By: Amr Adel
Dubai – Mubasher: Mashreq Bank is planning to repeat its experience and launch other digital banks outside the UAE, CEO Abdul Aziz Al Ghurair has said.
Speaking to reporters on the sidelines of the bank’s Mashreq Neo launch on Sunday, Al Ghurair revealed that this step was bound by receiving approvals from regulatory bodies and central banks in Mashreq Bank’s external markets.
Mashreq Neo is the Dubai-based lender’s first digital bank in the GCC to offer on-the-spot banking services via online digital channels without using the bank’s standard branches.
The new digital bank is an independent entity from Mashreq Bank, the CEO revealed, noting that the way services are provided and Mashreq Neo’s administrative structure are separate from the main bank.
Mashreq Neo has a separate profit and loss account from Mashreq Bank, Al Ghurair revealed, noting that the new entity’s expenses are significantly lower than those of traditional bank.
The CEO declined to comment on the costs for launching a digital bank.
Responding to a question on an initial public offering (IPO) for Mashreq Neo on the Dubai Financial Market (DFM), the top official said that such a step was subject to terms and conditions set forth by the Central Bank of the UAE.
Although Mashreq Neo does not require a licence, it may need one in the event that an IPO is taken into consideration.
The purpose of launching a digital bank is to attract customers from other banks or from Mashreq Bank itself, Al Ghurair said, highlighting the fierce competition between Mashreq Bank and Mashreq Neo.
The legislative infrastructure pertaining to providing digital services is not 100% complete, the CEO noted, stressing the constant need to update and upgrade the governing legislations for digital banks.
Through Mashreq Neo customers can open accounts within five minutes by downloading the Mashreq Neo application via the Apple store or Google Play. In addition, the new digital bank allows customers to withdraw cash without using a debit card and pay international bills in over 100 countries.
On another note, Al Ghurair, who doubles as the head of the UAE Banks Federation, stated that UAE banks’ profits for 2017 were most likely to remain unchanged from figures released last year, indicating that the banking sector is doing well considering global market conditions.
Commenting on the decline in the value and volume of loans in the UAE, Al Ghurair said that the UAE banking sector was not only reliant on the local market but on the region as a whole.
The oldest bank in the UAE, Mashreq Bank currently has 11 branches outside its home market and 21 offices globally spread out across Europe, the US, Asia, and Africa.
Translated by: Nada Adel Sobhi
