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 8619 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
The FW18 Trend Report From Weill Paris
Discover the Secret to Younger-looking, Radiant Skin
Keep your skin looking healthy and hydrated, naturally
Climax Mascara Never Fake It
Brighter Eyes with Skin Republic
Jessica Kahawaty in Dubai to Celebrate the Launch of SUKIN, Australia's No.1 Nat...
LOOTAH Perfumes brings a collection of delicate scents to fulfill the needs of t...
The Balmain Haute Elegance Oval mirrors the brand's soul
Brow Contour Pro 4-in-1 defining & highlighting brow pencil
The Rado DiaMaster Petite Seconde Automatic COSC The Rado watch at the top of th...
BodyO launches officially its AiPod for a full body check-up during the Gitex Fu...
Lexus Design Award 2019 open for entries
Joyalukkas adds another jewel to its crown with the inauguration of its third sh...
Get flawless skin with Rodial's new Booster Drops
Johnson's launches Fresh Hydration Range – Cleansed, hydrated skin in just #OneSwipe
Trend Alert! Giddy up on the best platform with your new horse-inspo ensemble fr...
The World of Aigner Wunderkammer
Elegant and feminine new Mini Bubble set to make a big splash
Introducing the GUESS Jeans Fall 2018 Collection'
Manero Peripheral (43 Mm) Classic Watchmaking Meets State of,the Art Technology
Curate your perfect Autumn Winter wardrobe, with Robinsons
Dubai Shopping Festival Returns With Much-awaited Mega Raffles
DS Podium Chronograph 1/100 sec
Daniel Craig Brings the Diver 300m to the Surface
Global Report Reveals That the “Feeling of Home” Is Moving Beyond Four Walls
Reinforcing Smartphone's Weakest Link: Huawei Could Launch Ultra-Fast Charging B...
Dubai's newest social hub - Bar Baar introduces ‘Thela Baar Brunch'
Corum Heritage Eleganza- Dedicated to the stylish woman
Malabar Gold & Diamonds to triple number of outlets to 750 and raise Group turno...
With more collections and a more spacious car parking, Kalyan Silks moves to El...
OMEGA gets set to time the Youth Olympic Games Buenos Aires 2018
Sharjah Government pavilion highlights digital transformation of Sharjah at GITE...
Joyalukkas Celebrates the Festival of Light with Irresistible Offers
Kibsons Expand Vegan Range
Health Shield Medical Center to Celebrate Women of the Capital
AXOR is the official partner for bathroom fixtures of the Design Hotels™ brand
Lacoste Introduces the Keep Playing Collection for Women
Nokia smartphones serves first slice of Android™ 9 Pie on the award-winning Noki...
Emirates Airline Dubai Rugby Sevens 2018 FactSheet
The Ford F-150 Raptor: Your Ultimate Partner for Off-Road Adventure
Sharjah Girl Guides Unleash their Power on International Day of the Girl Child
Mohammad Abdullah, President of Dubai Institute of Design and Innovation (DIDI)
Festival Plaza Announces Lulu Hypermarket at New Lifestyle Destination
SIBF 2018 Invites Young Visitors to the Wondrous Land of Edutainment
Western Digital powers AI-enabled storage for futuristic surveillance and security
Fifi & Friends - Now available at more outlets across the UAE
Nissan to Make Official On-track Formula E Debut
UAE Toastmasters community to host the world champion of public speaking
Make your home stand out this winter
Toyota's legendary King goes urban with the 2019 Land Cruiser Grand Touring Edition