Middle East Banks Target Greater Share of Global Transaction Banking
Middle East banks are set to increase their share of global transaction banking revenues by at least 25% over the next decade, claims the global transaction banking (GTB) platform iGTB.
iGTB is one of several banking products on Intellect Design Arena’s IDigital platform which, in turn is part of financial technology group Polaris. iGTB’s recent Middle East client advisory event brought together 68 elite industry thought leaders for a conference entitled
‘The decade of transaction banking: What share of this half a trillion dollar market will Middle Eastern banks catch?’
The survey of 18 Middle East banks, which conducted during the advisory panel in Dubai, found that 93% of the survey’s 48 participants – senior-level bankers from across the region – believe Middle East banks will win a larger portion of the global transaction banking market (
) by 2025, with 62% anticipating growth of 25% or greater, and 34% expecting the region’s share to increase by at least 50%.
Attendees unanimously agreed that such success will hinge on the adoption of innovative technology, with 61% identifying it as “the most critical factor” to success, and 100% deeming it either crucial or important. This tallied with the perception by 50% of participants that Middle Eastern banks fall significantly behind other regions in their implementation of innovative technology.
Altogether, 89% of participants said the region’s banking sector needed to improve its technology adoption rate. All participants agreed that Middle East banks must further integrate their cash and trade functions, with 61% acknowledging that these functions currently remain very distinct.
“The upbeat sentiment comes as no surprise,” says Manish Maakan, chief executive (CEO), iGTB, Intellect Design Arena. “Transaction banks here in the Middle East have an enormous opportunity to leverage the region’s increasing sophistication and strategic position as the gateway to international trade.
“Realising this potential, however, will require recognition of current shortfalls – particularly with regard to client-facing and internal banking technology – and a clear response to today’s integrated cash and trade needs.”
iGTB’s Middle East client advisory panel was the first of what is planned to be an annual event.