UAE Emerges As A Global Leader In Appetite For Financial Services Innovation, According To Finastra Survey
71 Percent of financial institutionsin the UAE regard open finance as a ’must have’, up from 50 Percent in 2021; 94 Percent agree it’s making financial services more collaborative
Finastra research reveals that Open Banking is seen as unequivocally important in the UAE, with 4 in 5 financial institutions (80%) considering it a ‘must have’, up from 68% last year.Its extension, open finance, is seen as a ‘must have’ by 71% of respondents in the context of data sharing, a significant jump from50% last year. Both figures are considerably higher than any other market surveyed. 94% of respondents notethat it is already driving collaboration and having a positive impact in the UAE, suggestingthe industry’sincreasing appetite forembracing an ecosystem model.
The ‘Financial Services: State of the Nation Survey 2022’also finds that environmental, social and governance (ESG) initiatives havebecome a board-level agenda in the UAE. 96% of respondentsstate that ESG is important and nearly all (99%) agree that financial institutions have a responsibility to support the communities they serve, up from 88% last year. Both figures are higher than the other markets surveyed, emphasizing the region’scommitment to creating asustainable and inclusive industry. Linked to this, the appetite for green lending is also highest in the UAE, with 94%agreeing that itpresents an opportunity for growth and revenue generation.
The research was conducted amongst 758 professionals at financial institutions and banks from August to September 2022 across France, Germany, Hong Kong, Singapore, the UAE, the UK and the US. It explores the Open Banking and Finance landscape, the technology and initiatives set to make an impact in financial services over the next year, and the growing importance ofESG.
Other insights include:
“Finastra has always championed open finance as the key to unlocking the potential of people, businesses and communities everywhere,” said Simon Paris, Chief Executive Officer at Finastra. “Over the years that we have conducted this survey, we have seen open finance grow from an emerging idea to a clear priority for institutions across the world,enabling, as it does, business model shifts such as embedded banking, as well as financial inclusion and equality.This is particularly evident in the UAE this year, with our survey highlighting leading sentiments and remarkable increases, in comparison to last year, in the region’s appetite for openness and collaboration,as well as driving the ESG agenda forward.”
Access the full report and findings here.