Home Industry Finance UAE: Over 60% of clients set to approach their banks for new services A recent report advices banks to quickly redesign their respective diversification strategies to remain relevant in the future by Gulf Business December 1, 2021 Arthur D. Little (ADL) in collaboration with M2P Solutions unveiled its latest report entitled Beyond Banking: Is there an opportunity for banks to go beyond banking in the UAE? 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 trend. Pierre Mariani, partner, financial services practice, Arthur D. Little Middle East, said: “Evolving customer demand accelerated digital transformation and entry of new players are disrupting the traditional business models of UAE banks. These trends will continue to reshape the financial sector in the years to come, and banks that fail to embrace the change and make the necessary adjustments to serve their clients beyond existing services will inevitably fall behind. Therefore, a holistic approach is required by banks striving to retain customers, capitalize on future opportunities, and truly go beyond banking as they know it.” Having examined the beyond banking landscape, the report advices that banks need to quickly redesign their respective diversification strategies. To remain relevant in the future, they must understand and track dynamically changing markets to avoid building on outdated perspectives. Secondly, they should build on a vision, deciding whether to lead their own ecosystems or participate in an existing one. Tags Banking financial GCC 0 Comments Share Tweet Share Share You might also like Banking across the GCC: Carving out a new future Roland Berger and Start-Up Nation Central partner to tap opportunities in the GCC Qatar pushes Gulf Arab energy company borrowing to record high Where is the GCC’s confectionery market headed?