United Arab Emirates Financial Institutions Pioneer Smart Banking Technologies to Drive Economic Progression
The United Arab Emirates (UAE) is set to advance its smart banking services as a cornerstone of its future economic vision. This move involves integrating digital innovations such as AI-driven solutions, enhancing security measures, and aligning with broader digital transformation and economic diversification goals.
At the heart of this initiative is the UAE Banks Federation (UBF), which has committed itself to the advancement of smart banking services. The UBF Director-General, Jamal Saleh, recently spoke at the 14th AIM Investment Summit in Abu Dhabi, emphasizing the proactive embrace of advanced technologies in the banking sector under the supervision of the Central Bank of the UAE.
Saleh highlighted the vital role of digital transformation, smart services, and fintech in shaping an inclusive, innovation-driven financial system. He also stressed the need to raise cybersecurity awareness and invest in talent. Initiatives such as the Central Bank's Digital Transformation Programme and robust cybersecurity frameworks are key enablers of progress, according to Saleh.
The UAE's strategy for smart banking advancement also involves extensive use of artificial intelligence (AI) across sectors, including financial services. AI integration is becoming a competitive necessity to develop smart apps and services that enhance service efficiency and customer experience. This is reflected in the digital readiness demonstrated by ministries like MoHRE, which have completed millions of smart transactions and integrated AI-driven initiatives to support government and business operations.
The UAE's broader economic vision includes diversification beyond oil, with financial services being a major growth driver. The goal is to position the UAE as a global financial and logistics hub and accelerate the country's digital economy agenda. Technologies like AI, blockchain, and open APIs are transforming financial services, enabling customised solutions and enhancing regulatory compliance.
The UAE's efforts towards smart banking are not limited to the banking sector alone. The country is fostering collaboration between banks, fintechs, and regulators. This collaboration, as Saleh noted, is paving the way for a more inclusive, secure, and future-ready economy.
The AIM Summit, held from 7 to 9 April 2025, gathered global leaders and had over 20,000 participants from 180 countries. The theme of the summit was "The New Wave of a Globalised Investment Landscape." The summit provided a platform for discussions on the future of banking and investment in the digital age.
More than 90% of services at UAE banks are already accessible via smartphones, and the percentage of transactions conducted digitally is over 95%. Banks in the UAE will phase out traditional authentication methods like SMS and email one-time passwords (OTPs) starting July 25, 2025, indicating a move towards more secure and sophisticated smart banking technologies.
In sum, the UAE’s future economic vision incorporates smart banking advancement through AI integration, enhanced digital security, and alignment with national AI and economic diversification strategies. This is echoed in the efforts and plans across government and financial sectors discussed by UAE officials like Jamal Saleh at the AIM Summit.
- The UAE Banks Federation (UBF), with Jamal Saleh as its Director-General, is leading the push for smart banking services, focusing on digital innovations and increasing cybersecurity measures.
- Saleh stressed the importance of digital transformation, fintech, and smart services in creating an inclusive, innovation-driven financial system.
- The UAE's future economic growth includes diversification beyond oil, with financial services as a key area of emphasis, aiming to position the UAE as a global financial hub.
- Technologies like AI, blockchain, and open APIs are transforming financial services, helping to develop customised solutions and improve regulatory compliance.
- The UAE is fostering collaboration between banks, fintechs, and regulators, which Saleh believes is crucial for a more inclusive, secure, and future-ready economy.
- With over 95% of transactions in UAE banks being digital, and traditional authentication methods being phased out in 2025, the UAE is moving towards more secure and sophisticated smart banking technologies.
- At the AIM Summit, global leaders gathered to discuss the future of banking and investment in the digital age, emphasizing the need for collaboration and transformation in enhancing the digital economy and finance.
