Consumer appetite for digital banking services continues to grow in the United Arab Emirates (UAE), accelerated further by the COVID-19 pandemic, according to a new survey conducted by Backbase with YouGov.
Eighty-nine percent of respondents to the survey said that they are now more likely to opt for digital banking services rather than make a physical visit to a bank branch, with consumers saying they prefer digital self-service banking solutions delivered with the same convenience as their ecommerce, entertainment, and transport solutions.
Movement restrictions or closures of bank branches in the early days of the pandemic forced consumers online, and banks responded by rapidly shifting products and services to digital platforms. The research showed that 72% of respondents say that they use digital banking services at least once a week, and 24% uses services once a day or more.
The sudden increase in digital adoption has dramatically advanced the digital transformation agendas for many banks in the region, with banking leaders recognizing online banking services as becoming critical to increasing customer retention and growing revenue streams through personalized services. Consumer expectations from digital banking has shifted from just day-to-day banking services and transactions, to also include more complex interactions, such as remote account openings or subscriptions to new products or services such as getting a loan or subscribing to insurance. However, 31% of respondents say that their bank is weak when it comes to offering seamless access to online banking services, highlighting an area where banks need to step up their performance.
According to Backbase, many banks have relied on rolling out standalone applications and self-contained systems to add new functions and services to their online banking offerings, creating fragmented systems that don’t deliver a good experience to customers. With further digital transformation ahead, financial institutions need to ensure that they have the right platform to manage future expansion.
