How ready are MEA banks to rethink business model amid digital currency disruption?

At the MEA Annual Heads of Retail Finance and Financial Technology Virtual Dialogue, retail banking heads and senior practitioners, including Adewale Salami, First Bank of Nigeria Limited; Boma Raballa, CRDB Bank Plc; Constantinos Constantinides, QIB Group; Hussein Al-Abdulla, Commercial Bank; Korede Demola-Adeniyi, EcobankNigeria; Marie Christine Liu, Absa Bank Mauritius; Marwan Hadi, Emirates NBD بنك الإمارات دبي الوطني; Reena Mohan, Abu Dhabi Commercial Bank; Sanjay Khanna, RAKBANK; Yemisi Edun, First City Monument Bank, and others, discussed how payment is being commoditised and destroyed by fintechs, and how banks have to rethink business models to face potential disruptions from digital currencies. They also debated the impact of technology on the cost to serve that democratises wealth management for retail investors, as well as responses to the second year of the pandemic.

The following key points were also discussed:

The areas of opportunity for banks to develop ESG and sustainable investment products.

● The region’s strategy towards a cashless society by enhancing frictionless peer-to-peer and real-time transactions.

● Banks continue to expand wealth management products and are keeping crypto and digital assets on the radar.

● Banks are offering innovative wealth management services deploying technologies such as artificial intelligence and robo-advisors for a better customer experience.

● The payment business model will be disrupted in the next five years by central bank digital currencies.