Consumer confidence in the UAE banking sector reached an all-time high of 90 percent in 2023, up from 84 percent the previous year, demonstrating the sector’s commitment to excellence, rapid digital transformation, and innovation. This remarkable trust score places the UAE above the global average and ahead of many leading international financial centers, highlighting its capacity to satisfy a diverse range of customer needs.
Abdulaziz Al Ghurair, chairman of the UAE Banks Federation (UBF), commented on the significant rise in consumer confidence, attributing it to the sector’s ongoing advancements. He emphasized the critical role of customer trust in banking and finance during an event hosted by the UBF. Al Ghurair praised the UAE banking sector’s efforts under the guidance of the Central Bank of the UAE to excel through innovative solutions that incorporate artificial intelligence, blockchain, and data analytics. These technologies enhance the digital banking infrastructure and improve cybersecurity, offering a secure and seamless banking experience.
The robust performance of UAE banks in recent years, including the first quarter of this year, underlines the sector’s strength and resilience. Al Ghurair highlighted the notable increases in net profits, operating profits, revenues, and assets, along with sound financial indicators such as high capital efficiency ratios, provisions, and reserves that surpass Basel III requirements. He also noted the banks’ adept handling of international interest rate fluctuations through proactive strategy adjustments.
The UBF chairman further discussed the transformation in banking services globally and in the UAE, driven by evolving consumer demands and technological advancements. UAE banks are continuously upgrading their digital infrastructure to provide specialized services and are enhancing APIs, cloud computing, and digital channels.
Additionally, Al Ghurair stressed the importance of investing in human capital to adapt to these changes, emphasizing the need to develop solutions and employ innovative technology by attracting, training, and qualifying skilled professionals like designers, engineers, and data scientists.
He concluded by outlining the banking sector’s commitment to empowering customers, driving the development of top-notch products and services, and supporting sustainability initiatives. This focus not only improves customer financial management but also promotes environmental, social, and governance (ESG) principles in financing activities, supporting companies that prioritize sustainability for a better future.
A recent study by KPMG in collaboration with DataEQ confirmed that banks in the UAE and Qatar lead in regional reputational net sentiment, which measures customer satisfaction by balancing positive and negative sentiments and adjusting for conversation volume. This index is a crucial tool for banks aiming to tailor their strategies to be more consumer-centric, according to Abbas Basrai, partner and head of Financial Services at KPMG Lower Gulf.
