This article entails information on the ways through banks in the United Arab Emirates are progressing into smart customer banking. The article talks of the ways through which most banks in the UAE are getting into smart customer banking. The benefits of the smart customer banking are also exposed in the article with increased profitability, growing of the deposit books while troubled assets declining being talked of in the article. The example that the author focuses on is the Mashreq Financial Institution in UAE. The article also touches on the continuity of the battle to reduce the costs in pursuit of healthy cost-income ratios. The use of technology to build customer relations, reduce deficits and improve the investment of the customers in the banks is also addressed in the article. Provision of a wide range of products to the customers is also talked of in the article and is of great importance in attraction and holding of customers.
The Main Issue
The main issue in the article is the use of technology in the banking industry to provide the customers with a variety of goods and services, while increasing the profits in the UAE banks.
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Other Issues in the Article
Other issues in the article are: the profit margins and growth in the Mashreq bank, the building of customer relations, the quality of banking, increasing the seniority of the people from the Emirates with connections and the coverage of Mashreq bank across the globe.
The Impact of the Issues on National Bank of Abu Dhabi
The increasing utilization of technology to offer services in the banking industry helps in increasing the number of customers to the bank. This is for the increased efficiency in the industry. This is one of the benefits of improved technological operations in the banking industry in Abu Dhabi. The National Bank of Abu Dhabi will increase its scope for offering banking services. The use of technology is highly efficient, and this implies that the bank will make more profits than before. The provision of diverse products to the customers will mean increased customer satisfaction and consequently improved customer relations to the bank. This will tip to additional investment in the bank and consequently growth of the NBAD. Increased profits in the bank will lead to opening of more branches across the world, and this will lead to even more profits, thus increasing employment and infrastructure of the bank.
The first issue in the bank requires quick implementation since the bank will depend on increased numbers of customers to reach financial targets. The mode and means of implementing the issue is linked to the impact rating and weight to the bank. On the other issue, the bank does not promptly need to open up branches to other parts of the world if the current customer base is not well attended to. This has thus reduced the urgency of the need to implement the issue in the bank. The bank neither does need to increase the number of people from the Emirates to the senior positions until they are accountable and connected to the international markets nor reduce the number of such senior post held by the locals in the banking industry (Fong, 2002).
The Strength of the National Bank of Abu Dhabi
The NBAD being the leading bank in the UAE, increasing the quality of the services s rendered to the customers will be possible since the government act like the sole decision maker. Currently, the bank has been diverting from the analogue modes of operation, and the entire company is embracing technology to improve the services offered to the customers. Lots of employees have been trained on the digital handling of customers and entire operations in the industry (Low, 2012).
Weaknesses of NBAD
Upgrading the entire company into the technological system is very expensive and may incur the bank lots of money. The bank has also to hire personnel top train and teach customers on the digital working systems in order to fully upgrade the system. Most of the customers may fail to understand the operations of the technologically-anchored services and will forever need the assistance. This may make them feel like it is complicated and meant just for a given class of people but not the poor person in the region (Low, 2012).
Opportunity of NBAD
Improved operations and service deliverance by the bank will increase the profits due to increased investments. This is as a result of ‘technology affixed trade in the fiscal transactions industry.’ The bank will be able to spread to most parts of the world due to the improved digital status of the bank. All these will increase the profit margins of the bank.
Threats to NBAD
Due to increased technicalities in managing accounts with the bank, most of the illiterate customers are prone to withdrawing from the bank. They may close down their accounts with the bank and thereby causing loss to the company (Fong, 2002). Other financial institutions around the world may take over the company’s challenges and offer better training to the customers on the technological uplift and beat the NBAD on certain customers.
Recommendations
The National Bank of Abu Dhabi should strategically implement the technology into the company. More trained personnel on the digital and technological advancements should be employed so that the customers are well trained and understand every bit of the processes. The implementation of the requirements of improved banking conditions and processes should be implemented as fast as the bank can in that it will improve the customer’s relationship with the bank as well as improving profits. Every step into the technological, ‘financial dealings ought to be done prudently and procedurally’ (Fong, 2002).
- Fong, C. O. (2002). Impact of new information technology in the banking and insurance industries in Malaysia and Singapore. Geneva: International Labour Office. 6th Edition
- Low, L. (2012). Abu Dhabi’s vision 2030: An ongoing journey of economic development. Singapore: World Scientific.
