UAE residents are increasingly turning to mobile banking as they look to track and manage spending.
Mobile banking apps are the first choice for UAE residents, and approximately 50 per cent of these residents will use cashless payment methods by 2024.
Convenience, anytime banking availability, and security are the core reasons why customers are more comfortable using mobile banking apps in the UAE.
UAE mobile banking
The future of banking in the UAE depends heavily on mobile banking developments as much as it relies on customers’ demand preferences.
From contactless payments, digital wallets, open APIs, and e-KYC verifications to personalised banking, there is an upward trend toward mobile banking as technology evolves and customer demands change.
Check out these five trends impacting mobile banking in the UAE.
Personalised banking services
The banking industry in the UAE is increasingly offering personalised services by sharing APIs with third-party partners and leveraging technology to create innovative solutions.
The use of AI and data analytics in mobile banking apps is increasing in the UAE to analyse user behaviour, preferences, and financial habits.
This enables different banks in United Arab Emirates to offer tailored product recommendations, budgeting tools, and financial advice, enhancing customer engagement and loyalty via their banking apps.
Digital wallets and virtual cards
With the widespread adoption of smartphones and NFC technology, contactless payments and digital wallets are gaining momentum.
UAE residents increasingly use mobile banking apps to make payments, whether at retail stores, restaurants, or even public transportation.
It proves that the impact of mobile banking on the banking industry in the UAE is significant and long-term, showing positive growth in usage.
Embedded financial products and open APIs
With the help of open APIs, banks can partner with non-bank companies, such as e-commerce platforms and retailers, and create embedded financial products such as embedded cards and embedded lending.
This enables users to manage multiple accounts from different banks within a single app, make informed financial decisions, and access a broader range of services.
Biometrics overtake passwords
Enhanced security measures are a priority in mobile banking.
Biometric authentication methods such as fingerprint recognition, facial recognition, and even iris scanning are becoming standard features in mobile banking apps.
These technologies provide users with a secure and convenient way to access their accounts and authorise transactions.
Digital ID using blockchain technology
Blockchain technology is gaining traction for its potential to streamline identity verification processes.
Mobile banking apps in the country are exploring blockchain-based solutions for secure digital identity verification, reducing the need for cumbersome documentation when opening accounts or accessing financial services.
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