Room for UAE bank market to grow [Mubasher (Saudi Arabic)]
(Mubasher (Saudi Arabic) Via Acquire Media NewsEdge) Andy Ripley, the new Dubai-based head of retail banking and wealth
management at HSBC, answered the following questions posed to him by The
National on consumer banking. HSBC entered the UAE market in 1959 when it
bought the British Bank of the Middle East, The National reported.
the retail banking market in the UAE overcrowded?
I think it is
widely recognised that there are a large number of banks in the country,
and with over 50 operators in total, we have seen the market grow
increasingly competitive over the last few years. This is clearly good
news for banking customers but could also lead to consolidation in the
Recently we have seen a few financial services firms
selling their retail banking businesses in the country and this is
reflective of the degree of competition in the market but also as
international banks focus their capital deployment in their home markets.
This is also beneficial for the wider industry, as banks are increasingly
driven to innovate and improve their services to compete for an
increasingly demanding customer base.
We expect the retail banking
industry to grow in line with GDP. This indicates that although the sector
may be crowded, there is still significant potential for growth on the
back of strong customer demand. In this regard, we have seen lending grow
at a strong pace this year and the Institute of International Finance has
forecasted that the banking sector's loan growth rose from 2.6 per cent in
2012 to 7.5 per cent in 2013. Equally importantly, loan impairments are
well controlled as banks have learnt the hard lessons from the financial
Therefore, consumer lending in particular is expected to be
a significant contributor to growth, as figures released by the Central
Bank showed that customer credit had grown more in the first half of the
year than in the last two and a half years.
Dubai hosting the World
Expo in 2020 will definitely have a positive impact on GDP and employment
growth, and we will also see further expansion of the private sector,
leading to an increase in credit growth.
What is HSBC doing to
attract more retail customers and which type of customers would you prefer
to concentrate on?
HSBC continues to be one of the largest and most
widely represented international banks in the region and we have had an
unbroken presence here for over 65 years. During this time, we have
focused on developing more of a mass affluent strategy than a purely
retail one, while recognising the evolving landscape of the industry and
adapting our services in order to cater to the constantly developing
demands of our customers, both international and local.
We see that
the retail banking industry is undergoing a period of rapid change, with a
shift in focus from traditional banking centres, such as branches, to more
digital, secure and convenient ones, including ATMs, mobile and e-banking.
To this end, branches are increasingly being transformed into centres for
financial advice and for self-service functionalities, while customers are
relying on digital channels more for their daily banking requirements.
have developed one of the leading internet banking and mobile banking
platforms, and a testament to their success is that we saw 12 million
internet banking logons and 35,000 mobile banking app downloads in the UAE
Is HSBC planning to open more retail banking outlets,
bolster its sales staff?
We have a comprehensive network in the UAE
and a call centre that serves our broad customer base adequately at the
moment. We continue to enhance our digital infrastructure based on
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