Key Takeaways from this presentation Drivers shaping the strategies of consumer Retail Banks in the United Arab Emirates Regulations Impact of regulations Analyst/Industry view on current state of Banking in the UAE Proposed Solutions by Industry Experts A CEM solution for UAE Banks - CustomerXPs Clari5
Current Scenario:UAE Banking Regulations Guideline 29/2011In Oct,2011, UAE Central Bank released lending regulatory guidelines for Retail Banks Objective: Control lending activities and excessive fees charged by Banks and introducing due diligence compliance to protect Banks Highlights Cap on lending to individual customers at 20 times monthly salary Maximum repayment period of 48 months Overall monthly installment for loans including housing, personal, car, overdrafts and credits cards not to exceed 50% of customer’s gross salary Credit cards to be issued to only customers whose annual income exceeds AED 60,000
Implications for future growth and profitability Without fully developed credit bureaus, it would be hard to know the full extent of an individual’s exposure With a blanket ban on outbound calling to prospective customers, Banks need to look inward to generate topline growth In an already overbanked market, Banks will need to innovate to maintain market share and profitability IDC predicts Financial institutions across the Middle East and Africa (MEA) will adopt the latest technologies and communication trends in 2012, with an aim to improve customers experience, brace for competition with global players on the regions markets, and comply with increasingly stringent regulatory requirements.** - Courtesy: IDC Top 10 predictions for GCC Banks in 2012.
Industry and Analyst Speak Due to competition, Banks The challenge faced by Banks will adopt innovativeneed to do more to provide regional GCC Banks is to technologies to improvetheir customers with a better increase their customer customer experiences,experience satisfaction and wallet share brace for competition and 25% of GCC customers 75% of US Bank customers comply with stringentmay switch Banks within a are satisfied with their regulationsyear if their Banking Bank’s services, for UAE, IT expenditure saw theexperiences do not improve; this number stands at 50% strongest growth with Saudi10% had already switched for domestic and 10% for Arabia at13.7% and UAEBanks citing dissatisfaction expatriate customers at8.8% in 2011 Top reasons for Proposed Solutions: A 2012 Predictions:dissatisfaction: Service customer focused sales Financial institutions willfailing, transaction speed, approach and an end-to-end introduce more innovativeservice quality and need for customer service orientation technologies to increasespecific products for greater satisfaction. their competitive advantage
Key Takeaways: Summary and Insights UAE Banking regulations will continue to have a negative effect on margins and volumes Traditionally low on customer satisfaction, sales effectiveness is key and has to be improved through enhanced customer experiences and cross-selling techniques Multi-channel management will be key to the marketing mix as expanding branches is not a stand alone competitive advantage in an overbanked market* - Courtesy: A.T. Kearney http://www.atkearney.com/index.php/Publications/middle-east-banking-market-the-2011- outlook.html
How Clari5 can help CustomerXPs Clari5 is a real-time intelligent solution with solutions in key areas of Customer Experience Management and Enterprise Fraud Management Clari5 gives Bankers the ammunition to connect with customers and create experiences that are fulfilling and consistent for customers and employees Coupled with bleeding-edge real-time capability, the software is capable of enabling relevant, contextual intelligence extending from conversational interactions in the front office to preventing frauds at the back office instantly Clari5 is prebuilt with UAE regulatory scenarios that can quickly kick start your cross-selling and fraud prevention initiatives instantly Clari5 is already enabling one of the world’s largest Banks in India sense the pulse of their customers better and aligning to customer profitability and share of wallet goals