GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Banking and Investments

 
  Share
  •     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 : GoDubai Editorial Team
Viewed 6130 times
Posted on : Thursday, March 29, 2018  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : TSYS and Mashreq Bank Announce the Successful Implementation of PRIMESM for Acquiring Services
Next Story : CISI celebrates 12 years of raising professional standards in the financial services industry by re...
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Grand Mall Opens the 52nd Outlet in Al Musallah - Sharjah
Eid- Al- Fitr Gift Guide 2018
LOOTAH Perfumes launches four new springtime fragrances for Him and Her
Leading Professional Beauty Distributor Nazih Cosmetics Celebrates the launch of...
GUESS Launches Ramadan Collection 2018
LOOTAH Perfumes launches fragrant oud ‘Ambwood'
Meet the FOREO family as they share their top tips for radiant skin during the ...
Amani Glam Collection
Experience 5 Seconds to New Skin with OXYGEN-PEEL from Filorga
Three Trends to Try with Palladio Beauty
Lip Stick to my Heart - GOSH New Collections
Toyota Rush makes a new beginning in the UAE
Swatch Introduces Its Latest Spring-summer 2018 Collection
Carrera UAE Exhibition
Lexus sweeps two podium finishes at round two of 2018 AUTOBACS SUPER GT 500 series
bebe Launches First Ever Ramadan Capsule Collection
Max Fashion Reveals Latest 2018 Fashion Trends at Exclusive Trunk Show
Global Light and Power Celebrates 10 Years with the Opening of their New Showroo...
New Master Maserati Driving Courses for 2018
Dubai's New Flagship Rolex Boutique Offers Unique Experience
Celebrate a Traditional Ramadan at the First Swissôtel in Dubai
Diabetes & Ramadan (DAR) Alliance and Sanofi introduce new integrated digital hu...
Hamdan Bin Mohammed Heritage Center honours winners in Fourth edition of "A...
HydroPeptide Launches Solar Defense Products in UAE
Make Ramadan Better With the Gift of Sharing
Enhance your natural beauty while staying active with The Body Shop's Sportify M...
Care for your baby's sensitive skin with Corine de Farme
The Balmain de Balmain II Mini is a true win-win
TAG Heuer Partners with Global Luxury Start-up Bootcamp in Association with Arab...
‘Tree of Life' Continues to Change Lives at Arabian Center, This Ramadan
Ikea Yas Island Recognised as One of the Brand's Best Stores in the World
Dubai Holy Quran Radio launches new special programmes for Ramadan
Ramadan-Inspired Sandro SS18 Pieces
Beautiful Kaftans for Ramadan from GUESS
Ethereum - Second In A Series Of Exclusive Cryptocurrency Watches Launched
Spinneys Puts Local Food Heroes in the Spotlight this Ramadan
Celebrate The Holy Month Of Ramadan With The Night Picnic At Tub Of Butter
Mads Mikkelsen Spotted on Red Carpet at Cannes Wearing Ulysse Nardin Masterpiece
LG G7 Thinq Offers Deep AI Integration for Maximum User Convenience
RAK Diabetes Center in Jumeirah offering Free Lifestyle wellness checks and Diet...
Get Voluminous Eyelashes and Eyebrows with Rodial's Lash and Brow Booster Serum
Dubai foreign trade in fragrances and beauty products worth AED 20b in 2017
Google launches new feature on Search to mark Ramadan
Aru Impressed with Team Spirit as Italian Champion Secures Top Ten Finish
Pottery Barn Kids Launches Baby Registry Service to Welcome Newborns
Dubai Customs discusses cooperation with Nedaa
OMEGA Welcomes Sailing Sensations Peter Burling and Blair Tuke as Brand Ambassadors
Facebook Launches Youth Portal, a Central Place for Teens
Charity event brings early Ramadan spirit to children of determination and their...
The Ramadan Edit 2018