Future of mobile banking in the UAE: what to expect

By Puja Sharma

—Approximately 50% of UAE residents will use cashless payment methods by 2024

Mobile banking apps are the first choice for UAE residents, and approx 50% of these residents will use cashless payment methods by 2024. Convenience, anytime banking availability, and security are the core reasons why customers are more comfortable using mobile banking apps in the UAE.

The future of banking in the UAE depends heavily on mobile banking developments as much as it relies on customers’ demand preferences.

Top 5 Mobile Banking Trends Shaping the Future of Banking in the UAE

From contactless payments, digital wallets, open APIs, and e-KYC verifications to personalized banking, UAE shows upward trends for mobile banking as technology evolves and customer demands change.

The way we bank is changing as a result of mobile banking, here how:

Banking-as-a-Service to Foster Personalized Banking Experiences

The banking industry in the UAE is increasingly offering personalized services by sharing APIs with third-party partners and leveraging technology to create innovative solutions.

The use of AI and data analytics in mobile banking apps is increasing in the UAE to analyze user behavior, preferences, and financial habits. This enables different banks in UAE to offer tailored financing plans, accounts and other product recommendations plus budgeting tools, financial advice, enhancing customer engagement and loyalty via their banking apps.

Growing Demand for the Digital Wallets and Virtual Cards

With the widespread adoption of smartphones and NFC technology, contactless payments and digital wallets are gaining momentum. UAE residents increasingly use mobile banking apps to make payments, whether at retail stores, restaurants, or even public transportation.

It proves that the impact of mobile banking on the banking industry in the UAE is significant and long-term, showing positive growth in usage.

Adoption of the Digital Identity Verification Using Blockchain

Blockchain technology is gaining traction for its potential to streamline identity verification processes. Mobile banking apps in the UAE are exploring block chain-based solutions for secure digital identity verification, reducing the need for cumbersome documentation when opening accounts or accessing financial services.

Rising Embedded Financial Products with Open APIs

With the help of open APIs, banks can partner with non-bank companies (e.g., eCommerce platforms, retailers) and create embedded financial products such as embedded cards, embedded lending, etc.

This enables users to manage multiple accounts from different banks within a single app, make informed financial decisions, and access a broader range of services.

Biometric Authentication to Take Over OTPs

Enhanced security measures are a priority in mobile banking. Biometric authentication methods such as fingerprint recognition, facial recognition, and even iris scanning are becoming standard features in mobile banking apps. These technologies provide users with a secure and convenient way to access their accounts and authorize transactions.

Way forward

These trends collectively reflect the UAE’s commitment to digital transformation and the growing role of mobile banking in shaping the future of the banking industry. They emphasize the nation’s drive for innovation and customer-centric solutions, enhancing accessibility, security, and convenience for financial services users.