The Banking Executive Issue - October 2025 Issue

Beyond the Hype nologies are employed to address context-specific challenges. This shift is especially important for the Arab region, where national dig- ital strategies are accelerating, popu- lation growth remains dynamic, and governments increasingly look to technology to strengthen public serv- ices and economic resilience. THE INFRASTRUCTURE FOUNDATIONS: ELECTRICITY, CONNECTIVITY, AND DATA MOBILITY To fully utilize AI tools, emerging economies must establish certain es- sential foundations. These require- ments, while modest compared to those for building AI models, are nonetheless critical: • Reliable electricity, ensuring unin- terrupted digital access and opera- tional stability • Fast and affordable mobile inter- net, enabling widespread partici- pation in the digital economy • Sound regulatory frameworks that allow data to move securely and efficiently, subject to appropriate safeguards The importance of secure and fric- tionless data mobility cannot be overstated. Many of the most impact- ful AI applications depend on the availability of structured, high-qual- ity data that can be shared across platforms. India’s Unified Payments Interface (UPI) is often referenced as a model for such systems—a mecha- nism that supports efficient payments and allows individuals to control how their financial data is shared. For Arab countries, several of which already possess robust telecommuni- cations infrastructure and well-de- signed financial regulations, building similar systems is not only feasible but strategically important. The abil- ity to manage, govern, and benefit from domestic data will increasingly define a country’s capacity to de- velop competitive AI-enabled sec- tors. FINANCIAL INCLUSION AS A KEY OPPORTUNITY One of the most consequential areas where emerging economies can ben- efit from AI is financial inclusion. For individuals with limited assets, in- consistent income records, or frag- mented documentation—common realities across many developing markets—traditional banking chan- nels often remain inaccessible. DIGITALIZATION, HOWEVER, CHANGES THE EQUATION. As societies shift from cash-based economies to digital payment sys- tems, millions of families and small enterprises begin to generate finan- cial data for the first time. Properly governed, this data becomes the backbone of modern credit assess- ment. AI-enabled credit scoring offers the the BANKING EXECUTIVE 28 ISSUE 202 OCTOBER 2025