Majority of UAE Banking Customers Opt for Mobile Apps, Survey Finds (72%)
UAE Banks Evolve to Meet Customer Demand for 'Phygital' Banking
In response to growing customer preferences, UAE banks are switching towards a blend of digital and in-person services, coined as the 'phygital' model, according to a report by Arthur D. Little. The survey reveals that 72% of customers in the UAE now favor mobile apps as their primary banking channel, seeking convenience, user-friendly interfaces, and personalized financial tools.
However, customers still prioritize face-to-face interactions for complex transactions such as mortgage consultations and loan applications, with 35% opting for in-person services. High-income clients still rely on the personal touch that physical branches offer for high-stakes financial decisions.
The shift towards digital banking has been noted, yet banks are encouraged to boost investments in self-service technologies, AI-driven personalization, and digital literacy programs to ensure a consistent user experience across apps, kiosks, and branches. Commenting on the findings, Rezwan Shafique, Principal at ADL Middle East, emphasized the need for banks to adopt a "phygital" model to cater to evolving customer expectations.
Mobile wallet adoption is gaining traction, particularly among younger and tech-savvy middle-income groups. As banks vie for a competitive edge, the adoption of an omnichannel strategy is crucial, integrating advanced digital platforms with reliable physical advisory services.
UAE's leading banks, such as Emirates NBD, are embodying this strategy through innovative and integrated service offerings that drive growth in retail banking and wealth management. Meanwhile, digital-first banks like Wio Bank set benchmarks for digital innovation, underscoring the UAE's commitment to combining cutting-edge digital platforms with traditional banking strengths.
In essence, UAE banks are embracing the phygital model by:
- Offering state-of-the-art digital platforms that cater to a majority of affluent customers
- Retaining and improving physical advisory services for personalized financial guidance
- Focusing on seamless integration of digital and in-person touchpoints to deliver superlative customer experiences
- Developing innovative products and services to fuel growth in the credit and investment market
With UAE's growing credit market and expanding customer expectations, the 'phygital' approach positions banks to capitalize on these opportunities in 2025 and beyond.
- Banks in UAE are innovatively transforming traditional banking by adopting a phygital model, which combines advanced technology with personalized face-to-face services to cater to customers' diverse needs.
- The phygital approach enables UAE's leading banks, such as Emirates NBD, to deliver seamless integration of digital platforms with reliable physical advisory services, providing superior customer experiences.
- As technology continues to revolutionize the finance industry, the phygital model in banking is crucial for businesses to stay competitive by developing new products and services for the growing credit market.
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