Smart Banking Initiatives By UBF To Foster A Resilient Future Economy In The UAE

The UAE Banks Federation (UBF) is committed to advancing smart banking services to support a prosperous and resilient future economy. This initiative aligns with the UAE's strategic goals of financial inclusion, transparency, diversification, and sustainability. UBF's participation in the 14th AIM Investment Summit highlighted its dedication to adopting advanced technologies under the Central Bank of the UAE's guidance.

Jamal Saleh, Director-General of UBF, emphasised the banking sector's progressive approach in adopting advanced technologies. He stated, "The banking sector is distinguished by its progressive approach in adopting and developing advanced technologies to deliver seamless and secure banking services to customers." Saleh also noted that the Central Bank of the UAE plays a proactive role in fostering innovation to meet diverse customer needs while ensuring cybersecurity.

The AIM Investment Summit, held from 7 to 9 April 2025, attracted global attention with heads of state, ministers, central bank governors, city mayors, speakers, exhibitors, and participants from 180 countries. The event underscored its status as a premier investment platform. The summit's theme was "The New Wave of a Globalised Investment Landscape: Towards a New Balanced World Structure."

Saleh highlighted that UAE banks are investing heavily in technology infrastructure upgrades. This investment has led to over 95% of transactions at leading banks being conducted digitally. Additionally, more than 90% of services are now accessible via smartphones. These advancements place the UAE among the top performers globally in digital banking.

The Director-General noted that initiatives by the Central Bank have significantly transformed financial services. These efforts have strengthened the UAE’s role in shaping a better future for banking locally and globally. Supportive regulations and ambitious initiatives like the Digital Transformation Programme have created an ecosystem empowering financial institutions and tech companies.

Saleh stressed leveraging rapid technological developments like blockchain and AI for innovative solutions. He said these technologies enhance operational excellence and improve risk management. "To further strengthen the role of smart banking in achieving economic growth and diversification," he added, "we must continue to invest in digital infrastructure."

Collaboration with Fintech Firms

Saleh discussed key trends driving digital transformation efforts and UBF's collaboration with fintech firms. He mentioned initiatives for talent development, raising awareness about digital services, cybersecurity, fraud prevention, and sustainable finance aligned with ESG standards. These efforts aim to develop a thriving smart banking ecosystem.

The UAE Digital Strategy aims to double the digital economy’s GDP contribution from 9.7% to over 20% by 2031. This underscores the country's commitment to strengthening its status as a global centre for finance and trade. Saleh noted that supportive regulations have established an integrated ecosystem empowering institutions to innovate confidently.

Future Prospects for Smart Banking

The foundation for open banking growth has been successfully laid in a secure environment within the UAE. This enables tailored banking services that meet diverse customer needs while enhancing financial inclusion. Saleh emphasised that continued investment in digital infrastructure is crucial for promoting innovation while protecting customers and financial systems.

The UBF remains focused on fostering collaboration with relevant institutions to enhance smart banking solutions further. By integrating APIs and AI capabilities into wealth management solutions, they aim to provide comprehensive services aligned with environmental standards.

With inputs from WAM