Fintechs are start-up companies that provide out-of-the-box finance
How are banks in the UAE prepared for the emergence and mushrooming of fintechs?
Miguel Rio Tinto, chief information officer at Emirates NBD, told TechRadar Middle East that Emirates NBD is aware of the growth of finches across the world and is seeing many companies coming from abroad as a country for a strategy for attracting startups and talent.
Dubai International Financial Center and Abu Dhabi Global Market play a key role in the growth of finances in the UAE.
Posing a threat to established ones
"The UAE is a very good infrastructure hub for technology. Tinto said.
Moreover, these are small companies, which are more than big banks, are deploying technology and are becoming a threat to established banks in specific areas of activities.
Emirates NBD has started the digital transformation in a bid to compete with fintechs.
"These fintechs are very positive for consumers and the market. They come in to solve some kind of consumer-led problem in a way to win customers by better pricing and at a lower cost. There are a number of business areas in the country, but they are still in good condition. "
However, he said that banks have to respond and have become more consumer-focused. Even though it puts some pressure on the banks,
Emirates NBD launched Liv, the first app-based bank in the UAE, thinking about the millennials and how to better Serves them as the traditional way.
"We've got 1
While these fintechs are solving the problems, they said they would prefer to go to a bankruptcy court , not only in the retail space but also in the corporate space.
"Fintechs are willing to work with banks as we have a solid customer base, solid balance sheet and have access to resources and funds.
However, he noted that banks are currently facing competition from fintech in specific areas like payments and currency exchange.
"Profit and customer bases are at risk and fintechs can disrupt that. It's the way forward for the banks, "Tinto said.
Big banks and fintech startups have a great deal to offer each other, he
Smart and preferred banks are trying to cooperate and not just on the profits and the assets are becoming anything more or less disrupted in the future , He said.
Despite the growth of fintechs, Emirates NBD has no intention to acquire fintechs as "we are not a private equity firm. Till now, we have not seen the need to buy a company in a bid to access their technology or access their processes. But, this may not be the future for us to access a specific technology. "