The necessary alliance: Banking and fintech

The use of technology to facilitate financial offerings, commonly known as fintech (financial technology), has been around for a while, but has gained renewed focus in recent years, in turn impacting the financial ecosystem.

- ZAINAB MANSOOR

Banks across the world have been pushed to adopt digitalisation as a key element for their continuity plans and collaborate with third-party service providers for accessible reform, greater outreach, and longevity. Similarly, regional banks have been forced to acknowledge that fintech will drive change in terms of customer service and product innovation.

In the UAE, Emirates NBD unveiled Liv, a digital banking app targeting millennials centred on lifestyle, Mashreq Bank launched Mashreq Neo, its full-service digital bank, while Bahrain’s Bank ABC launched ila Bank, a digital, mobile-only bank. Banks have also offered a series of technological innovations to their business customers. Last year, Emirates NBD launched a SmartTrade portal to facilitate transaction banking clients, and in 2020, the bank enhanced the portal by introducing a service that enabled complete contactless processing of export collections.

In March, Dubai International Financial Centre and UAE based Mashreq Bank jointly launched a blockchain data-sharing platform to support licensed businesses and corporates in the UAE to “instantly” open digital bank accounts. The platform aims to make it easier and faster for new companies to do business in the UAE, removing existing paper-based KYC processes. Additionally, multiple regional banks have executed blockchain-based trade finance transactions across the GCC.