Nine in ten UAE survey respondents want apps that provide personalized insights into their finances

73% say they are comfortable having AI guide day-to-day financial decisions

DUBAI, UAE, Sept. 2, 2024 /PRNewswire/ -- A desire for more insights into personal finances, a willingness to share data to unlock individually tailored services, and a high level of comfort with AI-driven guidance are key themes to emerge from the new survey of UAE retail banking customers conducted by Capco, the global management and technology consultancy.

As the UAE pushes forward with ambitious plans to grow its digital economy, Capco's Bank of the Future survey of over 1,200 UAE banking service users aged between 18 and 65 found that 89% have become more confident in using mobile and digital banking services over the last two years. Eight in ten (83%) now use mobile apps to access banking, offering a solid foundation for future banking innovation.

In addition, 87% of respondents say they would be attracted to an app that offered personalized insights into their finances, including 41% who say this would be 'extremely attractive'. The survey also reveals that 72% would 'definitely' or 'probably' share additional personal data – such as social media profiles or wearables data – to unlock personalized products, services or offers.

In support of its main survey, Capco conducted more focused polling of 500 consumers that looked specifically at the adoption of digital-first banking services. This found that nine in ten UAE respondents (89%) now have digital-first accounts, including both international and UAE-based firms. Three-quarters (76%) have an account with a UAE-based digital-first provider.

Capco's survey findings highlight opportunities for UAE banks and fintechs to capitalize on positive attitudes to data sharing and innovation to deliver the products and services that consumers say they want. It also offers recommended paths forward for banks as they explore how best to apply the latest approaches to data analytics and AI to address customers' aspirations.

James Arnett, Managing Partner, APAC & Middle East at Capco, said: "Consumers in the UAE are looking for products and services that provide a more bespoke user experience, including personalized financial insights. Seizing this opportunity will require an ever more nuanced understanding of individual consumer's aspirations, and banks and other providers will need to prepare by investing in improved data management and advanced analytics."

Naim Alame, Managing Partner, Middle East at Capco, said: "Consumers want convenient, integrated financial services and seamless digital journeys enabled by improved connectivity, data analytics and AI. Delivering the products and experiences that consumers want will require more agile banking models and significantly greater collaboration with third parties in order to embed value-added financial services ever more deeply into customers' lives.

"For the bank of the future, collaboration may prove to be as important a priority as disruption. Offering a mobile-first experience that embeds payment aggregations, finance options and other ecosystem services to provide a more seamless and holistic experience will be the key to keeping customers engaged."

Other key findings in Capco's UAE survey report include:

86% of respondents would be attracted by a banking app that integrates financial services with the non-financial services they use in their daily lives, such as ride hailing and e-commerce.

  • 37% would find such an app 'extremely attractive'.

The characteristics that would convince a respondent to use a specific bank or financial institution include 'a wide range of services' (51%) and 'more accessible services' (45%).*

  • 'Trust in the company' (39%) and 'highly personalized products' (34%) are also seen as important. 

Four in ten of respondents (41%) cite cashback options as a value-added feature they consider when selecting a new card or account.*

  • Other important features respondents would consider include discounts on travel (33%), monthly offers such as retail discounts (32%) and the ability to use points to make purchases (32%).

As digitalization accelerates, 72% of those using payment services identify online payments as a preferred payment method and 69% mention digital wallets.*

  • Cash remains a preferred payment method for 51% of respondents, and cheques continue to be preferred by 28%.
  • In Capco's recent Kingdom of Saudi Arabia (KSA) banking survey, online payments (65%) and cards (65%) were the leading preferred methods of payment, while 57% of respondents cited digital wallets, 55% mentioned cash, but only 11% chose cheques.

The UAE played host to the COP28 global climate conference in late 2023, and almost nine in ten respondents (88%) say it is important that their primary bank has a proactive stance on ESG issues.

  • In our KSA banking survey, 80% of respondents stated that this is important.

*Multiple responses permitted

Capco's UAE survey report can be accessed here.

 

About Capco

Capco, a Wipro company, is a global management and technology consultancy specializing in driving digital transformation in the financial services industry. Capco operates at the intersection of business and technology by combining innovative thinking with unrivalled industry knowledge to fast-track digital initiatives for banking and payments, capital markets, wealth and asset management, insurance, and the energy sector. Capco's cutting-edge ingenuity is brought to life through its award-winning Be Yourself At Work culture and diverse talent. To learn more, visit www.capco.com or follow us on LinkedIn, Instagram, Facebook, and YouTube.

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