Q: What are ADIB's strategic priorities for the remainder of 2023 and into 2024?
answer: We have a clear vision to become the most innovative Islamic bank in the world. We continue to leverage our strengths to build competitive advantage and have an established governance framework that ensures effective execution and risk management.
ADIB's strategy is premised on responding to several factors affecting the global economy and the region. It also includes trends in the banking sector, such as increased competition, digital adoption and disruption, and an evolving regulatory environment.
We are also investing in technology and operational capabilities to drive digital transformation at scale, improving the customer experience and increasing efficiency across the business. We will position ADIB as a mobile-first bank with the best digital experience, including the fastest and most innovative products and services.
Q: ADIB has seen success with digital products such as Amwari and digital onboarding for small and medium-sized enterprises using Emirates facial recognition technology. What are your digital priorities going forward?
answer: Mobile banking usage has increased significantly, with over 50% of personal financial products [available] Digital on mobile apps shows strong demand for mobile-based services. We strive to maintain and enhance the user-friendly interface and functionality of our mobile apps to meet the evolving needs of our customers, thereby ensuring seamless access to financial services.
ADIB's commitment to expanding its digital services portfolio is evidenced by the introduction of 33 new services in 2023. This trend is likely to continue as banks aim to meet diverse financial requirements and serve a wider range of customer needs.
ADIB will also further emphasize its role as a digital intermediary for financial transactions, given the reported surge in initial public offering (IPO) applications through the bank's mobile app. This includes facilitating customer participation in Shariah-compliant IPOs and providing secure and user-friendly trading features. In this regard, supporting the UAE government's capital market expansion strategy remains a priority.
Q: Are retail customers from all backgrounds increasingly interested in Shariah-compliant finance in the UAE and markets across your footprint?
answer: ADIB’s own experience in the UAE has shown that Islamic finance can gain broad appeal beyond a purely Muslim customer base, and we are seeing an increase in expatriates within our customer portfolio. This means customers want to bank with organizations that promote ethical products and services, provide good advice, help individuals and businesses solve their financial problems, and are transparent about fees. reflects the fact that
This is a natural market area for Islamic finance and one that is expected to grow in the coming years. However, the industry cannot afford to be complacent. It is extremely important that we remain focused on providing competitive, original and high-quality services. With this in mind, we continue to focus on our digitalization strategy to deliver a consistent, high-value offering.
Q: Much has been written about the overlap between Sharia compliance and environmental, social, and governance (ESG) financing. What role should Islamic finance play in achieving the United Nations Sustainable Development Goals (SDGs) in the coming years?
answer: Islamic finance could play an important role in supporting the implementation of the SDGs in the coming years. Islamic finance is inherently aligned with these values and principles and is well-suited for sustainable finance initiatives.
ADIB's commitment to a sustainable future is integrated into a five-year strategy that covers all aspects of ESG. This initiative not only supports the UAE’s SDGs; [UAE’s] The national goal is to achieve net-zero emissions by 2050.
[Our] The corporate strategy includes a dedicated 'Sustainable Future' pillar, reflecting the bank's commitment to strengthening its commitment to sustainability for itself, its customers and its communities. This pillar highlights the bank's focus on sustainable finance as a key driver of its operations.
Q: What can financial institutions do to avoid accusations of greenwashing in their sustainability efforts?
answer: Financial institutions play a critical role in financing new growth opportunities that drive transformation towards a more sustainable future. To effectively fulfill this role and avoid greenwashing, companies must prioritize transparency, accountability, and credibility in their ESG efforts. By doing so, we can build trust with our stakeholders and truly contribute to a sustainable global economy.
Financial institutions have a unique ability to direct funds to projects and businesses that align with ESG principles. This capital allocation will accelerate the transition to cleaner energy, fairer societies, and responsible governance practices. By acting as a catalyst for sustainable growth, financial institutions not only reduce the risks associated with greenwashing, but also contribute to a greener, more socially responsible, and economically viable future. To do.
