UAE ahead of curve in use of technology for sector

The Citi-led fintech initiative in the capital showcases the latest innovation.

Richard Teng, the chief executive of ADGM’s regulatory authority, the FSRA, in Abu Dhabi yesterday. Ravindranath K / The National

The UAE is ahead of the curve in using new technologies such as Blockchain and boosting regulations that will increase efficiencies at financial services companies and help clamp down on cyber crime, according to a senior banker at Citi.

“The UAE is pretty advanced in terms of using technology,” said Julie Monaco, the global head of Public Sector Group at Citi. “The Dubai Government is in a pilot with Blockchain technology in partnership with IBM and Microsoft. So they are actually on the leading edge of really embracing this technology and figuring out how to use it. It’s impressive the way the Government is embracing this technology in anticipation [of technological changes].”

The banker was speaking at an event at Abu Dhabi Global Market that Citi organised. Fintech companies were challenged to come up with ways to help governments worldwide crack down on financial service crimes in areas such as payments and tax collection.

“We’ve been interacting with governments around the world and what governments have told us is that one of the top three challenges that they face is how to eradicate corruption and how to create transparency and integrity in transactions the governments do,” Ms Monaco said.

On Friday, the global WannaCry cyber attack hit 200,000 victims in at least 150 countries and placed corporations and governments on high alert.

This month, amid the increasing threat of cyber crime, the UAE Banks Federation started a cybersecurity sharing programme among its 49 members to help prevent crimes perpetrated online against lenders.

Richard Teng, the chief executive of ADGM’s regulatory authority, the FSRA, said Citi’s T4I fintech challenge was a key part of global efforts to plug knowledge gaps and to exchange perspectives, which would “inspire more innovations and contribute to socio-economic developments”.

“We are in a constant lookout for regulatory solutions to support the business needs and aspirations of the industry, and in overcoming any pain-points to make things better,” he said.

Ms Monaco said Citi can already demonstrate “examples across the bank where we are embracing everything from artificial intelligence to looking at applications for Blockchain, digitising everything that we do.”

The trend towards digitalisation, which includes the use of Blockchain technology – a technology that secures digital transfers of data and transactions – in finance and cryptocurrencies such as Bitcoin, is revolutionising financial services, analysts say.

Such digital innovations have the potential to upend traditional business models such as middlemen in finance that take fees from the transfer of funds, or in asset management where computers instead of humans are making investment decisions more and more, forcing banks and other financial services to embrace changes and do their best to stay competitive.

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