Digital is not the future of banking- it’s its present. Following the impact of the pandemic, websites and applications are an essential channel of communication between customers and companies. As retail and e-commerce platforms become increasingly more intelligent, flexible and mobile-friendly, so should financial institutions.
In the world of banking, the transition towards digital means allowing customers to open, view and manage their savings, payments and investments via digital apps, and have access to fully digital self-service options through user-friendly interfaces. In other words, it means leveraging the best new technologies have to offer and placing customer experience at the centre of decision-making.
“For banks, embracing and enhancing digital experiences is a matter of commercial common sense with a very strong moral imperative,” says Radu Topliceanu, Head of Neo and Personal Banking at Mashreq. “Digital banking underpins the entire world economy, enabling ever-faster, easier, safer, and more reliable banking transactions, products and services.”
But what comes after digital banking? In an exclusive interview with Finance Middle East, Topliceanu discussed how new technologies such as artificial intelligence (AI) are increasing inclusivity and access to financial services, facilitating innovation, supporting startups and forever transforming the relationship between banks and their customers.
The impact of AI
Since generative artificial intelligence (genAI) burst onto the scene in early 2023, it has been taking over every sector, and finance is no exception. According to the McKinsey Global Institute, genAI has the potential to add $200 billion to $340 billion (equivalent to 9 to 15% of operating profits) in value to the banking sector, by increasing productivity and improving the servicing for customers. As we move into 2024, Mashreq is betting on these technologies to drive growth.
“Unarguably, one of the primary emerging technologies this year will be generative AI, which is already a significant focus for Mashreq,” Topliceanu said. “It is especially exciting for us because it will unlock significantly better servicing for our customers.”
Instead of crafting responses or making predictions based on existing data, genAI is capable of learning and creating completely new content based on patterns it has deciphered from within the data. For banks, these capabilities have enormous potential, which can be leveraged to improve process automation, cost efficiencies, security, and customer services.
“Be it for predictive analysis, chatbots, fraud detection and prevention, anti-money laundering or risk management, genAI will revolutionise how banks run,” Topliceanu said, highlighting the technology’s potential to enable “lightning-fast, highly relevant, and nuanced” banking experiences.
The power of personalisation
Mobile applications are increasingly becoming the preferred way for customers to interact with their banks. For this reason, it is no longer enough to have one – it has to be a mobile application that responds to the customer needs and learns to anticipate them. Personalised banking solutions are an appropriate, timely, and convenient way to achieve this. By leveraging data, machine learning and generative AI, personalised services cater to “people as individuals, rather than as a homogenous demographic”, and bring more people into the financial system.
“Personalised engagement is at the heart of our entire philosophy – and the heart of our role as a facilitator of personal and professional opportunity”
Radu Topliceanu
With this goal in mind, the Dubai-headquartered bank has recently launched Mashreq UAE, a new application that brings together the Mashreq and Mashreq NEO apps to create one single unified platform. Mashreq UAE has been designed to integrate comprehensive functionality, accessibility and streamlined design. It has also been adapted to meet the needs of different customers and demographics, incorporating everyday retail banking, highly personalised investment solutions, trading solutions and even NeoNXT for children and young adults.
The design of the app is an example of how to incorporate the latest technological advances into a product that is secure and accessible. Mashreq UAE uses facial recognition and “next-generation” biometrics to ensure the security of the application and leverages AI and machine learning technologies to provide customers with a user-friendly consolidated view of their banking relationships in a clear way.
MENA leads the way
The Middle East has often been referred to as one of the world’s most advanced, exciting and dynamic markets for digital innovation right now. The region has one of the world’s highest mobile, Internet and smartphone penetration and is therefore a target location for digital banking solutions.
“We have incredibly plugged-in, technically savvy, young, ambitious and educated populations who are inventing and reinventing all the time,” Topliceanu said. “The region – particularly the GCC – also benefits from the work of governments that are doing everything in their power to make it easy for innovators to access support services, infrastructures, networks and capital.”
The bank has recently developed digital hubs and digital studios with AI embedded right across its global network, spanning India, Pakistan, Egypt, and the UAE. As part of its expansion, Mashreq has partnered with Etisalat by e& to integrate banking and telecommunication services in Egypt, and help boost access to financing in the region. Last year, Mashreq also received in-principle approval to establish a digital retail bank in Pakistan and a new banking license in Oman.
“Right across our international network, we are seeing a surge in demand for sophisticated digital banking experiences, which is perhaps why 2023 was such a landmark year for our global expansion and digital transformation,” Topliceanu said.
Throughout the region, customers are becoming more and more digital – and so are banks. From digital solutions to predictive analytics and genAI, the Middle East is paving the way towards more innovative forms of banking that will drive economic growth and foster financial inclusion for all.
