The Banking Executive Magazine - September Issue 2022

COLLABORATION, NOT COMPETITION, CREATES WINS FOR NEOBANKS Digital banking apps are shaking things up and introducing a seam- less, cost-effective, and flexible way of accessing financial services to customers in the UAE. Although some of the worst pan- demic forecasts have not yet mate- rialised, banks continue to face long-term revenue pressure and tighter competition. The opportunity to fast-track banking transformation has never been more significant. However, it is collaboration and not competition that would create wins for neobanks in the country, said CEOs of leading financial institu- tions. Top leaders in the banking sector were speaking at the third edition of Khaleej Times DigiBank 2022 – the Banking Transformation Forum. While providing the keynote ad- dress, Jamal Saleh, the director-gen- eral of UAE Banks Federation, said: “Post-pandemic, every person is now digitally connected to a bank. The UAE has always wanted to be a pioneer in this field. However, the targets and objectives are much be- yond that; the strategy now is to en- hance the efficiency of the digital banking sector.” According to recent surveys, the UAE has gone up from 63 per cent trust in the banking system to 87 per cent in two years. A big part of it was the digital transformation in the UAE over the last two years since the pandemic. Saleh also stressed the need to en- sure the security and resilience of the digital banking system. While the roles of the UAE Police, the Min- istry of Interior, and other govern- ment security departments are paramount in ensuring customer safety within the banking sector, Saleh said banks also play a critical role in ensuring safe transactions for all customers. Olivier Crespin, Chief Executive Of- ficer, ZAND, said: “70 per cent of any human activity starts with finan- cial representation. If you look at the UAE digitalisation agenda, there is a strong push to make banking seam- less.” Licensed by the Central Bank of the UAE, Zand is the first digital bank to provide retail and corporate banking. Meanwhile, Jayesh Patel, CEO of the recently launched WIO Bank, said, “At least 65 per cent of cus- tomers in UAE want to try a new digital service, according to a VISA survey. At WIO, we ensure cus- tomers have it easy as they are will- ing to try out more and more new solutions. We are democratising banking where FinTechs and start-ups can come and work with us.” 65 per cent of Wio is owned by Abu Dhabi sovereign wealth fund ADQ and Alpha Dhabi, while 25 per cent is owned by Etisalat and ten per cent by First Abu Dhabi Bank. “Consumers expect the same expe- rience from a physical store as a web store or online service,” noted Vibhor Mundhanda, CEO of NEO- PAY. He added that an omnichannel presence is the key to success in the banking realm. Masood Khan, CEO of YAP – an in- novative digital banking app that provides tools for total control of their finances – said YAP has ac- quired 150,000 customers in 11 months purely through social media marketing. “Approximately 85 per cent of the customers were acquired through social media, and 15 per cent through references,” Khan ex- plained. YAP has a growing presence on Tik- Tok, META products, and Microsoft- backed LinkedIn. The CEOs also said looking at the neobanks space as competitive is a little aggressive; instead, they are building a new ecosystem which challenges regula- tors and authorities. the BANKING EXECUTIVE 46 ISSUE 165 SEPTEMBER 2022