management Middle East, UBS

to all the winners Leaders in Payments

winners of the MEA Finance Payments Awards 2024

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Full Steam Ahead

Welcome to the October 2024 edition of MEA Finance Magazine. We move into Q4 of 2024, still being pushed into the back of our seats by the momentum of the continuing rapid growth and development in the reginal banking and financial sector.

Over the past twelve months, the wealth management sector brought new players to the region, with existing firms adding headcount to manage the growing market. Global investment banks are relocating talent from other international financial hubs, a sign of expected growth in regional capital markets, and almost a year ago to the day, Al Etihad Payments launched the UAE’s instant payments platform – Aani, bringing speed, convenience and opportunities for economic growth and financial inclusion. Business banking has started to blossom as banks and technology vendors focus on opportunities for growth in this sector, and AI and fintech, along with the creativity these epochal movements bring, find ready and welcoming homes here too. It is not hyperbole to say that it is only a matter of time until our region will lead the globe in many aspects of the modern world of banking and financial services.

The pages of this edition underline this with our coverage of all the above mentioned; the roles they play, the effects they have and the increasing activities around them.

Following the annual MEA Finance Leaders in Payments Conference, comes our extensive coverage of the regionally influential event focused on the hectic and shimmering world of payments. Then with details of the winners in the 2024 Leaders in Payments Awards, you can see those who are recognised for their part in

shaping the region’s place in the payments world.

This edition’s cover story features Dr. Neils Zilkens, Head of Wealth Management at UBS, and as from 2023, the world’s biggest private bank in terms of AUM. Here, Neils outlines why UBS are strengthening their Middle East team and their plans for the region. Also discussing wealth, Samir Atitallah CEO of Mirabaud Middle East, underlines the need for careful succession planning.

The meeting of Fintech and AI and the potential this has for further change to the market is looked at from page 14, while from page 40, Oscar Wendel, Editor-at-Large reports from 24 Fintech in Riyadh, which impressively established itself as the world’s largest debut fintech event. Then at page 22, Jamal Saleh, Director General of the UAE Banks Federation, highlights the UAE’s commitment to innovation, and Joel Van Dusen, Group Head of Corporate & Investment Banking, Mashreq examines client relations in the digital age, at page 18.

One positive outcome of technology in payments, as it combines with the wider societal considerations of these days, is financial inclusivity. Read, from page 24, about how, additional to it being a movement for betterment, it is a solid opportunity for business growth in the sector.

Bringing technology and business banking together, on page 33, in another of our “in conversation” dialogues, Sriranga Sampathkumar from Infosys Ltd talks with Mohammed Almisfer, Chief Business Technology and Digital Officer at Banque Saudi Fransi about technology in corporate and business banking and, staying with the business world, Rehan Ali, Head of Business Banking at NBF explains their creation of a holistic business banking experience – see page20.

And finally, but not forgetting, our market focus for this edition is on Türkiye which, while returning to more conventional economic policies, still has challenges to face.

So, sit down, hold on tight and enjoy the read.

EGYPTAIR partners with Amazon Payment Services and Banque Misr to enable seamless and secure online payments for travellers

EGYPTAIR, Amazon Payment Services and Banque Misr have established a strategic partnership through which EGYPTAIR’s travel product will be combined with Amazon Payment Services’ online payment processing services and the support of Banque Misr, to improve the online payment experience for travellers

Amazon Payment Services is extending its core online payment processing services to enable all EGYPTAIR travellers across the MENA region to conveniently and securely book and pay for their tickets online. As part of this collaboration, customers will also be able to leverage Amazon Payment Services’ instalments service to pay for their tickets in smaller more manageable amounts.

Peter George, Managing Director, Amazon Payment Services, commented: “We are proud to embark on this exciting journey with EGYPTAIR, and their customers, through this new partnership supported by Banque Misr. This collaboration enables us to leverage our advanced technology and leading offering to deliver innovative online payment solutions for EGYPTAIR customers. Fully integrating with EGYPTAIR’s infrastructure and empowering the company across multiple countries in MENA, our focus is on providing travellers with a seamless

and secure experience through our suite of convenient payment solutions including instalments.”

Commenting on the partnership, Amr Adawy, VP Commercial, EGYPTAIR Airlines, said: “We are excited to announce that EGYPTAIR is starting a new partnership with Amazon Payment Services and Banque Misr. This is a significant milestone in the airline’s 92-year history and part of our longterm plan to serve our customers better daily. This partnership is the result of EGYPTAIR’s IT modernisation strategy. We are shifting our focus from simply solving problems to creating innovation at a faster pace with Amazon Payments Services’ capabilities. This transition is crucial for implementing our future modernisation vision and strategy. We are eager to acquire digital capabilities to enhance customer satisfaction and position ourselves among the world’s favourite airlines.”

Hossam Abdel Wahab, Deputy CEO of Banque Misr applauded the collaboration between the participating parties: “Banque Misr is pleased to collaborate with leading companies like EGYPTAIR and Amazon Payment Services, in line with our strategy to drive the future of digital payments. Banque Misr is dedicated to integrating advanced technological services across our various transactions to progress in line with global transformation, as we recognise that technology will play a vital role in keeping us at the forefront of the banking sector in Egypt.”

Hossam Abdel Wahab, Deputy CEO of Banque Misr

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Ripple receives in-principle approval from the Dubai Financial Services Authority (DFSA)

Ripple has secured in-principle approval from the Dubai Financial Services Authority (DFSA) to expand its services from the Dubai International Financial Centre (DIFC)

With DFSA Authorisation, Ripple is set to roll out its enterprise-grade digital asset infrastructure to a broader customer base in the UAE.

“Blockchain and crypto technologies are here to stay,” said Brad Garlinghouse, Ripple’s Chief Executive Officer.

“With its forward- thinking regulatory approach and clear guidance for innovative businesses seeking to invest and scale, the UAE is positioning itself as a global leader in this new era of financial technology.”

Ripple will be the first blockchainenabled payment services provider to be licenced by the DFSA, the independent regulator of financial services conducted in or from the DIFC.

Advancing Financial Services Innovation in the UAE

The in-principle licence approval from the DFSA underscores Ripple’s strategy to expand its presence in the Middle East, following the establishment of its regional headquarters in Dubai in 2020.

The UAE’s regulatory clarity and strategic position as a global financial services and trade hub, with access to fast-growing markets across the Middle East, Africa and South Asia, have been key factors in Ripple’s decision to continue investing in the region.

Salmaan Jaffery, Chief Business Development Officer of the DIFC Authority, said, “At DIFC, we are committed to fostering a future-focused financial ecosystem that supports innovation

and growth. Dubai’s strategic location and DIFC’s robust legal and regulatory framework, built on two decades of experience, makes this the ideal hub for international businesses looking to make a lasting impact. We are proud to welcome Ripple’s continued expansion in the DIFC as they work to drive the growth of blockchain technology in the region.”

Global Compliance and Innovation

The new in-principle licence is part of Ripple’s broader strategy to collaborate with regulators and policymakers worldwide, to integrate compliant blockchain and crypto technologies that complement the existing financial system. Ripple, which holds over 55 licences worldwide, including from the Monetary Authority of Singapore (MAS), the New York Department of Financial Services (NYDFS) and the Central Bank of Ireland (CBI), continues to prioritise regulatory compliance in order to support blockchain adoption in financial services.

“This is a pivotal moment for Ripple’s operations in the Middle East. The DFSA is a globally renowned independent regulator with a rigorous regulatory process and we are delighted to have received their in-principal approval. Over 20% of Ripple’s global customer base is located in the UAE and as we continue to extend our operations and services, we are fulfilling the growing demand for more efficient and cost-effective cross-border payment solutions,” said Reece Merrick, Ripple Managing Director, Middle East and Africa. “We look forward to supporting the UAE’s vision to become a leading global crypto and fintech hub by driving the institutional adoption of blockchain technology.”

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Talking Türkiye

After returning to more conventional economic policies, early signs show that a tight approach to monetary and fiscal policy is working, but if Türkiye is to preserve and make further progress, the authorities must overcome substantial challenges

Türkiye’s President Recep Tayyip Erdogan made an abrupt U-turn in economic policy after his triumph in a national election in May 2023, resulting in aggressive interest rate hikes to rein in inflation expectations, which soared under his years-long unorthodox policy stance.

However, in the March 2024 municipal elections, the country’s electorate sent a clear message to their President: the economy isn’t working for them.

President Erdogan has asked for patience with slower economic growth and

high borrowing costs, promising a reprieve and Governor Fatih Karahan said in July that the central bank’s tight policy stance would continue as the country is “on the verge of a sustained disinflation period.”

The Turkish authorities’ resolve is not misplaced; data backs it. The International Monetary Fund (IMF) said a turnaround in economic policies since mid-2023 tightened Türkiye’s overall policy mix, sharply reducing crisis risks and raising confidence.

“The current account deficit fell to 2.7% of GDP in Q1 2024, market sentiment improved, international reserves increased

by $91 billion since April, international credit agencies upgraded Türkiye’s sovereign risk rating, and CDS spreads have declined nearly 440 basis points since mid-2023,” according to the IMF.

Türkiye’s highly anticipated three-year outlook, which was announced early in September, is expected to provide crucial insights into the government’s commitment to the ongoing economic restructuring.

Meanwhile, the Financial Action Task Force (FATF), an international crime watchdog, removed Türkiye from its “grey list” in June, a vote of confidence to the government in Ankara as the country is in the midst of its economic turnaround efforts.

Türkiye’s banking sector is experiencing a resurgence in 2024, driven by the country’s economic recovery from recent adversities, including last year’s deadly earthquakes and the COVID-19 pandemic. The economic stability has created a favourable environment for the banking sector to thrive.

Fitch Ratings revised its Turkish banking sector outlook to ‘improving’ from ‘neutral’ in June, citing reduced external financing pressures and macro and financial stability risks after the

government adopted more conventional macroeconomic policies after last year’s election.

For Türkiye to preserve and further its progress, the authorities need to overcome substantial challenges related to economic resilience, poverty and inclusion and sustainability, and leading among them is the need to revitalise economic growth after last year’s devastating earthquakes.

Return to economic orthodoxy

Türkiye’s economy is still recovering from the devastating earthquakes that struck the country in February 2023. A joint assessment by the government, the United Nations and the World Bank Group estimates the cost of recovery and reconstruction at $81.5 billion.

However, the government that was sworn in May 2023 to usher in what President Erdogan called “a new period of glory” moved to launch comprehensive policies set to address past macroeconomic imbalances , notably their high inflation.

Since then, Türkiye has been moving to normalising its macroeconomic strategies. The IMF said that, “A return to a more orthodox policy since June 2023 has improved confidence among domestic and international investors, with Türkiye recently receiving its first sovereign rating upgrade from a major ratings agency in over a decade,” said Dilara Sarı, Türkiye spokesperson for EBRD.

Türkiye experienced healthy GDP growth of 4.5% in 2023, pushing the economy past $1 trillion mark for the first time.

“With policies turning appropriately less accommodative, growth is projected at 3.5% in 2024 while inflation is forecast to fall to 46% at end-2024 from 69% at end-2023 as exchange rate pressures ease, but backwards-looking wage increases and expectations remain,” according to the IMF.

However, the growth rate is expected to drop to 3% in 2024 before picking up again in subsequent years on a

THE CURRENT ACCOUNT DEFICIT

FELL TO 2.7% OF GDP IN Q1 2024, MARKET SENTIMENT IMPROVED, INTERNATIONAL RESERVES INCREASED BY $91 BILLION SINCE APRIL , INTERNATIONAL CREDIT AGENCIES UPGRADED TÜRKIYE’S SOVEREIGN RISK RATING, AND CDS SPREADS HAVE DECLINED NEARLY 440 BASIS POINTS SINCE MID -2023

– The International Monetary Fund

more robust basis.Economists caution that chronic macro and structural issues, such as persistent inflation, lagging productivity growth and high unemployment, require robust fiscal measures and structural reforms to fuel sustainable growth.

Taming inflation

Türkiye has endured some of the world’s highest inflation in recent years. However, a recent policy shift has started to attract foreign investors who had fled when the lira plummeted as the currency’s value stabilises.

The Central Bank of the Republic of Türkiye (CBRT) kept monetary policy ultra-loose until June 2023, when the authorities hiked interest rates from 8.5%, marking a transformation in the country’s economic management.

“Further policy rate increases are needed to reduce inflation durably, accompanied by lower reliance on quantitative measures to increase the role of price signals in money and credit markets, which would help anchor a market-priced yield curve,” said the IMF.

The central bank held interest rates at a high of 50% for the fifth consecutive month in August. CBRT’s Monetary Policy Committee, led by Governor Karahan, reiterated that its policy will remain tight “until a significant and sustained decline in the underlying trend of monthly inflation.”

While the CBRT is expected to maintain its current interest rate policy for most of 2024, economists predict a potential rate-cutting cycle beginning in November as Turkish officials aim to engineer a controlled economic slowdown and cool down inflation further.

Despite the increase in interest rates, the impact on Türkiye’s banking sector thus far seems to be relatively contained. Private banks, in particular, appear to have prepared for higher rates mainly by reducing the asset duration.

The increase in Turkish benchmark interest rates has had a positive impact on banks’ profit margins and is expected to contribute to increased profitability in both 2024 and 2025.

Fitch Ratings upgraded its outlook for the Turkish banking sector from ‘neutral’ to ‘improving’ in June, citing the reduced external financing pressures and decreased macro and financial stability risks that followed the adoption of more conventional macroeconomic policies.

“Since Türkiye’s policy shift, banks have seen reduced risk premiums and improved access to external markets. Issuance gained pace in late 2023 and early 2024, with several banks issuing senior unsecured Tier 2 and additional Tier 1 instruments,” the ratings agency said.

GCC banks operating in Türkiye are expected to benefit from the country’s recent macroeconomic adjustments

and its adoption of more traditional economic policies.

The cooling inflation is expected to mitigate net monetary losses for GCC banks’ Turkish units, while slower lira depreciation should reduce the adverse capital impact from currency translation losses.

Meanwhile, GCC banks have demonstrated robust interest in expanding their operations in key regional markets, particularly Türkiye, which is on the back of an improving economic landscape and promises greater growth opportunities.

“GCC banks’ appetite to expand in Türkiye has increased since the country’s macroeconomic policy shift following last year’s presidential election, which has reduced external financing pressures and macro and financial stability risks,” said Fitch.

Dubai Islamic Bank acquired a 20% stake in Türkiye’s TOM Group of Companies in September 2023. Prior to that, in 2019, Emirates NBD snapped up a majority 99.85% stake in Denizbank for a substantial sum of $2.76 billion.

The easing of macro-prudential regulations in October 2023 is a boon for the Turkish banking sector. The CBRT had previously implemented more than 200 banking regulations in an attempt to bolster the lira during a period of low interest rates. However, many of these regulations have since been repealed, which is expected to ease operating environment pressures.

A RETURN TO A MORE ORTHODOX POLICY SINCE JUNE 2023 HAS IMPROVED CONFIDENCE AMONG DOMESTIC AND INTERNATIONAL INVESTORS, WITH TÜRKIYE RECENTLY RECEIVING ITS FIRST SOVEREIGN RATING UPGRADE FROM A MAJOR RATINGS AGENCY IN OVER A DECADE

–

Dilara

Sarı, Türkiye spokesperson for EBRD

Investible again

Türkiye, has a GDP exceeding $1 trillion and as a major player in the global economy, attracts much foreign investment due to its strategic position linking Asia and Europe. A report by EY shows that foreign direct investment flows into Türkiye grew by 17% in 2023 from the previous year, reaching $10 billion.

While the US, the UK, Germany and the Netherlands are among the country’s major foreign investors, authorities are actively seeking to increase trade and investment ties with the oil-rich Gulf states, such as the UAE and Saudi Arabia.

Türkiye, a historic crossroads, is positioning to become a preferred export corridor to Europe. It hosted transport ministers from Iraq, Qatar and the UAE in August for the so-called Development Road project – a $20 billion trade route that will connect the Arabian Gulf to Europe.

Qatar and the UAE have provided Türkiye with some $20 billion in currency

GCC BANKS’ APPETITE TO EXPAND IN TÜRKIYE HAS INCREASED SINCE THE COUNTRY’S MACROECONOMIC POLICY SHIFT FOLLOWING LAST YEAR’S PRESIDENTIAL ELECTION, WHICH HAS REDUCED EXTERNAL FINANCING PRESSURES AND MACRO AND FINANCIAL STABILITY RISKS

– Fitch Ratings

swap agreements in years while Saudi Arabia deposited $5 billion into Turkish central bank in March 2023.

The UAE and Türkiye solidified their economic relationship with a comprehensive partnership agreement in May 2023, setting a target of doubling bilateral trade to between $40 billion and $45 billion within five years. Trade between the two countries jumped 40% in 2022, according to EY, the fastest rate of growth among the UAE’s top 10 export markets.

The Gulf state also signed several deals estimated to be worth over $50 billion during a visit by President Erdogan to Abu Dhabi in July, including wealth fund ADQ possibly buying as many as $8.5 billion of bonds to fund reconstruction efforts following devastating earthquakes in February.

Early signs indicate that Türkiye’s tight monetary and fiscal policy is working, with the Borsa Istanbul Index returning more than 40% in dollar terms since a turnaround in economic policies last May, making it one of the top-performing stock markets globally. Similarly, foreign investors indicated growing confidence in the country’s economic outlook by placing $6.5 billion into lira bonds in April 2024.

Türkiye has tightened its monetary and fiscal policy since last year to tackle soaring inflation, which dropped to 51.97% in August. Going forward, Fitch said that stricter monetary policies, planned budget cuts and wage adjustments will lead to lower inflation and current account deficits, ultimately helping to maintain better foreign currency reserves.

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Moving up a Gear

Fintech has already drastically changed how we bank and conduct payments but with the increasing use of AI, the financial sector is also being rapidly reshaped and enhanced to radically change how we borrow and invest

Fintech firms emerged in the early 2010s, initially disrupting the payments industry.

However, their influence has rapidly spread to all aspects of financial services, challenging even the most traditional banking sectors, such as wealth management.

Traditional banks are under pressure from fintech firms, technology giants and digital-native banks (neobanks). KPMG said that the current competitive landscape has compelled incumbents to modernise their operations, adopt innovative technologies and prioritise customer experience.

The GCC fintech market remains a hotbed of innovation and growth despite a sobering few years in funding and valuation terms. “Despite a challenging

venture capital landscape, fintech remains a top choice for investors in MENA, raising $186 million across 50 deals in the first half of 2024,” according to MAGNiTT, which captures venture capital data said in its H1 2024 MENA FinTech Venture Investment report.

The emergence of generative AI (GenAI) and other disruptive technologies, coupled with the robust demand for innovative financial solutions, presents a fertile ground for the growth of the GCC fintech industry.

GenAI, an offshoot of deep learning technology or traditional artificial intelligence (AI), became a buzzword last year, setting the financial services industry on a path to experimentation while sparking discussions around the promise and future of AI in the industry.

“With the advent of game-changing technologies such as GenAI and with still billions of unbanked and underbanked individuals worldwide, fintech has vast potential,” said Boston Consulting Group (BCG).

GenAI is a game-changer in the banking sector. Given its’s digital-first cost structure and ability to deliver substantial gains in coding, customer support and risk management, its impact in the fintech space is poised to be even more pronounced.

Though the first part of the fintech journey was led by payments, representing 40% of all fintech revenue in 2021, the B2B2X (business-to-business and various intermediaries) approach is ushering in the next phase of growth.

The industry has witnessed a surge in innovative applications powered by AI, such as embedded finance, open banking, buy-now-pay-later (BNPL) and robo-advisory, driven by AI’s ability to process massive datasets, identify patterns and predict future trends.

GCC countries are actively supporting financial technology innovation through regulatory reforms, regulatory sandboxes and infrastructure improvements. They are also nurturing the growth of fintech

startups in special economic zones such as the Bahrain FinTech Bay, the Dubai International Financial Centre (DIFC) and Abu Dhabi’s Hub71.

Open banking

The financial services sector is undergoing a seismic shift fueled by AI, digital innovation and a surge in the adoption of digital financial services.

Open banking is revolutionising financial services, creating new opportunities for innovation and transforming the way businesses and financial institutions interact. By fostering a more open infrastructure, open banking is accelerating modernisation and driving service diversity.

The innovative technology allows fintech firms – with explicit consent – to access individuals’ or companies’ financial data through Application Programming Interfaces (APIs). It is enabling a wide range of innovative services, such as streamlined loan applications, online account openings and flexible payment options.

By leveraging APIs, fintechs, especially in payments, lending and wealth management, have revolutionised traditional financial models, offering innovative financial services to a wider range of individuals and businesses. Over the past five years, fintech firms in the Gulf region have launched and scaled digital solutions, creating value for customers, partners and investors.

PwC said that open banking holds the potential to reshape the financial services landscape and several financial centres in emerging markets, including the GCC region, are making considerable moves in this space.

The notable initiatives that are being implemented in the GCC region include a European-style regulation-driven approach in Bahrain and an Americanstyle market-driven approach in the UAE that the Abu Dhabi Global Market and DIFC are spearheading.

Bahrain was the first GCC state to mandate open banking. The kingdom issued its open banking rules in 2018, followed by a framework with guidelines on data sharing and governance in late 2020.

Saudi Arabia’s market-driven approach has evolved towards a more structured regulatory framework.

Following the issuance of its open banking policy in January 2021, Saudi Central Bank (SAMA) published its full open banking framework in November 2022, with an initial focus on account information services to be followed in the second phase by a focus on payment initiation services.

The central bank introduced an ‘Open Banking Lab’ in December 2022 to speed up the development of open banking in Saudi Arabia. The ‘Lab’ constitutes a

revolutionised how financial services are accessed and utilised.

Embedded finance is revolutionising the fintech world. It leverages innovative technologies such as AI, the cloud and machine learning to connect financial products such as payments, loans and deposits to non-financial platforms ranging from company websites to mobile apps.

The innovative approach makes it easier and cheaper for merchants and brands to offer financial services to their customers.

“AI is evolving into the linchpin of the embedded finance revolution, thanks to

DESPITE A CHALLENGING VENTURE

CAPITAL LANDSCAPE, FINTECH REMAINS A

TOP CHOICE FOR INVESTORS IN MENA, RAISING $186 MILLION ACROSS 50 DEALS IN THE FIRST HALF OF 2024

– MAGNiTT

‘technical testing environment’ to enable established banks and fintech companies the opportunity to ‘develop, test and certify’ open banking services to ensure compatibility with the framework.

The nascent adoption of open banking in Qatar reflects efforts by the central bank and financial institutions.

Qatar Central Bank’s 2023 Fintech Sector Strategy Summary emphasises developing a robust framework facilitating digital transformation.

Open banking, fintechs and AI are converging to revolutionise the financial services industry. The powerful combination is driving innovation, improving customer experiences and creating more inclusive financial solutions.

Embedded finance

From e-commerce platforms offering BNPL to payment service providers integrating lending into their value proposition, embedded finance has

advancements in GenAI, large language models (LLMs) and deep learning,” Arthur D. Little said in a report, adding that GenAI can create personalised offerings, while LLMs can handle customer inquiries, manage data and predict market trends more accurately.

For decades, nonbanks have provided financial services through private-label credit cards at retail chains, supermarkets and airlines. However, McKinsey said what makes the next generation of embedded finance so powerful is the integration of financial products into digital interfaces that users interact with daily.

“Retailers, software companies, online marketplaces, automotive equipment manufacturers and e-commerce platforms are steadily embedding financial products and services into their end-to-end customer journeys,” according to EY.

The seamless integration of financial services into customers’ daily lives has entered a new era.

Analysts expect the embedded finance product portfolio in the GCC region to expand further as customer onboarding, product servicing and realtime risk analytics become increasingly digitised and sophisticated.

Following global trends, fintech firms in the Gulf region are expanding their offerings while prioritising sustainable value creation. Many are shifting from traditional mobile wallets and payment solutions to a broader range of sophisticated financial products that cater to both individual consumers and businesses.

Saudi BNPL provider Tamara, Bahraini microfinance platform Bede, UAE proptech firm Huspy and Saudi consumer Insurtech platform Rasan are examples of GCC fintechs that have entered a new phase of value creation, prioritising sustainable, profitable growth.

The evolution of embedded finance is being fueled by changes in commerce, merchant and consumer behaviour and technology. For nonbank platforms, the innovative approach offers an opportunity to advance the customer experience and create new revenue streams without the overhead of traditional banking operations.

Spreading Payments

Today, consumers in the GCC region demand fast, seamless and personalised experiences similar to those offered by Netflix and global e-commerce giant Amazon. This expectation extends to

WITH THE ADVENT OF GAMECHANGING TECHNOLOGIES SUCH AS GENAI

AND WITH STILL BILLIONS OF UNBANKED AND UNDERBANKED INDIVIDUALS WORLDWIDE, FINTECH HAS VAST POTENTIAL

– Boston Consulting Group

banking, where users seek intuitive and integrated solutions for everyday transactions and BNPL delivers on this demand by providing a streamlined and user-friendly experience.

The Gulf region’s already fast-growing BNPL sector experienced exponential growth at the height of the COVID19 pandemic, fueled by a tech-savvy population, a booming e-commerce sector and the allure of flexible payment options.

“The BNPL industry in the UAE and Saudi Arabia has exploded in popularity. Just two years ago, only one in 10 consumers used the payment service. Today, the figure has doubled, with one in five consumers embracing this flexible payment option,” said consultancy firm Redseer Strategy Consultants.

The growth has spurred significant changes in fintech business models, with local players such as Tabby, Tamara, Cashew and Postpay driving this regional surge.

The competitive landscape is undergoing a shake-up, with companies such as Spotii closing down while Tabby and Tamara have secured significant funding rounds, raising $200 million and $340 million, respectively, at valuations of $1.5 billion and $1 billion in 2023 ahead of their anticipated listing on the Saudi Exchange.

“As consumers increasingly interact with platforms that seamlessly integrate financial services into their daily lives, these services become a familiar and accessible part of the digital experience,” Roland Berger said while noting that regional platforms such as Careem and Noon have successfully integrated payment and lending services, including BNPL, into their customer journeys.

As technology advances and consumer preferences keep changing, BNPL fintechs continue to evolve and strive to keep pace. While the idea of paying in instalments is not new, what’s groundbreaking is how fintech firms are leveraging innovative technologies such as open APIs, the cloud and AI to deliver unprecedented levels of speed, scalability and seamless integration with consumer platforms.

Henceforth, the robust funding for fintech firms in the GCC region will continue to drive innovation, while extensive digital penetration and a technologically savvy population will enable high rates of user uptake. Fintech services will continue to expand as competition and collaboration between incumbents and digital attackers intensifies.

How can we transform Client Relations and Engagement in the digital age?

Joel Van Dusen Group Head of Corporate & Investment Banking, Mashreq, explains that while advancements in artificial intelligence and machine learning have transformed personalisation in retail banking, corporate and investment banking (CIB) is no different, and we are adopting these technological advancements in parallel, ensuring both clients and banks reap the rewards

How is digitalisation enhancing corporate banking services so far?

Today’s corporate banking customers expect speed, convenience and personalisation. To meet these demands, we have embraced innovation, leveraging automation, AI, machine learning and data analytics to digitalise many traditionally manual processes. We have created advanced technological capabilities that provide a single access point, offering clients a comprehensive suite of services that not only improve operational efficiency but enhance the overall client experience.

A fully digital, end-to-end customer journey, from the banking interface onward, accelerates transaction times and simplifies processes, delivering a smoother, more convenient experience for our customers.

With Mashreq’s NEO CORP solution, our corporate clients are already benefiting from faster onboarding and seamless

access to trade, cash management and self-service functions through a single sign-on platform. Clients can also obtain real-time insights into their business’s financials, both high-level and detailed, with just a few taps, empowering them with critical information at their fingertips.

The importance of relationships in corporate and investment banking

While some aspects of banking are inherently transactional, in corporate and investment banking, solid, long-standing relationships remain crucial. Corporate clients naturally require transactional interactions with their bank, but this must be augmented by a deeper, human connection. Given the complexity of corporate banking services and the scale of financial transactions, relationship banking brings added value that can’t be overlooked.

From start-ups to multinational corporations, clients need a strong twoway relationship with their bank—one

Joel Van Dusen, Group Head of Corporate & Investment Banking, Mashreq

built on mutual trust and understanding. This relationship fosters smoother processes and enables tailored support for their specific banking needs. Banks must embrace a proactive role in facilitating consultative processes and constructive discussions with their CIB clients, offering customised services and consistent support to enable their success.

Corporate customers must feel confident that their relationship manager not only understands their needs but provides sound financial guidance and proactive support. By creating an environment of trust, we foster loyalty and long-term client retention.

Striking the balance

Digitalisation has brought remarkable opportunities to streamline and personalise corporate banking services. Technology has elevated transactional banking, allowing customers to manage their accounts efficiently from anywhere at any time. However, with this convenience comes the risk of detachment, if clients can do everything themselves, do they still need a relationship manager?

Banks can harness data analytics to tailor product recommendations, anticipate client needs and even prevent fraud, all while making faster, more informed decisions regarding account opening and lending. However, as we collect vast amounts of data to optimise these services, clients have valid concerns regarding how their data is stored and utilised.

Striking a balance is essential. We must capitalise on technology’s potential while maintaining the vital human connections that underpin successful corporate banking relationships. As we gather data, we must simultaneously ensure our clients’ trust by safeguarding their privacy and providing the assurance of security they deserve.

Cybersecurity by Design

As the digital landscape evolves, cyber threats are becoming more sophisticated,

GIVEN THE COMPLEXITY OF CORPORATE BANKING SERVICES AND THE SCALE OF FINANCIAL TRANSACTIONS, RELATIONSHIP BANKING BRINGS ADDED VALUE THAT CAN’T BE OVERLOOKED

posing significant risks to not only banks and end-consumers, but also corporate clients. By leveraging AI-driven solutions and advanced security technologies, banks can detect anomalies and potential threats in real-time, allowing for proactive risk mitigation.

At Mashreq, we build in strong cyber defense capabilities across our product offerings right from the design stage. This is complemented by a team of digital corporate banking and cyber security team members who cross-collaborate to ensure we can identify potential vulnerabilities well in advance and ensure preparedness, enhancing the overall security posture.

This ultimately, creates a more resilient financial ecosystem that is capable of withstanding cyber threats, reinforcing the trust clients place in their banking partners.

Leveraging Digitalisation for Sustainability

Digitalisation and AI also offer unique opportunities for us as banks to support our corporate clients in achieving sustainability goals and addressing environmental, social and governance (ESG) concerns. By providing datadriven insights, we can help them better understand the environmental impact of their operations.

Analysing data on energy consumption, waste production and supply chain efficiency enables our clients to identify areas for improvement and adopt sustainable practices. Similarly, when it comes to sustainable financing options, by using AI to assess creditworthiness and project viability, banks can match clients

with appropriate financial offerings that support their ESG initiatives, encouraging investment in sustainable projects. This not only helps clients meet regulatory requirements but also enhances their reputation in the marketplace.

By integrating sustainability into their core strategies and solutions, corporate clients and banks can, together, drive longterm value and positive environmental impact, positioning themselves as leaders in responsible business practices.

A digital, personalised future

The future of corporate banking is digital, but it must also be personal. Our clients want the best of both worlds, the speed, convenience and efficiency of digitalised processes, combined with the reassurance of personalised, expert support from a team that truly understands their business.

As digitalisation accelerates, we must seize the opportunity to leverage these technological advancements. However, we must not lose sight of the personal touch that defines relationship banking. We must enhance our level of customisation, using technology to deepen relationships and deliver superior service. Real-time information can empower our teams to serve clients more effectively, but it’s our commitment to strengthening these relationships that will truly set us apart.

Our clients place tremendous trust in us, and it is our responsibility to honor that trust by continuing to elevate the corporate banking experience, blending technological innovation with the human connection that has always been at the heart of successful client relationships.

Getting an Edge

Rehan Ali Head of Business Banking at NBF talks in detail to MEA Finance about their creation of a holistic business banking experience through the recent inception of their Emerging Business Unit and launch of NBF Edge which is designed to provide businesses with an enhanced digital banking experience

What were the leading motivations behind the recent launch of the NBF Emerging Business Unit?

The recent launch of the NBF Emerging Business Unit highlights and reaffirms our ongoing commitment to the important and burgeoning SME sector, which is commonly accepted as the backbone of the UAE’s economy. By the careful provision of tailored banking solutions and dedicated support through this new unit, NBF aims to empower new and

established entrepreneurs and business owners and help them to realise the full potential of their businesses and themselves.

The primary motivation behind this initiative is to address the unique challenges faced by SMEs and to offer them the necessary tools and resources to thrive in a competitive market. NBF recognises the vital role that SMEs play in driving economic growth and innovation, and the Emerging Business Unit is designed to support their journey from inception to success.

Rehan Ali, Head of Business Banking, NBF

What unique features and services will NBF be providing to business through your Emerging Business Unit?

The NBF Emerging Business Unit will be offering a range of unique features and services that have been tailored to

meet the specific needs of businesses, starting with digital onboarding through the newly launched Edge platform. One of the key offerings is personalised service and support, with each customer having a dedicated relationship manager who will build a deep understanding of their business needs and craft the optimal banking package to support their growth. This unit will cater to both newly-formed entities and established SMEs in the UAE, providing them with the flexibility to open their accounts effortlessly online, anytime, anywhere, without the need for branch visits. Additionally, the Emerging Business Unit will offer customised financial products, such as working capital solutions, trade finance and cash management services, to help businesses manage their finances more effectively and achieve their growth objectives.

Please tell us about NBF Edge and the main drivers behind its launch.

NBF Edge is part of NBF’s ongoing efforts to enhance its digital offerings and provide innovative solutions to customers. The main drivers behind its launch include the need to support the growing digital economy, improve customer engagement and offer more efficient and convenient banking services. NBF Edge is designed to provide a seamless and intuitive digital banking experience that enables customers to access a wide range of banking services through a single platform. This initiative is driven by the ever-increasing demand for digital

THE PRIMARY MOTIVATION BEHIND THIS INITIATIVE IS TO ADDRESS THE UNIQUE CHALLENGES FACED BY SMES AND TO OFFER THEM THE NECESSARY TOOLS AND RESOURCES TO THRIVE IN A COMPETITIVE MARKET

solutions and the need to stay ahead of the competition by offering cutting-edge technology and services that meet the evolving needs of customers.

What direct benefits is NBF Edge expected to bring to new businesses and SMEs?

NBF Edge is expected to bring several direct benefits to new businesses and SMEs. These including improved access to banking services, enhanced customer experience through digital solutions and with tailored financial products that are designed to meet the specific needs of SMEs. By leveraging digital engineering, NBF aims to make banking experiences quicker, more efficient and secure, thus supporting the growth and success of new businesses and SMEs. The platform will offer features such as real-time account management, instant payments and customised financial insights, thus enabling businesses to make informed decisions and to manage their finances more effectively. Additionally, NBF Edge will provide access to a range of important value-added services, such as business

BOTH THE EMERGING BUSINESS UNIT AND NBF EDGE BUILD ON NBF’S LONGSTANDING COMMITMENT TO SUPPORTING SMES WITH CUSTOMISED FINANCIAL PRODUCTS AND SERVICES

advisory and networking opportunities that will further help businesses to grow and succeed in a competitive market.

How do your Emerging Business Unit and NBF Edge align with or complement NBF’s already well-established services and commitment to the SME sector in the UAE?

NBF is known for its’ long-held attention to the SME sector in the UAE. Both the Emerging Business Unit and NBF Edge build even further on NBF’s long-standing commitment to supporting SMEs with customised financial products and services. The Emerging Business Unit provides tailored banking solutions and dedicated support, while NBF Edge enhances the digital banking experience. Together, they complement NBF’s existing range of services by offering a comprehensive suite of solutions that cater to the many and diverse needs of SMEs, and so fostering long-term partnerships built on trust and deep sector expertise.

NBF’s deeply held commitment to the SME sector is reflected in its continuous efforts to innovate and provide valueadded services and products that support the growth and success of businesses in the UAE. By integrating the Emerging Business Unit and NBF Edge with its existing offerings, NBF aims to create a holistic banking experience that will empower SMEs to achieve their full potential and to contribute further to the overall economic development of the region.

UAE: Enabling the Future of Banking

Jamal Saleh Director General of the UAE Banks Federation explains how the UAE’s firm commitment to innovation is securing its place as a leading global financial hub

Countries across the GCC, particularly UAE, are undergoing a profound transformation in their financial landscape, driven by rapid advancements in digital technology, characterised by early adoption of various evolving technologies, such as Artificial Intelligence (AI), open banking, enhanced payment security and a shift toward digitalonly banking solutions. In fact, the UAE witnessed a 35% increase in AI-related investments across fintech sectors in 2023, highlighting and establishing it as the global hub for technological innovation and financial technology integration.

In 2024, the UAE continues to lead the way in financial innovation, driven by its strategic vision, early adoption of emerging technologies and supportive regulatory framework enabling banks to streamline operations, automate routine tasks and offer personalised services, significantly enhancing operational efficiency and customer satisfaction.

Satisfying customers’ desire for personalisation pays off, making this approach the future of digital banking. Global data show that unique experiences lead to a 40% higher revenue growth and lower customer acquisition costs. This is evident from the fact that the transaction value of digital-only banks in the UAE has grown exponentially, from USD 66 million in 2019 to USD 471 million in 2023.

The current year has been further underscored by a series of pioneering achievements, with the UAE launching the first Regulatory Sandbox to provide a safe environment for fintech innovation, introducing mBridge, the first blockchainbased cross-border payment system, built up from the success of its comprehensive digital banking framework launched in 2019, which set new industry standards. More recently, Central Bank of the UAE has successfully conducted the first pilot project for a Central Bank Digital Currency (CBDC). The country remains among very few global economies that have achieved these feats.

Open banking is another segment set to revolutionise the UAE financial sector, offering personalised financial services and greater control over financial data, fostering innovation and improving customer service quality. Central Bank of the UAE’s (CBUAE)

Open Finance Regulation, introduced earlier this year, is a groundbreaking move that positions the UAE as a global pioneer by establishing a unified trust framework enabling secure and regulated access to financial data across various sectors.

The CBUAE has launched several initiatives to support the development of futuristic banking infrastructure. In addition to regulatory sandboxes, initiatives like accelerator programmes, techstartup hubs and projects like Financial Infrastructure Transformation (FIT) are further being implemented to enhance the financial ecosystem and improve banking infrastructure. Banks in the UAE are also actively integrating sustainability into their business strategies, offering green finance, investing in renewable energy projects and promoting sustainable finance initiatives.

Furthermore, the UAE’s strategic adoption and prioritisation of cybersecurity exemplify the country’s commitment to leading in digital banking and technologydriven economic development.

That said, there are a few areas that UBF and its members are working to enhance, especially in improving access to siloed data, which is among the top data priorities for the financial sector. With advancements like digital lending, embedded finance, AI assistants and other platforms unfolding, reducing risk, integrating data from disparate sources and ensuring data consistency and accuracy can be challenging. Hence, the central bank’s future vision also focuses on data management and integration strategies to efficiently leverage evolving technologies’ full potential.

Looking ahead, the UAE’s banking sector is poised to capitalise on emerging trends, driven by the CBUAE’s Financial Infrastructure Transformation (FIT) Programme and its vision to sustain an advanced, modern, future-ready financial system across the UAE. Meanwhile, the country’s commitment to innovation and its adaptive regulatory environment will be vital to maintaining its leadership as a global financial hub.

Jamal Saleh, Director General of the UAE Banks Federation

Room for All

As more institutions and authorities awake to the realisation that financial inclusion will create wider economic benefits across the region, and with government initiatives and the digitisation of finance making it now possible, we are starting to see the benefits it will bring

The GCC countries recognise the pivotal role of a robust financial services sector in driving economic growth and transformation. While the Middle East has historically lagged behind other emerging markets in terms of increasing access to basic financial services among its populations, the six oil-rich GCC countries are putting financial inclusion at the heart of their economic policy.

Financial inclusion is a vital catalyst for economic growth that empowers individuals and businesses to access financial services and enhance their quality of life.

Dubai fintech firm NOW money said GCC countries’ financial inclusion schemes are increasingly promoting the benefits that basic access to financial services provides for economic growth.

The link between financial digitalisation and enhancing inclusion is clear. The digital transformation of the financial service sector is rapidly changing the way we

bank by boosting access to a wide range of financial services and products, and in the process, supporting financial inclusion.

“Technology drives inclusion in financial services. It facilitates widespread education, accessibility and affordability that were previously reserved for a wealthy few, opening doors and breaking down barriers worldwide,” according to the World Economic Forum.

Open banking has the potential to foster financial inclusion by making financial services more accessible to the unbanked and underbanked population. To this end, the UAE, just like other GCC states, has already taken positive and effective steps towards financial inclusion, including the Wage Protection System.

“Open banking may offer many advantages for people with low incomes. If properly structured and with the right market conditions, the exchange of data that results from open banking can support financial resilience and financial inclusion in several ways,” according to the World Bank.

Furthermore, Central Bank Digital Currencies (CBDCs) could be a gamechanger for financial inclusion. Digital currencies can offer new ways to empower the unbanked by providing them with purchasing ability, introducing them to the financial system and bringing in a more diverse and competitive global marketplace.

“CBDCs, if properly designed and managed, may have the potential to enhance financial inclusion by addressing access and price barriers,” said the UNDP.

Financial inclusion is flourishing in regions that are pioneering techenabled financial systems. The GCC has made substantial progress in this area, paving the way for enhanced economic growth and empowerment of underserved communities.

Expanding inclusion

The Gulf region stands out as a beacon of financial inclusion in the Middle East. GCC central banks and financial regulators have been promoting digital financial

services to boost financial inclusion, digitise the informal sector and increase tax revenues.

From licensed financial institutions to fintech companies, open banking is revolutionising the financial services landscape by facilitating seamless partnerships via application programming interfaces (APIs). The innovative approach enables the creation of more efficient, personalised and accessible financial products and services for consumers.

“With increasing evidence of the societal benefits of open banking, central banks and monetary authorities in the Middle East highlight financial inclusion as a top priority as they reshape their financial regulations,” Yasmeen Al-Sharaf, Director of Fintech and Innovation at Central Bank of Bahrain said in a blog post.

Open banking holds the potential to revolutionise the financial landscape by fostering data sharing, enhancing transparency and enabling seamless fund transfers. It promotes a more interconnected financial ecosystem where various players can collaborate effectively.

The GCC is a microcosm of the global open banking trend. With varying levels of implementation and regulation, the region presents a dynamic landscape for financial services firms to innovate and capitalise on new opportunities.

Bahrain pioneered open banking in the Gulf region, introducing regulations in 2018.

Saudi Arabia, initially market-driven, adopted a more structured open banking approach in 2021 and launched a full framework in 2022. The Saudi Central Bank, also known as SAMA, unveiled an ‘Open Banking Lab’ in December 2022 to speed up the development of open banking in Saudi Arabia.

The ‘Lab’ constitutes a ‘technical testing environment’ to enable established banks and fintech companies the opportunity to ‘develop, test and certify’ open banking services to ensure compatibility with the framework.

Qatar, while still in its early stages, is actively working towards a robust

TECHNOLOGY DRIVES INCLUSION IN FINANCIAL SERVICES. IT FACILITATES WIDESPREAD EDUCATION, ACCESSIBILITY AND AFFORDABILITY THAT WERE PREVIOUSLY RESERVED FOR A WEALTHY FEW, OPENING DOORS AND BREAKING DOWN BARRIERS WORLDWIDE

– The World Economic Forum

open banking ecosystem. The central bank’s Fintech Sector Strategy Summary, launched in 2023, seeks to develop a robust framework facilitating digital transformation.

“No longer an optional extension of open banking, different countries’ prioritisation of financial inclusion reflects relative levels of importance and the recency of formal proclamations on the topic,” said Mastercard.

Open banking is challenging the traditional notion that financial inclusion is solely a philanthropic endeavour. By leveraging APIs, it offers banks and fintech companies a lucrative opportunity to create sustainable business models that expand access to financial services globally.

The innovative approach empowers financial institutions to unlock the potential of customer data through Banking as a Service (BaaS) and Banking as a Platform (BaaP). Together, BaaS and BaaP drive financial inclusion by expanding access to financial services and fostering competition in the market.

An enabling environment

Financial inclusion is commonly discussed as providing people with access to financial accounts and services. However, industry experts argue that this perspective overlooks the true transformative power of financial inclusion: helping individuals achieve financial health.

There’s no denying that GCC countries have made significant progress in financial inclusion over the last couple of decades, driven by a confluence of factors,

including a burgeoning fintech ecosystem, supportive regulatory frameworks and strategic government initiatives.

“The GCC is embracing a new era of economic diversification and, by expanding finance to previously excluded groups, financial inclusion is enabling every community to be at the heart of the process,” according to the World Economic Forum.

Financial inclusion is essential for fostering inclusive economic growth and ensuring that financial services are accessible to all segments of society, thereby solidifying the financial system.

Saudi Arabia’s financial system is a cornerstone of the Financial Sector Development Program under Vision 2030. SAMA is actively working to enhance financial literacy, expand access to financial services and bring the unbanked population into the formal financial sector.

Financial inclusion is one of the Central Bank of the UAE’s (CBUAE) key areas of focus under the National Financial Inclusion Strategy.

“The UAE’s commitment to financial inclusion is evident by its efforts to provide individuals and businesses with access to beneficial financial products and services, in line with its vision for a cashless society,” Younis Haji Al Khoori, Undersecretary of the UAE Ministry of Finance said in a blog post.

The UAE’s Wage Protection System (WPS), established in 2019 by the CBUAE and the Ministry of Human Resources and Emiratisation, enables payments of salaries to low-income professionals

electronically, such as domestic help employees, through bank transfers, exchange houses and authorised financial institutions.

The GCC has also achieved significant progress in microfinance. With its low barriers to entry and accessible nature, microfinance has been a crucial component of their financial inclusion strategies.

According to The World Economic Forum, microfinance opens the door to full-fledged banking services for individuals and small businesses who may not have access to traditional banks.

Government policies are building an enabling environment for the growth and effectiveness of microfinance initiatives. Across the length and breadth of the GCC, microfinance institutions are making consumer and business loans accessible to underserved communities, promoting financial inclusion.

Meanwhile, SMEs form a significant part of the GCC economies, but the sector has faced challenges in accessing financial services - programs and financial products designed to support SME growth are critical to financial inclusion.

Last November, the Abu Dhabi Global Market launched Numou, a cutting-edge digital platform tailored to bridge the funding gap faced by SMEs. The initiative connects SMEs and lenders through its seamless digital platform with features that have been designed to financially empower and support the growth of the SME ecosystem across the UAE.

Monsha’at, the Small and Medium Enterprises General Authority of Saudi

OPEN BANKING MAY OFFER MANY ADVANTAGES FOR PEOPLE WITH LOW INCOMES. IF PROPERLY STRUCTURED AND WITH THE RIGHT MARKET CONDITIONS, THE EXCHANGE OF DATA THAT RESULTS FROM OPEN BANKING CAN SUPPORT FINANCIAL

RESILIENCE AND FINANCIAL INCLUSION IN SEVERAL WAYS

– The World Bank

Arabia, has played a crucial role in supporting the kingdom’s SME sector through its Kafalah loan guarantee program. By the end of 2023, Kafalah had issued guarantees totalling over SAR 12.1 billion, enabling 5,476 SMEs to secure financing in excess of SAR 15.6 billion.

Similarly, Bahrain Development Bank unveiled its digital arm, ‘tijara,’ in January 2023 to empower the country’s SME and startup ecosystem through a simplified digital banking offering and easier access to financing solutions to fuel their growth.

Financial inclusion and beyond

The central bank digital currency (CBDC) landscape is expanding rapidly, with 134 countries representing 98% of the global economy exploring their versions, according to the US-based Atlantic Council think-tank.

Nearly half of these countries are in the advanced stages of development, and pioneers such as China, the Bahamas and Nigeria are seeing increasing adoption.

THE UAE’ S COMMITMENT TO FINANCIAL INCLUSION IS EVIDENT BY ITS EFFORTS TO PROVIDE INDIVIDUALS AND BUSINESSES WITH ACCESS TO BENEFICIAL FINANCIAL PRODUCTS AND SERVICES, IN LINE WITH ITS VISION FOR A CASHLESS SOCIETY

– Younis Haji Al Khoori, Undersecretary of the UAE Ministry of Finance

While countries are pursuing retail CBDC projects for various reasons, a common goal is to promote financial inclusion.

“CBDC has unique aspects that may benefit financial inclusion, such as being a risk-free and widely acceptable form of digital money, availability for offline payments and potentially lower costs and greater accessibility,” said the IMF.

CBDCs could significantly enhance the efficiency of cross-border payments, a priority for oil exporters and the GCC countries. The mBridge CBDC network, which is expanding rapidly, currently connects China, Thailand, the UAE, Hong Kong and Saudi Arabia, with more countries expected to join in 2024.

By encouraging competition in the payments market and enabling more direct transactions, CBDCs can help reduce the cost of financial services and make them more accessible, thereby advancing financial inclusion.

CBDCs offer a promising avenue for enhancing financial inclusion. By addressing the challenges and leveraging the opportunities, policymakers and central banks can work towards creating a more equitable and inclusive financial system.

Looking ahead, technology teamed with innovative approaches will continue to be crucial drivers of expanding financial inclusion. Banks, fintechs and other financial institutions should capitalise on these advancements to create sustainable business models while also making a positive social impact.

For One and All

Sabrin Rahman

,

Managing Director and Regional Head of Sustainability, HSBC Middle East North

Africa and Türkiye details some of the inclusivity initiatives that the bank is actively involved in and explains the key role that financial inclusion has in continuing economic development

What do you define and understand as financial inclusivity?

Essentially, financial inclusion is about ensuring that all individuals and businesses, regardless of income level or location, have access to useful and affordable financial products and services.

Financial inclusion has a particular focus on reaching traditionally excluded and underserved segments who, with access to financial tools and services, can help reduce overall inequality, promote gender equity and drive inclusive economic growth.

For us, we launched our customer financial inclusion strategy in 2022 with a focus on supporting our customers’ financial wellbeing through education, accessibility and inclusive design. It has three key pillars covering financial education & resilience, inclusive and accessible design of products and services and access to banking for both the unbanked and underbanked in some of our largest markets – including the UAE.

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

It is a very important priority particularly for our philanthropic endeavours where

Sabrin Rahman, Managing Director and Regional Head of Sustainability, HSBC Middle East North Africa and Türkiye

we have even more flexibility to support communities and societal segments that are not traditionally our target market. The importance of financial inclusion for us can be seen in terms of the different

programmes we run in different markets around the world.

In the UK, for example, we continue to make our branches more accessible by providing ‘safe spaces’ for domestic abuse victims, where they can seek specialist support and advice. In 2023, we also launched a specialist training programme to raise awareness among our colleagues from around the world on the topic of modern slavery and human trafficking. In the UK, this programme was completed by more than 5,300 colleagues. In addition, our strategic partnership with housing and homelessness charity Shelter UK aims to support those in crisis and build financial resilience solutions to help prevent homelessness in the future. We also created the “no fixed address” bank account which saw those in need referred to us via Shelter UK which is a big step towards allowing financial independence where customers can receive benefits or salaries.

Elsewhere, HSBC in Hong Kong launched a series of initiatives to make banking accessible to ethnic minority groups that do not speak Chinese or English. Language assistance is available at six designated HSBC branches to Indian, Pakistani and Nepalese customers who wish to open local currency accounts which have no minimum balance requirement. It is a basic bank account allows customers to receive money and pay bills and save for future financial goals. Customers can choose to apply for an ATM card for cash withdrawal and monthly statement fee will also be waived. We have similar accounts in the UAE and Egypt in line with Central Bank requirements.

For further support, part-time multilingual Customer Service Ambassadors are present at branches and help customers use the Bank’s service and communicate with branch officers in the customers’ language as needed.

Widening financial inclusion also means additional support for segments who may not enjoy enough access to finance. In Mexico, our Mujeres Al Mundo programme continues to support women as customers through products, services, education and networking events tailored exclusively for female business owners. This is a crossbusiness initiative that helps female business owners with their business as well as personal banking needs.

In 2023, the group also supported female-owned businesses through our $1bn Female Entrepreneur Fund, alongside hosting bespoke Pitch Day events for female entrepreneurs seeking investment.

importance of financial inclusion across different customer segments and around the world.

What can financial inclusion initiatives do for unbanked and low paid here in the Middle East? There is a lot being done and more that can be done for different groups around the region as customer needs evolve and change.

For example, we partnered with the Global Fund for Widows to launch the Widows’ Saving and Loan Association (WISALA) program in Egypt, providing 500 widows with more simplified access

THE IMPORTANCE OF FINANCIAL INCLUSION FOR US CAN BE SEEN IN TERMS OF THE DIFFERENT

PROGRAMMES WE RUN IN DIFFERENT MARKETS AROUND THE WORLD

Over the past five years, our colleagues also worked with three microfinance networks to advance financial and digital literacy of women from unbanked and underbanked communities in India. The programme has engaged with more than 550,000 women to build awareness and understanding of digital payment platforms, and enhance their ability to access banking services, such as savings, credit and insurance, as well as government welfare schemes. By the end of 2023, 56,000 women had undertaken loan repayments worth $521,000 via digital channels. Insights from the initiative will be shared with financial institutions and the National Payment Corporation of India, set up by the banking regulator to oversee retail payments and settlement systems in India, to increase unbanked households’ access to financial services and products.

These are some of the illustrative examples of initiatives that show the

to capital, working through traditional microfinance processes which could sometimes act as a challenging barriers such as the need for collateral and male co-signatories.

HSBC UAE and HSBC Singapore have collaborated with digital financial education provider Sophia, to create a programme designed specifically to help female customers build their financial knowledge. It covers a range of topics, including budgeting, ways to invest, investment strategies and how to talk to your children about money. This educational platform is designed by women, for women and aims to empower them to take more control of their finances.

HSBC UAE was the first middle east bank to launch the sunflower lanyard scheme. The Sunflower Lanyard, represents a discrete way for customers to communicate to us that they have a hidden disability which may not be immediately apparent, such as dementia or autism. Our staff have been

trained to spot the sunflower lanyard and support customers as needed such as providing them with a quiet space or extra support in filling out forms.

There are so many ways financial institutions from around the region and around the world are strengthening financial inclusion for a whole variety of different people and the success of each initiative is an inspiration.

What might the medium to long-term business benefits for economies arising from greater inclusivity?

Broadly, it’s fair to say that greater financial inclusion drives economic growth by enabling more individuals and businesses to participate in the formal economy, leading to increased economic activity and job creation. It plays a crucial role in poverty reduction by allowing an even greater number of people to save, invest and start businesses, creating a cycle of economic empowerment. Especially when successful initiatives empower people from segments of the population who would not otherwise have been able to participate as fully in the formal economy.

Enhanced financial resilience is another key benefit. Access to savings accounts and insurance products helps individuals and small businesses weather economic shocks, stabilising local economies during challenging times. Financial inclusion improves resource allocation within economies, as banks can more effectively channel savings into productive investments. It also accelerates digital transformation, leading to increased efficiency and transparency in financial systems.

We have an incredibly important role to play in building and scaling financial inclusion and literacy which is a strong driver of continued economic development. We have been working closely with the Middle East’s leading institution on building financial capability and awareness, INJAZ Al Arab helping instil these skills in the next generation for over a decade and are proud of the impact we have co-created.

Banks, Fintechs and Regulators in the Era of AI and Digital Transformation THE EVOLVING TRIUMVIRATE:

Bryan Stirewalt is well placed to assess the inevitable coming together of Banks, Fintechs, and Regulators and talks with Oscar Wendel Editor-at-Large for MEA Finance about this important conjunction

Bryan Stirewalt, Financial Services Regulatory Leader for EY – MENA

As the financial sector undergoes a profound transformation driven by digitalisation, artificial intelligence (AI) and fintech innovation, the roles of banks, fintechs and regulators are evolving in tandem. Ahead of speaking at the MEA Finance Banks and Fintechs Forum and Awards, Bryan Stirewalt, former Chief Executive of the Dubai Financial Services Authority (DFSA) and now the Financial Services

Regulatory Leader for EY – MENA, shared his insights with Oscar Wendel about how these stakeholders must work together to navigate the challenges and opportunities posed by emerging technologies.

In his current role, Stirewalt works closely with regulators and financial institutions across the region, offering a unique perspective on how technology is reshaping the industry and the steps regulators and firms must take to remain relevant in this fast-paced environment.

The AI Revolution in Financial Services

AI has become a ubiquitous part of the financial services landscape, though not all institutions may realise the extent to which they are already leveraging it. “AI is coming onto regulators’ agenda, though I won’t say it’s fully there yet. But it’s absolutely part of the broader digital transformation happening across the financial industry,” says Stirewalt.

AI can enhance back-office processes, reduce expenses, improve customer due diligence and even manage financial

crime risks. “AI is already being used in many institutions, whether they realise it or not. It involves front-office customer engagement, risk management and even robo-advice. The potential applications are vast”

As institutions become more reliant on AI, security is paramount. Two-factor identification is already standard practice for many institutions, but AI can further enhance security. Stirewalt highlights the increased sophistication of fraud attempts and how AI can prevent fraud. “Fraudsters are using AI to create more convincing scams, whether it’s fake emails or even replicating voices. These scams are getting harder to detect because the technology to generate them is so advanced.”

One significant risk is the ease with which scammers can recreate someone’s voice or appearance through video calls. “It’s terrifying to think someone could replicate your voice or likeness and then use that to convince someone else to send money. There’s even been a case where millions were transferred based on a fake video call.”

Shifting from Regulator to Consultant: A Broader View

Being a consultant also allows Bryan to appreciate the complexity of the regulatory environment. “When you’re on the regulatory side, you see things from a narrow focus—your specific jurisdiction or mandate. Now, I see a variety of approaches across the world.

It’s fascinating to see how some regulators are embracing technology, while others are still cautious.”

Dubai, for instance, has positioned itself as a leading sandbox for testing new financial technologies. “What makes Dubai unique is its entrepreneurial spirit, not just in the private sector, but also in government. People here are more willing to take chances and try new ideas. That’s what makes it such a fascinating place to be for financial services.”

The Risks and Rewards of AI and Fintech

While Dubai and the broader UAE provide fertile ground for fintech innovation, this also raises important regulatory considerations. Stirewalt acknowledges that the regulatory environment is designed to be more risk-averse, especially in regions where financial crime prevention is a priority. “The role of regulators is critical because they have to ensure that financial systems remain stable and secure while allowing room for innovation. It’s a fine balance.”

AI presents an exciting frontier, but it also introduces new risks. “AI is not just about adding efficiency; it’s about fundamentally changing how financial products are delivered. The challenge for regulators is to keep up with this pace of change. The traditional process of drafting and implementing regulations simply can’t keep up with the speed of technological advancements.”

A major concern is that criminals are using AI to commit fraud and financial crimes. “The scams we see today are getting more sophisticated because of AI. Whether it’s replicating voices or creating more realistic phishing emails, the threat is evolving rapidly. This puts pressure on regulators and financial institutions to stay ahead of the curve.”

Stirewalt points out that financial institutions must carefully balance the adoption of AI with risk management. “Banks and fintechs have access to the same AI tools, but how they use them can vary widely. Some may use AI to onboard

AI IS ALREADY BEING USED IN MANY INSTITUTIONS, WHETHER THEY REALISE IT OR NOT

customers faster, but this increases the risk of onboarding the wrong person. Others may use AI more conservatively, but that means they could miss out on valuable customers. It’s all about finding the right balance.”

Collaboration Between Banks, Fintechs, and Regulators

A key shift in the financial industry is the increasing collaboration between banks, fintech companies and regulators. This triumvirate is essential for fostering innovation while maintaining the necessary oversight. “The dynamics between banks, fintechs and regulators are changing. In the past, regulators may have been seen as gatekeepers, but now they are much more collaborative. They understand that innovation is happening so fast that traditional regulatory processes can’t keep up.”

According to Stirewalt, regulators now recognise the value that fintechs bring to the table, particularly in terms of their agility and customer-centric approaches. “Banks can’t always innovate as quickly as fintechs due to their size and bureaucratic structures. That’s why partnerships between banks and fintechs are so important. Fintechs can provide the niche services that banks need to stay competitive, but banks bring the stability and regulatory compliance that fintechs often lack.”

At the same time, regulators must ensure that these partnerships do not introduce new risks. “When banks partner with fintechs, they can’t just outsource everything and ignore it. They need to understand the risks involved. It’s a partnership, but it has to be managed carefully to ensure both profitability and compliance.”

The Entrepreneurial Regulator

While the UAE’s financial sector is known for its entrepreneurial approach, regulators must tread carefully between fostering innovation and maintaining oversight. Stirewalt believes that regulators can be entrepreneurial too. “It’s possible to be an entrepreneurial regulator, especially in Dubai. It starts with hiring the right people—those who understand the industry and are willing to engage in discussions with fintechs and banks.”

He emphasises that innovation in financial services must go hand-in-hand with regulatory caution. “Regulators have a critical role in ensuring consumer protection and financial stability. They have to be cautious, but they can’t be so risk-averse that they stifle innovation. It’s about finding the right balance between encouraging new ideas and ensuring that those ideas don’t introduce unnecessary risk.”

Navigating the Future Together

As financial services evolve at an unprecedented pace, the collaboration between banks, fintechs and regulators is more critical than ever.

“AI and digital transformation are fundamentally reshaping the financial industry. Regulators, banks and fintechs have to work together to navigate this new landscape,” says Stirewalt. “The future of financial services will depend on how well these three groups can collaborate, innovate and manage the risks that come with rapid technological change.”

The triumvirate must continue to evolve to ensure a vibrant, secure and innovative financial future.

BSF’S DIGITAL TRANSFORMATION:

Shaping the Future of Banking with Finacle

In this conversation between Mohammed Almisfer Chief Business Technology and Digital Officer, BSF and Sriranga Sampathkumar VP and General Manager – Middle East and Africa, Infosys Ltd., they enlighten us on the changing corporate banking landscape in Saudi Arabia and how Infosys Finacle have partnered with BSF to ready them for this key market’s new digital economy.

Mohammed Almisfer, Chief Business Technology and Digital Officer, Banque Saudi Fransi

Sampathkumar: In the GCC, what trends are driving change in the corporate banking landscape and how is BSF strategically maneuvering to stay ahead of the curve?

Almisfer: In the GCC region, we are witnessing significant shifts in the corporate banking landscape. The behavior of corporate clients is increasingly resembling that of retail customers, demanding more personalised, fast and digital-first

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

experiences. This transformation is resulting in high expectations from corporate clients who now require seamless integration across digital channels and mobile-first solutions.

Another key trend is the widespread migration of corporates to cloud-based solutions, which has led to the introduction of more integrated and comprehensive corporate offerings.

Unlike five years ago, when corporate clients primarily chose banking partners

based on cost, today’s corporates seek much more from their banking relationships. The digital maturity of a bank, particularly in terms of mobile and B2B integration capabilities, are now major factors influencing their decisions.

This shift is closely aligned with Saudi Arabia’s Vision 2030, which emphasises digital transformation and economic diversification. The government’s focus on fostering a digital economy is pushing businesses to adapt quickly to new technologies, and banks must respond with innovative and efficient digital offerings. At BSF, we are proactively responding to these trends by investing heavily in our digital capabilities. This includes the adoption of cloud technologies and the expansion of our digital offerings to provide a more personalised and efficient banking experience. We are committed to staying ahead of the curve by continually enhancing our digital infrastructure and ensuring that our services are aligned with the evolving needs of our customers.

Sampathkumar: BSF has set its sights on retaining its dominant position in corporate banking. Could you provide insights into three key initiatives that are pivotal to achieving this?

Almisfer: BSF is focused on several strategic initiatives to maintain and strengthen our position in the corporate banking sector: e-trade capabilities – As the demand for digital trade finance solutions is growing, we are ensuring that our offerings are not only competitive but also tailored to meet the specific needs of our corporate clients.

Cash management services

- Recognising the importance of liquidity management for our customers, we aim to deliver flexible and high-quality solutions that empower them to manage their cash flow with greater efficiency. Corporate lending and origination processes - This is a core area of our corporate banking strategy, and we aim to streamline the processes, making them faster and more efficient for our customers.

Additionally, we are looking to expand our customer base by tapping various digital channels to better serve SMEs and MSMEs. We are focused on creating seamless digital experiences that enable customers to open accounts and conduct transactions online, eliminating the need for branch visits. Our goal is to enhance the overall digital banking experience, ensuring that our services remain at the forefront of innovation and customer satisfaction.

Sampathkumar: Amidst the rapid digital evolution, what specific shifts in customer expectations and industry dynamics prompted BSF to embark on the journey of investing in a cutting-edge corporate online banking platform?

Almisfer: The shift in customer expectations towards greater speed and tailored solutions has been a key driver behind our investment in a cutting-edge corporate online banking platform. Corporates today expect banking offerings that are not only costeffective, but also those that address their specific needs. They are looking for solutions that offer flexibility and can be accessed quickly, without the need to visit physical branches.

Leading banks now offer bundled products and services, designed to meet their customers’ unique requirements with the convenience of fixed fees. BSF’s investment in our corporate online banking platform is a direct response to these evolving

expectations, and we are committed to delivering a solution that meets the market demands.

Sampathkumar: Could you walk us through the roadmap for accelerating BSF’s digital transformation within the corporate banking realm? What fundamental changes and initiatives are you employing to ensure a seamless transition?

Almisfer: BSF’s digital transformation journey is underpinned by a commitment to investing in both technology and talent.

advantage and ensuring that our digital offerings are aligned with the needs of our customers.

Sampathkumar: Beyond immediate gains, how do you anticipate the Finacle Online Banking platform contributing to BSF’s sustained growth and scalability?

WE ARE NOT JUST ACQUIRING NEW TECHNOLOGY; WE ARE ALSO BRINGING IN THE RIGHT PEOPLE TO DRIVE OUR DIGITAL INITIATIVES FORWARD

We are not just acquiring new technology; we are also bringing in the right people to drive our digital initiatives forward. Our transformation strategy includes several key initiatives:

Overhauling our core banking system, corporate channels and retail offerings, to create a more integrated and efficient digital infrastructure. Embracing straight-through processing (STP) and adopting an “agile implementation” approach, which allows us to standardise processes and reduce complexity. Investing in cloud technologies to enhance our scalability and resilience, ensuring that we can continue to deliver high-quality services to our clients.

Our roadmap is centered on optimising costs, enhancing our competitive

Almisfer: Finacle is one of the major players in this area, and we’re happy to have them as our technology partner. The Finacle online banking platform is a critical component of BSF’s strategy for sustained growth and scalability. The cloud-native composable platform offers us the flexibility, scalability and agility needed to respond quickly to the changing needs of our customers. By leveraging Finacle’s capabilities, we aim to introduce new features more rapidly, which is essential in today’s fast-paced banking environment.

We are also looking to expand our digital channels to tap small and mediumsized enterprises (SMEs) and micro, small and medium enterprises (MSMEs). This segment represents a significant growth opportunity, particularly in cash management services. By leveraging Finacle’s robust capabilities, we are wellpositioned to capture this growth and enhance our offerings across the board.

Sampathkumar: Partnerships often pave the way for innovation. How do you envision the collaboration between BSF and Finacle shaping up in the future?

Almisfer: The partnership between BSF and Finacle is seen as a long-term, strategic collaboration. We view Finacle not just as a service provider but as a partner in our digital transformation journey.

Our future roadmap is built on six strategic pillars launched in 2023, with a strong emphasis on growth across various sectors. This includes expanding beyond corporate banking to become a distinguished player in retail, private and affluent banking. We are confident that with Finacle as our partner, we can scale and innovate in these areas.

Formidably Focused

Niels Zilkens Head of Wealth Management, Middle East at UBS tells MEA Finance that they are expanding their team to meet growing regional demand for wealth services, and as one of the only major global banks whose core focus is wealth management, and with a long history in the region too, they are well placed to meet their top three priorities of clients, growth and integration

What has led to UBS recently strengthening its wealth management team in the Middle East?

With the acquisition of Credit Suisse, UBS gained an unmatched regional footprint, an unprecedented scale, and the largest exclusive investment universe. A broader set of wealth management, asset management and investment banking capabilities now provides even more for our UHNW and sophisticated clients in key markets such as Saudi Arabia, Qatar and the UAE.

In order for us to seamlessly execute on the bank’s strategy and maintain an unwavering focus on clients’ needs as the integration progresses, UBS Global Wealth Management decided to update its regional organisation and strengthen its teams on the ground. We continue to invest in our strategic markets, hiring senior client advisors across onshore locations. I am very pleased that we could attract talent with such strong professional backgrounds and local expertise. We have ambitious goals for

Niels Zilkens, Head of Wealth Management, Middle East, UBS

this key region, in which the bank has now been active for 60 years, and we are well positioned and ready to accelerate our growth strategy.

How do you see the regional wealth market developing in the coming five to ten years?

The Middle East is undergoing a significant transformation, with countries like Saudi Arabia and the UAE leading the shift from oil-dependent economies to embracing innovation and convening the world on issues such as climate change. This visionary approach is shaping the region’s economic, societal and cultural renaissance, re-emerging as a global influencer. The diversification of GCC economies coupled with impactful reforms presents significant opportunities regionally and on the global stage. Of course, there are challenges. The current conflict in the region and the tragic humanitarian toll are impacting people across the region including our employees, clients and partners.

However this region is resilient. There is an energy and dynamism that you can feel in this region. We believe that this is a region that will continue to attract people and capital in search of opportunities.

We estimate the size of total wealth across Middle East & Africa at USD 6.4 trillion which presents an already

attractive market. The robust economic growth and transformation that is projected across the region over the coming decade sets it apart from the rest of the world and has important implications for expected growth in wealth as well.

Not only will this region continue to attract wealth going forward but it will also create more wealth within the region. This will lead to more diversified pools of wealth with a strong entrepreneurial class driving an expansion of the HNWI

THERE IS AN ENERGY AND DYNAMISM THAT YOU CAN FEEL IN THIS REGION

segment. At UBS, we believe it is critical that we have the full-scale capabilities to be able to service the diversified segments. From the entrepreneur who has just sold their business to the sovereign wealth fund in need of sophisticated global market capabilities.

From an investment perspective our UBS Global Family Office Report 2024

shows several trends that we expect to continue over the next 5-10 years. From an asset allocation perspective we see growing demand from investors to increase and diversify their alternative asset allocation. Investors in this region have always had an affinity for real estate and indeed our findings show them having the highest allocation of any region globally. While we expect real estate to continue to play an important role in portfolios we see greater interest in other alternative asset classes including hedge funds, private equity, private credit and infrastructure. Secondly we see an increased reliance on manager selection and active management to enhance portfolio diversification and capture market opportunities. Finally investors continue to increase their exposure to the large technology innovations shaping our markets, economies and societies. For example we see great demand from investors on how to increase their AI exposure. HNWIs see how these innovations are transforming their businesses and they want increased portfolio exposure.

What do you see as the most essential priorities for HNWIs in the region?

I believe that HNWIs in the Middle East are no different than those in other regions in that their main priority is securing prosperity for future generations. In the Middle East it is estimated that USD1 trillion in assets will be transferred to the next generation during the next decade. As wealth transfer is accelerating, succession planning is increasingly being prioritised with several areas of focus.

The first is the professionalisation of their wealth management. We have seen a proliferation in family office setups whereby the strategic decision has been to partially or fully delegate responsibility to professionals with separation of the management of the operating business from the management of wealth.

In conjunction with this we see a growing awareness for education of the

next generation amongst wealthy families in the region. At UBS we have been successfully running dedicated programs for next generation family members for over 20 years and we continue to see increasing demand.

Most encouraging for us is that we see a strong focus from HNWIs in ensuring a strong framework and governance structure is in place. A “family constitution” or “family charter” helps define and align family values. For us, this alignment of values is critical in preserving, growing and transferring wealth across generations and we see HNWIs increasingly recognising its importance.

What investment demands are the newer generations of the regions wealthy making?

Today’s wealthy families, and how they operate, differs from one family to another, as family members may live on different continents and have alternative world views to prior generations. What’s more, there are examples of younger generations not wishing to inherit businesses in industries that might not have a long-term future. In our last Billionaire Ambitions Report more than half of the 53 heirs surveyed are choosing to step away, opting for careers more suited to their own ambitions, skills and circumstances. This means that the younger generations increasingly need to be convinced about succession plans rather than simply told. There is a greater need for consensus.

We often see that if and when heirs take over their parents’ businesses, investments and foundations, they are likely to focus more on today’s major economic opportunities and challenges, such as new technologies and the clean-energy transformation, in line with their own views, preferences and ambitions. The report I mentioned before also highlighted that there are distinct preferences when it comes to investing. Whereas first generation billionaires for example indicated a stronger tendency to increase their allocation to private debt

and developed market bond holdings over the next 12 months, heirs seem to favor private equity, as they indicated a preference to raise direct private equity investments and also looked to invest more in private equity funds.

As the wealth transfer gains more momentum and the younger generations take over, we have a tremendous opportunity to support and guide our clients through this transition, by putting our regional expertise and global capabilities to work.

How is technology and AI evolving the services you provide in our region?

At UBS, technology sits at the heart of delivering the client experience, enabling the bank of today and tomorrow. It is a clear differentiator and is helping us deliver better outcomes for our clients and employees. Our comprehensive technology strategy, including our focus on cloud and modernising our technology estate across all divisions and functions, has served us well as a basis for innovation and enabled a successful Credit Suisse integration to date, not just in the Middle East but around the globe. When it comes to AI, UBS has a proven

track record and experience in integrating AI into our processes. Our ambition is to become a fully AI-enabled institution where employees leverage AI tools for improved productivity and clients benefit from a highly personalised experience.

Being one of the world’s biggest private banks, how does UBS rank the UAE as wealth management hub?

The UAE, as the wealth management hub of the region, realises that a sound regulatory framework is one of the cornerstones to attracting capital to the region. From that perspective it has been very impressive to observe the people, policies and frameworks that the UAE has put in place to ensure international best standards.

The regulatory framework is a large part of the UAE’s appeal, with the English Common Law framework in the DIFC, for example, offering stability and familiarity. This framework and the steps taken over the last several years have been recognised globally and continue to increase the UAE’s attractiveness for global capital.

Adding to this is our clients desire to diversify assets across jurisdictions.

UBS Headquarters in Zurich

This is a consistent theme that comes up in discussion with clients. We strongly believe that having a global multishoring proposition is going to become increasingly important for global wealth managers. Our clients are globally mobile and they need a proposition which reflects this reality including multishoring capabilities.

The UAE is certainly part of the conversation when clients discuss the diversification of their assets and the trend is very clear for the UAE in terms of increasing its share of global assets. The reasons are multifold and include business friendly environment, robust infrastructure, sound regulatory environment and connectivity to not only this region but also Europe, Asia and Africa.

What unique features and services can UBS bring the regional HNWIs?

I think UBS differentiates itself in two reinforcing aspects; focus and size. By focus I refer to the fact that we are one of the only global banks that have wealth management as their core business. We have the full range of capabilities including global banking, global markets and asset management but our DNA is wealth management. This makes a difference in terms of how we prioritise our resources and capabilities. This focus is reinforced by our size. With over USD 5 trillion of global AUM we are a leading and truly global wealth manager. In this business scale matters in terms of your research, platform and capabilities not to mention global connectivity. When these are combined with our local presence, local knowledge and client proximity I believe we have an offering that stands out relative to our competitors.

Our Global Family and Institutional Wealth (GFIW) business for example, is a globally integrated service model for Family Offices, businesses and entrepreneurs, giving them direct onestop access to market access, structuring, financing and risk management services

and more. UBS has also created a dedicated network for entrepreneurs the “Industry Leader Network”, with a significant presence in the Middle East, facilitating valuable connections and opportunities for investment and growth. We also offer educational programs to assist fast growing companies, host a

to support and empower all female investors. Building on the success of our financial education program targeting women, and our regular Chief Investment Office publications on women and investing, we have integrated a groundbreaking and bespoke approach for advisers using behavioral science, to reimagine the delivery of wealth advice for women in the Middle East.

WITH OVER USD 5 TRILLION OF GLOBAL

AUM WE ARE A LEADING AND TRULY GLOBAL WEALTH MANAGER

variety of events, both physically and virtually, and offer further opportunities to entrepreneurs through a dedicated content hub to stay informed about business and industry trends, ensuring they remain at the forefront of innovation and market developments.

Our Women’s Wealth initiative underpins our longstanding commitment

Our UBS Global Visionaries program creates opportunities for clients and prospects to connect with leading social entrepreneurs, and in turn, helps the best entrepreneurs focusing on social and environmental issues to scale their positive change by expanding their network.

Can you tell us about UBS’s plans for the region in the coming years?

The Middle East has been a strategic market for UBS Global Wealth Management for years, as evidenced by the meaningful number of employees focused on the region, as well as by the additional senior strategic hires made across markets in the Gulf only recently. Today, the bank covers the region with offices in Doha, Dubai, Manama and Riyadh, as well as through dedicated teams in Zurich and Geneva. While we are leveraging our best in class booking platform in Switzerland and Singapore, we also have capabilities with the booking platform in Riyadh with access to Tadawul. We expect the region to continue being a center that allows banks to grow business and attract clients while competition is increasing. Given the proximity to the Asia Pacific region and strong connectivity to Europe, we see further opportunities to strengthen our capabilities and provide best in class service. Our top three priorities in the region are: clients, growth and integration. With our plans set and strategy defined, our way forward is clear. Together, we can create a uniquely competitive value proposition for our clients by blending the past and forging the future through persistency, drive and passion.

SWIFT, SECURE AND SEAMLESS:

Defining the Future of the Payment Landscape

In the ever-evolving landscape of finance, the mechanisms and technologies behind payments continue to shape our global economy, redefining convenience and security in unprecedented ways. MEA Finance spoke with Thomas Cherian, Chief Information Officer at Commercial Bank of Dubai (CBD), to gain insights into current payment trends and explore the future of payment applications.

What are today’s customers looking for in payments applications?

With the surge in digital transactions, consumers have developed specific expectations from payment applications to ensure their financial dealings are instant, seamless and secure. They value features like touchless payments, frictionless transactions, instant credit and safety in payments.

At CBD, we have always met our consumer’s expectations by innovating on every front. Our payment services provide the best-in-class features and functionalities needed to ensure smooth and seamless payments experiences.

CBD’s Mobile App has features, such as contactless payments utilising NFC and QR code scanning. All our cards are NFC enabled and support seamless use with wallets like Apple or Samsung Pay.

CBD is one of the early adopters of the UAE Central Bank’s instant payment platform ‘Aani’, which is directly

Thomas Cherian, Chief Information Officer, Commercial Bank of Dubai

integrated with our mobile app. It is one of the most user friendly and secure implementations of Aani and has been widely accepted by consumers, which is evident from the fact that withing two months of the launch we are already processing more than 250k transfers per month with an average time-to-credit of 3 seconds. Not only this, our Blockchain based eKYC and

pre-validation system allows beneficiary adding and pre-validation, ensuring “frictionless” payments while securing and safeguarding the transactions with best-in-the-region Strong Customer Authentication (SCA), along with realtime payment scanning.

How is CBD adapting to the role of Artificial Intelligence in its transformation of the payments landscape?

Among all the modern technologies that have transformed business practices, Artificial Intelligence undoubtedly stands as the most revolutionary. No industry has remained untouched by the influence of AI, and the banking sector is no exception. The integration of AI in payment systems has rendered everyday transactions seamless, efficient and significantly more secure.

CBD has been a forerunner when it comes to use of AI in banking. We implemented an AI/ML based real time payment scanning system to flag any unusual patterns and behaviours. This allows us to protect our customers from fraud and maintain compliance with ever evolving regulatory rules.

Moreover, we have integrated AI to streamline the payments process within the back office, enhancing both speed and efficiency. Our AI-powered cheque clearing system exemplifies this advancement, resulting in an 80% reduction in cheque processing turnaround time for our customers.

While these use cases show the latest trends in the banking and payment sectors, the potential of AI in this industry

is immense. For instance, AI can enable Shadow and Contextual payments by analysing customer history to streamline payment processes. Another application is the Dynamic Routing of payments, which uses AI to scan and apply historical data and real-time conditions, identifying the most efficient and cost-effective payment routes to minimise latency and reduce failures. Then there are more innovative possibilities, such as integrating AI with IoT for gesture and voice payments, enabling transactions through chatbots and hand motions.

One thing is certain, that AI will play a pivotal role in shaping the future of the payments and banking industry.

How is the new collaborative FinTech ecosystem of open banking and open finance impacting, improving and opening possibilities for payments?

Open banking and open finance have introduced a realm of possibilities for FinTechs and financial institutions collaboration. For example, enhanced payment services, where third-party providers can access customer accounts to initiate payments, perform account verification and offer services like real-time payments, improved cash flow management and personalised financial products. All this by using Open Finance to bypass traditional payment networks and intermediaries, allowing transactions to be processed more efficiently and at lower costs. Services like account-to-account payments will become more prevalent, enabling funds to be transferred directly from one bank account to another without the need for traditional payment card networks.

Another application is personal finance management tools leveraging data from multiple financial institutions to provide a holistic view of the user’s financial situation, enabling better budgeting, expense tracking and financial planning.

Service Providers can use open finance infrastructure to introduce features that can initiate payments on behalf of consumers directly from their

THE FUTURE OF PAYMENTS LIES IN SEAMLESS INTEGRATION, WHERE TECHNOLOGY TRANSCENDS BOUNDARIES, ENABLING INSTANTANEOUS, SECURE AND GLOBAL TRANSACTIONS AT THE TOUCH OF A BUTTON, AND I BELIEVE OPEN BANKING HAS THE POTENTIAL TO DO THAT

bank accounts, streamlining the checkout process for online transactions, reducing friction and enhancing user experiences.

UAE’s Central Bank understands that open banking and open finance can bring countless opportunities for the region, and we stand in line with them ready to support all the way through. We have already created the base infrastructure to quickly adopt Open Banking use cases as and when they come. Further, our mobile banking application is integrated with an Azure API gateway, and thus is ready for exposing APIs to external FinTech partners. We are all set to support Central Bank in building a collaborative FinTech ecosystem.

Please give us your thoughts and perspectives on the technology shaping the future of payments. Technology is shaping the future of world, and the payment industry is no different. Both Financial Institutions and FinTech companies have realised that adopting and adapting to the new technologies is a must if they have to survive the competition. In this purview several technologies are perfectly poised to shape the future of the payments industry.

Take digital currencies for example, Central Bank Digital Currencies (CBDCs) are set to become more commonly used to support the evolving customer needs, particularly in cross-border transactions, and CBD is proud to be one of the frontrunners in the adoption of the CBUAE’s CBDC initiatives.

Like I said before, Artificial Intelligence (AI) and Machine Learning (ML) are already integral to the payments ecosystem and they will become even more embedded in our daily transactions in the future. These technologies provide everything that today’s digital consumers desire, such as personalised payment experiences, optimized payment processes by analysing customer behaviour and enhance fraud detection.

Then there is Internet of Things (IoT), which can enable seamless and secure transactions across smart homes, cities and services, making everyday activities more convenient. Blockchain technology has potential for more dayto-day use cases like decentralising payment networks, reducing intermediaries, lowering transaction fees and increasing the transparency and traceability of transactions.

Technologies like, Quantum Computing are still in its nascent stages but hold tremendous potential for enhancing cryptographic security, making payment systems more resilient to cyberattacks and optimising large-scale transaction processing and data analysis, paving the way for more efficient and secure payment infrastructures.

Future of payments applications and technologies is bright, but it goes without saying that as we navigate this dynamic landscape, it is imperative to remain agile and forward-thinking, embracing the technological advancements that are set to redefine the financial world.

Creating Mutual Benefits

While at the inaugural 24 Fintech Summit, held in Riyadh, which impressively established itself as the world’s largest debut fintech event, Oscar Wendel, MEA Finance’s Editor-at-Large heard from H.E. Mohammed El-Kuwaiz, Chairman of the Capital Market Authority (CMA) who detailed the emerging symbiotic relationship between traditional finance and fintech

Fintech’s Role in Transforming Capital Markets

In a keynote with H.E. Mohammed El-Kuwaiz, Chairman of the Capital Market Authority (CMA), underscored how fintech is revolutionising financial services, notably in capital markets. “Fintech’s roots in capital markets trace back decades,” El-Kuwaiz stated, pointing out that digital trading began in the 1970s, well before the internet.

By Oscar Wendel

The inaugural 24 Fintech Summit, held at the Riyadh Front Exhibition and Conference Centre from September 3-5, 2024, attracted nearly 37,000 participants, establishing itself as the world›s largest debut fintech event, and at which the forging of a symbiotic relationship

between fintech and traditional finance was on the agenda.

Hosted by Saudi Arabia›s Financial Sector Development Program (FSDP), the Saudi Central Bank (SAMA), the Capital Market Authority (CMA), and the Insurance Authority (IA), and co-organised by Fintech Saudi and Tahaluf, the event demonstrated the Kingdom’s growing influence in the fintech landscape.

By the early 1990s, Saudi Arabia had adopted digital trading, and today, over 90% of the country›s trading volumes are carried out electronically. Globally, algorithmic trading—where technology makes real-time trading decisions—accounts for 60-70% of market volumes. Although newer to algorithmic trading in Saudi Arabia, these techniques now contribute to around 25% of traded volumes, reflecting their increasing importance.

The growing role of digitisation in financial services is mirrored in global IT spending trends. “The financial services sector represents almost 15% of global IT

H.E. Mohammed El-Kuwaiz, Chairman of the Capital Market Authority (CMA)

spend,” noted El-Kuwaiz. This substantial investment is driving efficiencies, innovation and new product offerings across the sector.

Regulatory Innovation Catalysing Fintech Growth

One of the critical drivers of fintech’s rise has been regulatory innovation. Historically, financial technology advances were constrained by traditional business models and regulatory frameworks. The introduction of regulatory sandboxes and experimental licenses has opened the door to meaningful fintech innovation.

“When regulators, including those in Saudi Arabia, embraced sandbox environments and experimental permits, it unleashed new business models and opportunities,” El-Kuwaiz explained. This regulatory evolution means Saudi Arabia is now one of the fastest-growing fintech hubs globally. Fintech now accounts for nearly a third of the country’s venture capital investments. This shift not only showcases fintech’s potential, but also highlights the substantial capital required to develop a thriving fintech ecosystem.

Looking ahead, El-Kuwaiz identified several areas ripe for fintech innovation. One of the most significant is simplifying the often-cumbersome account opening and authentication processes. “Nobody looks forward to opening an account with a financial services firm,” El-Kuwaiz remarked, emphasising the need for more efficient solutions. In addition, he highlighted the challenge financial institutions face in matching products to the right clients, where fintechdriven, data-driven insights can play a transformative role.

Bridging Fintech and Traditional Finance

Platforms that consolidate various financial services into ‘mini-markets’ are another example of how fintech is streamlining the client experience. Roboadvisors, crowdfunding platforms and fund distribution solutions are some

of the innovations cited by El-Kuwaiz as making a significant impact on the sector.

The CMA, under El-Kuwaiz’s leadership, has embraced a forward-thinking regulatory stance to foster fintech innovation while ensuring market stability. Four key areas of focus are financing, regulatory flexibility, acting as an interface between fintech firms and regulators and overall market development.

As the largest venture capital market in the region, Saudi Arabia’s ability to provide

fraudulent or manipulative behaviour. “AI is helping us track market moves and prosecute offenders,” he added, illustrating how regulatory technology (RegTech) is enhancing oversight.

Fintech’s

Influence on Future Investors

Beyond capital markets, fintech is shaping the behaviour of the next generation of investors. El-Kuwaiz shared a personal example: “When I talk to my own kids about financial services, their view is

TRADITIONAL PLAYERS ARE AMONG THE LEADING INVESTORS IN FINTECH AND MAY EVEN BECOME ACQUIRERS

–

H.E. Mohammed

El-Kuwaiz, Chairman of the Capital Market Authority (CMA)

fintech startups with the necessary financing has been instrumental in the sector’s rapid growth. El-Kuwaiz pointed out that the recent listing of the country’s first fintech company on the public market is evidence of this progress.

The CMA’s sandbox and experimental permit frameworks allow for tailored approaches to each startup, providing flexibility while protecting investors. However, El-Kuwaiz stressed the importance of a cautious approach during the experimental phase, particularly in managing risks such as data security and market manipulation.

Technology for Regulatory Oversight

Technological advancements are also reshaping the CMA’s regulatory capabilities. “Almost all legal actions in the capital market against offenders are detected using technology,” El-Kuwaiz revealed. The CMA has increasingly deployed artificial intelligence (AI) to monitor market activity, identifying potential anomalies that could signal

almost entirely informed by fintech, rather than traditional finance.” This generational shift underscores fintech’s transformative impact on the broader financial ecosystem.

While fintech is often seen as a disruptor, El-Kuwaiz stressed the symbiotic relationship emerging between fintech and traditional financial institutions. Increasingly, legacy financial firms are investing in fintech startups, either through venture capital or direct acquisitions, to remain competitive. “This works both ways,” El-Kuwaiz noted. “Traditional players are among the leading investors in fintech and may even become acquirers.”

As the fintech sector continues to expand, driven by regulatory innovation, technological advancements and increasing consumer demand, its influence on capital markets and the broader financial industry will deepen. Through strategic collaboration, investment and regulatory foresight, Saudi Arabia is wellpositioned to shape the future of financial services in the region.

Planning for a Smooth Transition WEALTH TRANSFER:

Samir Atitallah CEO of Mirabaud Middle East, explains why the smooth and orderly transfer of wealth across the generations has become a strategic priority, and with many families facing their first intergenerational wealth transfer, clear governance and access to suitable expert services will become increasingly essential

In February of this year, the Dubai International Financial Centre (DIFC) launched a ‘Sustaining family business success’ programme with MIT Sloan Executive Education. The aim of this initiative is to provide higher education to family businesses, and to leading family enterprises across the generations. This programme follows other regional initiatives and laws that

HOWEVER,

ONLY 20 PER CENT OF FAMILY BUSINESSES IN THE MIDDLE EAST LAST THREE GENERATIONS

have been put in place to support the smooth transfer of wealth. The DIFC launched the Family Wealth Centre and also enacted the Family Arrangements Regulations in early 2023 to support the preservation of legacies across generations and geographies.

The smooth transfer of wealth is a strategic priority across the region. According to wealth analytics firm, Kidbrooke, in the next decade, wealthy families across the Middle East will pass AED 3.67 trillion ($1 trillion) on to the next generation. Family wealth and businesses are the backbone of Middle East economies, and so their continued success is vital to the regional economy.

However, in the Middle East, many families will face their first intergenerational wealth transfer. They will have to navigate this transition against a backdrop of evolving social norms and economic volatility, managing both Sharia

and non-Sharia law and international inheritance and tax laws. The impact of personal family relationships and emotional sensitivities are also at play, and as such these periods of transfer are complex and can be fraught with pitfalls.

Clear governance is critical

Establishing clear governance helps manage the intricacies of wealth transfer and reduces the risk of friction.

Recently, the Dubai Centre for Family Businesses launched a ‘Sample Family Constitution’ toolkit, which guides families on how to establish clear and robust governance frameworks and manage family wealth. Family constitutions are documents that outline a family’s values, vision and the rules governing the management of a family estate and businesses. It can include guidelines for decision-making, conflict resolution and sets out family roles and responsibilities.

Family councils are also a useful forum for collaboration. They provide a regular opportunity for family members to discuss and resolve family business or estate related issues.

Such governance ensures the family house is in order and geared towards long-term sustainability which can prove vital in the process of wealth transfer and contribute to a smooth transition.

Family offices are powerful tools

According to the Capgemini World Wealth Report, 2024, single-family offices, have grown by 200 per cent during the past decade. One-in-two (52 per cent) UltraHigh-Net-Worth Individuals want to establish a family office. Family offices can be powerful tools for wealthy families. They provide a central hub that formalises and professionalises the management of family finances from investments and real estate to recordkeeping, philanthropy and wealth transfer according to the family’s values and vision.

Early succession

planning is key Family-owned businesses generate around 60 per cent of the UAE’s Gross

FAMILY WEALTH AND BUSINESSES ARE THE BACKBONE OF MIDDLE EAST ECONOMIES, AND SO THEIR CONTINUED SUCCESS IS VITAL TO THE REGIONAL ECONOMY

Domestic Product. However, only 20 per cent of family businesses in the Middle East last for three generations.

have the skills, mindset, knowledge and education needed to lead the family business into the future.

The value of professional expertise

Philip Marcovici, the co-author of Circular Economy Principles for Family Business and Wealth Stewardship believes that families should implement early succession plans to create stability and reassurance to stakeholders. This means family businesses can leverage founders as mentors and for client relationships, while developing the role of younger generations over time. Existing family heads are increasingly seen not just as owners but stewards that should nurture a future-oriented and agile family enterprise in line with the family’s values, so as to ensure the next generation

A professional advisor can facilitate and mediate family conversations about legacy planning. According to Capgemini, 65 per cent of High-Net-Worth Individuals reveal biases that influence investment decisions during significant life events such as marriage, divorce and retirement. And 79 per cent of High-Net-Worth Individuals want guidance from advisors to help manage such bias. Professional advisors can draw on sophisticated tools and expert knowledge to help clients with this. These include behavioural finance and artificial intelligence tools that base decisions on data rather than emotion or bias. Independent advisors can also propose a spectrum of options, and illustrate their impacts, that are helping wealthy family members to make better informed decisions.

A unique opportunity

The Great Wealth Transfer represents a unique opportunity for wealthy families in the Middle East. However, to survive and thrive, careful planning and a deep understanding of legal, financial, cultural and business considerations will be required. Drawing on both the support of government and advice from professional advisors who understand and are experienced with regional complexities and cultural nuances, High-Net-Worth Individuals can build a sustainable wealth strategy that bridges generations, secures legacy and fosters financial security for generations to come.

Samir Atitallah, CEO of Mirabaud Middle East

Looking Beyond the Payments Horizon

Regional leaders in payments joined the 2024 MEA Finance Leaders in Payments Conference held on the 12th of September 2024, at which an audience of more than 800 industry delegates attended debates on the ongoing effects of the fast-changing payments landscape

The payments landscape has undergone a dramatic shift over the past decade, transitioning from cash-based transactions to a diverse array of electronic payment methods, including real-time payments, contactless payments, digital wallets, split payments and instant transfers.

“The global payments industry is vast and growing, expected to generate

more than $3 trillion by 2026,” French consultancy firm Capgemini said in a report, adding that payments account for about 40% of global banking revenues.

Changes in the payments space have been accelerated by the advancements in innovative technologies as well as evolving customer expectations that have shattered the status quo and opened the window for new players

that are challenging legacy processes and systems.

The pursuit of convenience in the payments sector has been a catalyst for innovation. The payments landscape is ripe for artificial intelligence (AI) transformation, with automation, advanced customer service and increased service value as key use cases.

While AI holds great potential for new use cases, other payment trends offer significant opportunities to create value for businesses and consumers. “How to buy goes hand in hand with what to buy as payment systems integrate new technologies to keep pace with consumer demand and business needs,” according to Visa.

Meanwhile, the modernisation of the payments sector is an important journey that economies around the world are either embarking on or experiencing right now.

Globally, real-time payments are gaining traction in over 85 regions, offering the benefit of immediate funds transfer. The GCC is aligning with this global trend, with Bahrain, Saudi Arabia and the UAE launching their real-time payment systems (FAWRI+, SARIE, and Aani, respectively) and Kuwait, Qatar and Oman are expected to follow suit.

MEA Finance hosted its Leaders in Payments Conference and Awards 2024 on 12 September 2024 at The RitzCarlton Hotel - JBR in Dubai. Under the working theme for the event, Looking Beyond the Payments Horizon , a select group of finance, fintech and technology professionals gathered at the annual forum to discuss the future of payment services and identify promising trends and opportunities in the region.

Attendees at the summit discussed the growth of nationally instituted payment initiatives, competition in the payments space, the advancement of cross-border payments and the role of innovative technologies such as AI and cloud solutions in driving the adoption of instant payments.

“I recall our previous meeting postpandemic, where we discussed future plans. Since then, we have made significant strides and there’s much more to come,” Jamal Saleh, Director General of the UAE Banking Federation (UBF), said in his opening remarks.

Saleh highlighted that the UAE central bank’s innovative Financial Infrastructure Transformation (FIT) Programme has made substantial progress since its launch in 2023. Al Etihad Payments’ Aani, the country’s domestic switch and scheme, is now operational.

“A major accomplishment was the creation of the UAE’s first Central Bank Digital Currency (CBDC),” said Saleh.

“H.H Sheikh Mansour bin Zayed Al Nahyan, Vice-President, Deputy Prime Minister, Chairman of the Presidential Court and Chairman of the Board of the Central Bank of the UAE, made the first

H.H SHEIKH MANSOUR BIN ZAYED AL NAHYAN, VICE-PRESIDENT, DEPUTY PRIME MINISTER, CHAIRMAN OF THE PRESIDENTIAL COURT AND CHAIRMAN OF THE BOARD OF THE CENTRAL BANK OF THE UAE, MADE THE FIRST CROSS-BORDER PAYMENT FOR THE CENTRAL BANK’S DIGITAL CURRENCY

‘DIGITAL DIRHAM’ DIRECTLY WITH CHINA WORTH AED 50 MILLION THROUGH

– Jamal Saleh

THE MBRIDGE

cross-border payment for the central bank’s digital currency ‘Digital Dirham’ directly with China worth AED 50 million through the mBridge.”

Going forward, Saleh said UBF’s next goal in partnership with the central bank is to provide seamless, end-to-end, secure and inclusive digital services to all banking customers.

Jan Pilbauer, the CEO of Al Etihad Payments, said in his keynote speech that payments are essential but often overlooked. “They’re the arteries of economic growth, both globally and in the UAE/GCC region, powering everything.”

Pilbauer, who used some good analogies to underscore the importance of payments to economic growth, said Al Etihad provides the infrastructure for financial institutions to offer innovative services to customers.

“We have achieved a lot since our founding. Over one million people are using Aani, our inclusive instant payment system. We are also working on Jaywan, our national domestic card scheme,” he said.

Going real-time

Real-time instant payments, fuelled by both regulatory mandates and market demand, have seen steady growth since the UK unveiled Faster Payments in 2008, accounting for 266.2 billion transactions globally in 2023, a 42.2% year-on-year

growth, according to an ACI WorldwideGlobalData joint report.

Moderated by Alaa Al Rousan, Senior Account Director from Swift, the Instant Payments panel highlighted how financial institutions, working in partnership with technology companies and fintechs, have made significant strides in implementing these solutions.

The discussion had the participation of Andrew McCormack, Chief Operating Officer at Al Etihad Payments; Raju Adnani, Head for Domestic Payments for Middle East and Africa at Citi; Faisal Alhijawi, Chief Strategy and Development Officer at Buna; Fernando Pacheco, Global Head of Cash Management Product at Mashreq; Rashid Basheer, Head of Digital Channels at Al Ansari and Mohammed Wassim Khayata , Chief Executive Officer at Al Maryah Community Bank.

Al Rousan kicked off the panel by posing the question to Al Etihad’s McCormack: Are instant payment systems delivering on their promises?

McCormack said that since the launch of Aani precisely one year ago, significant progress has been made. “We have onboarded 41 participants (with a target of 50 by year-end) and have a million registered users in our overlay services. However, this is just 10% of our goal, so there is much more to be done on the user and issuer side,” McCormack said.

“Last month, we processed 5.8 million core transactions, representing a 300% increase year-over-year. P2P transactions have seen even more impressive growth, with a 500% increase in monthly volume.”

He explained that Aani is a two-pronged approach: a core transaction layer that enables near-instantaneous money transfers between licensed participants and a suite of overlay services that enhance user convenience, such as QR code payments and P2P transfers.

The implementation of real-time payment systems across the GCC region is driving significant benefits for businesses and consumers alike, ushering in a new era of financial innovation and opportunity.

From a global perspective, Citi’s Adnani highlighted that while the growth of instant payments in the Middle East and Africa has been impressive, it is essential to remember that adoption in the region is still in the early stages compared to Latin America (LATAM) or Asia Pacific (APAC).

Saudi Arabia currently leads the Middle East in real-time payment adoption, while the UAE’s Aani processed

64.1 million transactions worth AED 164.7 billion in 2023. Bahrain stands out globally for its high consumer adoption rate, and Qatar, Kuwait and Oman each launched their national real-time payment schemes in 2023.

“The primary objective of instant payments in the Middle East region is to reduce reliance on cash and paper-based transactions. This aligns with the broader goal of promoting a cashless economy. While progress has been made in peerto-peer payments, there’s still a need to encourage wider adoption in person-tomerchant transactions,” said Adnani.

He highlighted the affordability of instant payments, noting that their low or no fees make them attractive to both consumers and businesses.

Real-time payments are revolutionising the payment industry by addressing inefficiencies in traditional payment systems and enabling entirely new business models and use cases that were previously unimaginable.

When asked about the advantages of regional instant payment schemes, Buna’s Alhijawi explained that while

WE HAVE ACHIEVED A LOT SINCE OUR FOUNDING. OVER ONE MILLION PEOPLE ARE USING AANI, OUR INCLUSIVE INSTANT PAYMENT SYSTEM. WE ARE ALSO WORKING ON JAYWAN, OUR NATIONAL DOMESTIC CARD SCHEME

– Jan Pilbauer

regional instant payment schemes offer numerous advantages, crossborder payments present a different set of challenges compared to domestic transactions.

“To ensure a seamless cross-border experience, both sides of the transaction must be capable of instant payments and 24/7 straight-through processing. ISO 20022 messaging standards also play a crucial role in facilitating smooth compliance screening,” said Alhijawi.

Alhijawi highlighted that by addressing these factors, industry players like Buna can equip banks and payment service providers to offer their customers the same level of convenience and speed that instant domestic payments provide, including the ability to send and receive money instantaneously.

Payroll processing has emerged as a significant driver of real-time payment growth globally, enabling employers to offer instant payroll and employees to access their earned income immediately. However, instant payment services have much broader potential applications.

Pacheco said that the payments industry in the Middle East is at a crucial juncture, as instant payment schemes are revolutionising the landscape. He noted that instant payment schemes provide a robust foundation for developing innovative payment services such as direct debits, requests to pay and open finance, setting the stage for a promising future of digital payments.

“Beyond peer-to-peer transactions, the combination of instant payments and corporate APIs is revolutionising the customer experience for businesses. This allows for the development of new

PLATINUM SPONSOR

BADGE SPONSOR

payment options that can potentially disrupt traditional methods such as debit cards, cash and cheques,” said Pacheco.

Beyond facilitating cross-border business growth and market access, real-time payments offer greater transparency in the often fragmented and unpredictable business-to-business payments landscape.

Basheer highlighted that UAE’s Aani has successfully delivered on its promises of instant, secure and low-cost payments. However, the instant payments scheme’s full potential lies in its ability to expand beyond financial institutions to individual customers.

“Currently, Aani is primarily used for transactions between financial institutions. To realise its maximum impact, we need to promote Aani directly to end customers and encourage wider merchant acceptance,” said an optimistic Basheer.

With the support of the government and the UAE central bank, Basheer is optimistic that Aani will soon become a mainstream payment option, revolutionising the way people transact in the country.

Many instant payment systems leverage ISO 2022 messaging standards, enabling two-way communication through messages such as requests for payment, requests for information and confirmation of payment.

Khayata weighed in, saying that Aani provides a foundation for fintech innovation, enabling the development of new payment services such as buy now, pay later (BNPL), smart cash management and household expense management.

“One of the most significant benefits of instant payments is their ability to promote financial inclusion. By simply having a bank account, individuals in the UAE can now benefit from instant payments, which can improve their cash flow and management,” said Khayata.

The growing popularity of real-time instant payments is driving consumer expectations for faster, more convenient transactions, putting pressure on market infrastructures to keep pace.

Ahmad Jishi, Data and AI Leader at GBM Dubai and Northern Emirates, gave a presentation on the transformative role of artificial intelligence (AI) in the payments industry. Jishi noted that while the rise of instant payments has brought many benefits, it has also created new challenges, particularly in fraud.

He emphasised that AI is a crucial tool in combating these threats. By utilising AI-powered solutions, we can proactively identify and prevent fraudulent activities, safeguarding the security and reliability of instant payment systems.

A catalyst for innovation

The outbreak of the pandemic boosted the adoption of digital payments, fuelling a surge in usage across different industries. Despite the resumption of in-person shopping, the gains made on the e-commerce front during the pandemic have not only been maintained but have also continued to grow in some instances.

The discussion titled, The Path for Payment Gateways was moderated by Rajesh Nagpal, Director of Sales – Cross Sector at GBM.

The panel was joined by Altaf Ahmed, Director, Digital Payments and Retail Solutions for e&; Anjali Aggarwal , Head of Noon Payments Business GCC – Payment Gateway at Noon; George Hojeige , CEO for Virtugroup;

Sasi Nair , Head, Technology Service Delivery, Commercial Bank of Dubai; Lynne McMillan , Regional Head of Global Payment Solutions Operations and Wholesale Operations at HSBC and Pradeep Negi, Vice President, Payments Portfolio Delivery at RAKBANK.

Quizzed about the potential of AI in the payments industry, e&’s Ahmed said AI is rapidly transforming the payment gateway landscape, offering numerous benefits to both merchants and consumers while identifying fraud prevention as one of the use cases.

He said that by analysing vast amounts of transaction data, AI algorithms can detect suspicious activity in real-time and safeguard against fraudulent transactions.

“AI is playing a crucial role in revolutionising the payment gateway industry. Its ability to improve fraud prevention, enhance personalisation and streamline operations is driving significant benefits for both merchants and consumers.”

With the total transaction value of digital payments expected to grow at a CAGR of 12.6% from $26.7 billion in 2024 to $48.4 billion in 2029, the future of commerce is increasingly digital, and payment gateways are the most effective tool for accepting payments with online businesses.

“The payment sector is undergoing a significant transformation, with instant payments emerging as a key trend. In this new landscape, payments are becoming increasingly invisible to consumers, facilitated by merchants, super-apps or other front-end platforms,” said Nair.

To thrive in the new paradigm, Nair believes payment service providers should focus on driving transaction volume through their payment rails. This can be accomplished by cultivating collaborative partnerships with a diverse range of industry players in the payment ecosystems.

Negi weighed in, saying the primary focus for any payment gateway should be on affordability, security and convenience.

He further highlighted that RAKBANK is prioritising the trust and experience of its customers and designing its payment services and products around these principles.

“The payment gateway represents the last mile of trust. Customers have already placed their trust in various forms of payment, such as cheques and debit cards; the gateway is where all these services converge, giving customers control and confirming,” said Negi.

Payment gateways, the customerfacing technology that securely captures and encrypts payment information during checkout, play distinct roles in the world of payment processing.

Aggarwal said Noon has witnessed a shift in how customers interact with the e-commerce platform since its establishment nearly a decade ago. He stated that while the company initially relied heavily on web-based transactions when it was launched

seven or eight years ago, the majority of its transactions have now shifted to the mobile app.

“Our payment gateway must accommodate the distinct payment requirements of each business within Noon. While Noon e-commerce and Noon One utilise tokenised cards, Noon Food and Noon Minutes offer customers the convenience of checking out without requiring a CVV for every transaction.”

“Payments are supporting the development of digital economies and are driving innovation — all while functioning as a stable backbone for our economies,” said PwC.

The world of payment gateways is rapidly evolving, and businesses need to keep pace to deliver exceptional customer experiences.

Banks in the GCC are at the forefront of this transformation, acting as essential intermediaries between merchants, consumers and payment processors.

THE PRIMARY

OBJECTIVE

OF INSTANT PAYMENTS IN THE MIDDLE EAST REGION IS TO REDUCE RELIANCE ON CASH AND PAPERBASED TRANSACTIONS. THIS ALIGNS WITH THE BROADER GOAL OF PROMOTING A CASHLESS ECONOMY. WHILE PROGRESS HAS BEEN MADE IN PEER-TO-PEER PAYMENTS, THERE’S STILL A NEED TO ENCOURAGE WIDER ADOPTION IN PERSON-TO-MERCHANT TRANSACTIONS

– Raju Adnani

“We have talked a lot about trust, which is essential from a technical and industry perspective. But from the viewpoint of a new e-commerce entrepreneur, trust is not even a concern,” said Hojeige.

He believes that the real concern for startups is cost, especially for entrepreneurs who are just starting with limited funds. With the advancements in AI, Hojeige said payment gateway providers should adopt cutting-edge tools to streamline the onboarding process.

Financial institutions in the Gulf region are augmenting services and products to meet evolving consumer and business demands as the industry continues to grow.

HSBC’s McMillan emphasised a continued focus on customer experience, saying, “This is fundamental to growth and it’s important to extend this focus throughout the entire customer journey – from initial integration to usability, accessibility and security.”

McMillan said HSBC launched Omni Collect in the UAE, the first market in the Middle East where the bank introduced the solution. “Omni Collect helps our business clients take advantage of the growth in digital payments. It’s integrated through APIs, providing scalability across markets, and ensures that our global clients experience the same level of service across different regions,” she said.

Payment systems have emerged as the backbone of modern commerce, facilitating seamless transactions between businesses and consumers. A boom in e-commerce, the digital economy, tech advancements in payment systems and the increasing globalisation of trade are fuelling their growth.

State of the industry – competition in payments

The payments landscape in the GCC has evolved rapidly, driven by technological innovation, diverse payment methods and a dynamic market with both new entrants and regulatory oversight.

Ian Hooper, Senior Partner at PwC, moderated the Competition in Payments panel, in which were included Venkata Prasad Indraganti, Senior AGM, Head of Transaction Banking at Commercial Bank of Qatar (CBQ); Abdulla AlTaee , Chief Operating Officer at United Arab Bank; Sara Raza , Head of Co-Brands – Cards Business at Emirates NBD; Saleem Ahmed, Chief Operating Officer at GSS Group; Osama Al Rahma, Head of Business Development at Emirates Investment Bank and Cem Soydemir , Head of Payments Go-To-Market at Swift.

Hooper opened the panel by asking Al Rahma about the state of competition in payments in the UAE. Emirates Investment Bank’s Al Rahma said the payments industry in the UAE and the wider Middle East region is at a pivotal crossroads.

He underscored that the UAE government’s visionary approach to the future extends to the central bank, which laid out a clear National Payment Strategy in 2021 to bolster the country’s payment infrastructure to a state-of-the-art level.

“The goal is for the UAE to become a global leader in the payment ecosystem. This has not only set a benchmark for the financial sector but has also encouraged other stakeholders to follow suit,” said Al Rahma.

McKinsey said the GCC payments market has recently expanded to include fintech firms, tech companies and telcos

alongside incumbent banks – a shift that is enabled by regulatory changes, evolving customer expectations and tech advancements.

Ahmed concurred with Al Rahma, saying that the UAE central bank, through its Financial Infrastructure Transformation program, is introducing key initiatives such as real-time payments, end-to-end processing, QR Pay, eDDA (Electronic Direct Debit Authorisation), open finance, eKYC and Central Bank Digital Currency (CBDC).

“The UAE central bank is working towards creating a cashless society, promoting financial inclusion and fostering healthy competition within the financial sector. It is laying the foundation for competition to flourish while creating opportunities for incumbent banks, fintech firms and payment services providers,” said Ahmed.

The competition in the industry has heated up as real-time payments become more popular, instant bank transfers gain traction and companies in the payments space form partnerships to expand their reach and services.

Giving a Qatari perspective, CBQ’s Indraganti said the Gulf state has been proactive in following the developments in other GCC states, ensuring it stays competitive in the region’s financial landscape.

“The Qatar Central Bank has implemented several key regulations aimed at modernising the country’s financial infrastructure. The central bank introduced FAWRAN in April, Request to Pay in June, launched CBDC for the wholesale sector and unveiled regulations for digital assets,” added Indraganti.

Together with the launch of instant payments, Qatar’s central bank seeks to advance the country’s payments ecosystem as it pushes banks to adopt more modern digital payment solutions.

To stay competitive in the evolving payments landscape, incumbent banks and other partners in the ecosystem must adopt new strategies to find innovative ways to generate revenue while optimising costs.

The emergence of Pay by Bank facilitates immediate fund transfers using the Automated Clearing House (ACH) system. This payment option provides a more secure and convenient means of completing transactions without the need for customers to enter their credit or debit card details.

Pay by Bank offers debits, transfers, redirects and real-time payments that can be processed instantly, depending on the banking infrastructure. Authentication methods such as bank login or multifactor authentication ensure secure transactions.

United Arab Bank’s AlTaee said, as a bank in the UAE, “we find ourselves compelled to evolve and compete with the market. It’s become essential to position ourselves and invest in the necessary infrastructure to keep pace with other banks or risk falling behind.”

He stressed that the competitive UAE landscape forces incumbent banks to adapt and failing to do so means losing relevance in the market.

“Leading corporate banks in the UAE, including Mashreq and Emirates NBD, are heavily involved in acquiring businesses and providing support to their corporate clients. If these incumbents

fail to embrace new technologies and incorporate them into their acquiring businesses, they will lose both market share and revenue,” said AlTaee.

Raza consented with AlTaee that competition in the payments industry is currently highly intense. It is essential for driving innovation and ensuring that end consumers receive the best products and choices.

“While competition is certainly intense, it is leading to positive outcomes for both the industry and consumers. The proliferation of payment solutions is happening in the right way, paving the path for continued growth and innovation,” she said.

The payments landscape has expanded to include a diverse range of players, from digital wallets to fintech startups and the Big Techs. The new entrants are disrupting the market by offering targeted payment solutions and superior customer experiences at competitive prices.

Swift’s Soydemir highlighted that for high-value payments, crossborder transactions have become more decentralised, leading to the emergence of new network alternatives in addition to established systems like correspondent banking.

He further observed that for lowvalue payments, in addition to traditional players, new fintech companies

have emerged, driving cross-border transactions to be more affordable, faster and more efficient.

“The competitive landscape has actually had a positive impact on Swift. It has pushed us to become more innovative,” said Soydemir. “We have introduced new solutions, starting with the launch of Swift GPI in 2016. Today, cross-border payments on Swift rails are fast and transparent.”

The battle for market share in the financial services industry is increasingly being fought on the front lines of customer

The innovation catalyst AI is revolutionising the GCC payments landscape by automating tasks like cashflow forecasting, offering valuable insights into industry trends and enhancing security through account validation and fraud management.

The discussion on AI in payments – Risks and Rewards was moderated by Anna Zeitlin, Partner at Addleshaw Goddard.

Participating in this panel were Dr. Joseph George, Chief Digital Information Officer at Doha Bank; Mahendra Dhillon, Chief Technology Officer at National

AI IS PLAYING A CRUCIAL ROLE IN REVOLUTIONISING THE PAYMENT GATEWAY INDUSTRY. ITS ABILITY TO IMPROVE FRAUD PREVENTION, ENHANCE PERSONALISATION AND STREAMLINE OPERATIONS IS DRIVING SIGNIFICANT BENEFITS FOR BOTH MERCHANTS AND CONSUMERS

– Altaf Ahmed

experience, especially in the payments space. Companies that excel in this area will thrive and outpace their competitors.

Enaz Ibrahim, Managing Director and Head of Consumer Payment Solutions at Magnati, gave a presentation on embedded finance.

Ibrahim said embedded finance thrives on collaboration – banks, fintechs and non-financial institutions working together to offer seamless, efficient payment experiences. The trend is already transforming industries, from ride-hailing to telecommunication companies that are integrating financial services into their platforms.

“The future of embedded finance is more than just about cards or bank accounts. It is about creating ecosystems where financial and non-financial institutions collaborate, enabling real-time payments and personalised financial services.”

Bank of Fujairah; Ramana Kumar, Chief Executive Officer at Magnati; Mamoun Alhomssey , Chief Technology Officer at Ajman Bank and Damon Madden , Strategic Solution Consultant for Fraud, MEASA at ACI Worldwide.

“AI is not just disruptive – it’s essential. If you are not leveraging AI, you risk falling behind. At the National Bank of Fujairah (NBF), we view AI in its entirety, and the rewards we have seen have been tremendous,” said Dhillon.

“Whether it’s enhancing operational efficiency, improving customer service, or optimising processes in the payments space, AI is crucial. Some tasks are too complex for manual handling, but with AI, we now have the technology to streamline them.”

The innovative technology can significantly improve the payment experience by offering personalised

solutions, enhancing security and streamlining digital transactions. The advancements in payment technology are benefitting businesses and consumers alike, making payments more efficient and secure.

“Our goal is to make payments as simple and intuitive as possible,” Ajman Bank’s Alhomssey said, adding that the bank is introducing conversational

Just as the AI industry is facing upheaval as it develops and grows, the use of the technology is still finding its way into the payments space and iterative processes and experimentation are slowly uncovering the potential, limitations and opportunities.

ACI Worldwide’s Madden said that as a software development house, “we are not only focused on developing software but also on maintaining it, providing

THE UAE CENTRAL BANK IS WORKING TOWARDS

CREATING A CASHLESS SOCIETY, PROMOTING FINANCIAL INCLUSION, AND FOSTERING HEALTHY COMPETITION WITHIN THE FINANCIAL SECTOR. IT IS LAYING THE FOUNDATION FOR COMPETITION TO FLOURISH

WHILE CREATING

OPPORTUNITIES FOR INCUMBENT BANKS, FINTECH FIRMS AND PAYMENT SERVICES PROVIDERS

– Saleem Ahmed

payments across various channels –whether through chat, mobile platforms or even leveraging generative AI to enable seamless transactions.

“We are working closely with our partners to provide payment options that align with customer preferences. The idea is to offer flexibility, allowing customers to choose how they want their payments to be processed.”

help desk support and offering various reporting services.”

“What we have been able to do is leverage AI to scan for specific keywords in the customer’s description and cross-reference those with our internal documentation and historical cases related to the software.”

Most of GenAI’s potential in the payments space rests on the operations

side because the industry has many aspects for which the new technology is applicable, including high-volume, high-frequency and data-rich operations that involve human-intensive workloads, according to BCG.

Kumar said Magnati is focusing on how to embrace technology while ensuring we have the proper controls in place; for instance, “when we launched Magnati Metaverse, we were among the first in the region – aside from Facebook - to pilot the Metaverse.”

“What we have done is enhance the merchant lending platform by integrating real-time transactional data. By working with fintech partners, we have developed a model that layers this transactional data on top of a bank’s credit scoring.”

The consultancy firm projected that the UAE’s payments industry is poised for significant growth, with total revenue expected to reach $19.8 billion in the next five years. The growth is driven by the increasing adoption of digital payments and technological innovations, including the emergence of GenAI.

“When we talk about payments, especially in the context of leveraging GenAI for an improved customer experience, it is critical that customers feel confident their provider or bank is ensuring security,” said George.

“While GenAI is enhancing the efficiency of payment processes, we are showing our customers that security is a top priority. This builds trust and customer loyalty.”

Though the technology is still nascent, its impact on specific payment operations

could be profound. It can potentially provide comprehensive solutions for all stages of the payment process, including marketing, sales, customer acquisition, identity verification, customer support and fraud prevention.

Banks and payments companies are leveraging AI to streamline operations, personalise customer experiences and drive sustainable business expansion.

A new payments era – partnering for performance

For decades, GCC countries have been pioneers in the realm of digital, mobile and instant payments. The region has a dynamic competitive landscape comprising incumbents, payment specialists and fintech startups, coupled with a longstanding tradition of cooperation and collaboration.

Moderated by Bryan Stirewalt , Financial Services Regulatory Leader at EY, the Partnering for Performance panel highlighted how the payments landscape is undergoing a rapid evolution, driven by the convergence of banks, fintech firms and technology companies.

The panel included the participation of Rachel Shackman , Executive Director, Payments - NBFI Sales, Middle East and Africa for JP Morgan; Somu Roy, Managing Director for Outsourced Payment Services in the UAE at Network International; Seemanti Considine , Head of Financial Institutions and Transaction Banking at Wio Bank; Dheeraj Ghai, Senior Product Manager – Payments and Cash Management, TCS

BaNCS CoE at MENA at TCS and Biswas Dhakal, Group President, F1Soft Group.

Stirewalt kicked off the panel by emphasising that payments are the backbone of the global economy.

“Traditionally, many financial institutions have treated payments as just another service. However, in recent years, fintech has completely transformed the space by focusing on the customer’s needs,” added Stirewalt.

The era of incumbent banks functioning in isolation is over. To thrive in today’s competitive landscape, collaborating with technology giants and other players in the payments industry is crucial.

“Globally, the financial ecosystem has been evolving, and I believe the Middle East is at the forefront of this transformation. Partnerships between banks and fintech firms have become essential,” said Shackman.

He said over the past year, several global banks have been collaborating with fintech companies in the Middle East.

“One critical factor driving these partnerships is the need for global banks to acquire local expertise and understanding in the markets where they operate.”

By acquiring fintech companies or forming strategic partnerships, incumbents can expand their service offerings and achieve scale more rapidly.

Wio Bank’s Considine said that partnerships are integral to our business model as a digital bank. “Partnerships aren’t just about working with fintechs and technology companies; they extend to collaborating with customers

to ensure we are delivering the best possible experience.”

Considine said by partnering with agile, innovative players, “we can leverage their expertise and combine it with what we have built internally to create a robust infrastructure.”

Roy concurred with Considine that financial institutions are concentrating on developing ecosystems designed to foster innovation and effective collaboration.

“By combining our innovations, we can collectively move away from cash reliance, which benefits everyone involved – both us and the fintech firms,” Roy added.

“When I think about partnerships, I liken them to the relationships we have with friends and family. Just as we need these connections to thrive, the ecosystem requires collaboration to evolve and flourish.”

The GCC payments sector has witnessed several success stories between fintech firms and incumbents, ranging from payment solutions that integrate seamlessly with existing banking apps to blockchain technology that enhances security and efficiency, resulting in game-changing innovations that are redefining customer experience and expectations.

“Both competition and collaboration characterise the current market landscape. With the influx of payment innovations, the entire value chain and lifecycle of payments are evolving,” said Ghai.

“No single player can provide everything on their own; instead, we see

various players specialising in different aspects, such as payment initiation, processing and settlements.”

Industry experts say new market entrants are poised to become the dominant providers of payment interfaces that cater to both consumers and merchants, while established players will likely maintain their role in managing the underlying payment infrastructure.

Dhakal said that while all organisations, particularly financial institutions, strive to serve their customers optimally, he has witnessed firsthand that inherent constraints often impede their progress.

“To bridge this gap, organisations seek strong partners who can collaborate, understand their needs, and develop solutions that enhance customer service.”

Banks in the GCC region are expected to increasingly form partnerships with fintechs, payment service providers and technology firms instead of competing against each other.

Cross-border payments

The future of payments lies in adapting and catering to the diverse needs of customer segments and emerging trends. There is a rising demand for a cross-border payment system that offers speed, security, and efficiency as global economies become increasingly interconnected.

The discussion on Cross Border Payments - The Roadmap to Deadline 2027 was moderated by Alaa Al Rousan , Senior Account Director, Swift. Panel members included Roland Brandli , Business Strategy

Director at Smartstream; Angel PerezCamacho , Director and Head of Institutional Cash and Trade (ICT) for North Africa and Levant Region at Deutsche Bank; Ahmed Salahy, Head of Strategic Partnerships, Careem Pay; Faisal Alhijawi, Chief Strategy and Development Officer at BUNA; Joseph Cleetus, Head of Business Transformation at Lulu Financial Holdings and Adrien Sicoli , Chief Growth Officer, DiXiO.

Opening the panel with a short slide presentation to frame the following debate, Al Rousan displayed charts taken from a detailed report that were developed in 2020 following the G20 meeting that took place in Riyadh, Saudi Arabia to debate the enhancement of the cross-border payments experience globally. Finishing his display, Al Rousan said, “Those are the latest slides let’s say, our latest numbers coming from this year, ahead of 2027 targets. We are talking about 90% of cross-border payments are being reaching the beneficiary within one hour. So really ahead of the target that we are talking about for 2027”.

“Real-time instant payments are becoming increasingly crucial for cost efficiency and the overall effectiveness of transactions. Several countries are now recognising efficient instant payment systems and are moving swiftly to implement these solutions,” said Cleetus.

He emphasised that by developing liquidity bridges leveraging innovative technologies such as tokenisation or escrow accounts, the financial services sector can make settlement smoother and more efficient.

Global payments are expected to reach approximately $290 trillion by 2030, according to FXC Intelligence, supported by trends such as borderless e-commerce, cross-border trade and digitalisation of payments across industries.

Brandli noted that the world is rapidly changing. Previously, cross-border payments could take two to three days, and if problems occurred, resolution could take additional days. “However, today, we have raised customer expectations –consumers expect things to move fast,” he added.

“Cross-border transactions often involve multiple payment rails, such as Swift MT, ISO, and RTGS systems. While ISO is a positive development, it’s not a silver bullet. Each rail populates messages slightly differently, requiring banks to navigate a complex system of formats and exceptions.”

“Cross-border payments is a large and growing business with expected 2022/27 growth rates in the high single digits for innovative players who invest in this business,” said McKinsey.

Cross-border payments are an integral feature of today’s world. They play a vital role in keeping the economy healthy and stable. The payments typically require three to five days of end-to-end processing before reaching the intended recipient and the shortcomings are compounded by high costs, lengthy settlement times and opaque processes.

“Cross-border payments could take an extended time to reach beneficiaries, but now, achieving a milestone where 90%

of payments reach the beneficiary bank within an hour is already a remarkable accomplishment,” said Perez-Camacho.

He highlighted that the next essential step is to expedite the process of the beneficiary bank crediting the final recipient while noting that there are still opportunities to refine certain aspects of the payment process to streamline the end-to-end transaction fully.

However, the cross-border payment space is being jolted by several trends that could fundamentally change competitive dynamics. The introduction of ISO 20022 has already displaced many legacy payment messaging schemes and this process is accelerating.

When asked about the positive impact of ISO 20022 on the financial services sector, Alhijawi said the advantages of ISO 20022 are becoming apparent to all, particularly in the context of straight-through processing and instant payments.

“As the world shifts towards crossborder instant payments, ISO 20022 is crucial for ensuring seamless transactions,” said Alhijawi.

“Buna was built to be natively compatible with ISO 20022. However, when it was launched, the market was not fully prepared for the transition, so we had to implement a backward translation to the older MT format.”

DiXiO’s Sicoli also emphasised the significance of implementing a native ISO 20022 strategy. He said as a SWIFT partner, DiXiO always encourage banks to upgrade their core banking systems to generate and process MX messages natively.

However, given its extensive reach across more than 60 countries, many financial institutions are not yet equipped for this transition.

“To address these challenges, we have developed our ISO 20022 Enabler. This tool acts as a converter, but it goes beyond simple translation. One

“By providing this level of transparency through the app, we foster trust and significantly enhance the overall customer experience.”

The growing globalisation of trade and the expansion of e-commerce have made efficient cross-border payments more essential than ever. Financial institutions,

REGARDLESS OF WHETHER A TRANSACTION ORIGINATES IN THE UAE AND

IS FORWARDED TO THE BENEFICIARY OR CORRESPONDENT BANK, OR IF IT’S BEING CREDITED TO THE RECIPIENT’S ACCOUNT, WE GUARANTEE THAT THE CUSTOMER IS FULLY INFORMED ABOUT THEIR MONEY’S LOCATION AT EVERY STAGE

– Ahmed Salahy

of its primary benefits is its use of our own conversion rules, providing more flexibility,” said Sicoli.

Meanwhile, the growth of crossborder payments in the GCC region is being driven by governments that are developing instant payment systems through bilateral and multilateral agreements and the rise of pure-play online retailers enabling e-commerce across geographies.

Salahy concurred with Alhijawi and Cleetus on the importance of transparency, which Careem Pay prioritises. He stated that the end-user is the most valuable stakeholder throughout the process.

“Regardless of whether a transaction originates in the UAE and is forwarded to the beneficiary or correspondent bank, or if it’s being credited to the recipient’s account, we guarantee that the customer is fully informed about their money’s location at every stage,” said Salahy.

payment providers and fintech firms have the potential to streamline these intricate transactions, facilitating faster and more accessible trade.

Bankers and tech experts at the MEA Finance Leaders in Payments & Awards summit agreed that the digitisation and application of new and emerging technologies, both domestically and globally, is significantly increasing the nature, volume and frequency of payment schemes.

Real-time payment systems such as Aani in the UAE, SARIE in Saudi Arabia and FAWRAN in Qatar are revolutionising the speed of money transfers and account settlements across the GCC region. By embracing innovation, leveraging technology and partnering with other industry players, stakeholders can navigate the changing landscape and capitalise on the opportunities presented by the digital payments revolution.

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Looking Beyond the Payments Horizon

ORGANISED BY:

The MEA Finance Leaders in Payments Awards 2024 highlighted the innovations and achievements of the region’s top banking, fintech and financial technology companies

Once again, the MEA Finance Leaders in Payments Awards brought well deserved recognition to the business, organisations and individuals who are boosting regional economies by building the new payments landscape in our region.

The winners of the MEA Finance Leaders in Payments Awards 2024, held on the 12th of September 2024 at the Ritz Carlton Hotel JBR in Dubai, were announced and presented with their awards in a ceremony attended by over 250 leading change makers and senior executives from banking, fintech and payments technology providers.

These highly anticipated, regional payments focused 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.

Organised by MEA Finance Magazine, this important annual celebration is at the apex for recognition of payments excellence across the region, spotlighting the innovations and stand-out performance of institutions in the banking, fintech and payments technology space.

A higher than ever number of entries than previously received, underwent evaluation by a panel of judges comprised of industry experts in order to match these prestigious awards to deserving winners.

Thirty-four 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 Banking Leaders in Payments Awards 2024 winners:

Best Payment Gateway - Mastercard

Best Payment Gateway Implementation - Standard Chartered Bank

Best End-to-End Online Payments

Processing Systems ProviderAmazon Payment Services

Best Real-Time Payments Provider - ACI

Best Real-Time Payments

Implementation- National Bank of Fujairah

Best Digital Overlay Payment Service

Provider - Payit - powered by FAB

Best Payment Technology

Implementation UAE - Mashreq

Best Payment Technology

Implementation KSA - Network International

Best AI Application in Payments -

Standard Chartered Bank

Best User Experience in Payments

UAE - RAKBANK

Best User Experience in Payments

KSA - DiXio

Best Cross-Border Payments

Technology Provider - TCS BaNCS

Landmark Innovation in Cross-Border

Payments Award - Buna

Best Payments as a Service Award - HPS

Best Payments Cyber Security

Provider - Trend Micro

Best Digital Payment Transformation Initiative - Global Software Solutions Group (GSS)

Best Innovation in Payments

Technology - Commercial Bank of Dubai

Best Mobile Payment App

- Beyon Money

Best Open Banking Payments Project

- Mashreq and GBM

Best Payments Inclusivity InitiativeMagnati and e& money

Best Instant Payments Technology

Implementation - Mashreq NEOPAY

Best Instant Payments Technology

Solution - Commercial Bank of Dubai

Best Instant Payments Technology

Implementation Provider - Magnati

Best Digital Collections Platform for Corporate Banking - Mashreq and Mindgate

Best Remittance and Foreign Exchange

Service Provider - Al Ansari Exchange

L.L.C.

Best Payment System Implementation

- National Bank of Fujairah

Best Bank Payments PlatformEmirates NBD

Payments Innovation of the Year UAE

- Mashreq NEOPAY

Payments Innovation of the Year KSA

- Saudi Awwal Bank

Overall Best Payments Platform in the Middle East - Network International Payments Technology Executive of the Year in Banking - Thomas Cherian , Chief Information Officer, Commercial Bank of Dubai

Payments Technology Executive of the Year in Financial ServicesMohammad Bitar, Deputy Group CEO, Al Ansari Financial Services PJSC

Digital Payments Leader of the Year - Kartik Taneja, Executive Vice President of Payments and Consumer Lending, Mashreq and Chairman of NEOPAY

Payments Executive of the Year

- Ramana Kumar , Chief Executive Officer, Magnati

Nap Estampador Group Director, MEA Finance

Celebrating Excellence in the Region’s Payments Industry

As the payments industry continues its rapid transformation, 2024 brings a new chapter of innovation, resilience and technological advancements. It is crucial to recognise and honour those at the forefront of this evolution, pushing the boundaries and driving positive change, and here we extend our congratulations to the outstanding winners of the 2024 MEA Finance Leaders in Payments Awards.

In a fiercely competitive landscape, where the demands of digitalisation, security and customer experience are higher than ever, this year›s recipients have amply risen to the challenge. In 2024, where new payment systems, such as Aani, and methods including AI-powered transaction monitoring and the uptake and application of CBDCs are reshaping the market, the winners have been true leaders in our region›s progress.

All of the 2024 awardees stand out for their innovation in the Middle East›s dynamic payments landscape. They have demonstrated commitment to enhancing financial inclusivity, cybersecurity and operational efficiency in this time of rapid technological change. Their groundbreaking initiatives—ranging from the adoption of real-time payment platforms to blockchain integration— are not only revolutionising the way payments are processed but are also improving the lives of businesses and consumers alike.

This year’s winners have consistently shown their ability to adapt to the region’s diverse consumer needs, forging strategic partnerships and embracing innovative payment solutions like AI-driven fraud prevention, biometric authentication and embedded finance.

Moreover, their achievements extend beyond financial growth. In a time when ethical practices, customer-centric solutions and sustainability are at the core of corporate success, these industry leaders have set new standards for responsible business. As we witness an increased focus on environmental, social and governance (ESG) within the financial sector, the 2024 winners show how payments can drive not only economic growth but also positive social impact.

As we celebrate these achievements, it is important to recognise the broader implications of their successes. In our interconnected global economy, the payments industry has the unique potential to drive economic development, foster financial inclusion and promote sustainable growth. The efforts of these industry pioneers remind us of the power that financial services have to transform lives and improve communities through innovative thinking and dedicated leadership.

We extend our warmest congratulations to all the winners of the 2024 MEA Finance Leaders in Payments Awards and eagerly anticipate their continued success and the transformative impact they will continue to have on the region’s financial ecosystem.

Join us in celebrating excellence and innovation as we honour the achievements of the 2024 recipients!

Best Payment Gateway Mastercard

Mastercard was recognised as the Best Payment Gateway in the Middle East. The award recognises its innovative payment technology and collaborative partnerships across the Middle East.

The payments firm has worked closely with a wide range of organisations, including financial institutions, fintech firms, non-profits, academic institutions and government agencies to promote digital payments in the region.

Through collaborations in Egypt, Saudi Arabia and the UAE, Mastercard has played a pivotal role in driving digital transformation. The company joined forces with the UAE’s Artificial Intelligence Office and First Abu Dhabi Bank to launch an AI competition. The initiative aims to boost the country’s AI sector and provide opportunities for AI businesses and talent.

Furthermore, Mastercard signed a long-term agreement with Amazon Payment Services in September to enable digital payments in several countries across the Middle East and Africa region.

Overall, Mastercard’s commitment to digital payments has created new opportunities and paved the way for a more cashless society in the Middle East.

Best Payment Gateway Implementation

Standard Chartered Bank

Standard Chartered Bank received the Best Payment Gateway Implementation award in the Middle East. The bank allows customers to make secure and convenient online purchases directly from their bank accounts.

By partnering with a variety of online merchants, Standard Chartered has demonstrated its commitment to meeting customer needs and providing a seamless digital payment experience.

The bank recognises that customers need to carry out online purchases and be able to pay directly from their bank accounts in a simple, safe and secure manner, and has succeeded in making this possible.

To make a purchase, customers choose their preferred online merchant and select ‘Standard Chartered Bank Net Banking’ as their payment method at checkout.

Best End-to-End Online Payments Processing Systems Provider

Amazon Payments Services

Amazon Payments Services were presented with the Best End-to-End Online Payments Processing Systems Provider award. The payments solution provider’s operating model offers a comprehensive and innovative approach to managing end-to-end payments.

Benefiting from a wide range of solutions covering the entire online payment process, Amazon Payments caters to the diverse needs of businesses and their customers. By prioritising seamless cross-channel integration, security and privacy, they actively enhance the user experience.

Best Real-Time Payments Provider ACI Worldwide

For its Enterprise Payments Platform, which facilitates the daily movement of trillions of dollars globally, ACI Worldwide received the Best Real-Time Payments Provider award in the Middle East.

ACI’s Enterprise Payments Platform is a 24x7 global payments hub that seamlessly handles all processing requirements. It integrates seamlessly with all bank systems and departments, ensuring reliable, secure payment transfers. The platform offers continuous straight-through processing (STP) and advanced error elimination and recovery for full control of payments, regardless of payment type or location.

The solution allows institutions to create comprehensive, real-time, API-enabled payment hubs in the ACI cloud. By processing multi-bank, multi-currency, highvolume payments across multiple message schemes and clearing houses, the platform empowers ACI’s customers to deliver rich, complex services to customers swiftly, efficiently and cost-effectively.

Best Real-Time Payments Implementation National Bank of Fujairah

National Bank of Fujairah (NBF) won the Best Real-Time Payments Implementation award, conferred to the bank as one of the early adopters of the Aani Network. Aani offers innovative features such as instant transfers using phone numbers, money requests and splitting, QR code integration on POS payments – with NBF being the first bank to do this, and upcoming features like real-time direct debits and e-cheques. NBF’s real-time payment success is driven by the bank’s efficient customer onboarding process, which reflects its broader commitment to simplifying banking and improving customer satisfaction. Their implementation of Aani empowers NBF to provide its customers – retail, business and government – with a seamless digital payment experience, and UAE-based account-to-account transactions are processed securely, instantly and around the clock.

Best Digital Overlay Payment Service Provider

Payit - powered by FAB

First Abu Dhabi Bank’s Payit was the recipient of the Best Digital Overlay Payment Service Provider in the Middle East. Payit received the award in recognition of its comprehensive digital wallet, built on the principles of ease, trust and speed.

The digital wallet’s Plus service offers direct salary transfers and ongoing enhancements to payment options and fee-free services, which have further solidified its commitment to exceptional customer experiences.

Founded in February 2018, Payit has been grown exponentially, with 180,000 active customers, 3.3 billion transactions value and more than 200 countries and territories for money transfers. The digital wallet is a comprehensive platform that streamlines lifestyle payments for users, regardless of their banking affiliations.

Payit, a first of its kind, provides a user-friendly experience that caters to all individuals, even those with limited digital literacy. By converting previously cashonly transactions into digital payments, it’s transforming the way people manage their finances.

Best Payment Technology Implementation - UAE Mashreq

Mashreq’s innovative Open Banking Payments project was recognised with the Best Payment Technology Implementation award.

The bank’s commitment to leveraging cutting-edge technology to advance customer experience and streamline payments is evident in features such as enhanced security, broader service offerings and fintech collaborations.

Mashreq’s Open Banking Payments project has set a benchmark in the banking industry, showcasing how traditional banks can adapt to the digital age. The project has been lauded for its customer-centric approach, technological innovation and strategic collaborations. This recognition not only underscores Mashreq’s leadership in the banking sector but also highlights the transformative potential of open banking.

Best Payment Technology Implementation –Kingdom of Saudi Arabia

Network International

Network International won the Best Payment Technology Implementation award in Saudi Arabia. The payment solution provider received an award for their successful implementation of public cloud services to support their growth in Saudi Arabia. By adopting this cloud-based strategy, Network International was able to adapt quickly to the demands of the new market while reducing the vulnerabilities of traditional data centres.

The challenges that Network International overcame included the lengthy process of setting up a traditional data centre, difficulty in hiring skilled IT personnel, the need for scalable infrastructure, high initial costs, regulatory compliance complexities, security risks and the implementation of disaster recovery plans. Such obstacles could have significantly delayed Network’s entry into the Saudi Arabian market but were successfully handled, allowing them to manage new business with agility and mitigating the risks of a traditional datacentre.

Best User Experience in Payments - UAE

RAKBANK

The National Bank of Ras Al Khaimah (RAKBANK) received the Best User Experience in Payments award in the UAE for its innovative CORE Instant Payments project (NPSS-IPP), which has significantly advanced the payment system both within the bank and externally, offering customers a smooth and efficient payment experience. The new real-time payment system offers customers fast, reliable and user-friendly payment experiences. RAKBANK’s customers can now enjoy instant transfers and payments – within 10 seconds – without interruptions or delays, improving their overall banking experience and demonstrating our dedication to customer satisfaction.

The RAKBANK IT and project team exhibited exceptional efficiency and skill in implementing CORE Instant Payments, maintaining a focused approach, ensuring every phase of the implementation was executed flawlessly despite the intricate nature of the project, which involved numerous systems throughout the bank.

Best User Experience in Payments - Saudi Arabia

DiXiO

DiXiO won the Best User Experience in Payments award for its payment pre-validation tool, which enables financial institutions to validate payment messages before sending them to the Swift network.

The payment validation solution, connected to the Swift Payment Pre-Validation API, allows banks to easily verify payment and beneficiary information in real time through a simple and user-friendly interface. DiXiO’s Pre-Validation Enabler streamlines payment validation by leveraging anonymised data from countless past transactions on the Swift network to provide accurate and real-time validation results. With effective payment validation, businesses can significantly reduce the number of rejected payments, which boosts efficiency and ensures a steady cash flow. By verifying beneficiary details and using real-time checks, DiXiO says businesses can identify and prevent fraudulent activities.

Best Cross-Border Payments Technology Provider

TCS BaNCS

TCS BaNCS took the Best Cross-Border Payments Technology Provider award in the Middle East region. TCS BaNCS has been instrumental in enabling financial institutions in the Middle East to handle cross-border payments efficiently.

Three of the region’s top five banks are already using their solution. TCS BaNCS’ solution supports ISO20022 standards and Swift gpi certification, ensuring seamless and secure cross-border transactions.

With a track record of processing international payments in 25 countries and supporting over 40 clearing systems, and with several features natively built on MT and MX (ISO 20022) standards, TCS BaNCS for Payments supports real-time payment processing across multiple geographies, entities and currencies adhering to rules and standards.

The built-in ISO20022 standards enable banks to be compliant with the SWIFT evolution (CBPR+) and leverage new features and data provided by ISO20022 rich formats.

Landmark Innovation in Cross-Border Payments Award

Buna

Buna was presented with the Landmark Innovation in Cross-Border Payments Award. The award acknowledged the multi-currency payment system’s impact on crossborder payments in the Middle East. It recognised the system’s ability to facilitate financial institutions and central banks in sending and receiving payments in Arab and other currencies.

The Buna platform is a multi-currency clearing and settlement system designed to simplify cross-border transactions. Financial institutions can send and receive payments in six currencies, including four Arab currencies - Emirati Dirham, Saudi Riyal, Jordanian Dinar and Egyptian Pound, and two international currencies - the US Dollar and the Euro.

Currently, a total of 108 Arab banks have completed linking with Buna out of 120 banks that signed the linking agreement. The platform seeks to link with 160 banks before the end of 2024.

Best Payments as a Service Award

HPS

HPS was the recipient of the Best Payments as a Service Award. The award recognised HPS for its collaboration with Saudi Payments in promoting the Financial Sector Development Program, which aims to create a cashless society by 2030.

HPS introduced a unified national mobile payments platform based on QR codes that enables banks, wallet providers and fintech companies to interact seamlessly, allowing merchants to accept payments through various payment methods. The adoption of QR codes will significantly enhance the consistency of the payment experience for both merchants and consumers, promoting interoperability and the acceptance of secure payments. HPS and Saudi Payments seek to establish an integrated payment ecosystem that benefits all parties through an open-loop payment environment adhering to the latest messaging standards, ISO 20022.

Best Payments Cyber Security Provider Trend Micro

Best Payments Cyber Security Provider award was won by Trend Micro for its Pay Guard Mobile and accompanying downloadable apps, which safeguard device security, financial information and identity on both iOS and Android phones.

Pay Guard Mobile offers users a range of features to shield their devices from potential threats and ensure secure online transactions including,

Secure Web Browsing: Pay Guard Mobile opens a secure version of the user’s default browser when visiting banking or shopping websites, protecting their data from interception or theft.

Data Encryption: Financial transactions are encrypted, ensuring that sensitive information remains confidential and inaccessible to unauthorised parties.

Real-time Threat Detection: The app continuously monitors devices for potential threats, such as malware, phishing attempts and other malicious activities.

Best

Digital Payment Transformation Initiative GSS Group

Global Software Solutions Group (GSS Group) was honoured with the Best Digital Payment Transformation Initiative award for its pioneering role in reshaping digital payments.

The locally owned, UAE-based software solutions provider’s partnership with Aani, has not only streamlined operations but also elevated user experiences across various platforms. This collaboration promises to have a positive impact on society as a whole.

GSS Group’s collaboration with Aani was a departure from traditional software development models. The software solutions provider began with a fully functional, tested product, showcasing their agile approach. As the chosen technology provider, GSS Group faced a dynamic environment, with the UAE central bank’s iterative specifications requiring constant adaptation.

Despite these challenges, GSS Group’s unwavering commitment to quality and innovation contributed to Aani’s success. The payments platform exceeded expectations, a testament to the team’s dedication and rigorous testing.

13-16 OCTOBER 2024 - DUBAI HARBOUR REGISTER

Best Innovation in Payments Technology

Commercial Bank of Dubai

Commercial Bank of Dubai (CBD) was the recipient of the Best Innovation in Payments Technology award in the Middle East.

The award was presented to CBD in recognition of the bank’s biometrics based Strong Customer Authentication (SCA), built in its own mobile application. SCA is a security measure designed to protect online payments from fraud. It works by requiring customers to prove their identity using multiple methods, making it harder for unauthorised individuals to access accounts.

CBD has taken a significant step in enhancing payment security and user experience with its biometric SCA implementation for the Aani instant payment platform. The bank’s mobile app directly integrates with Aani, offering users a seamless experience for various payment services.

By combining multiple authentication factors, SCA significantly reduces the risk of unauthorised access to your account. The enhanced security, in conjunction with Aani’s integration, offers customers a more reliable and convenient payment experience.

Best Mobile Payment App

Beyon Money

Beyon Money received the Best Mobile Payment App award in the Middle East. Beyon Money has revolutionised personal finance by offering a comprehensive, user-friendly app that caters to diverse financial needs.

From prepaid cards and open banking connections to expense tracking, flexible investments and international transfers, Beyon Money simplifies financial management for everyone.

Beyon Money’s growth can be attributed to its comprehensive range of products and services. The app’s globally accepted cards, extensive rewards program, international remittance options, innovative P2P and C2B payment solutions and investment offerings have attracted a growing customer base.

Last December, Beyon Money expanded its offerings with the launch of Beyon Money Business, a dedicated platform designed to meet the financial needs of SMEs and corporates. Beyon Money Business aims to provide a seamless and efficient financial experience for businesses, starting in Bahrain and expanding across the MENA region.

Best Open Banking Payments Project Mashreq and GBM

Mashreq and GBM collected the Best Open Banking Payments Project award in the Middle East for their successful collaboration on an Open Banking project. Utilising IBM API Connect technology, they created a secure and efficient payment ecosystem.

Mashreq and GBM’s Open Banking ecosystem features an API infrastructure, regulatory compliance, enhanced customer experience through an intuitive account management interface, integration with fintech firms, authentication and security data encryption.

Mashreq has created a powerful API infrastructure that enables third-party developers to connect their services to the bank’s platform. The open banking approach allows for secure access to customer data – with their permission – and facilitates a wide range of financial transactions.

By harnessing state-of-the-art technologies and adhering to rigorous security standards, Mashreq has created a platform that not only meets but surpasses the expectations of today’s banking customers.

Best Payments Inclusivity Initiative

Magnati and e& Money

Magnati won the Best Payments Inclusivity Initiative award in the Middle East for its collaboration with e& Money. Together, Magnati and e& Money developed a cuttingedge payment solution featuring ‘Store value’ accounts that provide a unique Virtual IBAN issuance. The integrated Wages Protection System streamlines processes, enhancing convenience and efficiency.

The partnership has transformed e& Money into a comprehensive financial super app, offering users a unified platform for payments and more.

Magnati’s advanced technologies ensure secure, real-time transactions, setting a new benchmark for user-friendly payment solutions. The payments firm’s expertise in embedded finance drives seamless integration of financial services into the digital realm, making them more accessible to consumers.

Best Instant Payments Technology Implementation

Mashreq NEOPAY

Mashreq NEOPAY collected the Best Instant Payments Technology Implementation award in the Middle East. In collaboration with Al Etihad Payments, together they enabled Aani instant payments on Point-of-Sale terminals and integrated Cashew technology for BNPL options, empowering merchants to offer flexible payment choices.

Mashreq NEOPAY is a leading payment solutions provider in the UAE, offering innovative, customised solutions that prioritise quality and customer satisfaction. It offers a wide range of payment options, including cards and digital wallets. They are committed to creating an inclusive payment ecosystem for merchants and their customers and accepts international wallets including NPCI UPI – Bhim, PhonePe, Paytm and Google Pay – Alipay, WeChat and Alipay+.

NEO PAY is set to introduce a groundbreaking ‘pay by face’ payment system. The biometric checkout uses a selfie to create an encrypted facial template for secure, fast payments.

Best Instant Payments Technology Solution Commercial Bank of Dubai

Commercial Bank of Dubai (CBD) received the award for the Best Instant Payments Technology Solution in the Middle East.

The bank was awarded for its exceptional customer facilities and features. Building on this foundation, they developed a cutting-edge IPP system solution that incorporates next-generation features addressing all aspects of IPPS, including core, overlay and value-added services.

As a pioneer in offering next-generation features, CBD is among the first financial institutions in the region to adopt the UAE central bank’s Instant Payment Platform (Aani).

The bank developed a leading-edge IPP system solution with advanced features, setting a new standard for the region. The implementation encompasses all aspects of IPPS, including core, overlay and value-added services.

Best Instant Payments Technology Implementation Provider

Magnati

Magnati received the Best Instant Payments Technology Implementation Provider award in the Middle East. Their technology underpinned and implemented strategic partnership with Al Etihad Payments delivers seamless, secure and instant payment experiences for individuals, businesses and government entities nationwide. The collaboration integrates Al Etihad’s advanced real-time payment platform, Aani, into Magnati’s extensive merchant base, driving adoption and innovation in payments across the UAE.

The partnership offers several benefits to its customers including real-time payments around the clock and improved cash flow for merchants, while customers enjoy a more convenient payment experience with instant transaction confirmation via QR codes.

The integration offers Magnati’s merchants and customers with access to cuttingedge payment technology, reaffirming its dedication to delivering seamless digital payment experiences.

Best Digital Collections Platform for Corporate Banking

Mashreq and Mindgate

Mashreq and Mindgate received the award for the Best Digital Collections Platform for Corporate Banking in the Middle East.

The award recognised the partnership for its VTransact DigiTB Corporate Collections Suite, a cutting-edge, scalable platform that enables Mashreq’s corporate clients to streamline real-time collections via digital and physical channels.

The platform’s microservices architecture allows it to function as a multi-country, multi-tenant solution, promoting a diverse and sustainable financial ecosystem. It offers seamless, real-time settlement of collections and integrated reconciliation of receivables.

VTransact DigiTB Corporate Collections Suite ensures that businesses of all sizes have access to advanced, scalable financial tools, strengthening Mashreq’s corporate collections portfolio.

Mindgate Solutions has been at the forefront of the payment’s revolution from its inception, establishing itself as a key global player in payments technology and transaction processing.

Best Remittance and Foreign Exchange Service Provider

Al Ansari Exchange L.L.C.

Al Ansari Exchange L.L.C. won the Best Remittance and Foreign Exchange Service Provider award in the Middle East. The recognition reflects the remittances firm’s unparalleled reputation as a regional leader, supported by its significant contribution to the industry.

They have responded smartly to the growing demand for digital transactions, recently embarking on a new venture they name as Digital Pay which, as a revolutionary digital wallet targeting the unbanked population, aligns with the UAE›s vision for a cashless society and promoting financial inclusion.

In business performance, Al Ansari contributed approximately 40% of the AED 2.9 billion core operating income of exchange houses and 74% of the AED 800 million consolidated net profit, according to the Central Bank of the UAE’s Financial Stability Report (2022).

Best Payment System Implementation

National Bank of Fujairah

National Bank of Fujairah won and was presented with the Best Payment System Implementation award in the Middle East. Among the first to integrate with the Aani Network, they smartly and swiftly planned and put into position systems that were compatible with not only the innovative features letting customers move or transfer money instantly, using new options such as the recipients telephone number, but also ensured enhanced digital payment experiences for customers.

National Bank of Fujairah provide their retail, business and government customers with seamless experiences for account-to-account transfers, and are a key player in the Aani initiative, having joined from its earliest stages

Best Bank Payments Platform

Emirates NBD

Emirates NBD’s ENBD X app clinched the Best Bank Payments Platform award. The innovative mobile banking app has revolutionised the way people send money where users can transfer funds as easily as sending a text message.

ENBD X has significantly enhanced the mobile banking experience for hundreds of thousands of customers. It has accelerated logins by eight times, payments and transfers by three times and overall performance by six times. The app allows customers to send money to local bank accounts using IBAN, to international accounts through Western Union or account details, or simply by entering the recipient’s mobile number. Key features include Direct Remit - a free, 60-second transfers to several countries with large expat populations, and Smart Pass authentication - the secure digital banking feature replacing traditional SMS authorisation codes, providing added convenience and security, especially for customers traveling abroad.

Payments Innovation of the Year – UAE

Mashreq NEOPAY

Mashreq NEOPAY won the Payments Innovation of the Year award for their groundbreaking approach to payments with their Biometric Checkout. The system uses facial recognition technology to authenticate payments, providing a convenient and secure way for customers to pay.

NEOPAY’s Biometric Checkout prioritises user privacy. By converting selfies into biometric templates locally, the solution ensures that data is processed and stored securely, reducing the risk of data breaches.

The system offers unparalleled convenience. By simply using their face, NEOPAY’s customers can pay without the hassle of carrying wallets, remembering passwords or handling cash. The streamlined payment process enhances the customer experience, especially in busy environments such as retail stores, airports and public transportation.

Payments Innovation of the Year – Kingdom of Saudi Arabia

Saudi Awwal Bank - SAB

Saudi Awwal Bank - SAB was the winner of the Payments Innovation of the Year award in this year’s MEA Finance, Leaders in Payments presentations. They were noted for their wide variety of product development and experimentation in an increasingly competitive market, which serves to underscore SAB as a leader in the region when it comes to the innovation of payments. A member of the Saudi Arabian Riyal Interbank Express – SARIE, the 24/7 system for Instant credit transfers, and with a number of the projects outlined to be further developed within SAMA’s regulatory sandbox, SAB is further expected to cement its position as a first-mover in new payments products.

Overall Best Payments Platform in the Middle East

Network International

Network International received the Overall Best Payments Platform in the Middle East award. The company has been a pioneer in payments technology for more than three decades, empowering businesses across the Middle East and Africa to thrive.

Network International has grown exponentially to become the biggest acquirer in the UAE. With operation centres in the UAE, Egypt, Jordan, South Africa and Nigeria, as well as the corporate head office in Dubai, Network has consistently delivered innovative solutions that drive revenue and profitability.

Last year, Network International processed over $59 billion in total transaction volume for over 150,000 merchants. The company’s comprehensive suite of payment products and services has facilitated over 979 million issuer transactions on more than 16 million cards for over 200 financial institutions.

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Payments Technology Executive of the Year in Banking

Thomas Cherian, Chief Information Officer at Commercial Bank of Dubai

Thomas Cherian, the Chief Information Officer at Commercial Bank of Dubai (CBD), was the recipient of the Payments Technology Executive of the Year in Banking award. Cherian, a seasoned technology executive with over two decades of experience, has led transformative digital initiatives at major banks globally.

Cherian’s deep understanding of industry trends and strategic foresight have positioned him as a leading architect of successful digital transformations. Beyond his technical expertise, Cherian is a catalyst for innovation and change within the banking sector. Under his guidance, CBD’s technology department has become a recognised leader in both domain knowledge and technological advancement.

Upon joining CBD, Cherian swiftly identified the need for a comprehensive digital transformation to support the bank’s growth objectives. He developed a four-year roadmap outlining a strategy to create a future-proof, digitally advanced institution. The ambitious programme, which encompassed over 60 projects from 2023 to 2027, was aimed at positioning the bank at the forefront of technological innovation.

Cherian has been instrumental in delivering innovative payment solutions as part of CBD’s transformation. His accomplishments include the bank’s enterprise payment hub, the adoption of cloud-based Aani Payments, and AI-based cheque clearing and blockchain-based payments pre-validation.

Payments Technology Executive of the Year in Financial Services

Mohammad Bitar, Deputy Group CEO at Al Ansari Financial Services

Mohammad Bitar, Deputy Group CEO at Al Ansari Financial Services was presented with the Payments Technology Executive of the Year in Financial Services award.

Bitar has been instrumental in establishing Al Ansari as a leading regional payment provider. His visionary leadership has driven the development of innovative payment solutions that have enhanced customer experiences and facilitated seamless transactions.

Under Bitar’s guidance, they company’s achievements and been driven by focuses on customer centricity, leading to a significant increase in customer base; SME and startup support, by recognising the unique needs of SMEs and startups, he established a dedicated team and launched corporate business solutions, resulting in growth in outward corporate remittance transaction; and cash management expansion –by identifying a market gap, he led the growth of CashTrans, expanding its operations to include cash hubs, clients, armoured vehicles and cash processing capacity.

Bitar’s contributions have significantly impacted the cross-border payments landscape. Al Ansari’s network now extends to over 260 branch locations. His initiatives have not only benefited Al Ansari but have also contributed to the overall advancement of the remittance, money exchange and financial services industries.

By partnering with leading global companies such as Visa, Western Union, TerraPay, Ripple and the National Payments Corporation of India, Al Ansari has leveraged advanced technological capabilities to expand its global reach.

These achievements demonstrate Bitar’s commitment to innovation, customer service and operational excellence.”

Digital Payments Leader of the Year

Kartik Taneja, Executive VP of Payments and Consumer Lending, Mashreq and Chairman of NEOPAY

Kartik Taneja, Executive VP of Payments and Consumer Lending, Mashreq and Chairman of NEOPAY, wins the Digital Payments Leader of the Year award. Taneja has successfully led large-scale payments and lending businesses across global markets, driving significant transformation and growth for the organisations he represents.

He currently leads the payments business at Mashreq, driving the bank’s digital transformation. Under his leadership, the payments team has achieved exceptional growth, surpassing industry standards.

Notable accomplishments include a 10x increase in new card acquisitions, 2x growth in loans and a 4x increase in profits. Taneja’s strategic vision has also fuelled a 2x growth in remittances and a 4x increase in retail remittances. Kartik’s commitment to innovation is evident in Mashreq’s successful digital and agile transformation of cards, payments and lending.

Prior to joining Mashreq, he contributed significantly to Standard Chartered Bank as the head of global product functions for credit cards and personal loans. He led multi-market product enhancements, generating over $50 million in annual revenues and spearheaded technology upgrades across 23 markets.

Kartik also introduced a 10-market rewards capability, including APIbased multi-partner instant redemption, and forged regional digital partnerships with global leaders.

In his current role he has been pivotal in driving the bank›s digital transformation, leading the payments team to achieve extraordinary growth and set new industry standards with numerous accomplishments including a ten-fold increase in new acquisitions, doubling loans growth and quadrupling profits.

Payments Executive of the Year

Ramana Kumar, Chief Executive Officer of Magnati

Ramana Kumar, CEO of Magnati, was recognised as Payments Executive of the Year.

As head of Magnati, Kumar oversees a comprehensive range of corporate solutions, including merchant acquiring, government solutions, prepaid solutions, remittances and Payit, the UAE’s first fully featured digital wallet. His vision is to create a future-focused payments company that prioritises digital innovation and collaborates with fintechs and tech companies to deliver exceptional customer experiences.

Previously, Kumar served as Head of Global Transaction Banking at NBAD, where he played a key role in developing the bank’s regional proposition for cash, trade and cards.

Kumar is passionate about innovation, fintech, financial inclusion, blockchain and their impact on payments. He has been instrumental in numerous industry-first initiatives, driving digital payments, cashless initiatives and financial inclusion and actively participates in forums discussing future payments, financial inclusion, digital wallets, KYC and Identity and fintech.

Under his leadership and active direction, the business has transformed into a value-added technology services partner for customers, providing them with enhanced service levels, and in so doing, driven greater customer retention and new customer acquisition. At the forefront of next generation technologies and payments orchestration, he amply delivers the company vision of transforming payments into possibilities.