22 August, 2023


digital banking sector in uae

Covid 19 pandemic led to a rapid increase in the adoption of digital services throughout the world. This has also been the case for the UAE. The digital preference is not just for studies and jobs, it is also prevalent in the case of the banking sector. Introducing digital banking as an option to deposit and withdraw funds has made the banking process less cumbersome for the residents of the Emirates. They now have access to their funds at a single click. According to a survey conducted by Finder, the people from UAE are some of the most excited people when it comes to embracing digital banking.

Here are the details to the digital banking sector in the UAE-

What is digital banking?

Digital banking is the digitalization of all the stages and processes of banking which includes both the back-end and front end procedures. The back end procedures are dependent on artificial intelligence to ease the pressure on the employees. Digital banking gives you your bank and funds deposited on your phone screen, just a touch away. It helps you get rid of the queues and lets you operate right from your home.

Digital banks provide an easier opportunity to apply for loans and personalized services to manage money. It allows you to invest in gold, cryptocurrency, stocks and other modes in an easier way. You can also invest in mutual funds.

Rise in digital bank acc in uae

The rise in digital banking is due to the increasing digitalisation. It may be expected that only the youth is adapting to digital banking however even the older generations that were initially skeptical are now comfortable to a larger extent when it comes to banking.

The opening of a bank account in Dubai is a simple process that provides easy transactions, better privacy and the convenience of accessing your funds at any time of the day. The lower costs of opening the bank account are a cherry on top. These factors are hugely attracting new customers in the United Arab Emirates leading to a rise in digital bank accounts in the UAE.

Benefits of Digital Banking

Digital banking has been widely attractive to the users due to its wide range of benefits-

  • It has been a revolutionary step in the banking industry
  • It is a faster solution to banking
  • It is a cost effective solution to banking
  • It provides a better privacy
  • Instant account opening procedures avoids hassle
  • Transactions, payments and other procedures can be done at banks, ATM machines and on mobile phones and computers as well
  • 24/7 customer support is available to help you get instant solutions to your problems
  • You can access your account on multiple devices and also track your account with just a couple of clicks
  • The 24/7 access accounts for improved usability
  • You get a personalized experience and your issues are given more attention due to no time constraint
  • You can easily change your pins,transaction limits and even cater to other urgent needs
  • It is a bank for masses

Why is it becoming popular in the UAE?

Digital banking sector is becoming increasingly popular in the UAE. The Emirates ranks 6th in the list of the countries with digital penetration. The estimation of the same in 2027 according to a study is said to be around 41 percent which is an increase by 22 points. The increase is a result of the dedication on the part of the UAE Banks Federation and the recognition of the fact that digitalisation is one of the most important pillars on which the economy of the country rests.It has been considered as one of the ways to exchange knowledge and expertise. The increasing popularity is due to the customer centric approach behind digital banking. The improved customer experience, greater customer satisfaction and 24/7 customer service makes it a better preference for the UAE nationals.

Top 9 digital banks in UAE

The top 9 digital banks in UAE are-

1. YAP- It is one of the leading digital banks in the Emirates.The registration of account is paperwork free and provides multiple cards which makes this bank instant and extra convenient.

2. Liv Bank by Emirates NBD- It is a lifestyle banking app which provides 2% interest on deposits of AED 5000 or more.

3. E20 by Emirates NBD- It gives safety to your business finances but needs a minimum balance and it is chargeable.

4. Mashreq Neo- It is one of the finest options you can go for. This bank needs identity authentication and is one of the first digital banks to take the pioneer step of introducing verification.

5. ADIB SmartBanking-This bank is winning hearts with free ATM withdrawals, managing bank accounts and getting your card conveniently delivered at your door steps.

6. Xpence- You will be able to track your financial transactions and do your invoicing and bookkeeping.

7. ADIB Amwali- It is a paperless and signature-less account through which parents can have complete control over the account.

8. Zand- It is UAE’s first independent digital bank and it offers an interest rate of 2%

9. OG Pay-  It is a versatile, affordable and secure options offering an interest rate of 2%

Are online banking and digital banking the same?

Online banking and digital banking are different even though they are used interchangeably.

Online banking- These are services provided by the traditional banks.They continue on their core system of banking and provide the same services online.The services are however limited. These may include transactions, management, account access and in some cases even application of loans.

Digital banking- Digital banks are convenient and easy to access. They allow the banks to provide their customers with a wide range of services that are dependent on new technology, APIs by automating some services. These provide better privacy, access to funds, flexibility and cost effective options. Their totally automated services and digital processing provide a better experience to the customers.


 Digital banks are the best options for everyone to get their banking services at convenience. From opening an account to tracking your transactions, you can do everything at your fingertips.You can join your desired digital banks after comparing and contrasting all your needs and preferences. If you need help to make your choices regarding your digital bank account, book an appointment with our experts at RadiantBiz  today.