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One of the oldest banks in the UAE is gearing up for a digital-only future, with competition from emerging companies in the non-traditional financial services arena.
Mashreq Bank currently operates only 10 branches in the United Arab Emirates, up from 34 branches two years ago. This number is expected to decline further, as CEO Ahmed Abdel Aal predicted that traditional branches “won’t exist very soon.”
“There is a complete change in our strategy to focus on digital channels, which now represent the majority of new business for the bank,” Abdel-Aal said in an interview with Bloomberg, which was seen by Al Arabiya. net. “We still have customers who depend on physical transactions, but our numbers show that these are decreasing by the minute,” he added.
While lenders, including Emirates NBD, have created digital branches, independent entities are also entering the market, with the founder of Dubai-based Emaar Properties creating a platform called Zand, while the sovereign wealth fund of Abu Dhabi ADQ announced plans to build a $ 545 million Digital Bank last year. . Meanwhile, local payment apps have attracted funding and companies like Stripe Inc have entered the market.
The Mashreq is no longer just in competition with traditional banks, Abdel-Aal said. “Our real competitors are the customer experience providers … the data owners, the information owners.”
During the dialogue, Abdel-Al revealed the bank’s plan to enter Oman and expand its business in Egypt. He also applied for a banking license in the Kingdom of Saudi Arabia.
Mashreq Bank is also working on a number of Sharia-compliant green bonds in the region.
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