RIYADH: Banks in the UAE are set to witness 52 percent growth in their revenue to about $25 billion by 2030 as the financial sector undertakes widespread digital transformation practices to improve customer experience, said a senior official of the UAE Banks Federation.
Speaking at the Abu Dhabi Finance Week earlier this week, Abdulaziz Al-Ghurair, chairman of the UAE Banks Federation, said the transformation has led to the region’s leading banks registering nearly 95 percent of digital transactions, out of which over 90 percent was done over mobile phones.
Citing the Central Bank of UAE data, Al-Ghurair revealed that in 2021 the share of cash payments in overall transactions declined from 69 percent to 20 percent, even as the total share of digital accounts rose from 7 percent in 2018 to 51 percent in 2021.
He further said that changing customer needs had triggered significant technology investments and upgrades across the banking sector that will facilitate superior customer experience in times to come.
The chairman revealed that UBF has been instrumental in promoting digital transformation and consolidating the sector’s leadership in developing digital solutions, contributing further to economic development in the region.
In a webinar held last month, the federation emphasized on the relentless role of the Central Bank of UAE in adopting the latest technologies to enable greater financial inclusion and develop the national digital economy.
“Under the direct supervision of the Central Bank of the UAE, the federation is committed to creating the conditions for this development. This progress requires keeping up with the latest trends in the financial sector to create solutions that meet customers’ needs,” said Jamal Saleh, director-general of the UBF, in a statement.
He added: “Digitalization is currently one of the most important pillars of the global economy. It is part of our continuous efforts to ensure the consolidation of the banking and finance sector's leadership through a proactive approach of studying and analyzing global market trends.”
In June, the CBUAE held a meeting with the CEOs of banks operating in the UAE to discuss the continued UAE’s banking sector recovery, the increasing role of digitalization of the financial sector and Emiratization initiatives in the financial sector.
As part of the meeting, the central bank took stock of the implementation of its National Payment System Strategy, which comprised the instant payments platform and fast-tracked modernization of financial infrastructure and payment system data centers.
It also outlined a series of wide-ranging initiatives to increase Emiratization in the financial sector, which included creating 5,000 additional jobs in the banking and insurance sector by the end of 2026.