KPMG Uae Banking Perspectives 2022

UAE banking
perspectives
2022
Progression, pace and power:
shaping financial services today and tomorrow
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Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is
received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a
thorough examination of the particular situation. © 2018 KPMG Lower Gulf Limited, operating in the UAE and Oman, member firm of the KPMG
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April 2022
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Sub-title
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Shaped by progressive
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social mediaint. analytics company DataEQ to analyze the key drivers of consumer
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In the hope that the Covid-19 pandemic will be contained, satisfaction amongst major UAE retail banks. We assess whether they are
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I trust you find the 2022 edition of UAE Banking perspectives thought-provoking
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— Shaped by a progressive economic and fiscal environment and engaging. To further explore the topics covered, please contact me or any of
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UAE banking perspectives 2022 3

Sub-title
Heading Heading
Shaped by progressive
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Executive summary 01 repreratus, qui blab ilit aut mi, comniat
economic and fiscal

Performance highlights 06 volorescimus a vellitat am aut est, comnim
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Highlights of the UAE Banking Sentiment Index 2022 10 se dem. Aditatio ent eum fuga. Ut venis cum
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We foresee the future of the UAE banking sector being... Volessimus nis excere paris invelibus venimint
environment
– Onsero te nonseque del il es modis quiatat
Shaped by a progressive economic and fiscal environment 16 landae conesec aestist, quosant aut ad quate
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An audience with Khatija Haque of Emirates NBD repreratus, qui blab ilit aut mi
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What the new UAE Corporate and Global Minimum Tax means for banks
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On the CFO 2022 agenda: anticipating the ‘next normal’ prat repedi net autet voluptis eos voluptatum offic tem accum faccatios untio dolutet
Driven by innovative, responsible and disruptive trends 24 con eat omnimodia sequo tem nonseriti ut mi, repreratus, qui blab ilit aut mi
sinullam aut et eosam rectas sunt mosamus
Neobanking 101: the evolution of digital banking in the UAE –
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Wealth management 2.0: a new wave of digital upheaval ipsandem volestia quundaes eseceatem Heading
The meteoric rise of cryptocurrency exerecumenda quam que sitae pro teturest, Aximolut fugiaest – nit eliciam reroreped
ESG in everything we do volorpora alictatur adit as corem non pra asi magnit undelluptati dolor sequi ut verit, quas
Reinforced by evolving infrastructure capabilities 38 te offic to tem. Namusae vollit in excea aut qui dicillaut ut as explaut fugias magnatur, a
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Leveraging low code/no code platforms to drive organizational change
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Data-driven analytics: enabling the financial services industry to fight financial crime musciliquae volorumqui dera ipicid quundus
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Banking on the future with Cloud – adapting to the new reality eumquuntium faccusae velenie ndicium arum
Supported by connected control and risk frameworks 48 doluptam corepedit, sit atiam quae et ommodit
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A maturing corporate governance landscape repraturi con rem fuga.
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Organizational conduct – from risk to opportunity Heading
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Innovative technologies in risk management Subheading
Operational risk in the new Basel framework – Aximolut fugiaest, nit eliciam reroreped
Key banking indicators 60 magnit undelluptati dolor sequi ut verit, quas
About KPMG 66 iatianita evelign imolor sitam quibea numquam
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se dem. Aditatio ent eum fuga. Ut venis cum
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Content
Title
Executive
summary
Performance
highlights
The banking sector has enjoyed a promising out coronavirus vaccines in 2021 helped the
Executive summary
1 A progressive year, with the top ten UAE banks reporting country avoid further lockdowns, and put the
economic and fiscal a 5% year-on-year increase in total assets to economy in a strong position to benefit from
environment AED 2,989 billion in 2021, and a large increase the global rebound in activity in 2021.
of 42% in their net profits. This is mainly due
The banking industry has had to contend with
2 Innovative, to lower impairment charges, as banks had
a slew of new regulatory considerations, one
responsible and reported higher losses and customer defaults
of the most significant being the introduction
disruptive trends in the previous year because of the pandemic.
of the global minimum tax (GMT) in October
The collective non-performing loans (NPL) ratio
2021. At the time of publication, 137 countries
increased slightly to 7.3% in 2021 from 6.3% in
3 Evolving (including the UAE) reached an unprecedented
infrastructure 2020. Net interest margins continue to remain
agreement on a 15% GMT rate. Banks will
capabilities under pressure because of record low interest
need to carefully model—and communicate
rates, exacerbated by increased competition.
to key stakeholders—the impact of these
4 Connected Despite this, the capital position remains changes, and take them into account in
control and risk strong, with the capital adequacy ratio falling their FY23 forecasts and beyond. On 31st
frameworks slightly from 18.0% to 17.3%, largely due to January 2021, the UAE Ministry of Finance
the growth in risk-weighted assets during the also announced the introduction of a federal
year. The loan-to-deposit ratio also decreased, corporate tax that will apply to all UAE
Key banking from 86.3% to 82.4%. Meanwhile the overall businesses and commercial activities alike,
indicators liquidity position, cost-to-income ratio and except for the extraction of natural resources,
return on equity of the market remained steady which will remain subject to Emirate-level
year-on-year. corporate taxation (CT). The announcement
About KPMG confirmed that banking operations will be
We foresee the future of the UAE banking
subject to UAE CT, with further details to be
sector being shaped by the following…
provided in due course.
A progressive economic and fiscal
Amidst this upheaval, CFOs and the Finance
environment
function, in particular, are facing a host of
In 2022, global growth is expected
challenges: organization silos, the imperative
to slow as both fiscal and monetary
to reduce fraud and waste, an aging workforce
support provided over the last two
and the war for talent, achieving a clean audit
years is withdrawn, according to Emirates
opinion, and budget constraints. Anticipating
NBD’s chief economist. Uncertainty remains
the “next normal” will require an enterprise-
elevated, with the rapid spread of the Omicron
wide design approach that considers all angles
variant of the coronavirus posing a risk to
of the operating model before deploying use
growth in the first quarter of 2022. The speed
case-driven initiatives.
and efficiency with which the UAE rolled

Content Innovative, responsible and segments – prime brokerage; yield generation driven approach may enable banks to authority, and developing key policies risk management (back-testing and
disruptive trends via lending, borrowing and staking; and augment traditional risk factors with and processes corresponding to the model validation) and stress testing,
Executive Regulators are keen to align payments – stand out for their profit potential. statistically derived attributes, create management of conflicts of interest, as required by global prudential
summary the UAE’s digital agenda with Forbes identified the “cryptofication of banks” a more dynamic risk-assessment related party transactions, insider regulators.
the country’s banking industry as one of the top five FinTech trends of 2022, process by incorporating additional trading and whistleblowing.
Performance In a bid to strengthen regulation,
operations. Neobanks, like the homegrown due to increased demand, supply, and indeed data points, and generate a scoring
highlights As customers become digitally savvy, supervision and stability within
Zand, are focusing on streamlining operations banks’ fear of missing out. It commented: “For framework with a detailed web of
social media perception becomes the banking industry, the Basel
to conduct high-volume digital transactions. banks, crypto will be to 2022 what social media risk factors.
of paramount importance. For the Committee has introduced a
This would cater for the rising demand for was to 2015.”3
1 A progressive As traditional FIs work to close the second consecutive year, KPMG standardized approach to calculate
digitization and identifying necessary hiring
economic and fiscal The banking sector is also subject to mounting gaps in the digitization of processes, partnered with social media analytics minimum operational risk capital
environment requirements to establish their brands.
pressure from stakeholders and an ever- they are struggling to meet the company, DataEQ, to analyze the requirements, effective January
They are actively improving straight-through
increasing list of regulations which require demand for quick and secure key drivers of consumer satisfaction 2023. The new approach seeks to
processing1 methods to enhance customers’
2 Innovative, environmental, social and governance (ESG) transactions, data security, fraud amongst major UAE retail banks, restore credibility in the calculation of
digital experience, and further leverage data to
responsible and considerations to be embedded in the way they detection and financial reporting. The and ascertain whether they are risk weighted assets (RWAs) and to
align products and services with
disruptive trends operate. Financial institutions play a pivotal role solution may lie in outsourcing and meeting expectations of conduct improve the comparability of banks’
customer expectations.
in providing funding to combat climate change, offshoring a number of processes, and service. Many customers capital ratios. This means it is critical
3 Evolving
The typical customer is evolving, and banks challenge and incentivize ESG practices within including compliance, cyber security, frequently complained about a lack that banks maintain high quality
infrastructure need to move with the times. Clients with low their customer base, and support organizations data engineering, advanced analytics, of efficient support for their reported operational risk teams, and use risk
capabilities amounts of investment capital now collectively as they work toward addressing the UN level 1/2 anti-money laundering issues relating to business conduct, modeling and scenario analysis to
form a key potential market. These individuals Sustainable Development Goals (UN SDGs). (AML) transaction monitoring, which included suspected fraud and assist with decision-making.
are looking for highly personalized advisory ESG is no longer a choice: it is an imperative. In regulatory filings and customer due incorrect information being received.
4 Connected We believe banks have emerged
solutions from technologically sound advisors, fact, in a global survey by KPMG International diligence.
control and risk Public interest in conduct risk stronger than ever after the
frameworks and advanced platforms and features, to in 2021, 75% of financial services (FS) CEOs
Leading financial institutions are also infringements remains high, economic slump brought about by
help them manage their family wealth and were looking to lock in the sustainability and
implementing clearly defined Cloud exacerbated by the pressure on the pandemic. To best serve the
succession plans. Digitalization has reduced climate change gains made during the crisis.
strategies. Systems within numerous employees and management to interests of all their stakeholders,
client-retention costs and improved access Thirty-four percent plan to invest more than
Key banking established banks can use traditional, meet financial targets and contend financial institutions will do well to
to their capital. As a result, many banks 10% of revenues in their sustainability efforts.
indicators outdated architecture and follow with competitive threats. The constantly adapt their operations
are working on strengthening their wealth
Evolving infrastructure capabilities antiquarian approaches, preventing failure to understand and mitigate and compliance functions to keep
management businesses. In the short term,
Financial institutions’ technological them from unlocking the full benefits conduct risk may expose banks to pace with the maturing regulatory
About KPMG banks are expecting growing competition from
frameworks continue to become of the Cloud. To effectively leverage drastic regulatory action, fines and landscape, become early adopters
two types of technologically advanced players:
ever more sophisticated. Leveraging it, banks may need to adopt digital reputational damage, which can harm of nascent technologies, and embed
emerging WealthTech firms that are developing
graphical user interface and drag- labs, apply Kubernetes, DevSecOps, business for many years following environmental, social and governance
advanced B2B and B2C digital solutions, and
and-drop capability, low-code/no-code platforms and other agile technologies. the incident. (ESG) into all that they do.
challenger banks – neo banks and payments
can dramatically increase the speed of creation
firms. Connected control and As banks adapt to the post-pandemic
for sophisticated enterprise-class applications.
risk frameworks economy, they are relying heavily on
Meanwhile, institutional cryptocurrency These applications can incorporate complex
In this volatile environment, Artificial Intelligence (AI) and Machine
adoption is driving innovation in core banking business logic, automate workflow, integrate
strengthening corporate Learning (ML) to manage these
services across custody, brokerage, trade with existing information systems and enable a
governance practices diverse regulatory developments.
clearing, settlement, payments, lending smooth user experience.
will continue to be on banks’ From chatbots to fraud detection,
and more. The global crypto market cap has
Concurrently, adopting a data-led strategy can agendas, especially since the innovative technological tools that
reached USD 2.03 trillion1 —almost 18% of the
result in better accuracy, optimized operations, issuance of the Central Bank of utilize large volumes of data are
market capitalization of gold.2 As of 6 January
improved compliance, and a better customer the United Arab Emirates’ (CBUAE) increasingly being used for more
2022, the total crypto market volume over
experience. Customer satisfaction increases Corporate Governance Regulation efficient credit, investment and
the last 24 hours was USD 137 billion. Crypto
exponentially as banks are able to ask the and Standards in July 2019. Banks business-related decision making. AI
products and services have demonstrated
correct questions, avoid repetition and focus on are revising the mandates of their and ML powered risk management
tremendous potential for growth. Three banking
the right transactions at the right time. A data- board, updating the assignment of solutions can also be used for model

Content
Executive
summary
Performance
highlights
Performance
1 A progressive
economic and fiscal
environment
highlights
2 Innovative,
responsible and
disruptive trends
3 Evolving
infrastructure For the top 10 local banks
capabilities
4 Connected 2020 2021 % 2020 2021 %

control and risk
frameworks
Key banking
Total assets
(USD billion)
775.22 813.79
5.0% Return on assets
(%)
1.0% 1.3%
0.3%
indicators
About KPMG
Net profit
(USD billion)
7.21 10.24
42.0% Return on equity
(%)
8.5% 11.7%
3.2%
Net assets
(USD billion)
99.86 101.85
2.0% Coverage ratios on loans
2021
Total loans subject to ECL
2021
Stage 1 Stage 1
Net provision charge 1.1 90.7
-9.7%
Stage 2 Stage 2
on loans and advances 8.67 7.83 13.2 5.0
(financing assets for Stage 3 Stage 3
Islamic banks) (USD 59.1 4.3
billion)
2020 2020
Stage 1 Stage 1
90.4
0.3%
0.9
Cost-income ratio 38.0% 35.6% Stage 2 Stage 2
15.4 5.2
(%) Stage 3 Stage 3
51.4 4.4
Capital adequacy ratio

(%)
18.0% 17.3%
-0.7% Key Y-o-y improvement
No change
Y-o-y deterioration
The percentages are based on straight line averages of top 10 local banks

Content
Executive
summary
Performance
highlights
Customer service was the top driver of negativity, with a Net

1 A progressive
economic and fiscal
Highlights of the UAE Banking Sentiment of -83.9%
Consistent with the findings of the 2021 report, the main source of customer
environment
Sentiment Index 2022 frustration was again slow turnaround time, with long wait times and delayed
responses being the most common points of criticism towards the banks.
2 Innovative,
responsible and
disruptive trends
For the second consecutive year, KPMG has partnered with social media Topics driving customer service complaints
analytics company, DataEQ (formerly BrandsEye), to analyze the key
3 Evolving drivers of consumer satisfaction amongst major UAE retail banks, and
infrastructure ascertain whether they are meeting expectations of conduct and service.
capabilities
No response received
The seven UAE banks included in the analysis are Abu Dhabi Commercial
Staff competency
Multiple contacts
Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, Dubai Islamic
Turnaround time
4 Connected Bank, Emirates NBD, First Abu Dhabi Bank, and Mashreq Bank UAE.
Staff conduct
control and risk
DataEQ retrieved 172,588 public tweets mentioning these banks for the
frameworks
period from 1 January - 31 December 2021 and processed them using
their unique Crowd and AI technology. The full study is due for release in
March 2022; we summarize the key findings below.
Key banking
indicators Although still prominently negative, industry Net Sentiment
64.4 33.2 21.6 17.4 13.2
Volume
improved from the 2021 study
About KPMG All seven banks received negative Net Sentiment scores, resulting in an
A third of all online conversation about banks required a response
industry aggregate of -14.4%. However, this was an improvement on the
One in every three online mentions regarding the banks posed a potential
industry aggregate of -37.7% in the 2021 study.6
risk, contained a customer service request, an acquisition opportunity, or a
cancellation threat. Any of these should be considered as requiring a response
from the bank. This, however, means that almost two-thirds of all online
Industry net sentiment breakdown conversation about the banks was noise for social customer service teams,
hindering their ability to prioritise the mentions which did warrant a reply.
Overall net sentiment Operational net sentiment Reputational net sentiment
Current year
-14.4 -66.8 2.0

66.2 33.8 0.8 0.3
3.1 21.8
-37.5 -70.6 -3.7

Previous year
Priority conversation Risk: mentions that pose a reputational risk for the brand
Other conversation Purchase: mentions from prospective customers
who want to purchase products or services
Cancel: mentions from customers looking to cancel
their services or not purchase from the brand again
Service: mentions from customers who requires
assistance or describe an experience with the brand

Content
Executive
summary
Perceptions of business conduct and downtime pose potential operational
and reputational risk
Consumers frequently complained about a lack of efficient support for their
“
“With customers increasingly
preferring to use digital
channels for engagement
Banks responded to 68.8% of priority consumer conversation
on social media
While banks still do not respond to close to a third of priority
reported issues relating to business conduct, which included suspected fraud with their bank, there is an consumer conversation, the average time it took to respond was
Performance
and incorrect information being received. In downtime conversation, consumers opportunity to mine this ten hours, which was an improvement from the 13 hours reported
highlights
mentioned not being able to access online banking and mobile apps. valuable unstructured feedback in the previous study.
for real-time insight, and
Call centres were the most mentioned customer channel with
importantly, an obligation
1 A progressive Percentage of total risk volume high levels of negative feedback
to deliver effective, fair and
economic and fiscal In terms of communication channels, call centres were mentioned
environment Perceptions of business conduct compliant customer service on
34.9 most frequently (45.7%), followed by branch (17.9%) and mobile
these channels.”
Downtime apps (12.6%). Call centres had high levels of negative sentiment
2 Innovative,
30.4
Protests or boycotts (-88.6%) on social media. Consumers expressed frustration at their
responsible and 9.2 calls going unanswered despite multiple attempts.
disruptive trends Fraud reports
8.9 62.4% of consumer conversation referenced at least one
Exploitation
3 Evolving 5.9 market conduct theme
infrastructure Escalation On average, 62.4% of all consumer mentions about the banks
capabilities 3.8 contained at least one of the six Treating Customers Fairly (TCF)
Health, safety and security
3.3 outcomes. The TCF outcomes are a regulatory framework used
Threating legal or regulatory action in the UK, Australia, and South Africa by the financial services
4 Connected 2.8 industry to report on the fair treatment of customers. Recent
control and risk Discrimination
frameworks 0.8 regulatory changes in the UAE look to develop similar standards
Anti-competitive behavior for customer fairness. ‘Performance and service’ was the most
0.1 notable conduct theme across the UAE banking industry, which is
0 10 20 30 40 consistent with findings by DataEQ in other markets.
Key banking
indicators
58.9 4.3 2.3 1.3

About KPMG
Performance Claims, complaints Culture and Product

and service and changes governance suitability
0.6 0.1 37.6
Disclosure Suitable advice No outcome
Nic Ray
CEO, DataEQ

Content
Executive
An audience with Khatija Haque
summary
Performance
highlights
The economy has—in some respects— rates and a stronger dollar could prove to be
A progressive economic
1 A progressive recovered from 2020’s pandemic-related headwinds to growth in the UAE in 2022,
economic and fiscal recession. Khatija Haque, Chief Economist and but the structural reforms implemented over
environment Head of Research of Emirates NBD, gives her the last couple of years will help to boost
views on the impact of Covid-19 on investment and drive growth over the medium
and fiscal environment

2 Innovative, global markets. term. These reforms include the expansion
responsible and of longer-term residency visas to broader
What are your predictions for the health
disruptive trends categories of residents and new pathways to
of the global economy in the wake of
citizenship, as well as wide-ranging changes
the pandemic?
to personal and labour laws, allowing 100%
3 Evolving The International Monetary Fund (IMF)
infrastructure foreign ownership of onshore companies and
estimates world GDP growth was 5.9% in
capabilities most recently, the decision to align the UAE’s
2021, up from a relative contraction of 3.1% in
working week with that of larger developed
2020. However, the recovery has been uneven,
economies. These measures will serve to
4 Connected with advanced economies and those with
reduce barriers to investment and attract both
control and risk greater coronavirus vaccine coverage faring
human and financial capital to the UAE over the
frameworks better than low-income developing countries.
coming years.
The headline global growth figure also
Inflation has surged in many developed
masks the impact of several waves of the
Key banking economies in 2021. What does this mean
coronavirus which have buffeted the world and
indicators for monetary policy going forward?
contributed to a high degree of uncertainty for
Inflation in developed economies last year
policymakers, businesses, and consumers.
was higher than many economists, and central
About KPMG In 2022, global growth is expected to slow bankers, had expected. The exceptional fiscal
to 4.4% as both fiscal and monetary support support provided to households together with
provided over the last two years is withdrawn. supply chain disruption and higher energy
Uncertainty remains elevated however, with costs pushed US inflation to a 40-year high
the rapid spread of the Omicron variant of the in December 2021. While some of those
coronavirus posing a risk to growth in the first pressures will abate this year, inflation is likely
quarter of 2022. to remain higher for longer than previously
envisaged. As a result, the Federal Reserve has
How has the UAE fared with respect to the
accelerated the tapering of asset purchases
pandemic and what do you expect in 2022?
and is now expected to raise interest rates at
The speed and efficiency with which the UAE
least four times in 2022—much faster than was
rolled out coronavirus vaccines in 2021 helped
expected just a few months ago.
the country avoid further lockdowns and put
the economy in a strong position to benefit Other major central banks are also expected to
from the global rebound in activity in 2021. We tighten monetary policy this year, but at a more
estimate the UAE’s non-oil sector grew 3.5% muted pace, which is likely to be reflected in a
in 2021, underpinned by recovering domestic stronger US dollar.
demand, along with a surge in global trade
Is inflation an issue in the UAE?
volumes and a modest rebound in
As in the rest of the world, inflation in the
international tourism.
UAE is accelerating, although it remains low
We expect non-oil sector growth in the UAE compared with some of the larger economies.
to accelerate to 4.0% in 2022, even as global While businesses have experienced rising
growth slows somewhat. Higher interest costs for raw materials and shipping, the

Content
What the new UAE Corporate and Global
Minimum Tax means for banks
“
Executive
summary
survey data suggests that the extent of these a slight increase in private sector employment,
Performance
price increases are less severe in this region, as firms remain cost conscious.
highlights
relative to North America and parts of Europe,
Preparations for Expo 2020 have anchored Understanding the impact of Sweeping tax reforms have had Erosion and Profit Shifting (BEPS)
for example.
infrastructure investment in Dubai over the last the global and domestic rules a seismic impact on the industry. 2.0 as announced by the OECD. This
1 A progressive For consumers, food and transport prices decade, supporting GDP growth in the emirate on jurisdictional profits, intra- Shabana Begum sheds light on the aims to ensure that multinational
economic and fiscal have been the main sources of inflation in even during periods of lower oil prices, when group payments, investment implications of the recent UAE Federal enterprises pay a fair share of tax
environment the UAE in recent months with the latter spending in other GCC countries was curtailed. portfolios and funds transfer Corporate Tax (CT) announcement and wherever they operate.
driven by higher crude oil prices. Housing and pricing policies will be a Pillar 2 of the Base Erosion and Profit
The transport, leisure and hospitality Pillar 1 seeks to reallocate taxing
2 Innovative, utility costs—the biggest component of the significant priority for many Shifting (BEPS) initiative.
infrastructure that has been built over the last rights of the world’s largest groups,
responsible and consumer price index—remain deflationary for teams and stakeholders to
decade with Expo 2020 in mind will provide a On 31st January 2022, the UAE but excludes regulated financial
disruptive trends now but the rate of price decline has slowed. consider in 2022.
platform for growth in the tourism and services Ministry of Finance (MoF) announced services companies. Meanwhile
It can take 12-18 months for changes in rent to
sectors for years to come. The proposed rules highlight the introduction of a Federal Pillar 2 seeks to apply a minimum
3 Evolving
feed through to the consumer price index (CPI)
due to the nature of the index. Nevertheless, The redevelopment of the Expo site after the the importance of the close Corporate Tax that will apply to all floor to tax competition and applies
infrastructure
capabilities inflation in the UAE is likely to continue to rise, event will further contribute to Dubai’s growth working relationship required UAE businesses and commercial to multinational groups that have
averaging 2.0% in 2022. in the coming years, with the creation of a new by tax and accounting teams activities alike, except for the consolidated turnover in excess of
smart and sustainable city – District 2020. to ensure all exposures are extraction of natural resources, which EUR 750 million (“in scope groups”).
4 Connected How did Expo 2020 Dubai impact the adequately managed for the will remain subject to Emirate level Importantly for the banking sector,
control and risk UAE economy? benefit of the overall group and corporate taxation. The announcement whilst Pillar 1 excludes regulated
frameworks Growth in the UAE in the final quarter of 2021 Khatija Haque, all relevant stakeholders.” confirmed that banking operations financial services, Pillar 2 or the GMT
was likely the strongest it has been in two Chief Economist and will be subject to UAE CT, with further makes no such exclusion and banks
years, based on survey data. Expo 2020 was a Head of Research, details on the current Emirate level are therefore firmly in scope of the
Key banking key contributor to this faster growth, along with Emirates NBD corporate taxation to be provided in GMT rules.
indicators the relaxation of travel restrictions as the UAE due course.
entered its peak tourism season. However, Rules and implementation timeline
the increase in activity in Q4 2021 led to only The CT will apply to financial
Whilst for calendar year-ended banks,
About KPMG accounting periods starting on or after
the UAE CT won’t apply until 1st
1st June 2023. The announcement
January 2024, the GMT will apply from
represents the first time that a federal
January 2023, regardless of where the
tax will apply to the banking sector in
Ludwig Nelson, in-scope groups are headquartered or
the UAE (separate from the existing
Head of Tax, resident.
Emirate-level taxes that have been
Emirates NBD historically levied on branches and The UAE CT is expected to be based
subsidiaries of foreign banks). For on financial accounting net profit
almost all banks in the country, the or loss with minimal adjustments
corporate tax rate to be applied will expected to derive taxable income.
be linked to the OECD’s (Organization In contrast, the GMT is considerably
of Economic Cooperation and more technical in nature. The GMT
Development) Pillar 2 or Global consists of three rules: the primary
Minimum Tax (GMT), BEPS initiative. rule is the Income Inclusion Rule (IIR)
which along with the Subject to Tax
On 8th October 2021, 137 countries
Rule (STTR) will be implemented in
(at the time of publication), including
January 2023. The backstop rule to the
the UAE, reached an unprecedented
IIR is the Undertaxed Payments Rule
agreement on the introduction of a
(UTPR) which will be implemented in
GMT at a rate of 15%. This agreement
January 2024.
was reinforced on 20 December 2021
with the finalization of the Global Anti- The specific extent and nature of the
Base Erosion (GLoBE) rules. impact for banks in the UAE in FY23
will depend on how the jurisdictions
The GMT is the second pillar of a two-
of the in-scope groups’ structure
pillar solution, also referred to as Base
implement the rules.

Content
The current UAE banking tax environment their low tax entities in their parent jurisdiction. required. All banks will need to model
Executive In such situations, branches of foreign banks (and communicate to key stakeholders)
summary At present, no traditional CT is imposed on
may find that any UAE generated profits that the impact of the changes and take
domestic banking groups. In contrast however,
are taxed below the minimum rate of 15% the changes into account in their FY23
Performance each of the individual UAE emirates have
(less the actual UAE ETR) are then taxed in forecasts and beyond.
highlights corporate tax banking decrees that apply CT on As Covid-19 disruption reigns,
their parent jurisdiction.
oil and gas production companies and branches Consideration will also need to be embracing technology can no longer
of foreign banks. However, even where the foreign parent does given to any secondary implications be an optional or a sequential process.
1 A progressive not introduce the IIR, UAE branches of foreign of the rules, for example, the impact Bhaskar Sahay discusses why banks
The banking decrees specify limitations
economic and fiscal banks may find their profits could be subject to on any credit profiles or ratings of need to embark on a continuous,
environment on a) interest on inter-bank/branch lending
a top-up tax under the GMT backstop rule, the corporate customers in investment accelerated transformation journey to
(i.e., interest to be based on prevailing inter-
UTPR. From 2024, the CT will, however, apply. or wholesale banking, and the overhaul their Finance functions.
bank rates) and b) deductibility of regional
2 Innovative, Where the UAE ETR is still below the GM rate pricing of long-term contracts/
management/head office expenses (capped at Banks are facing an ever-increasing
responsible and (for the potential reasons noted above), the financial instruments. The January
2.5% of revenues). This will however, change appetite to adopt innovative solutions,
disruptive trends UTPR will allow foreign group entities to tax announcement of the UAE CT has
with the introduction of the announced CT, uncertainty in the marketplace,
the profits of any group entities where those further highlighted the need to assess
which will apply transfer pricing regulations evolving regulatory requirements,
profits are not already subject to the minimum the impact. Whilst the additional rules
3 Evolving and domestic CT across all domestic banking increasing volumes of big data, and
infrastructure tax in either their country of residence or will create further cash expense across
groups as well as any branches or subsidiaries reduced capacity across the Finance
capabilities ultimate parent entity jurisdiction. the banking sector, it is worth noting
of foreign banks that at present are subject to function. There are a number of key
that the UAE CT rates are the most
Emirate-level banking decrees. The impact for UAE headquartered banks themes that CFOs are focusing on
competitive in the world and are likely
4 Connected to drive value, as elaborated upon in
For branches of foreign banks, careful The impact of the GMT for UAE headquartered to be met with a reduction in license/
control and risk KPMG’s 2021 Banking Finance Function
frameworks consideration of how the existing Emirates banks differs when compared to branches other operating fees, allowing UAE
Benchmarking report .
tax decrees (and for example any deferred tax of foreign banks. This is largely because, at banks to ultimately improve cash flows.
assets, etc. already recognized in the branch present, UAE headquartered banks are still not Strategy and value management
accounts) will be transitioned to the new CT subject to a traditional banking corporate tax, Our recent CIOs survey shows that
Key banking Shabana Begum
regime will be required. unlike their foreign peers. only 8% of CIOs see ‘Accounting and
indicators
Partner, Transfer Pricing, Finance’ as an investment priority.
Tax considerations for branches of foreign As a result, UAE headquartered banks in FY23
KPMG Lower Gulf CFOs should aspire to lead forward-
banks (again assuming the UAE does not introduce
About KPMG E: [email protected] looking Finance functions with an
the GMT in 2023) are likely to have zero or low
Assuming the UAE does not introduce the increased focus on creating value for
UAE ETRs. Therefore, they may be subject to
GMT in 2023, for foreign banks with operations the business by enabling organizational
the GMT from 2023 on any profits generated
in the UAE, the impact of the GMT in FY23, strategies through planning analytics,
outside of the UAE and on any payments
may be felt at the level of the parent jurisdiction cost management, and business
flowing into the UAE from group entities
if the UAE Effective Tax Rate (ETR) is below partnering.
resident in foreign jurisdictions, by way of the
15%. With a headline corporate tax rate of
STTR or UTPR. Examples of payments from Partially ignited by Covid-19, we have
20% applied to branches of foreign banks in
group entities that are likely to be caught by the observed an increased focus on value
the UAE, it may seem that a ETR below the
STTR include (but are not limited to) interest creation activities notwithstanding the
minimum rate of 15% would be unlikely for
payments, royalties and/or management predominant focus on value protection
such branches in the UAE. This is however,
charges. From 2024, however, the domestic activities. Undoubtedly, FTE (full-
possible, where for example the branch of a
CT will apply. Assuming the UAE implements time equivalent) reduction initiatives
foreign bank enjoys any “tax exempt” income
all of the Pillar 2 principles from 2024, all global are mainly targeting areas of value
and/or uses a special economic zone in its
profits (where not already taxed at 15%) of production. The ability to reverse the
structure such as the Dubai International
UAE banking groups will be topped up and balance hinges on a higher level of data
Financial Centre or Abu Dhabi Global Market
taxed in the UAE. integration, enabled by high levels of
which offer zero percent corporate tax rates in
data literacy within Finance function
their respective zones. Issues for banks to consider in FY22
staff.
Such structures have been used by many Whilst there are expected to be differences in
Using finance analytics in mergers and
foreign banks and may well have resulted in the way the GMT will impact UAE and foreign
acquisitions can help identify value
such organizations having UAE jurisdictional headquartered banks in FY23, the new rules
creation opportunities through the
ETRs below 15% under the GMT rules. For are likely to result in additional tax cash outflow
following initiatives:
such groups, there may be a potential top up for groups in FY23 and in the future. The rules
tax levied in their parent jurisdiction if their are complex: their implementation will require
parent jurisdiction introduces the primary rule close collaboration between tax, accounting,
of the GMT; the Income Inclusion Rule (IIR). and legal teams. Careful monitoring of how
The IIR allows parent entities to tax profits of countries will implement the rules will be

Content
Executive
summary
On the CFO 2022 agenda: anticipating
Performance
highlights
the ‘next normal’
1 A progressive As Covid-19 disruption reigns, embracing – Identifying opportunities for cost synergies new revenue models and data Financial institutions with mature mix will become more balanced
economic and fiscal technology can no longer be an optional or a through effective headcount and product monetization initiatives being sourcing models have sizeable and less accounting-oriented.
environment sequential process. Bhaskar Sahay discusses catalogue rationalization developed through external shared services functions We will see a reduction in junior
why banks need to embark on a continuous, partnerships with the Finance that spread their time in a grades at the back of enterprise-
– Developing a consolidated single view of
2 Innovative, accelerated transformation journey to overhaul functions at the heart of these relatively balanced way between to-enterprise process automation
customer relationship management
responsible and their Finance functions. agendas. The need for a Finance governance, value protection, and digital reporting. The focus
(CRM) data
disruptive trends function foundational data strategy and value creation activities. We will be on attracting, managing,
Banks are facing an ever-increasing appetite to
Intelligent automation is prominently supported by expect these centers to almost and retaining talent through more
adopt innovative solutions, uncertainty in the
a culture change to drive and halve in size in the future, and flexible finance career paths. Spans
3 Evolving marketplace, evolving regulatory requirements, Banking customers are digitally literate
infrastructure prioritize the deployment predominantly be involved in data of control are going to naturally
increasing volumes of big data, and reduced and expect financial institutions will match
capabilities of analytics. quality management and narrow, which is the inverse of
capacity across the Finance function. There their tech-savviness through adopting
engine configuration. what was considered leading
are a number of key themes that CFOs are technologies such as low code digital CFOs and finance executives
practice five years ago.
4 Connected focusing on to drive value, as elaborated upon transformation, Machine Learning, Artificial should consider a data-driven and The modern workforce and ways
control and risk in KPMG’s 2021 Banking Finance Function Intelligence (AI), and advanced analytics. location-agnostic function where of working CFOs and finance executives
frameworks Benchmarking report. a single data model feeding a are facing a range of challenges:
KPMG recently bought together CFOs The dynamics of the business
series of cloud-enabled engines is organization silos, manual data
Strategy and value management and finance executives to discuss how to are changing, and new ways of
utilized, assessing the impact of analysis, leadership adjustment,
leverage disruptive technologies to move working have evolved. There is a
Key banking Our recent CIOs survey shows that only 8% management decisions and actions harnessing technology to improve
their organizations forward. Themes included need for a flexible approach that
indicators of CIOs see ‘Accounting and Finance’ as an in a near real-time fashion. business operations, reducing
optimizing the back office through Robotic focuses on talent management
investment priority. CFOs should aspire to fraud and waste, an aging baby
Process Automation (RPA), AI, and machine Organizational agility from within and the acquisition
lead forward-looking Finance functions with boomer workforce, achieving
About KPMG learning; capitalizing on data to gain valuable of talent from the sizeable, virtual
an increased focus on creating value for the There is a growing trend for clean audit opinion, and budget
insight; blockchain integration as they talent pool.
business by enabling organizational strategies managed services and outsourcing constraints. Over the past few
foresee new financial operating models
through planning analytics, cost management, if financial institutions are unable CFOs and Finance functions years, we have seen instances
unfolding; and customer-centric strategic
and business partnering. to scale their digital pool of will become increasingly reliant where organizations have started
shifts creating business value and driving
resources. There has also been on data scientists and design large-scale data lake programs
Partially ignited by Covid-19, we have observed sustainable growth.
a rise in organizations offering professionals who can maintain without considering underlying
an increased focus on value creation activities
In the absence of a cloud infrastructure, third-party solutions for Finance cloud enterprise architecture and business requirements and
notwithstanding the predominant focus on
higher IT spending has often indicated functions such as performing end- engineer automated reporting and data architecture design. This is
value protection activities. Undoubtedly, FTE
an architecture that is not integrated to-end exceptions’ handling. We forecasting solutions to optimize inadequate without establishing
(full-time equivalent) reduction initiatives are
enough and requires human intervention have observed a focus on flatter end-to-end processes. a robust strategic foundation.
mainly targeting areas of value production.
to perform data transformation activities agile structures with outcome- Anticipating the next normal
The ability to reverse the balance hinges on a We foresee the traditional teardrop
such as reconciliations. Conversely, banks driven, digitally-enabled processes requires an enterprise-wide
higher level of data integration, enabled by shape being inverted over the long
have displayed a higher degree of platform that optimize delivery mix and design approach that considers
high levels of data literacy within Finance term; smaller regional banks with
integration, predominantly using single- emphasize partnerships. all angles of the operating model
function staff. limited low-cost sourcing might
vendor strategies that have resulted in a before deploying use case-driven
be able to truncate timelines.
Using finance analytics in mergers and relatively higher level of IT costs, while initiatives.
At the same time, the skill-set
acquisitions can help identify value creation also achieving total Cost of Finance (CoF)
opportunities through the following initiatives: ratios below 2.25%. Combined with a cloud
transition strategy, banks could see CoF Bhaskar Sahay
– Client and product analytics for the
ratios drop below 1.5% in the medium term. Partner, Accounting and Finance
combined entity
Data strategy and governance E: [email protected]
– Identifying revenue synergies through
white space analysis uncovering untapped With the flux of data within the financial
business opportunities services industry, we have observed

Content
Neobanking 101: the evolution of
Title digital banking in the UAE

Executive
summary
Performance
highlights
We were delighted to invite a digital banking 3. Covid-19 has accelerated digitization
Innovative, responsible
1 A progressive sector leader to KPMG’s Dubai office, for a across sectors. How would a future
economic and fiscal conversation with Abbas Basrai and Goncalo pandemic shape the banking industry
environment Traquina. Olivier Crespin, co-founder and CEO over the next decade?
of Zand, tells us about the rising importance Covid-19 has acted as an accelerator to
and disruptive trends

2 Innovative, of neobanks in the post-pandemic period. digitization in many ways, even in daily
responsible and chores. People in the UAE are showcasing
1. What is your vision for the future
disruptive trends a digital readiness mindset. With a constant
readiness of banks?
acceleration of this trend, digital banks are
With new modes of digital banking, people
expected to fare well due to their innovative
3 Evolving are getting used to simpler ways of making
infrastructure and agile nature. Our present aim is to
transactions. To offer a seamless experience,
capabilities streamline banking operations with
banks require strong data management,
minimal paperwork.
coupled with the right set of analytics
4 Connected methods. 4. The generation gap between millennials
control and risk Trust plays a very important role, as does and Gen Z is challenging various sectors
frameworks regulation from the Central Bank that aims globally. How do you think digital banks
to assure customers’ safety. To meet these and neobanks will meet the varied
expectations, financial expertise in risk expectations of these generations?
Key banking management related areas such as know-your- The rising demand for personalization of
indicators customer (KYC) procedures and anti-money banking services is mostly observed among
laundering (AML) give comfort to regulators. the millennial and Gen Z population, globally.
A few key drivers identified for operational
About KPMG 2. How is the rise of neobanks going to
success include:
impact the UAE’s economy?
Regulators are keen to align the UAE’s digital — Greater transparency in customers’
agenda with the country’s banking industry transaction operations
to progress towards a completely digital
— Increased focus on community
world. Even though over 50 commercial banks
welfare by giving back a portion of an
are currently operating in the country, the
organization’s profit to society, as well as on
Central Bank of the UAE established in 2020
environmental, social and governance (ESG)
a dedicated FinTech office, paving the way for
considerations—including offering financial
new native digital banks.
literacy to customers. At Zand, ESG lies at
Additionally, these newly developed digital the heart of our strategy
banks are focusing on streamlining operations
— Cost redemption and effective cost
to conduct high-volume digital transactions
management in the digital banking space
to cater to the rising demand for digitization.
Banks are also moulding their business 5. What does ‘Zand’ stand for and how is it
strategies to act as a platform to connect cementing its brand position in the UAE?
various forms of digital transactions. They are The term ‘Zand’ is derived from the word
identifying necessary hiring requirements and ‘Sand’ to reflect our roots, our approach, and
other operational aspects to establish how the customer’s needs are ingrained in
their brands. everything we do. Every particle of sand is
unique and beautiful. That is how we see our

Content customers, employees and partners. Yet, when 8. What role is Zand expected to play 11. How do you expect the banking
we put the particles together, we create an to ensure alignment with the UAE’s industry to evolve in the next ten
Executive ecosystem that is ever evolving. That’s why the sustainable future readiness plan? years?
summary orb in our logo is incomplete, to highlight our To align with the UAE’s long-term vision on Following the golden rule of Banking 5.0,
ongoing evolution. Sand is silicon and therefore digitization, we at Zand aim to focus on: we have identified a few key areas that we
Performance
digital. We aim to create a digitally sound expect will gain prominence over the next
highlights — Innovation and product launches, possibly
community, with greater focus on sustainability decade. These include:
venturing into areas such as stablecoin
and giving back to society.
and cryptocurrency — W
ider utilization of the ‘metaverse’ to
1 A progressive 6. H
ow do you expect the local banking harness the potential of virtual reality
— Building an effective risk management
economic and fiscal industry to be disrupted with the launch
environment system in line with the guidelines of the — Increased digital footprint rather than
of Zand’s fully digitized corporate and
Central Bank of the UAE concentrating on physical presence, and
retail banking services?
integration of various technologies to
2 Innovative, While launching Zand, our primary motive is — Promoting growth of the country’s digital
enhance the digital banking experience
responsible and to act as a market differentiator in our space. space in line with global industry standards
disruptive trends Some areas we considered prior to — E
asing the market entry process for
9. What trends are we expecting to see in
launch were: new players, promoting the idea that
the banking industry in the near future?
any corporate can conduct banking
3 Evolving — W
ays to bring effective scalability and The UAE’s digital banking space is still in its
infrastructure operations
sustainability in digital banking operations, nascent stages, with a relatively small footprint
capabilities
considering whether Zand’s operations of fully digitized service providers. Among — D
emocratization of banking through
can be fully digitized existing service providers, Zand will be the the provision of financial education to
4 Connected first to cater to a wide group of customers, increase awareness among customers.
— U
sage of data and analytics platforms to
control and risk covering retail and corporate clients. The UAE’s
frameworks improve the customer experience and
digital banking space is expected to witness a
banking ecosystem, including lending Olivier Crespin
number of trends, including:
processes and risk management operations Co-founder and CEO
— A
move towards a trusted decentralized Zand Bank
Key banking — A
lignment of a digital bank’s business
networking structure, away from the
indicators strategies with the digital agenda of
traditional mode of banking. Decentralized
the UAE
channels include mobile banking, digital
About KPMG — B
reaking down silos between retail and wallets, etc.
corporate banking so both aspects of the
— Enhanced transparency in digital
business work together.
transactions
7. W ith the introduction of Zand or similar
— A
doption of well-regulated cryptocurrency
competitors in the global digital banking
operations.
space, is physical banking expected to
fade away? 10. How do you foresee the banking
Banking organizations are shifting to digital institutions contributing to the UAE’s
platforms quicker than expected, especially ESG agenda in the near future?
in the post-pandemic period. Many traditional We expect ESG to gain importance in the
banks are closing their physical branches, in UAE’s digital banking space, especially with
turn extending digital banking operations. rising focus on the social and governance
aspects in the post-pandemic period. Zand’s
Additionally, banks are trying to improve
recent alliance with Dubai Cares and the Asian
straight-through processing2 methods to
Business Leadership Forum at Expo 2020 is
enhance customers’ digital experience and
focused on promoting financial inclusion.
further leverage data to align products and
services with customer expectations. They are Further, in line with our focus on supporting
also venturing into the open banking space to the Web 3.03 open banking initiative, we are
bring about a revolution in the industry. planning to offer financial literacy programs,
and increase the scope for traceability of
However, we still expect the essence of
transactions and the supply chain in banking
banking to remain intact for both traditional
to smoothen back-end operations, such as
and digital banks, in terms of efficient
tracking supplier records for compliance
risk management while handling clients,
activities.
transactions and lending operations.

Content Dhabi. Wio will offer customers solutions, such as data analytics — S
trengthen digital tools,
Executive
Wealth management 2.0: a new in the UAE a fully digital banking
choice. A beta version will launch
and robo-advisor platforms.
Partnering with some of the
capabilities of relationship
managers: As digitalization has
summary
Performance
wave of digital upheaval soon, catering to small and medium-
sized businesses. The digital banking
leading and emerging WealthTech
platforms in each market can
given clients access to a large
amount of data, it has become
platform’s primary shareholders ADQ be highly beneficial for banks, important for banks to empower
highlights
and Alpha Dhabi own a combined as such features will help their their relationship managers with
stake of 65 per cent. Additionally, advisors increase conversion advanced tools and capabilities
The UAE is emerging as one of the leading As seen in other regions, for instance
Etisalat holds 25 per cent, and First rates, client engagement and the to offer quick, tailored, and
1 A progressive destinations for wealth management and Singapore and Hong Kong, it is expected that
Abu Dhabi Bank (FAB), holds ten overall AuM. intelligent advice. Banks can look
economic and fiscal private banking globally, driven by a burgeoning regional banks will introduce a wide range of
environment per cent.13 to develop or acquire several
HNWI (high net worth income) population integrated financial services offerings, and tap — Increased focus on leveraging
features offered by FinTechs to
that demands technologically advanced and into their large, existing client base and local Major regional trends big data analytics: The wealth
support financial advisors. These
2 Innovative, highly customized banking and management presence to retain market share in wealth — Advanced client-facing features management and private banking
include easy to use dashboards,
responsible and solutions. Goncalo Traquina offers insight management and private banking. However, from WealthTech firms: segments, like the retail banking
processing live and historical
disruptive trends on trends and recommendations for with the growing threat of digital banks, these WealthTech players are pushing sector, are witnessing a rise in
data to generate talking points
financial institutions. incumbents are likely to try to expand their the boundaries in wealth investments in big data analytics.
for client meetings, storytelling
digital offerings and channels, investing in management across most Banks may gain insight about
3 Evolving The UAE’s positive post-Covid, pro-investment tools for better and effective
infrastructure emerging FinTechs and upgrading markets with their advanced client diversity, events that
regulatory environment has been attracting a video interactions, better data
capabilities in-house capabilities. client-facing capabilities, such drive revenue and loyalty, client
large amount of capital from around the world. visualization tools, voice-to-text
as intuitive and comprehensive behavior, financial attitude and
The country is the largest wealth management Large international banks also have a strong technologies to speed up post-
dashboards and intelligent investment motivation. They can
4 Connected center in the region, with approximately 83,000 presence in the region and are attractive discussion call notes, and AI,
portfolio recommendations use payments and spending
control and risk millionaires living in the country and AuM due to their global capabilities and access to machine learning and analytics to
available to investors and financial data to predict investment
frameworks (assets under management) of approximately international markets and products. These help boost recommendations.
institutions. Another key aspect patterns, and mine data for new
USD 110 billion, followed by Israel with AuM of banks are expected to increase their focus on
has been their development and prospective clients.
approximately USD 95 billion. wealth management and private banking, and
strong application of internal
Key banking seek to scale up and expand to neighboring
Over the past 20 years, the UAE has been one
indicators markets in the region.
of the world’s biggest recipients of migrating
HNWIs.10 As per New World Wealth’s estimate, Unlike traditional banks, most FinTechs
About KPMG more than 35,000 HNWIs have moved to the will focus on developing specific, targeted
Emirates over this period (2000 to 2020).11 offerings. With supportive regulations from
Many of these individuals have come from the CBUAE (Central Bank of the United Arab
India, the Middle East and Africa, attracted by Emirates), ADGM (Abu Dhabi Global Market)
its excellent healthcare system, stable political or DIFC (Dubai International Financial Centre),
system, comparatively low tax rates, status as these will rapidly grow in number, particularly in
an international business hub, luxury lifestyle the payments and WealthTech space. However,
offerings, superior shopping malls, and good with a lot of their solutions being B2B, most
international schools. of these firms will be emerging as potential
partners and tech solution providers to the
These individuals are looking for highly-
incumbents, instead of pure competitors.
personalized advisory solutions from
technologically sound advisors, and advanced In Asia, governments are extending FS
platforms and features, to help them manage (financial service) licenses to non-FS players.
their family wealth and succession plans. Local (e.g. Alibaba and Tencent) as well
global (e.g. Google and Amazon) tech giants
Emerging market opportunities
are targeting the region’s FS sector using
As digitalization has reduced client retention
payments as the gateway. The UAE may follow
costs and improved access to their capital,
the same path as the CBUAE launches new
clients with low amounts of investment
licensing for the payments providers – the
capital – who have never been considered
Retail Payment Services and Card Schemes
highly important by wealth managers – now
(RPSCS) Regulation.12 Although these firms will
collectively form a key potential market. As a
take time to establish themselves in the wealth
result, most of the incumbents are working
management and private banking space, their
on strengthening their wealth management
vast customer reach from digital payments
businesses. In the short term, banks are
adoption and the support from their investors
expecting growing competition from two types
puts them in a competitive position.
of technologically advanced players: emerging
WealthTech firms that are developing advanced The Central Bank of the UAE recently granted
B2B and B2C digital solutions, and challenger an in-principle approval to launch Wio, a new
banks – neo banks and payments firms. digital banking platform headquartered in Abu

Content — Integrate trading services into their online
platforms: Given their wider product
By making the latest market insight and
advisory tools available to RMs, banks can The meteoric rise of cryptocurrency
Executive offerings vis-à-vis wealth managers, most help in the delivery of more impactful advice
summary leading banks offer trading services on their to clients. This can be achieved using intuitive
digital platforms. These include investing dashboards, live data processing, voice-to-
Performance
in securities and funds, monitoring stock text technologies and data visualization and
highlights
prices, and providing real-time quotes and storytelling tools. Partnerships and investments
research insights. Moreover, stock analysis in upcoming FinTechs and WealthTechs in the
How banks compete in the digital world has Crypto products and services have
tools help analyse market movements region may also leverage banks’ advanced
1 A progressive changed forever. Paritosh Gambhir elaborates demonstrated tremendous growth potential
and identify market entry or exit points. solutions for internal operations and
economic and fiscal on the growing market acceptance of in the banking sector. There are multiple areas
environment Trading-related news alerts (tailored as client offerings.
cryptoassets, the rapid advancement of of opportunity for traditional banks, FinTechs,
per banks’ portfolios), providing detailed
From basic price and stock alerts to more crypto currency technology, and the and digital native banks to deliver solutions
market analyses, can be leveraged to match
2 Innovative, detailed recommendations, banks need burgeoning participation of financial for storing, moving, and using cryptoassets
leading practices.
responsible and to enhance the existing range and quality institutions in the market. easily and securely. Three banking segments –
disruptive trends Recommendations for banks of alerts being shared with clients, as well prime brokerage; yield generation via lending,
Is it time for banks to get ready for virtual
To tackle the intense competition foreseen as augmenting the current level of access borrowing and staking; and payments – stand
assets? Recently, His Highness Sheikh
in the regional wealth management market, offered in trading — e.g. including securities in out for their profit potential.
3 Evolving Mohammed bin Rashid Al Maktoum, Vice
infrastructure banks must: different currencies across more exchanges in
President and Prime Minister of UAE and 1. Prime brokerage services
capabilities various markets. Lastly, banks will do well to
— increase their online offerings Ruler of Dubai, approved a first-of-its-kind Custody – the management of assets and the
customize propositions and digital channels to
law to regulate virtual assets in Dubai. underlying cryptographic keys that cryptoasset
— p
artner with more FinTechs for cater to the needs and expectations of younger
4 Connected An independent authority has also been owners use to execute transactions – allows
advanced solutions generations, who are more tech-savvy and
control and risk established to oversee the regulation, licensing banks to add additional operations and services
prefer self-service investment platforms.
frameworks — s trengthen the digital capabilities of their and governance of virtual assets, non- to their portfolio, including cash management,
advisors and possibly form their own fungible tokens (NFTs), and cryptocurrency. securities lending, leveraged trade execution,
virtual banks The authority’s main responsibilities include and other white-glove support.
Goncalo Traquina
Key banking regulating the issuance and release of virtual
— d
evelop a smoother digital onboarding Partner | Head 2. Yield generation: crypto lending,
indicators assets and NFTs, licensing, and protecting
mechanism for wealth management and of Management borrowing and staking
personal data, among others. Banks must ask
private banking clients Consulting, Financial The demand cycle for crypto borrowing and
themselves whether they are well prepared for
About KPMG services lending has risen dramatically across the full
— e
nable quicker account opening by utilizing this innovative regulatory release.
E: [email protected] spectrum of crypto-market participants. This
Artificial Intelligence (AI) technologies.
Institutional cryptoasset adoption is driving demand cycle is reflected in the dramatic
— f acilitate the virtual interactions of innovation in core banking products and growth of user adoption of centralized lending
relationship managers (RMs) with clients services across custody, brokerage, trade platform organizations. In both centralized and
– leveraging live video calling, screen and clearing, settlement, payments, lending, and decentralized crypto-borrowing and lending
document sharing and trainings for RMs to more. At the same time, a new operational models, users can deposit their cryptoassets
conduct one-on-one sessions and group- infrastructure for banking is emerging, which to generate yield. Yield generation has proven
wide webinars. has set the foundation for resilience and to be critical value-adding service layer for
growth in a fast-changing industry. participants who have taken investment
— d
evelop new digital products that align
positions with long horizons.
with the demands of current and future In fact, the global crypto market cap has
clients, taking into consideration changing reached USD 2.03 trillion14 — almost 18% the 3. Payments
investment strategies and risk appetites. market capitalization of gold.15As of 6 January Around the world, digital payments are
2022, the total crypto market volume over exploding in the business-to-business and
the last 24 hours was USD 137 billion. Forbes business-to-consumer arena. Across these
identified the “cryptofication of banks” as one models, there has been an acute focus on
of the top five FinTech trends of 2022, due to cross-border payments to realize efficiencies in
increased demand, supply, and indeed banks’ cost and settlement provided by stablecoins.
fear of missing out. It commented: “For banks, Mobile payment apps have exploded in
crypto will be to 2022 what social media was popularity, especially since social distancing
to 2015.”16 has restricted the use of physical cash to
some extent.

Content Key challenges and also by offering adjacent services only Accounting and auditing
— C ompliance with regulatory obligations: possible in the emerging crypto ecosystem. considerations
Executive A patchwork of regulations has emerged As recommended by the The cryptoasset framework
summary For custodians trying to manage this regulatory
and continues to evolve. Maintaining International Accounting Standards
complexity, an informed and detailed view
compliance with laws and regulations Board, each crypto asset organization
0 Plan
Performance of the changing regulatory landscape is
related to an array of financial crimes is is required to assess the applicable
highlights paramount. Given the steep variation in the
already a major challenge. accounting treatment, considering
clarity and nature of different regulatory
the type of crypto asset invested;
— F
ork management and governance: Forks environments, decisions based on existing
for example, a typical crypto asset — Product-market fit
1 A progressive occur when a single crypto blockchain law and policy should be carefully calculated,
like Bitcoin versus a stable coin or
economic and fiscal breaks into two separate chains. They have weighing the risks and benefits of each — Strategy and revenue models
environment a token backed by certain assets
a significant impact on crypto businesses. course of action.
(or even an NFT). Currently, a lot — Leadership and governance
— K
YC and cryptoasset provenance: Crypto Regulatory aspects of institutions would prefer to list
2 Innovative, owners are identified not by names or Global regulators continue to debate the traditional top virtual assets.
responsible and
account numbers but by cryptographic governance frameworks and how to implement These virtual assets could be held
1 Onboard
disruptive trends
addresses that can be created at any time, rules and regulations, which will allow a for sale or for appreciation, thus the
by anyone, anywhere – this presents a transparent and cyber free crypto trading accounting treatment would differ in
3 Evolving unique challenge to KYC programs. market. The world of crypto branches minute each circumstance.
infrastructure by minute, and evolution of non-fungible
— S
ecuring cryptoassets: Given the potentially Generally speaking, crypto assets — Customer onboarding, KYC, and investor qualification
capabilities
tokens (NFTs) and De-Fi platforms continue to
high value of cryptoassets and the natively held for sale should fall under the — Asset provenance
increase the gap created by crypto enthusiasts.
digital nature, crypto businesses and their scope of IAS 2 – Inventories, as
4 Connected — Account creation and funding
customers are prime targets for cyber Positioning itself as a destination of choice the asset is held in the ordinary
control and risk
frameworks criminals. for virtual asset investors and in response to course of business. However, an — Crypto key provisioning and exchange integration
global demand from the industry, the Abu asset held for capital appreciation
— A
ccounting and financial reporting:
Dhabi Global Market (ADGM) is the one of would fall under the scope of IAS
Cryptoassets challenge traditional financial
2 Service and deliver

the first jurisdictions in the world to introduce 38 – Intangible Assets, as a virtual
Key banking reporting boundaries. The accounting for
a comprehensive and bespoke regulatory asset is considered an identifiable
indicators these assets is an emerging area, with
framework through its Financial Services asset without physical substance
limited industry guidance.
Regulatory Authority (FSRA) to regulate virtual which will provide future economic
About KPMG A battle for custody asset activities. The virtual asset framework benefits. Caution is required to when — Crypto order management, booking and settlement
Further adding complexity is the fact that focuses on robust governance, oversight and looking at the accounting aspects; — Transaction monitoring and anti-monet laundering (AML)
the regulatory environments affecting crypto transparency. The rules cover a range of areas each transaction or crypto asset
custody businesses vary greatly from one including anti-money laundering and combating could involve different arrangements — Fork management and governance
jurisdiction to the next. Differences in rules at financial crime, consumer protection, and or business purposes, impacting the — customer servicing
the state, national and international level are technology governance. accounting implications.
creating substantial compliance challenges for
The UAE’s Securities and Commodities Auditors need to take particular care
global financial institutions that deliver
3 Protect
Authority (SCA), the local financial market when getting involved with crypto
custody solutions.
watchdog, has issued a regulation on creation, assets; assertions to consider include
Custody – the management of the issuance and marketing of virtual assets in the existence, ownership and valuation.
cryptographic private keys that cryptoasset UAE. With this, the SCA aims to broaden its
— Crypto storage and physical security
owners use to execute transactions scope to include traditional financial markets,
– is a critical building block for crypto instruments and the alternative finance sector — Blockchain activity and threat monitoring
institutionalization. It is fundamental to earning while encouraging market innovation and
— Crypto key management & operations
customer trust in cryptoassets and allowing the investor security.
market to scale. As cryptoassets proliferate, — Privacy
The Dubai Financial Services Authority (DFSA)
custodians have a tremendous opportunity to
is also considering implementing a framework — Cyber threat defense
profit – both by earning management fees for
to regulate virtual or crypto assets. It is yet to
delivering straightforward custodian services, — Resiliency and disaster recovery
be seen whether the Central Bank will
follow suit.
4 Comply and report

— Regulatory compliance, integration, and reporting
— Finance, accounting and tax

Content
Executive
Looking ahead
As blockchains evolve, there will continue
to be new opportunities for asset owners
“
ADGM has been growing its position as a destination of choice for virtual
assets and digital assets investors and catering to global demand from
the industry. As an International Financial Centre, ADGM is also the first
summary to participate in consensus processes, jurisdiction in the world to introduce a thorough and bespoke regulatory
governance decisions, and other rights framework for the regulation of virtual assets activities, including those
Performance
afforded to them. Crypto custodians that undertaken by multilateral trading facilities, brokers, custodians, asset
highlights
support customers in exercising their rights managers and other intermediaries. The Financial Services Regulatory
as asset owners and using their assets in Authority is the regulator of virtual assets activities within the ADGM
custody to the greatest economic advantage jurisdiction. Its broad framework facilitates the operation of industry-
1 A progressive
will gain competitive edge. They may also face leading virtual asset players in a business-friendly environment.
economic and fiscal
environment requirements stemming from asset managers’
Most importantly, ADGM’s virtual assets and digital assets regulatory
fiduciary responsibilities to pursue revenue-
framework addresses the full range of associated risks, including those
generating opportunities on behalf of asset
2 Innovative, relating to market abuse and financial crime, consumer protection,
owners. Successful crypto custodians will
responsible and technology governance, custody and exchange operations. Amongst
focus on two fronts: building core capabilities
disruptive trends the many truly unique aspects of ADGM’s Virtual Assets framework, the
for secure, resilient and compliant custody
provisions relating to market abuse and transaction reporting
capabilities, and keeping pace with rapid
obligations apply.
3 Evolving technical changes that may drive new revenue
infrastructure and growth opportunities. ADGM’s Financial Services Regulatory Authority
capabilities
Banks looking to adopt crypto assets in the
UAE will require careful consideration of the
4 Connected
regulatory frameworks. Crypto is here to stay.
control and risk
frameworks It will keep evolving, day by day: the pace of
change has never been so rapid – and will
never be so slow again.
Key banking
indicators Paritosh Gambhir
Partner, Audit, Lead for
About KPMG
blockchain
and virtual assets
E: [email protected]

Content
Executive
ESG in everything we do
summary
Performance
highlights
— Reporting The search for consistency also remains

Financial institutions play a pivotal role in — Develop/optimize ESG strategies,
1 A progressive With scrutiny on financial institutions (which in a priority. The key to achieving this, and to
providing funding to combat climate change, frameworks, and products
economic and fiscal some jurisdictions is a regulatory requirement), enabling the development of reliable market
environment challenge and incentivize best ESG practices, Once the ESG sentiment and expectations
many financial institutions produce reports to data, will be standardized definitions of E, S
and support organizations in addressing the UN are understood, these should be used to
convey their ESG performance to the market. and G, globally. Recognizing the challenges
Sustainable Development Goals (UN SDGs). Optimise strategies, operational frameworks,
2 Innovative, In most cases, this includes reporting only on that companies are facing in making ESG
Fadi Alshibabi argues that ESG is no longer a and products with an aim not only to comply
responsible and their internal ESG performance, but market disclosures, standard-setting bodies are
choice: it is an imperative. but to create competitive advantage. The ESG
disruptive trends pressure is building to see impact investing seeking to enhance and align their approaches
strategies should outline the organizations’
The banking sector is subject to mounting reporting for financial institutions too, which to corporate reporting, both financial and
objectives, focus areas and targets and the
pressure from stakeholders and an ever- would consolidate the ESG performance of non-financial. The emergence of mechanisms
3 Evolving operational frameworks should facilitate
infrastructure increasing list of regulations which require ESG their invested and funded assets. to drive consistency, such as the WEF (World
decision-making regarding who to loan to and
capabilities to be considered and embedded in the way the Economic Forum) stakeholder capital metrics,
invest in. Financial institutions are increasingly — Assurance
financial institution operates. In fact, in a global and the recent formation of the International
adopting the principles of responsible banking With over USD 40.5 trillion17 of global assets
survey by KPMG International in 2021, 75% Sustainability Standards Board (ISSB), is
4 Connected and principles of responsible investing (PRI) as using ESG data to drive decisions, the need
of Financial Services (FS) CEOs are looking to expected to drive some level of consistency
control and risk outlined by the United Nations Environment for Assurance to look to the credibility of
lock in the sustainability and climate change over the coming years.
frameworks Programme Finance Initiative. the information being produced is becoming
gains made during the crisis, and 34% plan
ever more critical. While there are few global Within the UAE, however, the lack of formal
to invest more than 10% of revenues in their — Optimize governance frameworks
regulations mandating Assurance, many regulation from the central bank and regulators
sustainability efforts. Governance frameworks should be adapted
Key banking organizations are recognizing the imperative mean that unless individual banks have links
to ensure that ESG (especially climate) is a
indicators As ESG becomes a critical success factor for and opting for voluntary assurance. to international regulators who mandate these
board level consideration, ESG committees
financial institutions, there are a breadth of areas, many UAE specific financial institutions
are established with the requisite climate Wholistically incorporating ESG will not
considerations and adjustments which are not considering ESG (including climate) in
About KPMG expertise to evaluate projects and support only improve the resilience of the financial
may be required: sufficient detail. Nevertheless, with the UAE
in ESG decision making, and ESG teams are institution but will also drive value for the
having set a net zero target and COP28 (Abu
— Understand your current baseline established to monitor and manage ESG stakeholders by providing them access to the
Dhabi 2023) being held within the region, there
This involves much more than simply within the organisation. Additionally, to ensure broader pools of capital, and tangible debt
is an expectation that the competitive and
quantifying the financial risks and probabilities. accountability, best practices involve including pricing benefits if they can demonstrate that a
regulatory landscape will significantly shift over
Financial institutions should create an ESG in role descriptions and performance positive ESG impact is delivered.
the coming years and align to some degree
understanding of common ESG expectations evaluations where appropriate and, at a board
An evolving regulatory environment with the international market. This provides
of key stakeholders (including regulatory level, including ESG as one of the KPIs linked
UAE financial institutions the opportunity to be
authorities) and build awareness of leading ESG to directors’ remuneration. Seventy-two percent of global banks18 indicated
frontrunners in the region, securing competitive
practices, current expectations, and emerging that climate change is a financial risk which
— Risk identification and frameworks advantage.
areas, particularly amongst senior management will impact their businesses in the medium to
Many financial institutions are concerned they
and board members. This includes taking the long term. International regulators are setting
are ill-prepared for the types of prudential
time to understand their current practices and out expectations for stress testing and climate
and conduct risks which could arise because
exposures, including whether they have the risk management for banks. These may include Fadi Alshibabi
of climate risk and the move to a low carbon
right data and technology, the right capabilities, climate stress testing to identify risks, not only Partner, Sustainability
economy. For many, ESG factors remain a
and the right processes to monitor and manage at an operational level, but also at a lending E: [email protected]
reputational risk, but they need to be more
ESG appropriately going forward. one to predict the balance sheet evolution and
than that. Financial institutions should ensure
related losses over the years. Organizations will
that ESG risks are a lens through which all
also need to build on the climate stress testing
decisions are made, especially in relation to
capability as the requirements become
credit and valuation risks in their portfolios, and
more stringent.
risk frameworks should be adapted to allow for
that to occur.

Content
Leveraging low code/no code platforms
Title to drive organizational change

Executive
summary
Performance
highlights
Low-code concepts reduce the gap between — Enhance the customer experience:
Evolving infrastructure
1 A progressive corporate and IT functions, allowing both teams deploying digital solutions such as
economic and fiscal to work together to solve business needs. self-service customer portals, mobile
environment Ankit Uppal explores how banks can use these applications and other digital platforms
to automate operations and transform the to promote an intuitive digital customer
capabilities
2 Innovative, customer experience. experience. Through low-code platforms,
responsible and organizations build once and deploy
The successive waves of technological
disruptive trends everywhere so web and mobile users get
disruption have dramatically changed the way
the same experience. This multi-channel
financial service (FS) organizations create
consistency helps boost productivity and
3 Evolving value for customers, employees and other
infrastructure enhance collaboration.
stakeholders. The relentless pressure to
capabilities
innovate, cope with the pace of regulatory — A
utomate and orchestrate existing
requirements and solve problems faster processes: leveraging the robust business
4 Connected than ever is leading an increasing demand process automation engine of low-code
control and risk for applications and software solutions. platforms to orchestrate multiple different
frameworks FS organizations are increasingly adopting applications. This allows the organization to
low-code platforms for rapid application build seamless experiences–an onboarding
development in a cost-effective manner. journey that orchestrates several systems,
Key banking risk, AML, workflow, along with providing a
Leveraging graphical user interface and
indicators front-end channel.
drag-and-drop capability, low-code platforms
can dramatically increase the speed of — Modernize legacy systems and uplift the
About KPMG creation for sophisticated enterprise-class employee experience: Building NextGen
applications. These applications can incorporate business applications using low-code
complex business logic, automate workflow, platforms to supplement legacy systems
integrate with existing information systems such as core banking systems. This adds
and enable a slick user experience. The flexibility, enhances functionality and
low-code platform eliminates the need for elevates the user experience (UX) and
creating frameworks, linking databases and user interface (UI) of packaged
other tasks that are typically included in the software products.
traditional development. Even novices without
With traditional software implementations,
programming skills can use it to develop
business leaders across FIs often focus on two
applications with relatively little aid from
things when it comes to low-code platforms:
the IT department.
how long will it take to become operational
A plethora of applications and how much it is going to cost? Low-code
Many banks are using low-code platforms that platforms have proven to be up-to ten times
come prepackaged with microservice-based faster than traditional software implementation.
architecture and Cloud-native functionalities, The speed at which low-code applications can
helping them collaborate with FinTech be developed is one of its key propositions,
players to deliver advanced consumer value as well as the cost efficiency of being able
propositions and deliver sustained innovation to deploy one technology for unlimited
across the front, middle and back-office applications. Based on our experience, the
functions. Globally, prominent banks are total cost of ownership can be reduced by
adopting low-code to: up-to 40%–considering it is implemented

Content at the right scale–as compared to traditional
software development. Because of its simple
— Digital “know your customer”
authentication and document signature Data-driven analytics: enabling the financial
building block approach, low-code allows
services industry to fight financial crime
Executive
summary — Integration with business partners via the
complex projects to be accomplished quickly,
application programming interface (API)
sometimes even in a few weeks.
Performance
— Digital assets shared across all products,
highlights Gartner predicts that by 2024, low-code and
channels and partners
no-code tools will likely account for more
than 65% of all application development — Replacing 70% of core systems Regulators across jurisdictions are starting to Such technology limitations and legacy
1 A progressive within enterprises. This is how the landscape view the adoption of innovative technological systems can no longer keep pace with the
FIs are quickly realizing that low-code can be
economic and fiscal is evolving for the future of application tools as vital factors to increase the complexity of the global banking environment
environment leveraged for a lot more than merely citizen
development. Low-code is going main- effectiveness of their operations. Sachith and huge volumes of data being produced.
developers building good-looking apps at
stream, replacing traditional development, Amarasekara reflects on how this is enabling
speed. There is a clear shift in the way low- Moreover, the financial crime landscape
2 Innovative, and becoming the customization layer for the banks to apply data led advanced analytics to
code is being consumed in banking. We are is constantly changing as criminals are
responsible and software as a service (SaaS) solution. their processes more aggressively.
seeing more banks lean toward developer- finding new ways to commit crime via new
disruptive trends
Low-code in action centric platforms that enable serious and The financial services industry—especially technology, channels or products including
Low-code platforms can be used for digital complex banking applications. the banking sector—is evolving at an digital currencies. Despite a variety of systems
3 Evolving transformation to streamline operations and unprecedented pace. New entrants and built to investigate financial crime alerts, there
infrastructure improve the overall customer experience; this ways of working are significantly challenging is a constant backlog of pending reviews.
capabilities Ankit Uppal
requires a modern and agile IT architecture to the status quo. Digitally led, these changes An instant response by banks in a dynamic
Director, Experience
replace legacy systems. fundamentally alter how banks look at their regulatory environment is to invest more in
Design and Innovation
4 Connected operations and their financial crime manpower and ramp up manual efforts to
Applications include: E: [email protected]
control and risk compliance functions. quickly tackle the current demands.
frameworks — F
ront-end, mobile-first, fully responsive
Banks are starting to use AI and ML capabilities Another major concern for banks is the
digital experiences
to generate improved customer outcomes operational challenges posed by the pandemic.
and achieve regulatory compliance. This is With compliance teams still largely working
Key banking particularly relevant as some of the lowest remotely in many jurisdictions, updating
indicators
levels of customer satisfaction ratings systems and practices may be problematic.
are due to services disrupted by Given the large volumes of sensitive data
About KPMG compliance procedures. involved in anti-money laundering (AML)
compliance work, this may be particularly
Addressing crucial concerns
true in terms of knowledge transfer and
Banks are looking to eventually increase
onsite discussions.
The unifying fabric of the digital enterprise customers’ satisfaction with their services.
For instance, this may include issues such Adopting a data-driven approach
Leading organizations are already looking ahead to a connected future where low-code
as system updates and bank consolidation. A data driven approach looks to address banks’
platforms — by the adoption and convergence of emerging technologies, will unify front,
Concerns in relation to data integrity and major concerns in a systematic and automated
middle and back office functions.
accessibility are common as it is typical for way. On the contrary, traditional rule-based
compliance personnel to access multiple methodologies only cover the essence of
systems when performing business-as-usual regulatory requirements. Due to regulatory
1 Front office (BAU) processes such as closing alerts. In
addition, banks are facing increased regulatory
censure, operational efficiencies have not
always been prioritized by banks. A data driven
Low-code will enable harmonious multichannel user experiences across focus as regulators across the globe are putting approach may enable banks to:
applications, and faster time-to-market for new product and service offerings them on the front line in the fight against
— augment traditional risk factors with
financial crime.
statistically derived attributes created by a
2 Middle office Although regulatory requirements provide

detailed guidance, they tend to increase the
compliance burden. Rigorous compliance
more meaningful combination of features
and variables
Low-code will improve the integration and automation of the processes that span — create a more dynamic risk assessment
the enterprise, add a unifying orchestration layer across the organization’s many requirements for monitoring non-traditional
process by incorporating additional
different applications, and bring a digital user experience to legacy systems. customer profiles may also pose increased
data points
risk for banks. Banks struggle to comply with
3 Back office
these increased regulatory expectations due — generate a scoring framework with a
to manual processes and legacy technologies. detailed web of risk factors
Low-code will modernize legacy systems, automate mundane, disconnected and
manual tasks, and reduce the dependency on traditional, costly and lengthy custom
development projects.

Content This looks to move away from the current
rules-based approaches (RBA) which tend to
Meanwhile, optimizing operations involves a
reduction in false positives and the addition The move towards outsourcing and offshoring –
incorrectly classify customers as high-risk. of data-led insight. This allows the compliance
the challenges and opportunities
Executive
summary As a result, following the RBA often leads to function to operate efficiently and effectively.
customer resentment and eventually impedes Business functions within banks are increasingly
Performance
the bank’s relationships with clients. The data using compliance data stores to obtain a better
highlights
driven approach, on the other hand, depends on understanding of their existing customers,
the maturity, confidence and availability of the providing banks with richer data sets and
Increasing governance issues, compliance Thinking digitally
bank’s data. In any data driven approach, it is enabling better targeting of new customers.
1 A progressive requirements, remote working and new It is evident FIs no longer have the option of
important to leverage dynamic risk factors, use
economic and fiscal Amid the increasing sophistication of technologies have forced organizations to debating leveraging cutting-edge technologies
environment a scientific approach through statistical analysis
money laundering schemes, transforming reconsider their operating model, technology like artificial intelligence (AI), big data, Cloud
and continuously improve risk
the compliance function is an ever-evolving stacks and customer journey. Varun Bhatia platforms and automation. The harsh reality
and data models.
2 Innovative, process. Coping with regulatory requirements weighs the benefits and disadvantages of a is that most FIs have not been able to realize
responsible and Applying data-led analytics and fighting financial crime by deploying workforce beyond borders. the full potential of these technologies. They
disruptive trends In addition to tackling the key challenges sophisticated techniques should be a top priority have tried to maintain operations in-house, or
Financial institutions (FI) are not new to
identified above, adopting a data led strategy for banks. This can lead to an increased capture tried using what would typically be termed
outsourcing and offshoring various functions.
can directly result in better accuracy, optimized rate of bad customers, reduced compliance as “band-aid” solutions across a series of
3 Evolving While they have delivered cost advantages, a
infrastructure operations, richer data and a better customer costs and an improved customer experience. vertically integrated silos, with extensive task
large percentage of FIs aren’t getting the most
capabilities experience. Customer satisfaction increases Managing money laundering risk is a journey— duplication and bureaucracy running across
out of their offshoring programs. To add to the
exponentially as banks are able to ask the it is imperative that organizations exert every their businesses and markets. The question
complexity, the pandemic has reshaped the
correct questions, avoid repetition and focus effort to use more advanced analytics to stay remains: what about the FIs that are too small
4 Connected world and FIs are under more pressure
on the right transactions at the right time. ahead of crime. or do not have the resources to adopt these
control and risk than ever before.
frameworks Machine learning can also offer improved disruptive technologies?
forecasting accuracy due to models’ ability to Sachith Amarasekara FinTech firms and neo banks have spung up
Cost reduction used to be the primary reason
capture non-linear effects between scenario Director, Forensics, to meet rising customer demand and capture
for offshoring. Traditionally, only transactional
variables and risk factors. On the other hand, AML, KYC, Transaction whitespaces. This has pushed traditional FIs to
Key banking functions like customer service, IT, sales,
traditional models such as linear regression do monitoring close the gaps in the digitization of processes
indicators accounting, payroll or back-office processes
not adequately capture non-linear relationships E: [email protected] and improve both employee and customer
were considered “in-scope”. Today, FIs are
between the macro economy and the financials experiences. The rising demand for seamless
generating additional value by leveraging
About KPMG of a business. This is especially true in the event processes, quick and secure transactions,
outsourcing and offshoring services for
of a stress scenario. data security, fraud detection and financial
complex and critical functions. These include:
reporting is challenging the status quo. This
is especially true for time-consuming manual — Compliance
processes, administrative tasks and other
— Cyber security
traditional operations which have been done
the same way for several decades, pre and — Data engineering
post offshoring.
— Advanced analytics
— AML transaction monitoring
— Regulatory filings
— Customer due diligence

Content The role of third-party vendors and offshore To allow them to anticipate future trends
setups is no longer limited to transactional and develop cutting edge technology to help
Executive activities–they are now leading digital initiatives their clients, FIs need to reflect upon a few
summary and re-engineering operations by leveraging questions:
technology-first solutions that reduce risk and
Performance — What is our tech architecture?
improve tangible outcomes.
highlights
— What is our vendor or partnership strategy?
The need to act with urgency
Digital business models have been growing — Do we have capable delivery resources?
1 A progressive across FIs with banks creating better apps,
— Is the vendor’s vision aligned with ours
economic and fiscal streamlining customer journeys and revamping
environment across structure, governance and the hiring
their middle and back-office processes.
approach?
However, they are struggling with the pace of
2 Innovative, change and adoption. FIs are stuck with old — W
ill the service provider go above and
responsible and IT, data and operations mindsets which often beyond the typical scope of work to drive
disruptive trends obstruct meaningful transformative change. meaningful cross-enterprise impact?
For this reason, working with an outsourcing or
— How will FIs measure the performance
3 Evolving
offshoring provider has the potential to change
of the service provider based on joint
infrastructure the game for FIs as they bring in technological
priorities?
capabilities and operational muscle, and access to a large
talent pool. Large banks have already set up their own
captive shared services and are open to using
4 Connected Moreover, the scope of outsourcing and
outsourcing service providers more than
control and risk offshoring has evolved from labor to
frameworks ever. However, when it boils down to the
value arbitrage, which has become a core
complexity of execution, selecting the right
competence for outsourcing service providers.
approach, toolset, delivery model and people
They can help in reimagining the customer
to implement end-to-end services become
Key banking journey across front, middle and back-office
essential in maximizing cost efficiency and
indicators operations to optimize onshore and offshore
process excellence. Leading service providers
resources, bring in proprietary tools and build
are focused on establishing remediation plans,
better technology stacks.
About KPMG working closely with industry experts, using
Outsourcing at the heart of digital agile operating models and building deep
transformation domain expertise. It is imperative FIs carefully
Reimagining operating models is no longer identify and establish strategic partnerships
limited to tactical value-adds and minor process to unlock lasting business outcomes, enabling
level innovation. The market for business them to fully rely on and leverage the benefits
process outsourcing (BPO) or shared services of outsourced or managed services.
(captive) continues to grow rapidly, largely
driven by the addition of new
complex services. Varun Bhatia
Partner, Managed
Risks such as operating costs, limited talent,
Services
cultural barriers, operational risks, vendor
mismanagement and data breaches require E: [email protected]
appropriate security measures to be put
in place. This is usually achieved through
compliance with local financial service (FS)
policies and regulations by the Central Bank
of the UAE (CBUAE) and Ministry of Finance
(MoF).

Content
Executive
Banking on the future
summary
Performance
with Cloud
highlights
Many leading financial institutions (FI) have Banks must overcome these challenges with Regulatory compliance no longer Banks are facing massive disruption The new reality for banks requires
1 A progressive defined a Cloud strategy and some are already the imperative to lead in the market before a burden and need to explore new business action to unlock the Cloud’s full
economic and fiscal implementing data-center exit approaches. digital disruptors and fintech companies erode models. New entrants may leverage potential while mitigating security
environment Banks can mitigate risks and ensure
However, Alfonso Gutierrez believes banks are their business by enhancing or automating FS. the Cloud to differentiate themselves risks. The adoption process must
security compliance by ensuring that
not unlocking its full potential. The following key themes are crucial for banks from the inefficiencies and lack focus on differentiation and the
development, testing and production
2 Innovative, to unlock the Cloud’s potential: of innovation of traditional business impact to avoid replication
Systems within numerous established banks environments are provisioned
responsible and business models. by competitors. Cloud is the
often use traditional, outdated architecture — Implement the Cloud “center of automatically to meet regulatory
disruptive trends foundation for digital differentiation
and can follow antiquarian approaches which excellence” to accelerate Cloud adoption requirements and controls. To accelerate business enablement
in the omni-channel customer
are preventing them from unlocking the full and drive innovation Continuous Cloud compliance and differentiation, banks would do
experience. It is also essential in
3 Evolving benefits of the Cloud. They are hampered by a monitoring will ensure adherence well to collaborate with independent
infrastructure — Mitigate risk and ensure security creating new business models like
variety of obstacles. to configuration rules and controls third parties to help with informed
capabilities compliance while adopting the Cloud open banking. The question remains:
to manage and mitigate potential and unbiased decision making and
Simply plugging into the Cloud will not what will your bank do to survive this
— Focus Cloud adoption on differentiation and security risks. strategy formulation, while leveraging
generate the value needed to directly enable new reality?
4 Connected innovation in the market partnerships with vendors for funding
business outcomes at the expected financial
control and risk and discounts.
frameworks
benefits or the pace required. Leveraging The Cloud “center of excellence”–a catalyst
the Cloud means not to lift-and-shift, but for change
to rationalize, consolidate and transform by Banks are starting to understand the need Alfonso Gutierrez
systematically driving innovation, for instance for a capability in the form of a Cloud center Technical Director,
Key banking via blockchain and digital labs. To maximize the of excellence (CCoE). The CCoE modernizes Enterprise Solutions
indicators and Cloud
advantage of the Cloud, banks may also need applications and standardizes fast track
to apply new technologies for modernization adoption across the whole organization to E: [email protected]
About KPMG (Kubernetes or low-code/no-code) and unlock the Cloud’s full potential. This capability
introduce agile methods and techniques is a cross-functional team of people. Their
(DevSecOps or design thinking). responsibilities include developing and
managing the strategy, security compliance,
Additionally, transformation and cultural
governance, innovation, agile methods and
change may not be addressed by department
best practices that the organization can
leaders—organizations have pockets of Cloud
leverage to transform the business.
transformation teams that are not necessarily
visible, causing inconsistent Cloud adoption This multi-disciplinary team will lead the
in the organization. Banks are also struggling implementation of the following capabilities:
with the cultural change of managing the
— Cloud architecture and engineering: to
new technology ecosystem which requires
implement new innovative solutions (digital
governance across security, compliance,
labs), proof of concepts, and technologies
architecture, data, AI, DevOps and other parts
like Kubernetes, PaaS and SaaS
of the organization.
— Cloud security and compliance: to drive
Moreover, regulatory compliance and
continuous security assessment, Cloud
associated risks complicate adoption:
security solutions and security controls
regulatory compliance can slow down agility
monitoring
and adoption if Cloud security is not properly
addressed from the beginning. Regulators — Cloud management and orchestration:
are recognizing the potential risk of FIs to manage and orchestrate automation
consolidating their technology in a few Cloud for multi-Cloud and hybrid environments
hyper-scalers, which is something to consider leveraging Infrastructure as Code (IaC)
with multi-Cloud and hybrid Cloud strategies.

Content
A maturing corporate
governance landscape
Title
Executive
summary
Performance
highlights
Two and a half years have passed since the — A

ssessing/revising the mandates of the
Connected control and

1 A progressive introduction of the Central Bank of the UAE board and board committees
economic and fiscal (CBUAE) Corporate Governance Regulations.
environment — Updating the bank’s delegation of authority
Maryam Zaman reflects on what we have
to provide further clarity on the delegated
learned since then.
powers of the board, senior management,
risk frameworks
2 Innovative, As banks evaluate their performance for and management committees
responsible and
the last year and make plans for 2022, it is
disruptive trends — Conducting independent performance
increasingly evident that resilience will continue
assessments of their boards, board
to be the great differentiator of the pandemic
committees, and individual board members
3 Evolving era. This includes the strength of the strategy,
infrastructure organizational model, operations, and corporate — Developing/updating key policies and
capabilities
governance. In fact, the unprecedented events processes relating to the management
of the past two years have put banks’ of conflicts of interest, related party
4 Connected corporate governance structures and practices transactions, insider trading, and
control and risk to the test. whistleblowing as part of the effort to build
frameworks a strong governance and compliance culture
We also anticipate increased stakeholder
expectations of a more equitable and Disclosure of board and senior management
sustainable future will compel UAE banks remuneration
Key banking to further focus on their environmental,
indicators The CBUAE Corporate Governance Regulation
social, and governance (ESG) strategies. In
requires banks to disclose their compensation
fact, investor scrutiny of companies’ ESG
and incentive policy, and aggregate quantitative
About KPMG performance is even higher in the UAE than
information on compensation. Moreover,
globally. According to KPMG’s 2021 CEO
banks are required to disclose the individual
Outlook - UAE, 84% of UAE CEOs are seeing
remuneration of board members and key
greater demand from stakeholders — such
senior management personnel.
as investors, regulators, and customers — for
increased focus on ESG issues (compared Competition between banks to attract and
with 58% globally). Strengthening corporate retain top talent will increase as compensation
governance practices as part of an overall ESG practices become transparent. In such a
commitment will continue to be on the agenda market, other factors—such as values,
of boards. This focus is partially driven by the organizational culture, trust in leadership,
regulatory obligations introduced by the UAE market perception, and brand value—become
Securities and Commodities Authority (SCA) increasingly important when competing
and the UAE Central Bank (CBUAE) in the last for talent to drive growth ambitions and
two years. transformation initiatives.
Since the issuance of the CBUAE’s Corporate Remuneration policies
Governance Regulation and Standards in July Another area of focus for the banking sector
2019, banks have been instituting sweeping in 2022 will be enhancing the existing
changes to their corporate governance compensation frameworks of the board, senior
practices, including the following key initiatives: management, material risk takers and key

“
Content control functions to ensure they account for a Diversity within the board
bank’s risk profile. Risk-based compensation Board diversity across gender and talent
Executive frameworks, designed to link incentive payouts is a critical focus area in 2022. The CBUAE
summary to realized risks in the short and long term (for Corporate Governance Regulation and As the global banking sector continues to undergo rapid and
example, ensuring that a substantial portion Standards require 20% of the candidates for immense technological, environmental and regulatory advances,
Performance
of the senior management and material risk the membership to be female. Further, the our industry must enact robust corporate governance systems to
highlights
takers’ variable compensation is deferred SCA Governance Guide requires the board meet this pace of development. At FAB, we believe that strong
over at least three years), are yet to be widely to have at least one female board member.19 corporate governance can enable banks to approach change more
adopted by UAE banks. Several banks continue to struggle to meet effectively and consistently. At the same time, these frameworks can
1 A progressive
these minimum requirements. To tackle this create the conditions for meaningful and sustainable growth for all.”
economic and fiscal Conflict of interest management
environment challenge, it is imperative for banks to instill a
Focus on effective conflict of interest Shargiil Bashir
robust assessment and selection process of
management and oversight at all levels within Chief Sustainability Officer and Head of
board candidates.
2 Innovative, a bank, including the board level, will continue Corporate Governance
responsible and in 2022. While most banks have a conflict- In addition, appropriate talent diversity at the First Abu Dhabi Bank
disruptive trends of-interest policy requiring timely disclosure board level may also require scrutiny to ensure
of perceived, potential, or actual conflicts, the board is ready for a changing business and
3 Evolving
managing conflict of interest and identifying risk landscape. Indeed, new trends, including
infrastructure related party transactions is primarily manual open banking, digital banking, business model
capabilities and reactive. As a result, in some instances, disruptions, technological innovations, ESG
conflicts of interest and related party focus, and cyber risk, amongst others, may
transactions are not disclosed on a timely require a more proactive approach to building
4 Connected
basis. Automated tracking and reporting the right mix of talent in the board.
control and risk
frameworks systems can help manage conflict of interest
In 2022, the banking industry must continue to
across the bank. Further, digitization will also
navigate a macroeconomic environment greatly
help build relationship trees across the bank
affected by the Covid-19 pandemic, accelerated
and automate the conflict disclosure, review,
Key banking technological disruption, and significant
and reporting processes.
indicators regulatory changes. Given these challenges,
Structure and dynamics of board meetings governance maturity is critical to a bank’s
The structure of board meetings may also future as a going concern and to its
About KPMG
require revisiting. In addition to allocating time long-term success.
to reviewing historical performance, sufficient
time must be allocated for meaningful two-way
discussions between management and the Maryam Zaman
board about forward-looking issues, such as Partner, Governance,
the board’s engagement in strategy. Risk and Compliance
(GRC)
To complement traditional quarterly meetings,
boards are now holding additional sessions E: [email protected]
dedicated to discussions on strategic initiatives.
In these sessions, senior management
provides context and meaningful information
to facilitate discussion, allowing the board
to challenge key assumptions and provide
valuable feedback. Only through a collaborative
mindset – rather than a top-down or a bottom-
up approach – can alignment between the
strategy, values, and culture be achieved.

Content
Executive
Organizational conduct
summary
Performance
– from risk to an opportunity
highlights
Reputational costs are significant when Standards, aiming to protect consumers and instead of developing forward-looking how conduct risk will be defined, — W
hat proactive steps does the
1 A progressive conduct risk materializes. Aroon Kumar explains contribute to the overall stability of the financial risk indicators, “yellow flags”, such as incorporated in the risk appetite, bank take to identify conduct risks
economic and fiscal why this is particularly pertinent for banks, as services industry by setting standards of increased customer complaints by and overseen across the bank. The in its business?
environment they are uniquely reliant on the confidence and business and market conduct. service, product, or location, missed framework should focus on
— Has the bank set appropriate
trust of their customers. training, excessive working hours,
Although these statements and regulatory ensuring acceptable behavior conduct risk policies for board
and high employee turnover. Indeed,
2 Innovative, The events of the last two years and the developments are positive, most banks through trainings, remuneration members and employees?
responsible and according to KPMG and DataEQ’s
associated disruption to how banks used to currently approach conduct risk management and incentives.
disruptive trends social media analysis, almost two- — How does the board monitor
operate pre- pandemic have increased the risk in a fragmented manner. Roles and
thirds of all online conversation Internal risk assessments of conduct at the board level and in
of misconduct and compliance failure. This responsibilities related to conduct risk across
about the banks was noise for social the business, its products and the organization?
3 Evolving increase is driven by various factors, including business units, senior management, control
infrastructure customer service teams, hindering organizational set up, and external
the pressure on employees and management functions, and the board are unclear. Conduct — How frequently is conduct risk
capabilities their ability to prioritize the mentions assessments of macroeconomic
to meet financial targets, and contend with risk is also generally not considered across all on the agenda of the board or its
which did warrant a reply. As a result, and regulatory developments and
financial hardship and competitive threats. As a key areas and processes within an organization. committees?
core questions remain unanswered, changing customer expectations,
4 Connected result, banks are beginning to recognize a new Examples of such areas include the bank’s
such as when a product moves from should form the basis for defining — Has the board allocated
control and risk risk category, conduct risk. risk appetite, product development process,
suitable for a customer to unsuitable. appropriate controls to manage responsibilities for managing
frameworks collection, and recovery process, as well as the
Although lacking a widely accepted definition, Such tipping point analysis that conduct risk. Controls should conduct risk across all three lines
remediation and reporting of complaints
conduct risk is generally understood to be the defines acceptable and unacceptable include information barriers, of defense?
and allegations.
risk of inappropriate, unethical, or unlawful behavior is rarely conducted. whistle blowing and complaint
Key banking — How can a bank use existing or
behavior on the part of an organization’s The root of the matter management mechanisms as well
indicators Addressing the risk emerging technology to prevent
board, management, or employees. KPMG Understanding and addressing the drivers as communications and personal
Like credit, market, interest, and or detect conduct risk?
has partnered with social media analytics of conduct risk is essential in implementing dealing monitoring, amongst others.
operational risk, it is vital to tackle
About KPMG company, DataEQ, to analyze the key drivers appropriate mechanisms to mitigate the risks. The associated costs of building an
conduct risk more explicitly and In addition, there are several
of consumer satisfaction amongst major UAE While the starting point for this journey varies effective conduct risk management
systematically, using a holistic questions that management and
retail banks, and ascertain whether they are from one bank to another, there are three areas framework should be seen as a
framework. A conduct risk boards should ask when developing
meeting expectations of conduct and service. at the root of conduct risk: long-term investment and a driver
framework must be tailored to a conduct risk management
Consumers frequently complained about a lack of business transformation, rather
— Inherent factors: characteristics intrinsic the needs of a bank, based on its framework.
of efficient support for their reported issues than a cost of compliance. A modern
to financial markets and their participants, structure, strategy, size, business
relating to business conduct, which included — Do the board and senior and well-designed framework is
such as information asymmetries between model, and geographic reach,
suspected fraud and incorrect information management understand their increasingly seen as a source of
banks and their customers and consider both short and long-
being received. roles in managing conduct risk? competitive advantage and an
term goals. The most successful
— Structures and behavior: The banking opportunity to facilitate long-term
Public interest in conduct risk infringements frameworks are regularly subjected — Has the board considered
sector’s products and services have certain sustainable growth. By effectively
is high, and failure to understand and mitigate to board-level reviews that assess conduct risk in the bank’s risk
inherent potential conflicts of interests that managing conduct risk, banks can
conduct risk may expose banks to drastic and challenge the framework. While appetite statement?
could prevent markets from working as well confidently grow, introduce new
regulatory action, fines, and reputational a one-size-fits-all solution does not
as they could — W
hat support do employees products, and innovate without
damage, which can harm its business for many exist, at a minimum, a conduct
receive to improve conduct in worrying about unforeseen ethical,
years following the incident. — Environmental factors: macro-economic risk framework should identify
their business line or function? compliance and reputational failures.
developments that can impact financial
Corporate values
markets and, in turn, put pressure on
The risk of misconduct is tightly linked to an
employees, management and boards to Aroon Kumar
organization’s values and work culture, and
deliver promises to shareholders Associate Director, Governance,
the success of any business is linked to these
aspects of behavior. In November 2020, the Even with a conduct risk framework already Risk and Compliance (GRC)
Central Bank of the UAE (CBUAE) issued the in place, most banks still focus largely on E: [email protected]
new Consumer Protection Regulation and materialized risk, such as fines and losses,

Content
Executive
Innovative technologies in
summary
Performance
risk management
highlights
The banking industry, an industry that relies — Superior forecasting accuracy:

heavily on the use of data, is increasingly Traditional regression models do not
Risk assessment
1 A progressive
economic and fiscal starting to adopt Artificial Intelligence (AI) adequately capture non-linear relationships Credit scoring, credit underwriting, Pattern recognition
environment and Machine Learning (ML) techniques. between the macro economy and the stress testing
Abbas Basrai describes how it can leverage financials of a company, especially in the
2 Innovative, their powerful capabilities. event of a stressed scenario. Machine
responsible and learning offers improved forecasting
From chatbots to fraud detection, the
disruptive trends accuracy due to models’ abilities to capture
banking sector is using AI/ML not only
nonlinear effects between scenario Portfolio management
to automate processes and streamline Knowledge
variables and risk factors.
3 Evolving operations for both the front and back Customer segmentation,
infrastructure offices, but also to enhance overall — Optimized variable selection process: recommendations based
capabilities
customer experience. AI and ML tools, Feature/variable extraction processes take system
with their advanced prediction techniques up a significant amount of time for risk
4 Connected and capabilities to utilize large volumes of models used for internal decision-making
control and risk data, are increasingly being used in risk purposes. Machine Learning algorithms
frameworks management, for quicker and more efficient augmented with Big Data analytics Trading
credit, investment and business-related platforms can process huge volumes of Deep learning
Algorithmic trading
decision making. data and extract many variables. A rich
Key banking feature set with a wide coverage of risk
A host of benefits
indicators factors can lead to robust, data driven risk
In risk management, AI/ML has become
models for stress testing.
a symbol of improving efficiency and
About KPMG productivity while reducing costs. This has — Richer data segmentation:
been possible due to the technologies’ Appropriate granularity and segmentation Customer support Voice/image
ability to handle and analyze large volumes are critical to deal with changing portfolio Chatbots, robo-advice recognition
of unstructured data at faster speeds, composition. Machine Learning algorithms
with considerably lower levels of enable superior segmentation and consider
human intervention. many attributes to segment data. Using
unsupervised machine learning algorithms,
AI/ML powered risk management
combining both distance and density-
solutions can be also used for model risk
based approaches for clustering, becomes Fraud prevention
management (back-testing and model Machine learning
a possibility, resulting in higher modelling
validation) and stress testing, as required AML and fraud detection
accuracy and explanatory power.
by global prudential regulators, providing a
range of benefits:
Natural
language
processing

Content Use cases: staying ahead of the curve misconduct, saving millions in reputational
and market risk for financial institutions.
Executive
Credit risk modelling
summary Banks traditionally use traditional Risks and challenges
credit risk models to predict There is no doubt that AI and
Performance categorical, continuous, or binary ML, if implemented properly,
highlights outcome variables (default/ can transform the banking
non default) as machine learning models industry. Vast amounts of
are difficult to interpret and are not data and sophisticated techniques may
1 A progressive easily verifiable for regulatory purposes. be used to build models that enhance
economic and fiscal Nevertheless, they can still be used to risk management. However, there is a
environment optimize parameters and improve the downside. These models amplify many
variable selection process in existing elements of risk, and may be inadequate
2 Innovative, regulatory models. when dealing with current mechanisms
responsible and and frameworks.
disruptive trends
AI based decision tree techniques can
result in easily traceable and logical decision For example, traditional models (such as
rules despite having non-linear characters. logistic regression), which are often based
3 Evolving
3 Evolving Unsupervised learning techniques can be on clear statistical theories, use linear and
infrastructure
infrastructure used to analyze data for traditional credit low dimensional data as inputs. ML models,
capabilities
capabilities
risk modelling while classification methods such as neural networks, utilize features
such as support vector machines can such as dynamic training, high-dimensional
4 Connected predict key credit risk characteristics such data, hyper parameters, complex non-linear
control and risk as PD (probability of default) or LGD (loss relationships, and linkages. Such features
frameworks given default) at a loan level. often render these models less transparent
compared to traditional models. This, in
Fraud detection
turn, elevates model risk, as associated
Banks have been using machine
Key banking risks are harder to identify and assess.
learning methodologies for
indicators As a result, many banks are proceeding
credit card portfolios for years,
cautiously, restricting the use of AI and ML
with credit card transactions
to low-risk applications.
About KPMG presenting banks with a rich source of
data with which to process and train Nevertheless, AI is being increasingly
unsupervised learning algorithms. These recognized across industries for its potential
algorithms have historically been highly to significantly overhaul the day-to-day
accurate in predicting credit card fraud activities of a business. The technology has
due to models’ ability to develop, train and enabled banks and FIs to lower operational,
validate huge volumes of data. regulatory, and compliance costs while
simultaneously providing banks with
Credit card payment systems are
accurate credit decision making capabilities.
embedded with workflow engines that
monitor card transactions to assess the AI/ML solutions have the potential
likelihood of fraud. The rich transaction to transform the financial industry,
history available for credit card portfolios arming it with trusted and timely data
presents banks with the ability to for building competence around their
distinguish between specific features customer intelligence, enabling successful
present in fraudulent and non-fraudulent implementation of their strategies and
transactions. restricting potential losses.
Trader behavior
Technologies such as natural
language processing and text Abbas Basrai
mining are increasingly being Partner | Head of
used to monitor trader activity for Financial Services
rogue trading, insider trading and market
manipulation. E: [email protected]
By analyzing email traffic and calendar

related data, check in/check out times, call
times and trading portfolio data, systems
are able to predict the probability of trader

Content
Executive
Operational risk in the new
summary
Performance
Basel framework
highlights
A new standardized approach introduced by decision making, and embed operational — Data, systems and processes: operational loss data elements. the new approach into their capital
1 A progressive the Basel committee has led to a number risk management mindsets into Banks will have to ensure their Banks will also need to continue to planning process, as well as in risk
economic and fiscal of changes for banks, with implications for the business. internal loss data collection have independent assurance that adjusted return measures at an
environment how they manage their capital. Slim Ben Ali processes are sufficiently robust operational loss tracking systems, early stage.
Components of the new standardized
assesses its impact on financial institutions’ and cover the required ten-year processes, and controls provide for Implementing the new approach
approach
2 Innovative, levels of operational and regulatory risk. history. Banks must have robust high quality data. The Basel Committee on Banking
The new formula for the standardized
responsible and processes for appropriately capturing Supervision (BCBS) has introduced a
Following a one-year deferral due to the approach consists of two main components Exploring the latest advances
disruptive trends operational risk loss data, including single non-model-based method for
Covid-19 pandemic, the Basel committee – a business indicator component (BIC) in robotic process automation
loss dates, accounting dates and calculating operational risk capital,
has introduced a standardized approach (a measure of a bank’s income) and a (RPA) and cognitive technology to
recovery data. They may need to the SA. This will replace all three
3 Evolving effective January 2023, building upon loss component (LC), from which an streamline and automate routine
infrastructure invest in training and incentive existing approaches for operational
previous Basel accords, with the aim to internal loss multiplier (ILM) is derived, activities, such as data collection,
capabilities schemes for individuals involved risk under Pillar 1 and will become
strengthen risk management, regulation, a measure of a bank’s historical losses. cleansing, and storage can be also
in LC, in data quality processes effective starting 1st January 2023.
supervision, and stability within the The minimum (pillar 1) operational risk something that banks may consider
and in documentation to ensure
4 Connected banking industry. capital (ORC) requirement is the product in the future. The main objectives of the BCBS in
that LC is of a sufficiently high
control and risk of the BIC and the ILM, with risk weighted defining this new framework were to
frameworks
Currently, banks can choose the approach quality. Moreover, risk management — Business model and capital:
assets for operational risk being the capital improve comparability and simplicity,
to take for calculating operational capital, teams will need to work together The definition of the BIC – as
requirement multiplied by 12.5. which might be challenging given
with the possibility of capital savings with finance to define exactly how compared to gross income currently
the scope of national discretion
in return for higher investments in risk This shift has major implications for banks’ the components of the business used for calculating the simpler pillar
Key banking and the use of opaque Pillar 2
management. Under the new Basel internal loss data and how it could be indicator are derived from the profit 1 approaches – generates higher
indicators capital requirements. We expect
accord, banks will have to use a revised used to derive business value and risk and loss accounts. capital requirements for some
a high level of variability in capital
standardized approach (SA) to calculate management insight. business activities. Banks would
Documented policies and procedures impact across banks and across
About KPMG the minimum operational risk capital do well to analyze their different
In practical terms, the ILM is the only for identifying and reporting jurisdictions under the new approach.
requirements. This approach will replace all business lines to ensure they remain
variable a bank has significant control over, operational risk events must serve Nevertheless, we believe that it will
three existing approaches for operational sustainable in all aspects (including
but its impact can be crucial and the new as the starting point for managing have significant impact on the way
risk under Pillar 1. profitability, customer expectations
formula is predicted to affect banks to data capture and quality. Associated banks manage operational risk and
and capital usage). Moreover, due
As with all Basel committee standards, the varying degrees. procedures and processes must be presents a valuable opportunity for
to the bucketing of the business
new SA applies to all internationally active validated before a bank’s loss data financial institutions to embrace
Given the fact that the revised operational indicator, larger banks are expected
banks on a consolidated basis, and national can be used to calculate capital new technologies and techniques
risk framework will not take effect until 1 to face higher capital charges
supervisors may also apply the framework charge for operational risk. Regular including big data analytics and
January 2023, banks have time to improve compared to smaller ones, which
to non-internationally active banks. independent reviews by corporate predictive risk intelligence.
their processes for collecting, managing, might have an influence on strategic
internal audit functions and external
The new approach seeks to restore and analyzing internal loss data to reduce decisions, especially those related
independent party are also required.
credibility in the calculation of risk their ILM and thus the ORC. to achieving non-organic growth
weighted assets (RWAs) and to improve Many banks already have systems through mergers and acquisitions.
Implications for banks
the comparability of banks’ capital ratios. for capturing operational loss data
The implementation of the new Although the new framework will not
It is therefore critical that banks maintain but with the new framework, banks
standardized approach framework will come into force until 2023, all banks
high quality operational risk teams, use may need to enhance their existing
have potential impact on the bank’s data, should ensure they are incorporating
processes such as risk modeling and system to capture all the required
systems, business models and capital.
scenario analysis to assist with business
Slim Ben Ali

Director | Financial Risk
Management
E: [email protected]
UAE banking
Thought
perspectives
leadership2022
title 59
Content
Executive
summary
Key banking
indicators
Performance
highlights
1 A progressive
economic and fiscal
environment
Loan deposit ratio Return on assets/return on equity 2021 2021
ROA ROE
2 Innovative, 0% 30% 60% 90% 120% 2020 2020
15%
13.7%
13.0%
responsible and
92.2% 14
12.2%
disruptive trends ADCB 95.1%
13
11.7%
ADIB 80.5% 12
10.8%
10.2%
82.4%
10.4%
3 Evolving 11
9.7%
92.4%
9.2%
infrastructure
9.7%
CBD 93.6% 10%
8.5%
capabilities
DIB 90.7% 9
95.5%
7.2%
7.0%
8
4 Connected ENBD 80.6%
91.7% 7
5.5%
control and risk
6
frameworks 80.3%
9.4%
Mashreq
81% 5%
4
5.1%
6.5%
RAKBANK 85.8%
81.3%
3
1.8%
1.5%
1.4%
1.4%
1.4%
1.3%
Key banking 66.8%
1.3%
1.2%
1.1%
FAB
1.3%
1.3%
1.2%
1.0%
0.9%
0.9%
0.9%
2
0.9%
71.5%
0.6%
0.3%
indicators
79.6% 1
NBF
83.5% 0%
About KPMG SIB 75.4%
-0.8%
87.1%
-1.1%
-6.4%
-11.7%
2021
2020
ADCB ADIB CBD DIB ENBD Mashreq RAKBANK FAB NBF SIB
Capital adequacy ratio

0% 10% 20% 30%
Glossary
ADCB 16.0%
16.6% Net Profit attributable to the equity holders of the bank Total (gross) loans and advances [or total (or gross) financing
18.6% assets for Islamic banks]
ADIB 18.8% Loan Deposit Ratio (LDR) is calculated as loans and advances to
customers (or financing assets in case of Islamic Banks) divided Coverage Ratio is calculated as provisions (including interest in
CBD 15.8% by customer deposits (including unrestricted investment suspense) for the respective stages as a percentage of
16.7%
accounts in case of Islamic Banks). relevant exposure.
DIB 17.1%
18.5% Capital Adequacy Ratio (CAR) is calculated as total eligible capital Abu Dhabi Commercial Bank - ADCB
18.3% divided by total risk weighted assets.
ENBD 18.5% Abu Dhabi Islamic Bank - ADIB
Return on Assets (ROA) is calculated as net profit attributable
Mashreq 14.5% to the equity holders divided by average assets. Commercial Bank of Dubai - CBD
16%
Return on Equity (ROE) is calculated as net profit attributable Dubai Islamic Bank - DIB
RAKBANK 17%
18.6% to the equity holders divided by average equity. Emirates NBD - ENBD
FAB 15.4% Average assets are calculated as (total assets for the current year
16.5% Mashreq Bank - Mashreq
+ total assets for previous year) divided by 2
NBF 19.1% RAK Bank - RAKBANK
19.2% Average equity is calculated as (total equity for current year +
20.8% total equity for previous year) divided by 2 First Abu Dhabi Bank - FAB
SIB
20.7%
Non-performing loans and advances (or, in the case of Islamic National Bank of Fujairah - NBF
banks, non-performing financing assets)
2021 Sharjah Islamic Bank - SIB
2020

Content
Coverage ratios on loans by stage Regulatory capital Cost-income ratio
(US$ billion)
Executive 0 20 40 60 80 100 0 10 20 30 0% 20% 40% 60%
summary
13.3 1.1 34.7%
0.2% ADCB 36.2%
15.7% ADCB
Performance 12.7 1.1
ADCB 36.0% 42.6%
highlights 0.3% ADIB
15.0% 48.3%
36.4% 4.9 0.3
ADIB 27.2%
4.4
4.8 0.3 CBD 27.1%
1 A progressive 0.6%
economic and fiscal 5.3% 28.5%
48.0% 3.4 0.2 DIB
ADIB CBD 30.5%.
environment 0.5% 3.3 0.2
6.5% 33.6%
41.4% ENBD
33.8%
9.9 0.7
2 Innovative, DIB 45.2%
responsible and 0.9% 10.5 0.7 Mashreq
9.2% 57.2%
disruptive trends CBD 45.3%
1.2% 43.2%
20.8 1.3 RAKBANK
6.2% ENBD 39.2%
50.1% 21.1 1.3
3 Evolving 26.9%
FAB
infrastructure 27.2%
0.6% 5.3 0.5
capabilities 5.2% Mashreq 33.7%
5.2 0.4 NBF
DIB 50.4% 35.4%
0.6%
5.7% 40.4%
4 Connected 52.5% 2.1 0.1 SIB
RAKBANK 44.6%
control and risk 2.1 0.1
frameworks 1.0% 2021
22.2% 2020
ENBD 90.6% 22.5 1.7
FAB
1.1% 21.2 1.6
21.1%
Key banking 82.8%
indicators NBF 1.5 0.1
0.7% 1.5 0.1
19.9%
Mashreq 90.4%
About KPMG 0.9% 2.0 0.1
40.9% SIB
62.7% 2.0 0.1
2.2%
17.7% Tier 1 capital 2021 Tier 2 capital 2021
RAKBANK 62.5% Tier 1 capital 2020 Tier 2 capital 2020
2.4%
24.0%
50.4%
0.2% Credit rating

14.8%
FAB 47.9% Bank Name S&P-Long S&P-Outlook Moody-Long Moody-Outlook Fitch-Long Fitch-
0.3%
11.5% term issuer stable negative term issuer stable negative term issuer Outlook
32.8%
ADCB A STABLE Aa3 STABLE A+ STABLE
1.1%
14.2% ADIB NA NA A1 STABLE A+ STABLE
NBF 54.4%
1.2%
16.8% CBD NA NA A3 STABLE A- STABLE
45.7%
DIB NA NA A2 STABLE A STABLE
3.9%
8.1%
SIB 65.6% ENBD NA NA A2 STABLE A+ STABLE
1.0%
6.0%
59.3% Mashreq A- STABLE A3 STABLE A STABLE
RAK NA NA A3 STABLE BBB+ STABLE

Stage 1 Stage 1
2021 Stage 2 2020 Stage 2 FAB AA- STABLE Aa2 STABLE AA- STABLE
Stage 3 Stage 3
NBF BBB STABLE A3 STABLE NA NA
SIB A- STABLE A3u NEGATIVE BBB+ STABLE
UAE NA NA Aa2 STABLE AA- STABLE
Source: Bloomberg. Credit ratings are as of 24th March 2022.

Content
Net impairment charge on loans and advances Market value/Net assets
(US$ million) (US$ billion)
Market 2021 Net 2021
Executive 0 350 700 1050 1400 2000 Value 2020 Assets 2020
summary
ADCB 722.8
1,298.6
Performance 60
56.0
highlights ADIB 239.4
267.9
CBD 336.3 50
364.4
1 A progressive
DIB 536.6
38.3
economic and fiscal 1,032.4
environment 40
ENBD 2,071.5
30.7
29.6
2,462.3
2 Innovative, 30
Mashreq 532.9
23.2
23.0
22.7
responsible and 327.3
disruptive trends
17.7
RAKBANK -72.5
16.1
16.1
20
15.4
121.9
11.7
11.7
11.2
10.6
3 Evolving FAB 3,181.9
9.0
infrastructure 2,375.3 10
5.5
6.7
5.2
5.7
5.9
capabilities NBF 238.4
3.6
4.6
4.3
3.5
3.3
360.9
2.9
2.7
2.2
3.0
2.0
2.1
2.0
2.0
2.5
1.5
1.5
1.7
1.6
1.1
SIB 47.2 0
4 Connected 66.9
control and risk ADCB ADIB CBD DIB ENBD Mashreq RAKBANK FAB NBF SIB
frameworks 2021
2020
Key banking Total loans subject to ECL - by stages

indicators 80% 90% 100% 80% 90% 100%
Share price
ADCB
(US$)
21.6
About KPMG 89.0% 5.7% 5.3% 87.2% 6.7% 6.1%
Q4 2020
ADIB 18 Q1 2021
16.9
82.8% 8.3% 8.9% 82.8% 8.4% 8.8%
16.4
16.1
Q2 2021
15.7
CBD Q3 2021
83.4% 9.0% 7.6% 80.4% 12.1% 7.5%
Q4 2021
DIB
82.9% 10.1% 7.0% 86.1% 8.0% 5.9%
ENBD 12
86.8% 6.8% 6.3% 88.1% 5.6% 6.2%
Mashreq
86.7% 7.1% 6.2% 86.8% 7.2% 6.0%
RAKBANK
90.8% 5.0% 4.3% 87% 7.5% 5.5%
5.1
6
4.8
4.5
FAB
3.9
4.0
3.7
3.5
3.6
96.1% 2.3% 1.6% 95.3% 2.8% 2.0%
3.1
2.8
2.3
1.9
NBF
2.0
1.9
1.6
1.7
1.7
1.5
84.1% 5.7% 10.2% 78.1% 11.5% 10.4%
1.5
1.3
1.3
1.4
1.4
1.4
1.4
1.4
1.2
1.2
1.3
1.3
1.3
1.2
1.1
1.1
1.1
1.1
1.1
1.1
1.1
1.1
0.5
0.5
0.4
0.4
0.4
SIB
60.8% 23.8% 15.4% 87.7% 7.3% 5% 0
ADCB ADIB CBD DIB ENBD Mashreq RAKBANK FAB NBF SIB
Stage 1 Stage 1
2021 Stage 2 2020 Stage 2
Stage 3 Stage 3

Content
Executive
summary
Performance
highlights
For almost 50 years, KPMG Lower Gulf Limited As we continue to grow, we aim to evolve
About KPMG
1 A progressive has been providing audit, tax and advisory and progress, striving for the highest levels
economic and fiscal services to a broad range of domestic and of public trust in our work. Our values are:
environment international, public and private sector clients Integrity: We do what is right; Excellence: We
across all major aspects of business and the never stop learning and improving; Courage:
2 Innovative, economy in the United Arab Emirates and in We think and act boldly; Together: We respect
responsible and the Sultanate of Oman. We work alongside our each other and draw strength from our
disruptive trends clients by building trust, mitigating risks and differences; For Better: We do what matters.
identifying business opportunities.
To meet the changing needs of our clients,
3 Evolving KPMG Lower Gulf is part of KPMG International we have adopted an approach aligned with
infrastructure Cooperative’s global network of professional our global purpose: Inspiring Confidence,
capabilities
member firms. The KPMG network includes Empowering Change. Our three pillars –
approximately 236,000 professionals in over exceptional quality of service, an unwavering
4 Connected 145 countries. KPMG in the UAE and Oman commitment to the public interest, and building
control and risk is well connected with its global member empowered teams – are the foundation
frameworks network and combines its local knowledge of our firm.
with international expertise, providing the
Disclaimer: Some or all of the services
sector and specialist skills required by our
described herein may not be permissible for
Key banking clients.
KPMG audit clients and their affiliates or
indicators
KPMG is widely represented in the Middle related entities.
East: along with offices in the UAE and Oman,
About KPMG the firm operates in Saudi Arabia, Bahrain,
Kuwait, Qatar, Egypt, Jordan, the Lebanon,
Palestine and Iraq. Established in 1973, the
Lower Gulf firm now employs approximately
1,783 people, including about 192 partners and
directors across the UAE and Oman.
Our KPMG IMPACT initiative aims to help
clients future-proof their businesses amid
times of increasing focus towards issues such
as climate change and social inequality. The
goal is to help them achieve success
across 17 major Sustainable Development
Goals (SDGs) and become more resilient and
socially conscious.
UAE banking
Thought
perspectives
leadership2022
title 67
Content
References Contributors
Executive
summary
Performance
highlights
1 A progressive
1
https://coinmarketcap.com/ 10
https://newworldwealth.com/ The information in this report is based on our
economic and fiscal authors’ in-depth knowledge of the UAE’s
environment
2
https://companiesmarketcap.com/gold/ 11
https://citywiremiddleeast.com/news/
financial services industry, allied with detailed
marketcap/ beating-covid-blues-uae-s-hnwi-wealth-
analysis of banks’ financial performance. The
surges-to-870bn/a1475488
2 Innovative,
3
The Top 5 Trends in FinTech and Banking GCC listed banks results report compares the
responsible and For 2022 (forbes.com) 12
https://centralbank.ae/en/node/2491 performance of approximately 60 of the GCC’s
disruptive trends leading listed banks. A snapshot of those
4
Only public tweets were included in this 13
https://gulfbusiness.com/uaes-adq-alpha-
findings is included on pages 31-33.
study due to limitations imposed by other dhabi-etisalat-and-fab-to-launch-next-gen-
3 Evolving social media platforms. banking-platform/
infrastructure
capabilities
5
The DataEQ Crowd is a proprietary 14
https://coinmarketcap.com/
crowd sourcing platform comprising 15
https://companiesmarketcap.com/gold/
a network of trained and vetted local
4 Connected marketcap/
language contributors. The full data EQ
control and risk
frameworks
methodology can be found in the 2021 16
The Top 5 Trends In FinTech And Banking
study. For 2022 (forbes.com)
6
The 2021 study covered a shorter 17
Global ESG-data driven assets hit $40.5
Key banking timeframe of 1 October – 31 December trillion | Pensions & Investments (pionline.
indicators 2020. com)
7
https://home.kpmg/uk/en/home/ 18
Climate risk is financial risk – For banks
About KPMG insights/2021/03/banking-finance- it’s a board - KPMG Global (home.kpmg)
function-benchmarking.html 19
https://www.sca.gov.ae/en/media-center/
8
https://assets.kpmg/content/dam/kpmg/ news/14/3/2021/board-of-directors-of-
xx/pdf/2020/10/harvey-nash-kpmg-cio- sca-approves-the-obligation-of-listed-
survey-2020.pdf companies-to-represent-women-in-the.
aspx
9
Further information can be found in “The
move towards outsourcing and offshoring
– the challenges and opportunities”
section.
https://info.kpmg.us/content/dam/advisory/
en/pdfs/2020/kpmg-cracking-crypto-
currency.pdf
https://assets.kpmg/content/dam/kpmg/
us/pdf/2018/11/institutionalization-
cryptoassets.pdf
https://assets.kpmg/content/dam/kpmg/
ca/pdf/2021/08/navigating-institutional-
adoption-of-cryptoassets-en.pdf
https://coinmarketcap.com/
https://advisory.kpmg.us/content/dam/
advisory/en/pdfs/2021/banking-blueprint-
for-crypto-world.pdf
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is
received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a
thorough examination of the particular situation. © 2018 KPMG Lower Gulf Limited, operating in the UAE and Oman, member firm of the KPMG thorough examination of the particular situation. © 2018 KPMG Lower Gulf Limited, operating in the UAE and Oman, member firm of the KPMG
network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
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KPMG Lower Gulf Limited KPMG Lower Gulf Limited KPMG Lower Gulf Limited
E: [email protected] E: [email protected] E: [email protected]
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Partner l Head of Advisory Partner | Head of Tax
KPMG Lower Gulf Limited KPMG Lower Gulf Limited
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to provide accurate and timely information, there can be no guarantee that such
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Brief
in summary
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information without appropriate professional
advice after a thorough examination of the particular situation. © 2022 KPMG Lower
is
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UAE banking

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economic and fiscal

UAE banking perspectives 2022 3

economic and fiscal

UAE banking perspectives 2022 5

UAE banking perspectives 2022 7

UAE banking perspectives 2022 9

4 Connected 2020 2021 % 2020 2021 %

Capital adequacy ratio

UAE banking perspectives 2022 11

Customer service was the top driver of negativity, with a Net

-14.4 -66.8 2.0

-37.5 -70.6 -3.7

UAE banking perspectives 2022 13

58.9 4.3 2.3 1.3

Performance Claims, complaints Culture and Product

0.6 0.1 37.6

Disclosure Suitable advice No outcome

UAE banking perspectives 2022 15

and fiscal environment

UAE banking perspectives 2022 17

UAE banking perspectives 2022 19

UAE banking perspectives 2022 21

UAE banking perspectives 2022 23

Title digital banking in the UAE

We were delighted to invite a digital banking 3. Covid-19 has accelerated digitization

and disruptive trends

UAE banking perspectives 2022 25

UAE banking perspectives 2022 27

UAE banking perspectives 2022 29

UAE banking perspectives 2022 31

2 Service and deliver

4 Comply and report

— Finance, accounting and tax

UAE banking perspectives 2022 33

UAE banking perspectives 2022 35

— Reporting The search for consistency also remains

UAE banking perspectives 2022 37

Title to drive organizational change

UAE banking perspectives 2022 39

2 Middle office Although regulatory requirements provide

UAE banking perspectives 2022 41

UAE banking perspectives 2022 43

UAE banking perspectives 2022 45

UAE banking perspectives 2022 47

Two and a half years have passed since the — A

Connected control and

UAE banking perspectives 2022 49

UAE banking perspectives 2022 51

UAE banking perspectives 2022 53

The banking industry, an industry that relies — Superior forecasting accuracy:

UAE banking perspectives 2022 55

By analyzing email traffic and calendar

UAE banking perspectives 2022 57

Slim Ben Ali

Capital adequacy ratio

We were delighted to invite a digital banking 3. Covid-19 has accelerated digitization

— Reporting The search for consistency also remains

The banking industry, an industry that relies — Superior forecasting accuracy: