Checkout the Latest trends in banking industry and how they impacted financial services. Backbase report reveals shifting trends and how financial institutions can maximize opportunities. Report reveals how consumers in the region now approach banking and their expectations of financial service providers. Banks and financial institutions must embrace this technology or risk losing customers to those that do.

1. Digital banking
appetite in the
GCC
A look at digital banking trends and shifting
consumer habits in the region

2. Backbase GCC Insights / 2
GCC consumers want more digital
banking services: Backbase report
reveals shifting trends and how
financial institutions can maximise
opportunities
Backbase Digital Banking Appetite in the GCC report delivered
insights from more than 2,000 banking customers in the region.
Report reveals how consumers in the region now approach banking
and their expectations of financial service providers.
GCC Customers are looking for a
digital banking experience in a
post-pandemic reality
Backbase GCC Insights / 2

3. Backbase GCC Insights / 3
00.
01.
01.2
01.3
01.4
02.
Table of contents
Introduction
Summary of results
The opportunity
The recommendation
Matthijs Eijpe - Q&A
About Backbase

4. Backbase GCC Insights / 4
Introduction
The banking sector in the Gulf Cooperation
Council (GCC) has undergone a fundamental
paradigm shift over the last two years. As the
impact of COVID-19 became clear, so did the
limitations of traditional banking methods. Banks
in the region were already on the path towards
digitization, but the pandemic became the
catalyst for accelerated change. As consumers
got used to superior online shopping, health,
and governmental services, they increasingly
demanded that banks follow suit with their
lacking digital offerings.
This is reflected in Backbase’s “Digital Banking
Appetite in the GCC” report. Backbase and
YouGov polled 2,016 people in Saudi Arabia and
the United Arab Emirates, and the research gives
the clearest indication yet that consumers want
their banks to go digital. The report reveals that
more than 80% of consumers now prefer to do
their banking online rather than visit a physical
branch, while around a third feel that their bank
provides weak online banking services. These
are important insights that highlight the business
case for the digitization of financial services.
This is where engagement banking plays
a pivotal role – providing a single unified,
integrated platform that breaks down the
barriers between once-siloed functions. This
approach empowers financial institutions to
quickly identify and cater to ever-evolving
customer demands.
Banks and financial institutions
must embrace this technology
or risk losing customers to
those that do.
Backbase GCC Insights / 4

5. Backbase GCC Insights / 5
01 Summary
of results

6. Backbase GCC Insights / 6
Consumers who were previously resistant to using online payment
channels have amended their purchasing behavior and now rely
heavily on digital infrastructures. As such, the adoption of digital
practices has become the cornerstone of a competitive, high-
productivity banking economy.
With government-enforced border lockdowns, constantly changing
quarantine rules, and fluctuating COVID-19 cases, there’s been a
heightened requirement for digital infrastructure to be implemented
within the financial services industry. Still, the positive momentum
brought on by the fully integrated experience will remain a driver of
profit and innovation for the foreseeable future.
Summary of results
01. Post-pandemic, how likely are you to opt for digital services
instead of visiting your bank’s physical branch? 1
65%
89%
Net: top 2 box
04%
Net: bottom 2 box
5%
Not at all Not very
likely
Neither likely
nor unlikely
Somewhat
likely
Very
likely
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
1
Source: Backbase & YouGov

7. Backbase GCC Insights / 7
A staggering 89% of respondents to the survey said they’re now
more likely to opt for digital banking services rather than make a
physical visit to a bank branch, with consumers noting that they
prefer digital self-service banking solutions delivered with the same
convenience as their ecommerce, entertainment, and transport
solutions.
Today, the substitution of bank lending with finance companies and
fintech solutions is becoming increasingly popular in the GCC. Still,
33% of respondents perceive their bank’s online offerings as weak.
As the pandemic recedes, banks have the opportunity to provide
enhanced customer engagement online, which will pave the way for
physical branches to deliver more complex, high-value activities.
02. Which of the following areas would you say are weak in the
current digital offerings from your bank? 2
2
Source: Backbase & YouGov
17%
Other
?
23%
Open a new
bank account
25%
Personalisation
of services
34%
Customer relationship
support
31%
Access to online banking
for basic operations
34%
Subsribing to new
products or services

8. Backbase GCC Insights / 8
According to the survey, there have been several other notable
shifts in consumer behavior. 82% of respondents claimed that better
customer experience – and the presence of self-service banking
that is fully accessible online – would make them decide to shift to a
different bank. To make sure that banks can capitalize on changing
customer demands, they’ll need to break free from siloed technology
infrastructure and bring engagement to the forefront of their digital
operations.
03. Which of the below factors could make you decide to switch to a
different bank? 3
3
Source: Backbase YouGov
Others
Personalization of services to
my needs
24/7 accessibility
and availability
Seamless mobile application to
manager my finance
Better customer
experience
Self-service banking fully
accessible online
Low cost of services
9%
33%
37%
38%
41%
41%
44%

9. Backbase GCC Insights / 9
Nowadays, customers are used to obtaining services “when they
want it, where they want” with 77% of survey respondents revealing
that they access digital banking services once a week. As such,
digital capabilities are crucial in how banks decide to build for their
future.
04. How often do you use the digital banking services presently
offered by your bank? 4
4
Source: Backbase YouGov
Once a day
or more
2 to 6 days
a week
Once
a week
Once
a month
or less
Not
applicable
I do not have
a bank account
30%
29%
17%
15%
8%

10. Backbase GCC Insights / 10
01
Redefine your customer’s
banking experience:
Deliver digital-first solutions that exceed
customer expectations and build customer
loyalty.
03
Agility and flexibility
are key
Upgrade your core banking operations, from
new customer onboarding and loan origination to
payments, lending, and collections.
02
Leverage shifting consumer
demand for company gain:
Move from high-friction processes to seamless
journeys that get the job done – optimizing
customer conversion rates and improving the top
line of the bank.
04
Innovate faster with a robust,
digital-first banking platform
Implement a future-proof solution with
customers and employees at the center to help
you get ahead in today’s competitive digital
landscape.
Summary points





11. Backbase GCC Insights / 11
The
Opportunity
01.2
This has resulted in modern consumers
expecting a simple onboarding process and
frictionless service that is easily accessible – one
platform for all their needs.
The only option left for traditional financial
institutions is to evolve. The challenge that
many of these institutions face is dependence
on outdated legacy systems with siloed point
solutions such as call centers, ATMs, and mobile
and online services.
But there is good news: the same technologies
used by challenger banks are available to
incumbents too. The challengers may have
raised the bar, but the opportunity is ripe for
traditional banks to level the playing field.
The adoption of maturing new technologies will
be essential to enable new propositions and
drive efficiencies. For example, machine learning
underpins new approaches in areas such as
customer authentication and onboarding, as
well as credit assessment and fraud profiling.
The goal is to drive seamless, omni-channel,
conversational dialogues. At the same time,
operational efficiencies are driven through
automation, increasing flexibility for fast,
business-driven changes.
Companies like Amazon and
Netflix have reinvented funnel
optimization by putting the
customer at the heart of the
process and successfully
navigating them from
awareness to loyalty.

12. Backbase GCC Insights / 12
The
Recommendation
01.3
While many banks have relied on the rollout
of standalone applications and self-contained
systems to add new functions and services
to their online banking offerings, this has
created fragmented systems that fail to create
exceptional customer experiences. With further
digital transformation ahead, financial institutions
need to ensure that they have the right platform
to manage future expansion.
A robust, agile, digital-first banking platform
will connect to – and empower – all parts of the
organization and enable omni-channel customer
journeys. By hosting all services on a dedicated
platform, banks are able to orchestrate their
customer interactions through a single access
point, delivering a consistent experience at every
point of contact.
An engagement banking platform works
alongside legacy systems – connecting, aligning,
and informing support staff and customers.
Having both employees and customers on the
same platform allows the bank to enable superior
service and facilitate greater engagement
thanks to a unified, cross-channel view of
each customer. This approach allows banks to
innovate at scale and speed to raise customer
satisfaction levels.
Frontline staff are freed from slow, paper-based
processes and empowered to deliver excellent
service with all the information they need right
at their fingertips. The user experience works
– from onboarding to upselling – and this drives
digital sales. Enhanced financial insights help
customers to manage their financial lives and
allow banks to strategize. The engagement
banking platform connects all the dots, delivering
superior experiences for the end customer and
ensuring the bank can compete well into the
future.
Leverage the power of
an engagement banking
platform
When all systems can
communicate, tailored
advice and real-time support
are instantly available to
customers.

13. Backbase GCC Insights / 13
Matthijs Eijpe
QA
01.4
Banks and financial institutions in the GCC are in
varying stages of their digital journeys, with quite
a few prioritizing the disruption of the traditional
banking model. The ongoing pandemic has
forced a restart, with many banks rethinking their
digital transformation programs and strategies.
There’s a hyper-focus on customer engagement
beyond physical branches and call centers.
Today, it’s all about being even more customer-
driven and platform-oriented. More importantly,
it’s about overcoming legacy technology,
embracing new ways of working to be digitally
fit and resilient amid the uncertainties ahead,
strengthening innovation muscles, protecting
margins, and growing revenues.
The real sense of being digital-first for a bank
is to extend the capabilities of products and
services to bring it closer to clients. It helps
the bank increase the “true value” it adds to
customers while also ensuring that they gain a
better understanding of performance.
Backbase’s Regional
Vice President EMEA
discusses regional
trends and discusses
how financial
institutions can
become digital-first
It calls for integration of digital technologies with
the comprehensive transformation of business
processes, engagement strategies, channels,
and business models of banking. The banks
that will succeed in digital on the road to 2025
will be able to use the right tools, technology,
platforms, and frameworks that are good for
their own unique brand of digital. They’ll also
have to orchestrate hyper-personalization so
that personalization happens every single time.
As we update our assessment of various
types of organizations in the race to becoming
digital-first, we find a story of two extremes.
There are those that have built foundations
for reacceleration into digital-first and will be
multiple times more capable of personalization
at scale. They’ve widened the gap against other
organizations that still need to gather momentum
in this reinvigorated race for being truly digital-
first.
01
What is the current state of digital
transformation in the GCC region?
02
What does being “digital-first” mean for these
banks?

14. Backbase GCC Insights / 14
03
What are the immediate steps financial
institutions can take to play catch up?
04
What advice can you give banks to achieve
faster ROI in their digital strategies?
Banks that have established a clear digital
strategy that relies on a single platform and then
sets out achievable goals will enjoy the benefits
Banks can use “platform thinking” as a jumping-
off point to success in customer engagement.
Think of the engagement platform and its role
in ensuring hyper-personalization capabilities
and the technology platform to ensure hyper-
personalization happens all the time.
of digitization. Start small, but in an intelligent
way, to build up confidence and scale up your
digital delivery operation. This could look like
improving one or two key areas at a time, using
small, focused teams. As areas of friction are
eased, a more productive feedback loop and
positive momentum is gained which leads to
further scaling up of processes in the future. It
opens the door to achieving faster ROI following
digitization by achieving incremental and
valuable milestones along the way.

15. Backbase is on a mission to re-architect banking
around the customer.
Backbase created the category-leading
Engagement Banking Platform (EBP) that
helps banks and credit unions to power the
full customer lifecycle through a single, white-
labeled platform, replacing their limiting,
standalone point solutions.
We make it simple for banks and credit unions to
orchestrate seamless customer journeys, all on
a unified platform. From customer onboarding,
to customer servicing, customer loyalty and loan
origination, we help financial institutions surpass
customers’ expectations in every phase of the
customer lifecycle. Built from the ground up
with the customer at the heart, our Engagement
Banking Platform easily plugs into existing core
banking systems and comes pre-integrated with
the latest fintechs so financial institutions can
innovate at scale.
Industry analysts Forrester, Gartner, Celent,
Omdia and IDC continuously recognize
Backbase’s category leadership position. Over
150 financials around the world have embraced
the Backbase Engagement Banking Platform -
including NBB, Banque Saudi Fransi, Ila, BIAT,
Barclays, Bank of the Philippine Islands, BNP
Paribas, Citibank, Citizens Bank, CheBanca!,
Discovery Bank, Greater Bank, HDFC, IDFC
First, KeyBank, Lloyds Banking Group, Navy
Federal Credit Union, PostFinance, RBC, Société
Générale.
Backbase is a privately funded fintech company,
founded in 2003 in Amsterdam (global HQ),
with regional offices in Atlanta (Americas HQ),
New York, Boise, Mexico City, Toronto, London,
Cardiff, Dubai, Kraków, Singapore, Sydney,
Australia and Tokyo.
About Backbase
Americas HQ
10 10th Street, Suite 325
Atlanta, GA 30309, United States
Toll-Free Number: +1 866 800 8996
Phone: +1 470 881 8780
sales-us@backbase.com
European HQ
Jacob Bontiusplaats 9
1018 LL Amsterdam,
The Netherlands
Phone: +31 20 465 8888
sales-eu@backbase.com
Regional Office Toronto
150 King Street West
Toronto – ON
M5H 3T9
Canada
sales-us@backbase.com
Regional Office London
Second floor, 3 Sutton Lane
London
EC1M 5PU UK
+44 20 3735 8437
sales-eu@backbase.com
Regional Office Cardiff
Ground Floor, The Bounded
Warehouse, Atlantic Wharf, Cardiff,
CF10 4HE – United Kingdom
sales-eu@backbase.com
Regional Office Princeton
202 Carnegie Center, Princeton
NJ 08540
Suite 300
United States of America
sales-us@backbase.com
Regional Office Boise
US Bank Plaza,
101 S Capitol Blvd. Suite 1750
Boise, ID 83702 – United States
sales-us@backbase.com
Regional Office Dubai
Marina Plaza, Level 27
Dubai Marina – Dubai,
United Arab Emirates
sales-eu@backbase.com
Regional Office Singapore
22 Cross St
Level 3 WeWork Building
Singapore 048421
sales-eu@backbase.com
backbase.com