UAE working on instant payments, says central bank

The UAE is currently working on initiatives to implement a financial market infrastructure that will enable the Domestic instant paymentthe Central Bank of the United Arab Emirates said.

It said in a statement after a meeting with the bank’s chief executive on Tuesday that the move would “support the transformation of the payments landscape in the UAE”.

Officials also discussed Domestic Consumer Protection Frameworkincluding complaints management, and plans to create an ombudsman unit called Sanadak.

The department will be “a unique consumer complaint resolution mechanism in the Middle East, which will provide easy access and quick turnaround times for the resolution of consumer complaints,” the statement said.

The central bank also highlighted the progress of Emiratisation initiatives aimed at increasing the number of Emiratis employed in the banking sector this year in line with the UAE’s national agenda.

“We at the Central Bank are keen to hold these regular meetings with bank CEOs to discuss updates and initiatives that will strengthen the banking sector and support the transformation of the UAE’s financial infrastructure to become one of the best central banks and financial systems in the world,” Bank of the Central Bank said. Chief Khalid Barama said.

“We also appreciate the role of banks in the development of the industry as they welcomed the initiatives discussed during the meeting.”

Following the Covid-19 pandemic, the payments landscape in the UAE is changing rapidly as the industry digitally transforms.

Trends in the payments industry – including buy now, pay later platforms, digital wallets and contactless card models – are gaining traction locally.

More than half of the residents now use digital wallet as Online Payment Post-pandemic increase, payment solution providers Checkout.com said in a recent report.These are becoming more and more popular among the crowd young generation.

Meanwhile, more than half of consumers in the UAE plan Go cashless by 2024A Visa study earlier this year showed that compared to the global average of 41%.

Most Middle Eastern consumers also tend to Towards a digital bankU.S. tech firm Entrust said in a March report that 61 percent of people in the UAE prefer to use online channels for transactions.

Overall, the UAE’s banking system “remains resilient throughout the pandemic, with a broad and strong recovery in key banking system indicators in 2022,” the central bank said.

It said the regulator had “introduced comprehensive support measures throughout the pandemic, with an orderly exit strategy that balances phasing out emergency measures and continuing to support the recovery”.

Total net profit in UAE 10 largest banks Consulting firm Alvarez & Marsal grew more than 24% quarter-on-quarter in the April-June period of this year, helped by a sharp rise in its net interest income said last month.

Cumulative net income climbed to AED12.6 billion ($3.43 billion) in the three months to the end of June, the consultancy said.

Updated: September 20, 2022 at 5:30 pm