Majority of UAE residents keen to switch banks; hunt for offers

Around three-fourths - or 76 per cent - of UAE residents are keen to switch banks and around 70 per cent are actively searching for new bank offers as expectations of consumers are rapidly evolving with the pervasiveness of the Covid-19 crisis, according to new surveys.

Godfrey Sullivan, managing director and head of financial institutions for the UAE at BCG, said customers are experiencing a new reality, relying on conducting day-to-day activities remotely.

"When they face challenges in the current digital capabilities offered by banks or reduction in credit lines, both of which are becoming increasingly important to them in the current circumstances, they will naturally start to look for service providers who can better cater to their needs," he said.

The UAE banks are set to face added pressures from evolving customer demands brought by the pandemic.

The research also showed that 87 per cent of respondents would be willing to open an account with a branchless digital-only bank. This correlates with BCG's global benchmark, which saw more than 53 per cent of UAE banking customers increasing their mobile app usage for banking during the pandemic, and over 50 per cent who enrolled in digital banking for the first time as a result of the crisis.

48% say banks doing good job
Another survey conducted by YouGov revealed that nearly one in two respondents - 48 per cent - believe banks in the UAE are doing an excellent job of helping them during the Covid-19 crisis.
Around 27 per cent of residents, however, do not think banks are doing a good job in this regard. Among the various banks in the country, consumers banking with international banks were more likely to hold this view as compared to those engaging with regional banks.

The data showed at present consumers appear to be most interested in acquiring savings accounts and least interested in personal loans, demonstrating a clear desire to protect current assets and a resistance to accumulating new debt obligations in the current financial environment.

After savings account, many UAE residents are interested in increasing their investments in gold and other metals, followed by pension schemes.