The Banking Executive Issue - October 2025 Issue

Beyond the Hype possibility of creating financial iden- tities for people previously excluded from the formal financial system. This opens the door to: • Microcredit that is both scalable and sustainable • Broader participation in the com- mercial ecosystem • Higher rates of entrepreneurship • More inclusive economic growth For Arab banks—particularly those operating in countries with young populations, large unbanked seg- ments, or significant rural communi- ties—AI-driven credit analytics represent a promising direction. They enable institutions to expand their customer base responsibly, reduce risk, and meet national financial in- clusion goals set by central banks and regulatory authorities. THE EXPANDING ROLE OF E-COMMERCE AND SMES Small and medium-sized enterprises (SMEs) form the backbone of most emerging economies. Yet many face structural limitations: restricted ac- cess to markets, reduced visibility, and limited capacity to scale. The spread of digital commerce plat- forms—enhanced by AI’s ability to analyze demand patterns, forecast consumer behavior, and support tar- geted marketing—gives SMEs a pow- erful toolset. With more accessible online marketplaces, even very small enterprises can reach larger audi- ences, diversify income streams, and compete more effectively. In the Arab region, where SMEs form a critical component of national de- velopment strategies from the Gulf to North Africa, AI-enabled e-com- merce ecosystems offer a pathway to greater competitiveness. Banks and financial institutions can support this shift through tailored SME financing products, supply chain solutions, and integrated digital services. EXTENDING SERVICES IN HEALTH AND EDUCATION Emerging economies often struggle with uneven geographic distribution of health care and education serv- ices. Here, AI-powered applications are already demonstrating tangible benefits: • Remote diagnostic tools allow doc- tors to reach communities far from urban centers. • Digital learning assistants help stu- dents master subjects without needing constant in-person instruc- tion. • Personalized education platforms support learners with varying abil- ities and backgrounds. These tools ultimately strengthen human capital—one of the most im- portant factors in long-term eco- nomic development. For Arab policymakers, especially in countries where population growth is outpac- ing the expansion of educational and medical infrastructure, AI-enabled solutions offer a cost-effective way to widen access without compromising quality. AI AS A CATALYST FOR SKILL DEVELOPMENT AND PRODUCTIVITY Another important dimension in- volves workforce development. In ISSUE 202 OCTOBER 2025 the BANKING EXECUTIVE 29