Dubai Holding has announced its intentions to launch a new generation digital bank in the UAE.
According to the latest data, in general, the Middle East region, including the United Arab Emirates, accounts for about 0.1% of the total world investment in financial technologies.
Dubai Holding announced plans to invest a billion dirhams (US $ 272 million) over the next five years into a digital bank focused on small and medium-sized enterprises (SMEs).
The company plans to expand the geography of its services throughout the region of the Middle East and North Africa. These plans correspond to the overall strategy of the UAE to create a cashless digital economy. This strategy is fully supported by His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and the Prime Minister of the UAE and the Ruler of the Emirate of Dubai.
The digital bank will offer users unique opportunities and services, including individual banking services that go beyond traditional banking. Customers will have access to the first truly personalized and dynamic loyalty program in the region. The creators of the digital bank Dubai Holding are striving to provide a modern platform to simplify digital transactions, exchange data and information between individuals and companies, and speed up the process of creating a cashless society.
According to Dubai Media Office, the bank will begin operating in 2019. It will become one of the first fully digital institutions in the UAE to serve small and medium-sized businesses.
Dubai Holding operates a wide range of assets in Dubai. According to representatives, the launch of a digital bank is caused by the high penetration rate of smartphones in the UAE.
Digital Bank Dubai Holding will provide client-oriented service at the request of clients, both private and corporate. The bank will offer individual banking services, a loyalty program for customers and “the most modern credit and deposit offers” for SMEs.
Among the goals of the institution are also a reduction in cash flow in the UAE economy and the provision of new data and information about customers and enterprises.
In his statement on the plans for the creation of a digital bank, the head of Dubai Holding noted that investments in the digital bank will make digital technologies more accessible for private clients and companies, and this will allow them to open new financial instruments and business opportunities. This initiative corresponds fully to the strategy for creating a cashless smart-society.