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RITIKA SHARMA / Emirates Business
A testimony to the rising popularity and acceptance of digital banking in UAE, a recent report affirms that use of online apps is on a rise in the country. Banking and finance apps usage has more than doubled in recent years, putting a full stop to all speculations about approval of technology in bank and money related procedures.
According to a research released by Collinson Group, affluent middle class customers in the Emirates are more likely to interact with their bank using digital channels than ever before.
Romilla El Kurdat, a Dubai-based economic research specialist, told Emirates Business, “This report is going to give a huge push to UAE’s digital banking segment. Earlier, we had seen people talking about UAE as a slow adopter of digital technology when it comes to money. But the report clears it all. It might take a few years, but the day of complete digital presence of banks and financial institutions is not far.â€
The aforesaid research also said that 42 percent of customers prefer to do their banking online or via mobile app, while 32 percent prefer telephone banking and 26 percent prefer to go into a branch.
“Mobiles will rule the new digital world of banking. With high smartphone penetrations, UAE is undoubtedly going to lead the league. However this increases the amount of responsibility when it comes to technology service providers. After all, banks are about money and in the end it is one of the most sensitive issues for everyone,†she added.
Christopher Evans, Director at Collinson Group said in an official statement, “Digital will be the biggest battleground in financial services as digitally native Millennials and Generation Z become more lucrative target audiences for the sector. We can expect to see digital engagement continue to soar over the next three to five years. Brands need to act now in order to improve their digital offering, or risk missing the opportunity to build loyal relationships with lucrative audience segments.â€
“The UAE is perfectly placed to capitalise on the digital loyalty uprising, with additional insight from Collinson Group finding a strong appetite for loyalty programmes. The research found that UAE banking loyalty programmes encourage 87 percent of members to spend more and that membership for bank loyalty programmes has risen from 25 percent in 2014 to 39 percent in 2016,†Evans added.