Financial Industry Evolves: Digital Banking Revolution - Essay Sample

Introduction

The financial industry is fast evolving to meet the expectations of "digital-native" consumers who are obsessed with instant money transfers and seamless banking experiences accessed from anywhere at any time. Owing to this pressure, banking service providers all over the world are urgently moving towards digital banking system. This is especially true in regard to the provision of unconventional means for everyday payment activities that allow financial service providers to address ever-changing customer needs, and in addition, improve the efficiency of banking transactions that adapt to technological disruptions. The customers need a digital banking platform where they can make financially related inquiries or initiate payments and settle bills from the comfort of the smartphone.

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While it goes without doubt that banks should quickly roll out a digital banking platform to meet the customer needs for the effective, seamless, fast, and secure banking system, it is unclear what the primary drivers and challenges of the digitization are in UAE banking sector. Also, the impacts of digitization of financial services in UAE are undetermined. The proposed study seeks to identify and highlight the primary drivers and challenges associated with a transition of the banks to digitization in the UAE. It also intends to identify and assess the impact of a transition to intelligent multichannel digital banking systems have on the traditional banking sector in the UAE. In addition, it will identify and assess the trends that will significantly influence the future of digital banking in the contexts of blockchains, monetization, payments, open banking, advanced mobile banking apps, and cryptocurrency software wallets. The study achieves these objectives by testing the omnichannel digital banking platform during the Dubai expo 2020 that will draw more than 3.2 million people from over 180 countries.

The proposed research will adopt a mixed-methods strategy to study the facilitation of smart banking system and regulation. Survey questionnaires will be administered alongside interviews with a sample that is representative of UAE residents. Responses obtained from the participants will be quantified and analyzed for relevant patterns in perspective and expectations. The questionnaire will be constructed of numerically coded survey items designed to obtain information that measures the level of awareness and perspectives that are relevant to the sociocultural and financial impact of financial technology and the transition to a digital banking model in the UAE. To ensure that individuals without internet access participate in the study, the surveys will be administered by the traditional mail carrier. The survey will comprise of close-ended, multiple choice questions that are coded using the Linkert scale. Collected data will be used to conduct statistical analysis and multiple regression using StatPlus analytical software.

Given the fact that financial technology ecosystem is critical in the advancement of the financial markets towards efficiency and improved customer experience, the findings of the proposed study will play a significant role in helping financial service providers to understand the challenges, impact and overall scenario of transition towards digitization of financial systems in the UAE. Also, the study creates a one-time opportunity for testing and confirming the usefulness of omnichannel digital bank which is expected to form part of the foundation of a smart city in accordance with the smart life philosophy. The study will showcase a digital banking platform that is Shari'ah compliant which sets the basis of secure banking platforms that should guarantee the meeting of customer expectations in a threat-free environment.