Financial technology (fintech) has compelled banks to level up their digital transformation and actively seek to implement the latest advancements, according to Doha Bank CEO Dr R Seetharaman.
Seetharaman made the statement during a session titled ‘Convergence of Conventional Banking with New-age Fintech Startups’ hosted by Startup Grind Doha recently at Workinton, West Bay.
He said, “Covid-19 was an inflection point for individuals, businesses, and economies around the globe. e-commerce, having deep interests on both sides, rose as a natural winner – building loyal customers by leveraging on technology. The pandemic prompted a massive increase in online distribution. Fintechs started leveraging on this.”
Seetharaman noted that fintech is one of the developments arising from the fourth industrial revolution. “Fintech is the application of technology and innovation to solve the needs of consumers and firms in the financial space: think credit cards, online banking, and blockchain-powered cryptocurrencies,” he explained.
He said “roughly 85%” of fintech firms in the MENA region operate in the payments, transfer, and remittances sectors. Fintech firms in Qatar are focused on improving the customer experience by providing more accessible financial services, Seetharaman pointed out.
On global financial institutions and fintech partnerships, Seetharaman said, JP Morgan acquired StarupOpen Invest, which was intended to help JPMorgan’s financial advisors customise clients’ ESG investments – a huge growth sector.
He said Goldman Sachs’ collaboration with Esusu Financial Inc will enable renters in select Goldman Sachs properties nationwide to potentially benefit from rent reporting. Bank of America acquired German Axia technologies to advance its payment solutions for healthcare clients, Seetharaman said.
Seetharaman said Emirates NBD has been in partnership with DIFC FinTech Hive to support startups, while SDB (Saudi Development Bank) and GIB (Gulf International Bank) launched digital lending platform in partnership with Beehive to finance small and micro-enterprises.
Seetharaman said, “Operational technology partnerships, customer-oriented partnerships, and front-end fintech partnerships are some of the most common partnerships between financial institutions and fintechs – a commitment to innovation.
“An alignment of priorities and objectives and an alignment of priorities and objectives is necessary for effective partnership between fintechs and financial institutions. We can witness a surge in partnerships between financial institutions and fintechs on account of the fourth industrial revolution.”
Seetharaman said fintech enables digital transformation in banks and has compelled banks to level up their digital transformation and actively seek to implement the latest advancements.
“Fintech firms in Qatar are focused on improving the customer experience by providing more accessible financial services mobile banking and digital banking will be felt in the Internet of Things, blockchain, and open banking.
He said digital banks’ key success factors include differentiated value proposition, early revenue recognition, quick scalability, and cost-efficiency. Doha Bank is an active member of Qatar FinTech hub (QFTH), Qatar Development Bank’s fintech incubator, since the beginning, he said.
“As one of the leading commercial banks in the State of Qatar, we are constantly innovating and seeking to partner with and help the fintech ecosystem grow. It is a key objective for Doha Bank to support the transformation of the financial ecosystem in Qatar to achieve the vision set by the Qatar Central Bank,” he stressed.