UAE: Over 60% of clients set to approach their banks for new services

UAE: Over 60% of clients set to approach their banks for new services

Arthur D. Little (ADL) in collaboration with M2P Solutions unveiled its latest report entitled According to the report, 61 per cent of clients are now ready to turn to their primary bank for a beyond banking proposition, as are 70 per cent of customers aged 25-44. As such, banks have begun taking proactive steps to go beyond traditional banking, expanding into growth territories away from financial services. Across the UAE, the banking and wider financial services sector is changing faster than most individual incumbent banks, with consumer forces disrupting their roles, structures, and competitive environment. Based on a survey, the report explains why the national banking sector is likely to drive newer ways of banking in due course and details the necessity for adopting multiple partnership-based strategies in the evolving ecosystem. In line with an analysis of 2,000 UAE retail bank customers, the report substantiates the view that the retail banking market is coming under mounting pressure, with 45 per cent of traditional banks’ clients ready to switch to competitors within the next six months. Low rates, regulatory changes, and various new players entering the financial services landscape – including fintech companies, retailers, and telecommunications providers – are behind this