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Infosys Finacle and Red Hat host roundtable discussion in Dubai to explore the need for re-composable banking solutions

Event focused on critical themes such as digital transformation, technological innovation, the future of banking, and evolving customer needs within the financial sector

Infosys Finacle, a global leader in digital banking solutions and Red Hat, a leading provider of enterprise open source software solutions recently organised a high-level roundtable discussion in Dubai to delve into the need for re-composable banking solutions to drive growth with business model innovation. The event witnessed participation from key players in the financial sector in the UAE, focusing on critical themes such as digital transformation, technological innovation, the future of banking, and evolving customer needs within the financial sector.

Discussions at the roundtable revolved around five key central themes: creating and delivering better value for customers, innovating new business models, unlocking value from modern technologies like cloud, AI and APIs, resetting operational benchmarks, and building organisational capabilities.

The event underscored a pressing consensus — banks should not attempt to do everything alone. Instead, ecosystem plays a pivotal role in augmenting their capabilities and bringing out the best. The need for continuous re-composition and adaptation to changing dynamics was emphasised, especially in the context of the ongoing digital transformation.

Puneet Chhahira, VP, Head of Product Management and Marketing at Infosys Finacle, highlighted the concept of 'embedded finance' as a pivotal idea. Participants discussed the diverse needs of both individual customers and businesses within the banking sector, aligning these needs with emerging business models. Various organisations are experimenting with different business model choices to cater to these evolving needs.

Amit Malhotra, Senior Vice President, Head of Core Processing, First Abu Dhabi Bank, shed light on the growing role of fintech companies in transforming the banking space. “These startups are introducing unique solutions that can be seamlessly integrated into traditional banking systems, enriching the industry with innovation and agility,” remarked Malhotra.

Paul Hennessy, Chief Executive Officer, Emirates Digital Wallet, echoed similar sentiments, stating, “The banking industry will experience exponential growth only when a range of services are connected. For instance, my platform connects not only to banks but also to, say, the likes of Amazon or Shopify.”

However, one of the significant challenges in the evolution of the space is the approach of banks, as noted by Soumya Dutta, Director, Corporate Banking, First Abu Dhabi Bank. “Banks currently are more reactive than proactive. But going forward, the industry is likely to evolve into a marketplace where we give more value to the customer by suggesting choices on what they can do to better manage their finances.”

Experts emphasised the role of cloud computing and artificial intelligence (AI) as critical enablers for the future of banking. The shift towards a cloud-first strategy was acknowledged, citing benefits such as business agility and flexibility. The potential for AI to revolutionise customer service and personalisation was also explored, along with the need to carefully identify and implement use cases for this transformative technology.

Ahsan Sharif, Head of Corporate Business, Zand Bank, talked about the greater use of AI in advisory services. “We are looking at different use cases for AI. In advisory, for instance, we are looking at bringing AI-based advisory to the customers.” Sharif also mentioned that in the next five to 10 years, the banking industry could be working more like a platform that connects different services rather than trading everything in-house.

Technology is rapidly reshaping the financial industry, with cloud-based services providing more room for expansion. “In the UAE, the cloud market has evolved over the last couple of years, and there is certainly a mindset towards a cloud-first strategy. We've seen some of the global players coming to market, and also the rise of local sovereign-type clouds by companies like G42,” said Adrian Pickering, GM & Regional Business Head (MEA), Red Hat.

Participants also emphasised the necessity of partnerships and collaboration for risk mitigation and innovation. AI was seen as a potential tool for analysing vast amounts of data and providing valuable insights to enhance customer experiences.

“There is no denying that AI will become an integrated part of the banking system eventually, but we should understand the use case for this technology before deploying it. When it comes to AI, you need to have a clear vision,” noted Sanjeev Kumar, Executive Vice President, Head of Corporate Banking, Mashreq.

The event concluded by emphasising the need for a holistic approach that integrates technology, cultural change, and omni-channel strategies to create a sustainable and customer-centric banking ecosystem. The discussions shed light on the critical role of leadership, adaptability, and experimentation in navigating the rapidly evolving landscape of banking and technology.

The roundtable discussion on "Recomposing Banking: Driving Growth with Business Model Innovation" was chaired by Infosys Finacle and Red Hat and organised by Khaleej Times events in Dubai in September.