CBD NOW, a digital-only bank, will be launched next year in the UAE.
The new entity, launched by Commercial Bank of Dubai (CBD), will target millennials – people born around the millennium or who came to adulthood in the millennium.
CBD has been following a digital transformation strategy through this year aimed at making its practices simpler and more effective.
The move comes as an increasing number of the UAE’s banks and financial institutions offer online digital services.
“It is a next-generation bank that offers a completely digital way of banking,” said Murray Sims, the general manager for the personal banking group at CBD. He said the new lender combines a seamless customer experience with transparent and value-added services.
“CBD NOW will redefine what a bank should be. It is built around customers and offers an entirely unique experience that is simple, smart and safe, whereby everything can be done via smartphone.
“We believe that CBD NOW will be the 21st century choice for customers who want a bank that’s not just unique and different but, more importantly, better.”
According to Citibank, investment in financial technology has increased from US$1.8 billion globally in 2010 to $15bn last year. The move to the digital sphere is being seen across the country’s banking sector.
The rush to embrace digital technology recently led to Mashreq Bank becoming the first bank in the UAE to team up with Apple's Siri for voice-powered payments.
According to a survey in November last year of 2,000 GCC bank customers by EY, 34 per cent of UAE respondents use a mobile banking service – but only 45 per cent are happy with it.
CBD, which is looking to avoid that with customer input during the pilot phase helping to influence product development and refinements before rolling out the brand to the public.
The lender, founded in 1969, is listed on the Dubai Financial Market and is fully owned by Emirati shareholders, including 20 per cent by the Investment Corporation of Dubai, according to the bank. It employs about 1,200 staff from 42 countries.
ascott@thenational.ae
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