Banking across the GCC: Carving out a new future

Banking across the GCC: Carving out a new future

The traditional world of banking is at an inflection point. The economic upheaval posed by the Covid-19 pandemic, the resurgence of new variants and an accelerated demand for digital services have disrupted the traditional banking and wider financial services equation. More so, the emergence of new-age players dominating the customer interface and a rising mandate for greater value propositions within the existing product mix is driving incumbents to revisit their value chain, reassess their strategies and reposition themselves amid the evolving ecosystem. Numbers back the momentum: Up to 45 per cent of traditional retail bank customers in the UAE are ready to switch to competitors within the next six months, a recent study by Arthur D. Little and M2P Solutions revealed. “Low rates, regulatory changes, and various new players entering the financial services landscape – including fintech companies, retailers, and telecommunications providers – are behind this trend,” the report stated. However, banks are taking steps to address this issue, with the study finding that 61 per cent of 2,000 customers surveyed ready to turn to their primary bank for a ‘beyond banking’ proposition, as are 70 per cent of customers aged 25-44. Pierre Mariani, partner, Financial Services Practice, Arthur D.