Emerging technologies such as Blockchain, AI, and metaverse are causing a vast paradigm shift, reshaping the way banks operate. When combined with a keen grasp of customer needs, this technology transformation can push banks to the forefront of digitally advanced financial services, delivering excellence in customer service.
The emergence of alternative data has been driven by technological advancements, the proliferation of digital platforms, and the increasing interconnectedness of individuals and businesses in the digital realm. Retail and corporate lending lenders now leverage alternative data to supplement traditional credit assessment methods. By analyzing alternative data sources, lenders can gain insights into an applicant's financial behavior, spending habits, repayment patterns, and potential risk factors. This information aids in making more informed lending decisions, enabling lenders to better assess the creditworthiness of individuals and businesses that might have previously been underserved or overlooked by traditional credit evaluation methods.
As AI continues gaining momentum, its integration into payment systems has the power to reshape how people bank and transact across the GCC. While the potential benefits of AI-assisted payments are substantial, challenges remain. Regulatory limitations and data storage restrictions can slow down the adoption of AI in the financial sector. However, the GCC banking sector stands on the brink of a transformative era. The region’s tech-savvy population, coupled with governments’ drive to promote innovation, provides a fertile ground for AI adoption.