Emirates NBD sees digital money transfers increase 20% in 2020

Emirates NBD recorded an increase of more than 20 per cent in the volume and value of funds transferred via its DirectRemit platform in 2020 compared with 2019 as more customers switched to online and mobile channels for their banking needs during the pandemic.

“DirectRemit was especially critical for customers dealing with urgent family needs or emergencies during lockdown and when movement restrictions were in force,” Emirates NBD said on Wednesday.

DirectRemit is a digital money transfer service that allows customers to send remittances to India, the Philippines, Pakistan, Sri Lanka, Egypt and the United Kingdom in less than 60 seconds and with no charges via the bank’s online or mobile banking platforms.

India and the Philippines topped the list of recipient countries for DirectRemit transactions.

The rise in remittances via the bank’s digital platform is in contrast to the overall personal remittance market in the UAE, which remained sluggish amid the Covid-19 pandemic.

Outbound personal remittances from the UAE fell 7.7 per cent, or Dh3.3 billion, in the third quarter of 2020 compared with the same period in 2019, according to the Central Bank of the UAE. There was a reduction in transfers through exchange houses by Dh6.9bn, while outward remittances through banks increased by Dh3.6bn. India, Pakistan and Egypt were the top destination countries for personal remittances from the UAE during 2020.

The UAE registered outward personal remittances worth Dh41.4bn and Dh38.2bn in the first and second quarters of 2020, respectively.

Changing demographics, labour mobility, unemployment and the pandemic will affect the UAE remittance industry in 2021, according to a survey by the Foreign Exchange and Remittance Group.

Other concerns include changing oil prices, geopolitical instability and reliance on government expenditure.

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The biog

Name: Dhabia Khalifa AlQubaisi

Age: 23

How she spends spare time: Playing with cats at the clinic and feeding them

Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need

Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman

Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs

Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing

Interview

Lebanese author Elias Khoury: 'I feel that we are beyond despair'

If you go

The flights

There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.

The trip

Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.

The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”