Steep gap in banking technology calls for an immediate bridge: Experts

Ritika Sharma / EMIRATES BUSINESS

The breathtaking pace with which technology is changing the world is way too fast compared with the speed with which banks are embracing technology. As customers become more and more smartphone-dependent, banks should look for ways to collaborate with IT companies to understand and stay up-to-date with the latest changes in digital world. Retail banking experts voiced this during the concluding day of the 11th Middle East Retail Banking Forum and Expo in Dubai on Tuesday.
Ravi Shankar, the co-founder and CEO of Active Intelligence, told Emirates Business, “The biggest challenge for the retail banking sector and for banking sector on the whole is that the evolution of mobile technology is much faster than the pace at which banks can actually move.” “There was a time when banks started working towards a digitally-sound workplace functioning. By the time banks started excelling in that, there was already a huge change in the way we communicate and use our mobile phones,” he added.
Active Intelligence is a Singapore-based company, bringing artificial intelligence to financial services. Shankar works closely with Yodlee as a platform partner and advisor.
“Today it’s all about WhatsApp and Facebook and banks are yet to reach that level. There is a huge gap that can only be filled if banks start collaborating with the companies that are responsible for bringing change in the technology world,” he pointed out.
Emphasising upon the fact that mobile banking is one of the pivotal elements of the future banking, Zaid Nakhuda, Business Partner, Middle East and North Africa at Experian Decision Analytics, while talking to Emirates Business, said, “It is automation we are talking about. Mobile banking is certainly set to be the future of banking industry. Every innovation takes some time to seep in and in case of banking as people are gradually becoming more aware, it could take a little more time.”
“All of us were concerned about security and safety of our money when we first started using internet for banking but see now we are all using mobile apps with utmost ease. So yes there is a gap but as we are not talking about something casual and it is about our money, therefore the gap will be bridged soon,” he added.
Top-notch bankers, at the forum, also appealed for flexible regulations in order to maintain an equal pace with technology evolution.
“Middle East is moving a little slower and it is due to regulatory strategies here. It is high time we should seriously consider the speed of the changing technology and catch up with it before we are left behind. Banking will always remain an integral part of people’s life so under no circumstance we can afford to ignore it,” Farshad Nowshadi, vice president eStartegy and Technology, Saman Bank Corporaion, told Emirates Business.

UAE: Pioneer in embracing new technological
Visibly excited David Moreno, CEO of Spanish company Innofis, who flew down from Barcelona to Dubai to attend the event, told Emirates Business, “This part of the world is quite innovation-centric and there has been a warm welcome to the new technology. Banking sector here needs to understand the technology much more and get a fair understanding about the needs of the customers, who want tailor-made services.”
Hassan Mokdad, CEO of UAE-based cards manufacturer FutureCards, said that UAE has been one of the most technology-friendly countries when it comes to embracing the marvels of banking technology.
“UAE in itself is an early adopter in embracing technology, may be at a slower pace, but this adoption is happening and the local landscape has accepted the technology very well. The infrastructure is ready, country is ready to take up the technology but adoption might take a little longer,” stated Mokdad.
When asked about the future of plastic money, Mokdad said, “I won’t say that cards will altogether vanish one day, but slowly we might opt out of them. For next ten years, we see many innovations happening in the cards domains also with chip technology progressing fast. I feel for next one or two decades, cards will remain a major part of financial system wordwide.”

e-wallets: New way of banking
In an age where smartphones are everywhere and there seems to be an app for everything, mobile wallet technology is becoming more popular. To strike a chord with the topic, a presentation on ‘pockets’, a mobile wallet technology launched by ICICI bank in India,was held explaining the execution of this futuristic concept and customers’ response.
During the presentation Indranil Ghosh, Joint General Manager, Information Technology Group of ICICI bank, said, “Mobile wallets are more than just an app. They are much more advanced, user-friendly and updated in no time. Mobile wallets are going to play a very crucial role in banking technology in the coming years.”
Mobile wallets are essentially digital versions of traditional wallets that someone would carry in pocket. While there are many variations, usually they can hold digital information about credit and debit cards for making payments along with other baking services.