No time to ignore new investment

May saw mixed messages for the financial sector in the Gulf region - oil prices are rising, the Dubai Financial Market hit a 23-week high, and there are reports of renewed hiring in the sector.

At the same time, in Saudi Arabia, doubts are being expressed about local banks' abilities to finance projects, with the government taking on some major investments, at the same time as the Qatari government announced it would bail out banks there.

Renewed squabbles over GCC monetary union point just serve to underline the long-term uncertainty of the finance sector in the Gulf.

All of which raises the questions of whether it's the right time for banks to be looking at investing in new technologies? The general advice from analyst companies is that there are two responses that will pay off at the moment - the first is to cut costs and to ride out the storm. The other is to re-engineer processes, and invest into technologies that will bring new opportunities.

The company featured on this month's cover, UpCode, promises a simple, and more importantly affordable technology that promises not just new routes to market and new promotional opportunities, but also a potential to improve security and cut costs through streamlined CRM and account management - a possible double whammy for any bank.

It's an interesting technology that relies heavily on consumer buy-in, but one that's gained some traction in other markets. In uncertain times, any organisation would do well to look closely at disruptive technologies and consider the impact on their business. You might not choose to invest in them, but your competitors could well be.

Mark Sutton is the Group Editor of Technology Group.

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