Infosys Finacle and Red Hat recently hosted a high-level roundtable discussion in Dubai, focusing on crucial themes in the financial sector such as digital transformation, technological innovation, the future of banking, and evolving customer needs. The event, attended by key players in the UAE financial sector, aimed to explore the importance of re-composable banking solutions in driving growth through business model innovation.

During the roundtable, participants delved into five central themes: delivering better value to customers, innovating new business models, leveraging technologies like cloud, AI, and APIs, resetting operational benchmarks, and building organizational capabilities. One key takeaway from the event was the consensus that banks should not try to do everything alone. Instead, collaboration within ecosystems plays a vital role in augmenting their capabilities and achieving the best outcomes. Participants emphasized the need for continuous re-composition and adaptation in the face of ongoing digital transformation.

Puneet Chhahira, VP and Head of Product Management and Marketing at Infosys Finacle, introduced the concept of ’embedded finance’ as a pivotal idea. The diverse needs of individual customers and businesses within the banking sector were discussed, with a focus on aligning these needs with emerging business models. Various organizations are experimenting with different business model choices to cater to these evolving needs.

Amit Malhotra, Senior Vice President and Head of Core Processing at First Abu Dhabi Bank, highlighted the growing role of fintech companies in transforming the banking space. He noted that these startups are introducing innovative solutions that can seamlessly integrate with traditional banking systems, enriching the industry with innovation and agility.

Paul Hennessy, CEO of Emirates Digital Wallet, echoed similar sentiments, emphasizing the importance of connecting a range of services for the banking industry to experience exponential growth. He mentioned that his platform not only connects to banks but also integrates with platforms like Amazon or Shopify.

However, the approach of banks was identified as a significant challenge in the evolution of the space. Soumya Dutta, Director of Corporate Banking at First Abu Dhabi Bank, noted that banks are currently more reactive than proactive. Going forward, the industry is expected to evolve into a marketplace where more value is given to customers by suggesting choices to manage their finances better.

Experts at the event emphasized the critical role of cloud computing and artificial intelligence (AI) in shaping the future of banking. The shift towards a cloud-first strategy was acknowledged, highlighting benefits such as increased business agility and flexibility. The potential of AI to revolutionize customer service and personalization was also explored, along with the need for careful identification and implementation of use cases for this transformative technology.

Ahsan Sharif, Head of Corporate Business at Zand Bank, discussed the greater use of AI in advisory services. He mentioned that they are exploring different AI use cases, particularly in advisory services, to provide AI-based advisory to customers. Sharif also suggested that the banking industry could transition into a platform that connects different services, rather than handling everything in-house, in the next five to ten years.

The event also highlighted the importance of partnerships and collaboration for risk mitigation and innovation. AI was identified as a potential tool for analyzing vast amounts of data and providing valuable insights to enhance customer experiences. Sanjeev Kumar, Executive Vice President and Head of Corporate Banking at Mashreq, noted that while AI will eventually become an integrated part of the banking system, a clear vision is necessary to understand its use cases before deployment.

The event concluded by emphasizing the need for a holistic approach that integrates technology, cultural change, and omni-channel strategies to create a sustainable and customer-centric banking ecosystem. Leadership, adaptability, and experimentation were highlighted as crucial factors in navigating the rapidly evolving landscape of banking and technology.

The roundtable discussion, titled “Recomposing Banking: Driving Growth with Business Model Innovation,” was organized by Infosys Finacle and Red Hat and chaired by Khaleej Times events in Dubai in September. The event brought together industry leaders to tackle critical themes and explore the future of banking in the digital era.