Media Centre

Omani banks excel in digital transformation

The Omani banking sector plays a major role in digital transformation by enhancing the use of modern financial technologies that are entering the market. Such techniques enable many workers in this sector to adopt new information systems and offer more banking products through which customers can be attracted and their deposits and savings in local banks can be increased. These developments help enhance the role of banks and similar institutions in the economic and social life of the public and address the challenges and problems that people suffer from through the use of modern communication devices in daily transactions.

Over the past two decades, banks have introduced many modern applications, programmes, and technologies in banking, which has made it easier for customers to access their accounts without any hassle. At the same time, banks continue to develop these services as is the case with many Gulf banks in the region, which have been linked together for more than two decades. These banks are working to enhance their means of innovation and push the Gulf banking sector to adopt and use more modern technologies in their daily operations. During the current year, the Board of Governors of the Central Bank of Oman approved the basics of the regulatory framework to enhance financial inclusion, increase efficiency in the banking sector, and adopt modern technologies to keep pace with the developments witnessed by this sector.

The banking sector is also working to address the challenges represented in protecting personal data and privacy, identifying customers and their sources of funds to combat money laundering, developing policies and taking measures to protect everyone from hacking and ensuring customer privacy in the face of challenges arising from digital banks. This happens by improving cybersecurity technologies, and enhancing transparency to ensure customer confidence and compliance with laws.

From this standpoint, we see today that there is superiority in the region's banks in digital transformation, such that they have become superior to their counterparts in global banks after their success in adopting digital transformation by 87% of their daily transactions. Today, Gulf employees in banks are committed to banking work, such that the job turnover rates are not worrying and are within the range of (15-20%), which is slightly higher than what is recorded in Asian banks (10-15%) and North American banks (12-15%), according to data from a report by Arthur D. Little, a global management consulting firm, which recently spoke about the importance of employee experience in enhancing institutional success in the Middle East region in digital transformation.

The report was based on its accumulated experience in helping institutions in the field of the direct impact of employee experience on improving profitability, indicating that despite the progress made by banks in the Middle East in the areas of equality and participation, they still need to continue investing - similar to their Asian and international counterparts - in orientation and training programs, employee welfare and employee appreciation, with the aim of achieving sustainable change in the employee experience. They also still face challenges in attracting and retaining employees due to the high job turnover rates, as previously mentioned. Hence, they demand the necessity of investing and improving their employee experience in terms of financial performance, productivity, innovation and retention, especially in the rapidly growing and developing markets of the region.