Commercial Bank of Dubai to launch digital-only bank

Commercial Bank of Dubai (CBD) is targeting the digital-savvy citizens of the United Arab Emirates (UAE) with a mobile app-based bank.

The digital-only bank, which will launch early in 2017, will be known as CDB NOW and will be based on a customer’s mobile phone.

Murray Sims, general manager personal banking group at CBD, said this approach to banking will change the relationship between bank and customer.

“CBD NOW will redefine what a bank should be. It is built around customers and offers a unique experience that is simple, smart and safe, whereby everything can be done by smartphone,” he added.

The launch will target the generation known as Millennials, who carry out much of their daily activity through a smartphone.

Mobile banking is being used more than any other form of online bankings. For example, in the UK, which has a more mature digital banking economy, the British Bankers Association recently revealed research showing that there were 11 million log-ins to banking apps every day in 2015, compared with 4.3 million log-ins to internet banking through bank websites.

According to a recent report from FinTech Week, only 0.1% of global finanical technology (fintech) investment originates from the Middle East. However, these organisations are behind their western equivalents in fintech, there are signs of acceleration of its adoption in the UAE.

In October 2016, UAE telco Etisalat launched a mobile wallet to enable its customers to make payments and money transfers on their smartphones, using a platform from Oberthur Technologies.

Meanwhile, the fintech development on everyone’s lips at the moment – blockchain – is also being adopted in the region. ... ... ...

Abu Dhabi Securities Exchange recently said it would provide access to documents on listed firms via mobile devices through a blockchain-based system. Emirates NBD banking group also recently announced a pilot for the use of blockchain for transactions between the UAE and India.