Posted inBusiness, Services

UAE consumers favour banks that put purpose over profits

UAE consumers favour banks that put ‘purpose over profits’, consider themselves ‘ethical bankers’, are more likely to have embraced digital banking.

by Louis Parks
UAE consumers favour banks that put ‘purpose over profits’, consider themselves ‘ethical bankers’, are more likely to have embraced digital banking
Miljan Stamenkovic, GM MENA, Mambu
by Louis Parks

UAE consumers favour purpose over profits, according to a report by SAAS cloud banking platform Mambu and 75% of consumers are more likely to use digital banking services following the pandemic. 40% of consumers used digital banking services for the first time in the last 18 months.

Tribes

The report surveyed 4,500 consumers globally, and identifies five key consumer groups, or ‘tribes’, that are driving the future of financial services.

  1. Techcelerators:Recent converts to the world of digital banking who have adopted digital services amid physical branch closures. This group is the largest tribe globally, accounting for 33% of respondents. 57% are aged over 35. 30% of UAE consumers are ‘Techcelerators’, compared to a global average of 33%.
  • Ethical bankers:Young, purpose-driven savers that want to make a positive impact in the world. This tribe is second largest globally, at 31% of respondents, 49% are aged between 18 and 34. 76% of UAE respondents prefer banks that put purpose over profits.
  • Convenience cravers:One-stop shoppers who want all-in-one services at their fingertips, and at no extra cost. This group makes up 23% of respondents, with 55% aged over 35. This group expects a best-in-class customer experience as standard.
  • Covidpreneurs:Entrepreneurs who have set up their own business during the pandemic, in need of easy-to-use and reliable business banking services. This is the youngest tribe, with 64% aged under 35 and 25% under 25. This group is likely to see favourable business services as important and are likely to invest in traditional assets.
  • Neo Asset hoarders: New asset owners who want to use financial services to buy, trade and hold assets. This group is the smallest, but rapidly growing tribe globally. 66% are male and over half are under 35. This group is most likely to own neo assets, including cryptocurrency (75%) and NFTs (26%), and seek to buy, sell or manage neo assets.

An ideal environment

Miljan Stamenkovic, General Manager MENA at Mambu, said:“This report tells us that consumers in the UAE are progressive and forward-thinking when it comes to their finances. They strongly identify with the Ethical Banker tribe more than any other showing clear desire for their money to do good, whether that be for the environment or social and humanitarian causes, UAE consumers are demanding their banks do better. What this highlights is a significant shift in attitude that banks and financial services must pay serious attention to, as the research suggests that these consumers are actively turning away from banks that do not put purpose over profits. The Islamic banking industry is relatively new being only 40 years old, making it the ideal environment to build on this ethical banking opportunity.”