The United Arab Emirates stands out as a global leader in consumer confidence in the banking sector, with a significant increase from 84 to 90 per cent in 2023. This reflects the sector’s excellence, fast digital transformation, and innovation, placing it above the global average in the trust index and outperforming prominent international financial centers. Abdulaziz Al Ghurair, chairman of the UAE Banks Federation (UBF), highlighted the continuous development of the banking sector, emphasizing the importance of customer trust as a fundamental pillar in banking and finance. The sector is striving for excellence under the direct supervision of the Central Bank of the UAE, focusing on accelerating digital transformation and developing innovative solutions to enhance customer experience.
Al Ghurair noted the strength and resilience of UAE banks over the past years and the first quarter of the current year, with significant increases in net profits, operating profits, revenues, and assets. The financial indicators of UAE banks demonstrate high capital efficiency ratios, provisions, and reserves that exceed the requirements of Basel III principles, showcasing the sector’s ability to overcome challenges and achieve growth. Proactive strategies are adopted to deal with fluctuating international interest rates, ensuring that UAE banks remain competitive in the global banking landscape.
The UAE banking sector is at the forefront of a profound transformation in banking services, aligning with the technological revolution to meet evolving customer demands. The sector’s leadership in adopting and developing digital solutions provides customers with secure and reliable banking services, with a focus on modernizing digital infrastructure to offer specialized services and enhance digital channels. Al Ghurair emphasized the importance of investing in human capital to keep pace with evolving changes, attract, qualify, and train professionals needed in the digital age, such as designers, engineers, and data scientists.
The trend towards digital banking experiences is set to accelerate, with a focus on personalized and tailored financial services by leveraging data analytics and artificial intelligence to better understand and meet customer needs. Al Ghurair highlighted the role of the banking sector in empowering customers to take control of their finances, driving the development of leading products and services, promoting sustainability initiatives, and supporting environmental, social, and governance (ESG) principles. The sector plays a crucial role in contributing to a more sustainable future by supporting companies prioritizing sustainability and incorporating ESG principles in financing activities.
A recent study released by KPMG in collaboration with DataEQ highlighted that banks in the UAE and Qatar lead regional “reputational net sentiment” in the GCC banking sector. This first-ever GCC banking sentiment index focuses on quantifying consumer experiences and sentiments within the sector, showing that UAE banks spearheaded reputational net sentiment, closely followed by Qatar. Understanding consumer sentiment in the banking sector is crucial for brands aiming to evolve strategies in a consumer-centric direction, as data-led insights from such studies serve as critical metrics for future growth and development in the sector.
