Emaar founder and chairman Mohamed Alabbar is to head the first digital bank in the world to provide both retail and corporate banking, which is set for imminent launch in the UAE.
Zand will also be a digital economic accelerator, providing the foundations for a broader generation of digital services.
Alabbar said: “The UAE combines progressive regulations with commercial, financial, and technology hubs. This provides the perfect environment for a world-leading digital bank that can launch in the UAE and scale beyond.
“As the first fully independent digital bank in the country, with a full UAE banking licence, Zand will provide innovative, effective financial solutions that help simplify businesses and lives, addressing the needs of both retail and corporate customers.”
Zand’s CEO, Olivier Crespin, added: “Backed by strong shareholders and working with the best bankers and technologists, we’ve built a bank that delivers on the promise of understanding and meeting customer needs. From our systems to our processes and our team, we’re built and ready, and we’re looking forward to welcoming the first customers soon.”
A survey from Boston Consulting Group (BCG) in October last year revealed that 87 percent of respondents in the UAE would be willing to open an account with a branchless digital-only bank. This correlates with BCG’s global benchmark, which saw more than 53 percent of UAE banking customers increasing their mobile app usage for banking during the pandemic, and over 50 percent who enrolled in digital banking for the first time as a result of the crisis.
“UAE’s banking customers’ have a strong appetite for digital banks, and we see more growth in the demand of digital products during the pandemic,” said Mohammad Khan, partner, BCG.
Emirates NBD, Dubai’s largest bank, launched Liv., the UAE’s first digital bank targeted at millennials, back in 2017. While last year, Abu Dhabi investment firm ADQ revealed plans to set up a digital bank with an initial capital of AED2 billion ($545 million) after obtaining the legacy license of First Gulf Bank.
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