In the wake of market volatility and tightening global liquidity, UAE banks will need to reevaluate the way they approach changes and challenges in their customer and business strategies, according to a new report.
KPMG’s first UAE Banking Perspectives report said banks will need to focus on digital and talent strategies in 2016 to stay ahead in the long run.
The report, which is based on an examination of 10 leading listed local banks, said that following international and local regulatory drives, various reforms have been, and are expected to be, rolled out in the UAE which will provide banks with growth opportunities if handled efficiently and effectively.
Vikas Papriwal, head of markets, KPMG Lower Gulf, said: “2015 was a challenging year for the banking sector in the UAE with a prolonged period of low oil prices and economic volatility. But we are confident that the impact of greater scrutiny and regulatory reform will pave the way for a more stable banking and financial services sector in the future.
"This will be driven by other factors like improved efficiency, a more enhanced customer journey, digitization and tougher cyber security processes."
The report highlighted that banks need to identify critical functions and roles where investment is required to find and retain the right people. To capture the right talent, talent risk has to be incorporated into wider risk management governance and reporting frameworks.
The report also stated that financial organisations across the region should significantly improve emergency response and contingency plans so that they can effectively respond to, and recover from, cyber breaches.
The report comes on the back of the KPMG GCC listed bank results benchmarking report which analyzed the financial results of 56 leading listed banks across the GCC in 2015.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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