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UAE residents shift their trust to tech firms from banks

UAE residents-GBO

Bain & Company’s study found that traditional banking has failed to keep up with direct banks and technology firms in areas that matter most to consumers

The study was titled ‘In search of customers who love their bank’, and found that traditional banks failed to keep up with direct banks and tech firms in the five areas of :quality, saving time, heirloom, good investment for future generations and reduction of anxiety.

According to the survey, 54% of respondents globally, and 50%in the UAE, would trust at least one technology company – Apple, Amazon, PayPal or Google – with their money more than banks.

This trust translates into a willingness to try banking with these companies, particularly among young respondents. In the UAE, over 80% of survey respondents would be willing to bank with an established technology company that they already use, putting even more pressure on traditional banks to improve the customer experience.

“Despite a rate of mobile and digital penetration among the highest globally, the UAE has a comparatively larger share of banking interactions still happening through traditional channels; this points to significant further digitization potential of the industry,” stated Julien Faye, head of Bain’s Emea financial services practice. 

“The majority of UAE customers, especially those in the 18-34 age range, now see major technology players as credible alternatives to banks. Banks therefore face an increased risk of their key customer interactions being taken over.” He added.

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