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 5063 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
Timeless Ties
COLAB - Dry Shampoo
ORANGE & BERGAMOT Awaken the Cult Icon New Additions
FOREO delivers the ultimate festival survival kit for a glow-on-the-go.
Samsung launches Exciting Smartphone Trade-In Program with Galaxy S9 or S9+
Enhance skin radiance, smoothness and brightness in just 14 days, with the new J...
The Perfect Gift Mark
Summertime Beauty Picks at Glambeaute.com
New XE 300 Sport Edition Wins Gripping Ice Race
Get Vibrant and lively hair with Rahua's new Color Full Range
Dubai Sports Council Pavilion a big hit at Bangkok SportAccord
Dubai-based Al Kasir Group launches three Crypto assets backed by diamonds
du to Offer New 9.7-inch iPad With Apple Pencil Support
Filorga Mesotherapist Derma Roller
A Royal Ramadan Experience by Master Chef Mama in Pullman Dubai Creek City Centre
Skyline University College Economics Day 2018: One Step towards Tomorrow
Penny Scallan Design Launches in the Middle East
New Blow Out Bar and Make-Up Studio SWISH by Immaclife Opens in Abu Dhabi in Apr...
Rolling Cones, a new luxury ice cream concept, launches at the Hyatt Regency Dub...
MINI at Auto China Beijing 2018
The new BMW M2 Competition
Mumzworld Announce Recruitment Drive To Empower Women in the Middle East
Pandora Shine Discover A New Way to Shine
Abu Dhabi Ship Building Company Launches Two 64-Meter Landing Ships for the Kuwa...
Sheikh Sultan bin Ahmed Al Qasimi Leads Sharjah Contingent to Kuwait Arab Media Forum
Toshiba Releases New, Powerful Surveillance and Video Streaming Internal Consume...
Genesis G70 Luxury Sedan Arrives in Middle East
Stylish Nursing wear at Mums and Bumps
Exclusive, Limited‐Edition, Swiss‐Made Cryptocurrency Watches
10 Kg gold for 100 winners at Malabar Gold & Diamonds
Olivia Burton Marble Florals - Embrace these styles for a new artistic way to wo...
Gifts for Ramadan at Hour Choice
Understanding what women want Balmain reveals the Madrigal Mini II
Airport Show Attracts Influential Aviation Leaders for Global Airport Leaders Fo...
Adamavi - Elegant, Timeles S, and Reliable
Pandora Spring Embrace Nature's Beauty
Mido Ramadan Watch Collection
April Marks Autism Awareness Month at Nursery Chain
Tommy Fleetwood joins OMEGA's line-up of golfing greats
Ashridge to help Saudi leaders explore and implement strategies for growth
In Its 100th Year, Panasonic Bullish On ME Growth
Village Street Sale at The Outlet Village offers designer outfits at great prices
The Beautiful Britain 2018
Ras Al Khaimah (RAK) Ruler Delivers Keynote Opening Speech to 14th Arabian Hotel...
Get ready for an exciting Ramadan at Danat Al Ain Resort
Tamouh unveils unique art piece dedicated to the late Sheikh Zayed at Cityscape ...
Mido Multifort Datometer Limited Edition - A piece of history on your wrist
'Global Automotive Aftermarket Manufacturers Gear Up for Robust Business Growth ...
du LaLiga HPC U16 Crowned UAE FA Academy League Champions and City FC Win U14 ...
Mint Middle East to Collaborate with Interac in UAE