Dubai PR Network, Online Press Release from Dubai and Middle East
 
Banking & Insurance(Banking & Investments)
Filter PR by
  
New technologies set to disrupt UAE banking sector in 2018, KPMG banking perspectives report states
 
  •     Artificial intelligence, blockchain and FinTech will drive banks to improve operational efficiency, increase revenue and reduce risk
  •     Implementation of VAT could result in banks increasing their fees to compensate for increase in costs 
  •     A strong and positive culture can help UAE banks overcome regulatory and innovation-related challenges

March 28, 2018 Dubai, United Arab Emirates:  As the UAE banking sector comes to terms with new regulations and the implications of VAT, KPMG’s third edition of the annual UAE banking perspectives report reveals how technological innovation and strong corporate governance will enable banks to transform into robust financial institutions. 

According to the report, Artificial Intelligence (AI), blockchain and FinTech have emerged as the major technological disruptors that will change the way banks operate and help them achieve cost optimization. 

For instance, robotic process automation (RPA) can be combined with AI to differentiate customer engagement.

Some banks are even exploring automated decision-making based on sentiment analysis by extracting data from millions of emails and other data sources.

The report also analyses the validity of exploring and implementing blockchain applications to achieve three objectives - improve operational efficiency, increase revenue and reduce risk. 

Emilio Pera, Partner and Head of Financial Services, KPMG Lower Gulf, said: “Banks in the UAE are operating in very dynamic times.

The introduction of new laws and tougher regulations is putting tremendous pressure on banks to re-think their business models.

Furthermore, the introduction of VAT has impacted profit margins. 

“All these factors are encouraging banks to embrace technological innovation like never before and use it to engage with customers in new and creative ways.

The KPMG UAE banking perspectives 2018 report examines each of these factors against an evolving backdrop – including cybersecurity and corporate governance – and presents the road ahead for the next nine months.”

Furthermore, as new IFRS standards impact banks across the world, it has brought about far-reaching changes in many areas such as financial reporting, risk management, capital management, regulatory reporting, data sourcing and collection, governance framework and IT systems.

As banks grapple with the new VAT regime and the high compliance costs associated with mandatory VAT registration and the inability for banks to claim all input VAT due to a large proportion of their services being exempt, the report states that banks could be forced to increase their fees to compensate for the additional costs. 

Cybersecurity has emerged among the top priorities in the board room, as any breach could undermine the trust that customers have in their bank, and affect the future profitability and sustainability of the organization.

To address this, KPMG’s UAE banking perspectives 2018 advises that UAE banks formalize their response strategy and should consider investing in cyber security from a consumer-centric point of view. 

The report also reinforces that a strong and positive corporate culture will go a long way to helping banks manage regulatory and innovation challenges in 2018.

“The last year has seen the emergence of an increasingly disruptive banking sector which has heightened the degree of both opportunity and threat.

Despite this, the general picture is a healthy one, with the sector continuing to surpass that of the wider UAE economy in 2017: the top ten banks’ total asset growth exceeded 5%.

We are also confident that banks are in better shape compared with a year ago, in terms of having a more long-term, ethical and consequently more trustworthy culture.

Banks will now have to embrace change if they are to operate to their optimum over the next nine months,” Pera concluded. 

 


Posted by : Dubai PR Network Editorial Team
Viewed 5087 times
PR Category : Banking & Investments
Posted on : Thursday, March 29, 2018  8:55:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : TSYS and Mashreq Bank Announce the Successful Implementation...
Next Story : CISI celebrates 12 years of raising professional standards ...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Timeless Ties [8985-Views]
COLAB - Dry Shampoo [7838-Views]
ORANGE & BERGAMOT Awaken the Cult Icon New Additions [7387-Views]
FOREO delivers the ultimate festival survival kit for a glow-on-the-go. [5978-Views]
Samsung launches Exciting Smartphone Trade-In Program with Galaxy S9 or S9+ [5795-Views]
The Perfect Gift Mark [5508-Views]
Summertime Beauty Picks at Glambeaute.com [5478-Views]
New XE 300 Sport Edition Wins Gripping Ice Race [5252-Views]
Get Vibrant and lively hair with Rahua's new Color Full Range [4917-Views]
Dubai Sports Council Pavilion a big hit at Bangkok SportAccord [4862-Views]
Dubai-based Al Kasir Group launches three Crypto assets backed by diamonds [4837-Views]
du to Offer New 9.7-inch iPad With Apple Pencil Support [4807-Views]
Filorga Mesotherapist Derma Roller [4795-Views]
A Royal Ramadan Experience by Master Chef Mama in Pullman Dubai Creek City Centre [4752-Views]
Skyline University College Economics Day 2018: One Step towards Tomorrow [4734-Views]
Penny Scallan Design Launches in the Middle East [4477-Views]
New Blow Out Bar and Make-Up Studio SWISH by Immaclife Opens in Abu Dhabi in April 2018 an... [4465-Views]
Rolling Cones, a new luxury ice cream concept, launches at the Hyatt Regency Dubai Creek H... [4453-Views]
MINI at Auto China Beijing 2018 [4075-Views]
The new BMW M2 Competition [4063-Views]
Mumzworld Announce Recruitment Drive To Empower Women in the Middle East [3977-Views]
Pandora Shine Discover A New Way to Shine [3898-Views]
Abu Dhabi Ship Building Company Launches Two 64-Meter Landing Ships for the Kuwait Naval F... [3886-Views]
Sheikh Sultan bin Ahmed Al Qasimi Leads Sharjah Contingent to Kuwait Arab Media Forum [3782-Views]
Toshiba Releases New, Powerful Surveillance and Video Streaming Internal Consumer Hard Dri... [3770-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories