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Digital banking is changing the way people bank in the Middle East and Asia. Driven by the increasing adoption of mobile devices and the growing demand for convenience, digital banking is offering customers a new way to bank that is more efficient, secure, and personalized.
In this article, we will explore the latest trends in digital banking in the Middle East and Asia, and discuss the implications for banks and financial institutions in the region. We will also look at some of the challenges that banks face in adopting digital banking, and discuss how they can overcome these challenges.
With an estimated 6 Billion people owning a mobile phone worldwide, many other industries have switched to digital platforms in order to target a wider audience as well as ensure a better service such as taxis and hotels. This new digital platform is enabling banks to gain customers quicker than ever, and provide better customer service to keep these customers happy.
Mobile banking is one of the main digital platforms and uses advanced applications that enable customers to access their banking facilities. Its popularity stems from widespread mobile ownership and the growing use of mobile applications to reach new customers and enhance existing relationships. Today, numerous applications offer fully digital account sign-up processes, saving time for both banks and customers. This streamlined approach improves efficiency and convenience in banking transactions.
Asia has rapidly embraced digital banking, particularly in China and Singapore, where mobile phones are the primary means for financial transactions. Today, around 70% of customers worldwide opt for digital payment methods, and China stands out as a global leader in this field. Notably, China has successfully implemented widespread QR code payments, which enhance transaction speed and security. As a result, the country is steadily progressing toward a cashless society. The convenience and benefits of digital payments have contributed to this trend in Asia.
Around 60% of smartphone users globally are already using mobile banking
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Blockchain technology is also a key factor driving banks to become digital, as it has allowed developed trust and transparency among customers and governments. Many governments within Asia are pushing for greater technology advancements in order to grow their economies and increase transparency. Taiwan has already become central for AI development due to support from the government, and has already attracted big companies such as IBM and Google. Asia continues to promote innovation and seeks new ways to improve daily financial activities.
The current financial technology boom in the GCC is mainly fueled by government initiatives aiming to enhance banking practices. Banks are investing in mobile banking while maintaining their traditional banks and introducing digital banks to appeal to a broader range of customers. Start-ups are also thriving by leveraging existing technologies to rapidly establish themselves and provide customers with innovative experiences. The region has witnessed a remarkable $2 billion of private investments flowing into fintech startups, underscoring the vast potential within the GCC.
Many governments are also able to use technology to monitor banks – Blockchain has also been highly popular and has received government support as it is able to assist with stricter regulations. Oracle reports that over 60% of people surveyed want to open a digital bank account showing further potential for the technology.
Although many banks are not yet fully digital and are unable to reap all the benefits, it is hoped that technology will continue to drastically improve the banking industry by improving activities as well as ensuring regulations are maintained by financial institutions.
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Omar Mansur
Tech enthusiast and disruptive strategy expert with a strong passion for exploring innovation and making a difference.
