The Banking Executive Magazine- June 2026 Issue

ISSUE 209 MAY 2026 the BANKING EXECUTIVE 59 FinTech and AI Chornicle must adapt their operating models to absorb disruption, evolve, and re- main resilient amid AI, digital-native challengers, and shifting global de- mand. Built on AI-driven, cloud first and asset light models, challenger banks are setting new standards for speed, personalisation and cost efficiency – and in doing so, exposing the limita- tions of traditional operating models. Their rapid growth is reinforcing pressures on established institutions, accelerating a shift in which both sides must innovate faster to stay competitive. Without decisive trans- formation, industry profit pools could fall by $170 billion by 2030, pushing many institutions below their cost of capital. The report emphasises that AI offers the clearest path out of this conun- drum. Rapidly becoming core infra- structure, AI is already delivering the productivity uplift the sector urgently needs and building the foundation of the next-generation operating model that digital native banks have turned into the industry’s new template. Arif Amiri, Chief Executive Officer at DIFC Authority, commented: “As the global banking industry undergoes its most significant transformation in nearly two decades, institutions must embrace innovation, resilience and adaptability to thrive in a rapidly evolving financial landscape shaped by AI, digital assets and shifting global markets. In Dubai and specif- ically at DIFC, we are committed to enabling this transformation through a future-focused ecosystem that con- nects global institutions to high- growth opportunities across the Middle East, Africa and South Asia, while supporting banks in building the agility and resilience needed for the future.” As the second in a four-part series on the Future of Finance that will be published over the course of 2026, the report draws on insights from a high-level roundtable held at the Centre at the start of the year, which brought together senior financial services leaders. The report features insights from the roundtable which have been augmented by network- based research, along with inter- views with distinguished industry experts, including: Ambareen Musa, CEO of GCC, Revolut; Rohit Garg, Chief Digital Officer & Group Head, Retail Products, Emirates NBD; and Fernando Morillo, Group Head of Retail Banking, Mashreq. STRATEGIC GEOGRAPHICAL RELEVANCE The report identifies that banks mov- ing early and decisively will not only defend profitability but unlock new client groups, new regions and fron- tier asset classes. In doing so, they position themselves to capture a larger share of global finance. As a bridge between the East and the West, Dubai’s geographical location enables banks to connect emerging FinTech innovation with global cap- ital and reach high growth markets across Asia, the Gulf and Africa. Thus, Asian FinTech companies and European challenger banks also choose Dubai as a base to tap into booming consumer markets in Asia, the Middle East and Africa where mobile-first banking is becoming the norm. In this way, DIFC acts as a vibrant hub where both established players and digital entrants can compete, collaborate and grow. E MBRACING DIGITAL INNOVATION AND EVOLVING REGULATION Banks are likely to use jurisdictions with supportive regulation to pilot new services and test model accu- racy and governance in a controlled environment before scaling them across the region. As the world’s first AI native financial centre, DIFC is in- tegrating intelligence into regulatory processes and market infrastructure, enabling firms to build, test and scale AI driven financial services. An integral part of the DIFC ecosys- tem are 290 banks and capital mar- kets firms, including 17 of the world’s 19 global systemically im- portant banks, reinforcing DIFC’s role as a strategic base for institutions navigating structural change. UNLOCKING OPPORTUNITIES WITH NEW GROUPS AND MARKETS DIFC’s new report reveals entrepre- neurs, family offices, and women represent influential banking clients whose distinct and evolving financial needs remain underserved. AI-driven insights and bespoke advisory backed by more accurate anticipa- tion of client needs allows banks to deliver targeted, personalised offer- ings to these groups and unlock new revenue pools. In addition, family offices, especially in emerging markets, are increasing in number and sophistication, yet re- main fragmented and underserved in areas such as cross-border structur- ing, private market access, and suc- cession planning. Emerging capital hubs such as Dubai stand out in this regard, with DIFC offering support to these groups with next generation banking services, including AI en- abled client engagement, digital as- sets, and new operating models tailored to evolving client needs. DIFC’s pro-innovation regulatory framework, robust laws, regulations, and market infrastructure position Dubai as a leading global capital hub. Supporting next-generation banking services, the Centre show- cases AI-enabled client engagement and new operating models tailored to evolving client needs, reinforcing DIFC’s role as a global platform shaping the future of finance.