One of the largest Islamic banks in the UAE is exploring robo-advisory offerings as part of its wider digital strategy which has so far yielded positive results.
As with many of its peers at home and abroad, Abu Dhabi Islamic Bank (ADIB) has seen a phenomenal surge in digital adoption among its customers largely driven by the onset of the COVID-19 pandemic.
Data from the Islamic bank, which amassed a total asset base of AED124.42 billion (US$33.87 billion) as at the end of June 2020, shows that around 94% of ADIB’s banking transactions, including fund transfers, are conducted digitally and 65% of customer updates are made through the bank’s digital channels.
Going digital has also assisted the bank in customer acquisition: half of new ADIB customers have opened their accounts online, while 75% of customers are now enrolled through the bank’s digital channels. This trend is also replicated in its corporate banking business. Since January, a majority (over 80%) of ADIB’s global transaction banking business was generated digitally.
The bank is taking these encouraging figures as a signal to continue bolstering its suite of digital offerings, which began in earnest over two years ago.
“As the pace of technological change accelerates, we are excited about the possibilities for growth and what this means for our ability to service customers. We are now determined to build on the momentum we have seen in 2020 to further enhance our digital banking offering to benefit our customers,” Philip King, the global head of retail banking at ADIB, shared. “These include the adoption of digital tools such as chatbots, robo-advisory and digital onboarding, and increasing automation in the back end to help with productivity and operational efficiency.” Most recently, the Islamic bank launched a virtual banking sales solution allowing customers to converse with ADIB and apply for personal finance, covered cards, Takaful, and other banking products without visiting a physical branch.