Dubai bank Emirates NBD to reduce tariffs following UAE central bank initiative

Dubai’s biggest bank Emirates NBD announced that it has introduced new measures to support UAE businesses in line with recent UAE government and central bank initiatives.

The bank’s transaction banking unit will reduce tariff offers over the next three months, in particular for transactions initiated via its SmartTrade platform, which replaces the need for physical branch visits.

Those using the platform will be offered a “significant reduction in transaction processing and handling fees, with immediate effect”, a statement said. The bank will also offer its clients new activation on the platform at zero cost for the next three months.

The SmartTrade platform allows users to submit all trade requests – such as LC and trade loan requests – online.

The bank also recently revamped the platform allowing users to obtain trust receipt financing by submitting a request online instead of visiting a bank branch. Users also receive real time updates on the status of their transactions through email and SMS notifications.

Emirates NBD will continue the existing benefits on processing fees for LC issuance and guarantee issuance for transactions via the SmartTrade platform, it added.

Ahmed Al Qassim, senior EVP and group head, Corporate and Institutional Banking at Emirates NBD said the reduced bank charges “will help alleviate pressure by reducing operational costs”.

“Our continued investments and focus on digitisation equips our customers to conduct a majority of their trade finance transactions online, eliminating the need for physical requests.”

Late last month, the UAE central bank urged banks to reschedule loans and reduce fees to mitigate the economic effects caused by the coronavirus outbreak.

“Financial institutions are expected to implement measures such as rescheduling of loans contracts, granting temporary deferrals on monthly loan payments, and reducing fees and commissions for affected customers,” Reuters quoted a statement from the central bank as saying.

Also read: UAE central bank is monitoring job cuts in financial sector