Building the Banks of the Future - MENA with Codebase Technologies and Bahrain Fintech Bay

Building the Banks of the Future - MENA with Codebase Technologies and Bahrain Fintech Bay

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first of all I'd like to welcome everyone thank you so much for coming we have everyone here for 16 person uh one of our partners uh my name is today um I represent Bay um we also have in the camera video we have actually quite a few people online so I'd like to welcome them as well we've got people from actually all over the world from the USA to believe it or not Chile we've got India we've got the Saudi Arabia we've got so many other countries that are out there so welcome and thank you for joining us here in Bahrain and thanks again for all he's doing us I'd just like to start a little bit um and talk about because I know that we have a lot of our partners here but perhaps some of you that are a part of their organizations don't know very much about behind it's like based on gonna be more introduced to the panel I'm just going to give a little very short brief on what we do so Behavior we were established in 2018 as a national initiative um to further develop the Intensive ecosystem that was a mandate of ours and we began in 2018 and around uh up to about 60 seconds at the time um what we do we're practicing is things like where you are right now this is actually our kitchen or in our kitchen but it's also our event space um and we conduct a lot of awareness uh uh with its events to do with things like this we'll talk about vertical from you know future Trends we also talk about uh different subject matter where the their latest later reports that we've done and so on that's one of the things we do to raise awareness and then if you look behind you uh we have a working space for the people online behind the cameras we have a co-working space for incubation space where we have around 35 residents that open text um and we also do acceleration so we do programs with our founding Partners to build accelerate uh fintechs so what else do we do we do clinical parents and uh the Valentine the talent in Bahrain in terms of fintech we do research reports uh the last week that's the word bahraining things like eCommerce system reported um the end of last year it's also downloadable website if you like um we do of course we do submission sourcing for our partners um we don't actually invest in Optical text but we have a pipeline of Investments uh that are Investment Partners that we can talk about our context with as well so just to give you a little brief about what we do and uh it's quite a lot and I'm very happy to see that we've been here now in something for you running um and welcome again hi hi so we're basically are welcome you to this that we're a partners with often side Partners skill based Technologies building the banks of the future um without further Ado you've talked a bit about myself I'd like to choose so we have um so it's sad I'm sorry we CEO of expense welcome sir in the last seven years or so we've seen we've seen a 200 increase in Neo Banks of which about 35 of our in emea and resources theme um about uh exactly about 60 of the population is under 30 years old all of this foreign [Music] driver I think even the reality of customers today is not like before before the customer used to have one bank and attention to it today the customer in in few seconds if you don't see or seeing the road experience with any application we will change the application in less than a Millions so today without having a good customer experience for different Power crew for sure Generations this will make absolutely losing a customer is much experience of them bringing anyone so we could bring anyone is going to be a thought and losing it the customer is gonna cost us a lot this is the main valuable the second driver is the revolution today open Banking and even the customer the power really on the data that he owns or she owns is driving the community into open banking which is gonna make a revolution to the banking industry because majority of the service now the customer is getting from Exchange in Bank of two banks will be given by the front ends the players who are the new relativity working across the globe probability in a standard and experience uh in leading but now we are doing grades Bahrain was the leading in open banking here UAE and Saudi Arabia now is moving also so that we are working in Saudi with the server in implementing phase one and phase two is coming and I will start talking about the new spaces what is a fair thing is that we have in Saudi is driving the financial sector aggressively for having better financial services for Community Financial Improvement it's part of their driver so instead of having a hard percentage of people living and working in the Kingdom or in any country now don't have financial institute or Bank where we have an accounts for example in Egypt to have over 69 of the population don't have bank accounts so this is financial institution which you can say so it's only this number drop into maybe 31 which is also very highly estimate so some people because of the identity and because of other things but financially important is one of the drivers for us to move into the National Bank thank you yeah yeah it's something about the generation really because definitely yes Indonesian me and believing now are uh our entrepreneur but actually there is one more aspect we have to we have to look at it that if you check about this the new um the new Capricorn okay the new um the new unicorn sorry the new Unicode yeah okay it's actually started by the Millennials so these are driving this business if you check about venue there is a company called stripe in in Ireland it's now evaluated by 20 billion the stock and 2008 by Two Brothers one of them was 19 wasn't 21 and 20 billion dollars now evaluation not bad for two kids definitely okay but actually moreover for the Generation Z and for the Millennials you know what students in the US 80 of them stated that they prefer to visit attendance than to go to the bank to that extent so that's that's actually that was a foreign thank you since I've heard um I think there are in any kind of uh changes there's the main drivers technology is not the market and Technology search organization output we can put them together and then you have success and you allow information the purchase technology and cam regulation comes after when technology creates something which is that control mode and then the generation is born with something that an existing work so as a consequence any new duration every five years 10 years we have something every experience because we're doing today something we did not even do 10 years ago right all of us forget about Banks but the entertainment streaming you know back to the film that means and this inevitably implies the fact that why we on a daily basis are using the device which is portable device and access to any kind of information technically also the same with financial services our mind is already grown and said to non-loyalty as you say correct and at the same time having something so we need to always create a demand because there will be an evolutional device but if we don't create a demand that is not requested by itself the drivers and I think you could have some uh hit on some of the trends let's just before we move into the technical side but this is now and you mentioned a couple of uh on your side but what are what are the sort of times we're seeing in terms of the changes I think um like I I'm quite biased at the end I mean he started because that's what we've uh in probably the last four or five years in our region now we're starting to see um the entrepreneurs focusing on the SLE a lot of you know you mentioned financially including earlier on financial inclusion we tend to talk about individuals um you know quite often this become a cliche now SME to the backbone of every economy yet try opening your bank account to the vets at me and how difficult and challenging it is across the world it's not something specific to Bahrain or any other Gulf countries it is a challenge and so one of the trends that we're sightseeing you can see it from the investment perspective as well that these either or investors are moving to putting their money into the meeting so that's one of the I think the trends and we'll see it more and more in the gulf and in the Arab world in the coming 18 24 months yeah and what was that so yeah I believe adding to what subscribers mentioned that one of the starting uh innovative ideas that we have in Venture black was for it's a need to open the council line and that was happening since 2019 and uh yeah we have we have yeah we have learned the lesson about their about difficult for them to open accounts and how we are suffering to run their business banks are not supporting them a lot then you can add a mix of this some points from your experience and listening but I imagine that was considering SME from the beginning of the digitalization the majority of moving customers from opening accounts on the branches to uh to the online we were also thinking about multiple owners economic opening but when covid-19 we stopped that project because we expected that there would be no much is an important sector recently we have met with the Saudi payment in uh Saudi Arabia and we have been talking about having specific solutions for this segment because they are until now they are the least segment getting good services from the financials we are as mentioned now in by Ahmed and Parisa we are driving the economy and they are mean the election layout in the roles of any economy Saudi Arabia has an objective within the vision 2030 where the GDP uh share about is a needs up to 30 percent which is already handled at issue last year so by by time I think this segment is taking the focus and getting more and more services from everywhere recession they are speaking about actually this one of the main things that can push this session to be more safe we are going for a session but how how did this will be in a reception this is not a good question so the governments are looking to the smes to to company that actually for this recession uh I believe there will be we have a great a great growth rate about this assemblies in the coming but the four months in terms of trend I mean unfortunately call with unfortunately many of us to have remote business but at the same time in the financial industry it creates lots of Education in terms of facilitating the accessibility to digital devices specifically in the religious business if you sleep because of the region so International councils especially in the population of GCC where 50 percent of the population is very much expanded and these expansions will produce really in this country but at the same time exported and so that the remittance has been one of the highest FBI foreign about the moment in GCC is the multi-million dollars in UAE array several billions of dollars uh only 20 25 is digital the rest is still he's not so freaking more of those branches uh people staying blind or also unfortunately because they are also literate people having this kind of a trusted solution where they give away their cars they live in the way they're being testimony I'll speak up cash on their behalf and since I've gone out which you know the world please now that 80 percent of the multivision Dollar business is something of course the digital propositions are trying to invest we for those of you who don't know real money and we are providing not only the car recent but also the maintenance business fully digital in a way we facilitate Financial inclusions because in a way we're trying to create an easy way for people that don't even have the password in the hands because we don't have the freedom ahead and password to be a more directed by just Faith recognition a simple CPR ID without any password and that is not because we neglect the information but because we are using an ecosystem here in Bahrain through the edge instead of asking that person giving your password sure the password and device if they don't have access to it and I think this is an example of digitalization financial inclusion and hopefully education to move them away from cash well I guess we can be amazing world financial inclusion I was going to ask you a question even into something because that would expect basically you focus on um you know helping business and fail and then I guess I don't want it actually because we're already talking about uh you know why do you choose to work early with it is [Music] I think the reasons why we did it I think first and foremost is the passion for entrepreneurship so um it's helping other people to watch and scale their businesses so our region isn't my bank as well as it is to help launch and scale um and then that's the only thing is that you know we often talk about you know you're well you want to solve a problem is it a painting or a vitamin um are people willing to pay to solve this problem my my opinion is that in the majority of cases on the consumer side they would then having to pay for Bank Services why should I pay to deposit money why should I pay a minimum balance fee whereas in from a business perspective you cannot run a business without its accounts and therefore people businesses will be more willing to pay so it becomes a more sustainable business model so I I would say those are probably the two prime primary reasons and then also no one's doing anything about it um Anthony they're stuck in this space between the corporate and the retail side of the bank and you will go to One bank and SME sits with corporate you'll go to another bank they sit with retail and they just don't know it's like kind of the unwanted child to sort of Identify some of those pain points I know that we have progress has been one of the things that they want to you know make sure that they pay attention to here and behind so I think that's you know that's a good enough you know for us and I think we can hear that all the time with our obviously there's a main point with that so but I would like to actually go back to you um um unless I want to talk a little bit more in terms of with code base Technologies you are basically developing Cutting Edge banking Solutions or what I want to ask you is how do you decide uh what you want to focus on how do you decide what kind of features you want to develop and what and what and how do you prioritize that as well okay it's actually usually skate by case now because um it's not only one decision you know it's not only the bank decision there is some strategic what you always do is we agree on an MVP minimum viable product what actually what makes sense to the bank to be on an md11 right now to be happening that passes through the market and actually this is what we're talking about digitalization we post them the strategically correctly we can pick out the validation for like two years but actually the reason is how how far to reach the market it's one cake okay so if you reach button you can monetize factor and you can reach the signal cluster that's that's what we believe in code based Technologies so for that it always a consolidation between code base what we can see because a lot of actually if you hear about that a lot of bad digital events they are losing while they are losing because they told that if they have a an onboard link so okay good luck you have additional men but actually you're losing tax because banking actually make a make a profit only through lending so an MVP is a good piece we always say okay you you will have the onboarding the very nice journey of the Declaration but you must have at least one model of Landing because that will make make you monetize uh monetize your your investment that's one that's one point another point is usually Banks as a 10 years now more than 10 years working with banks a procurement cycle bank takes up to one year okay it's nine months in 10 months and one year not because things looks bad which kind of but but because thanks for very high regulated banks are regulated five times more than any other industry so beat mindset is mindset is not that they don't have this entrepreneurship mindset that's why Banks Handler that he said okay we don't have to do everything we can have uh we can have an operation with authentic like Sam to produce our products so so we don't have to be everything so we all together we can generate a one product that is it's really important to the bank and make them monetize and then we scale up and we scale out [Music] then technology is an enabler for us to to achieve that but I was I was abandoned for a nearly 50 of my life in Fujitsu and IBM so I can see also the other side of the story but uh when I when I am working in the bank as a banker I think we are seeing it from the Opera um not completely ignoring the technology is definitely is our enabler but we start the subject from the strategy of the bank going down into the tactics and how we initiate these initiatives to reach our study to achieve our strategy first of all we have five brothers or five whatever initiative is coming to us to think about so not any initiative can be accepted first of all in our list of initiatives but maybe if someone here from bankside he can understand what I'm saying exactly then we have another level of prioritization according to a score card or something like a fragilization matrix uh we have to see one thing is that okay there's a competitor who has this solution and providing the service or products digitally to customers so should we focus on developing the same or what should we go for the other stream where we are being there in numbers the first to produce another product or service request and in 2018 and as I mentioned that it's all about customers at that time was not uh it was something wow okay so we need to convince them and the commentary to account uh opening in uh without seeing the customer physically that was really a challenge today this is you should look for other service importance so we are always inactive between being Innovative and produce something bringing you and focus on being the first to produce is and make a change to the community whether developing the things that's regularly happening in the markets and other banks are doing as competitors and in our school card by the way if this idea is already in the markets we gave it zero in the score of being Innovative and only this is really in a new a new solution or some of what else we didn't do and we are going to read the first one to do we get a 10 in that school so prioritization is based on uh objective scaling notes and a subjective one decisions also to prioritize our things is is one of the key drivers but in in general we look after the strategy and the trade-off between being the first to produce whereas and what impacted [Music] [Music] [Music] enough a big big advice would take too long uh well when almost two years ago more than two years ago but Telco management team contacted me um I come from a banking right around almost 30 years of background from a retail banking private that's the corporate bank in your SMU Bank distribution services that you mentioned and there was a Telco asking me what is the strategy what are we going to do here and for me from Italy it was Kobe so our conversation was long distance because well I need to understand exactly what the regulation is and in order to understand what we can do and once we understood the regulation and we realized that without being a bank Central Bank of index to provide what we call ancillary distances and I said well then we can take some verticals we can use your cards we can do remittances we can open banking we can provide investment products and so forth so we can create the products that clients want between the bank to balance the the initially and then behind that they put them all in one container and this container becomes the attribute on my app then the clients will go there and it doesn't matter if you're blue color white color repeater young kids or an investment for that person would say we don't need to which are the category we don't want to be the half of the column the Y the the app of the kids or the app or the retailer or the app of the affluence whatever you like you will find now this was of course the vision then of course you go path forward is notified money they may have like mid months we are around and we're in January 2021 we learned from was one years ago for those of you that maybe remember when downloaded the app we were courageous because we said let's go live with one product and we have one product and the others were coming soon coming soon coming soon but deliberately right because we want to say we're not ready yet right but we want you to be happy with one product we have with the promise that every two months we will launch something new every two months we change piece of the app every two months we have something that the others don't have and then we try to create this kind of Engagement with the audience because of course we promised that unfortunately many clients maybe they get bored really up and then two months later as well let me look at this new feature let me see if maybe I'm not interested in maintenance but I'm interested in the connected man it's an interesting they're invest in my liquidity so this is a story that we wanted to create this was number one and of course we started with the strength of Patelco behind but the first year team we decided not to layer into the matter with client base which was also known a courageous act we didn't want to call it but alcohol violence and we call it real money we did not even mentioned the World Cup and in fact 50 of our client base is not that they're calling 50. now at this point of the one year we are maturing we can of course bigger and thanks to the audience and the clients that assigned to follow us now of course we're willing to leverage Automatic Appliance and say okay fine if you're a medical client maybe we have a better offer today for example we launched a remittance officer offers which will need a certain discount 50 discount if you're about welcome if you're not then you still have the price which is better than a competition now why are we pushing this direction and the number one we definitely leverage the um the regulations or the licenses that we had available in number two also we want to create a solution which is like a container some products would be ours some products will not be ours so on some products will be offered by Banks some products we offered by other feedbacks for example should we decide one day to do smes or any other Solutions because we cannot think of creating state-of-the-art Solutions with our own technology there are two elements always right it's resources and timing and then we need to be fast and similar to what you do in terms of your provider scorecard I had also another component in my team which is competition we have a Sprint every two weeks maximum months that amounts I put the team together and you compete we have one slot who's gonna go first right so we put them in competition obviously so the car here and the card won't have Spotlight they had an investment for service problems we call them a competition based on resources and whichever comes first with the VISA analysis Department development comes first so but of course you can do that and if you take a longer until it's time to be more difficult in the bank but of course that's probably the advantage of it I like okay that's actually when when we hear about fantas we think that it's a very new thing right like a cryptocurrency however actually ATM when the minutes what what has changed lately that in the in the past in historically that we use the financial level use the financial education what the banks which is credit cards uh creating credit cards creating ATMs but now actually that anyone can code and have a pentate right he can create something you can create a contact you can go through it and he can be authentic the point here is that however some of the banks are still want to do everything by Morgan Stanley for example Morgan Stanley has developers more than Facebook and Twitter together okay they want to do everything but few of the banks will be succeeding to that you were very very few because not because we bank I'll decide not because banks are bad because actually banks are built for the Industrial Revolution the people beating wealth around papers tax Ledges cash they don't they have never been built register actually when the people trade Banks and After the Revolution after the World War I do they wouldn't believe that there is something called be a digital uh additional product however now banks have learned that and a doctor can tell me more about that even Roberto can tell me more and son that now you don't have to be everything we can use our competitor to have a wider ecosystem and I win the fantic win an accident so I believe that in the coming years as well authentic sometimes will work more together and to partnership with together the other side is that we are looking after themselves and like to build fantas themselves for themselves so this is the lady um it's it might be a good approach but it's not the best approach because you don't have anything by yourself is not and it's proven by time I mean we all knows how our tools think uh model being successful since two decades I'm like so for sure industry uh [Music] they have their own ideas um banking industry is therefore more than essentially but today politics are solving problems at Banks were not able to sort before so if I don't support those any companies and players I'm not going to support any customer at the end so if the customer is my customer in the case of open banking so I'm sending my customer through them as PPT all right I'm serving their customers okay as a banking as a service for context in both cases the customer is going to benefit from the solutions and Agility is going to be there with the 50 companies uh problems that we were not able to solve before as Banks now they are going to be able to solve even for them sometimes they have problems we were able to solve based on our banking experience and the Final Approach which I need to mentioned that you are not aware of the Regulatory and regulation earthquakes like Banks so when they came to Earth sometimes they are not our account opening regulation from Sarah and how they can work with banks so there are a lot of aspects that can encourage and should encourage this collaboration between Banks and 50 companies projects at the end of the day will serve the whole community and the customer will get innovative solutions the way and when you take mobile Organics sometimes they say okay are you paying cash or credit card if you are paying cryptocurrency sorry I cannot name this truck and this was very annoying to every single person of our family so today we in the bank we just can even be a solution so they can bring out the driver on each truck over at the end of the day for the whole Matrix so now captains are coming down to resist in any handed cards uh demons for for there that's it so such kind of solutions can punched in the and each person's life back to their remittance service which Roberto was talking about uh in 2019 we were the first time to open accounts also for blue colors online and by having a job application from my calculator the lesson of people in the in front of the branches even going outside or reaching like you're reaching outside a bench during the salary days today you can go to the bench and find almost maybe two or three people there because maybe they are not aware of having this application so today we have over 50 I I'm sure that which speaker today maybe you have reached a sexy or or of the remittance transaction so thank you online so there is no need output app so there is no need for business company so we have all the state of this company house so I I mean that helping Phoenix should be uh you know let's say a message that's or let's elevation or places across the region and regulated I think um what we what I kind of do is like group the banks into Legacy technology and like this mindset and depending on depending on what combination do you get we'll decide whether you can go with this um bank or not and and typically where the blocker has always been is the mindset right we worked with banks that don't necessarily have the the core system that will allow us to do what we want to do but they still have the will and we find a way to make it happen um I think things are starting to get better uh just a little bit about our journey and I want to just talk a bit about the phrase why did we come from the UAE to Bahrain and startup because this was probably the friendliest place to start a contact business you guys were here the regulator was open to talk to us and the banks so the mindset on all of the ecosystem was in the right it's the right frame of mind and so we came here we said this is where we can do our proof of concept this is the way we could do our MVP and then launch into the other markets and and we were right we found the right Partners here um to be able to do that which we were struggling in other markets so if anyone wants to start a print Tech business that's come to that green and that was a good advertisements part of what you've talked about was the mindset like your bank is very open you're willing to adapt I mean I mean all over the place so you can you can probably add something to that I I tend to agree especially the last saving person because one thing that that means leading exists in approving existing Avenue system here is the bad medical very small right and being small means of course you have a strong network but I remember when we had the announcement of our brand it was a ceremony at the first season last year well to be honest as a European I have to admit I said this will never happen Europe right we were there we were presenting the brand I was on stage and on that day we had the governor central banks exactly the central banks and where all the CEOs events in a few days ago violence was the same they had the announcement right and again same routine right same protocol which means of course there is a strong message of unity and try to create something which determines the value from Bahrain and for Bahrain and from Bahrain outside I think this is something which culturally you will not see any other part of the world special in Europe yeah so it's an asset whichever you can find here you should cherish in terms of cooperation between feedback again so you've had to share the example we are the only b2c solution that we are we provide we're going to give you the banks through the urban banking API and you'll be making framework established by the Central Bank does it work not interesting we are making sure that the entire Banks central banks now so we we improve it did we know there was no work purposely no because obviously it was impossible there was a regulation there was a framework but nobody came out with the product we were the first one coming back with the problem and say well it could be improved right divorce connectivity is there technical is there the user experience is not the best in fact if you notice we don't even call it on the match in our app because clients don't even know what public banking is right good luck explaining that for them we just say connect your bank and see your data because that's what we do right so there are some certain terminology because already technical we should leave it to the regulator and the people in the fields and other terminology which have to be addressed to the clients and completely devices care so this is an example of cooperation where we're now working together to improve and not only improving the connectivity what we always say to the banks is if you give us your data you think for the first time that you we are stealing data from you right passing the data of your clients from the bank to your mind you say why should I do that the difference is that if you have Automax right and you decide to connect with your money your money allows you to see your entire position cards wallets deposits investment with you for banks but your bank doesn't know that you have maybe the car with them the salary with another bank and the investment with another bank with a credit card from the bank so you may be categorized that client as a retailer maybe it's an effort or you can organize a Virginia I mean it's a private wealth in the vehicle do you think you bet in those statements to the banks in a normalized way in respect the pdpl of course and this is the kind of exchange you can see in taking Banks you think they were taking data from you will have you we're giving back and reach data for credit scoring or classification Appliance and if we understand this game then I think there is a great value Network system it's all very well said I'm sure everybody's got questions and thank you very much gents well I'd like to open it up because there's a lot here and I'm sure a lot of you have questions um make a dog in my microphone um make my own uh ethics applications uh I just want to know from the presentation thank you so much for your contribution but I can't categorize you to send texts and two bags it was right almost how can I approach you or you or you how can you give me uh a chance to help me work give you the Aesthetics and blacks as a CEO be online right but I I can tell you that the experience of similar to impacted accelerator programs and I think that you are in the right setting right now sitting here and it is difficult for it to impact on doors regardless if they are thinking they come back to those normal species with the Venture Capital uh particular priorities and they don't want to be distracted by their roadmap which is creating value right banks sometimes you hit the world against procurements uh politics so you have the most vulnerable idea but good luck trying to go to the heart of procurement so I think definitely as long as you can you should show the idea to an audience which can be similar to buying feedback which can filter help support and you check because Network right and then of course they can present to Banks theme text and sometimes sometimes magically maybe the magic happen because maybe your idea is something that we have taught in our impact our mind for months and maybe you have it right although that doesn't it doesn't mean it's certainty that your idea will be bought because each one of us I'm sure we always are in front of the person should I make her mind right because your idea means if you did it we can do it right so either your idea is somehow challenging at a better stage and much more competitive in terms of development because even Tech Pro you have a nearby you're not Alliance obviously under the meaning is inevitable at all about regard with your clients but it really is valuable then say why should I go through the development phase if maybe I can when I say buy those minutes in Partnerships and the Investments competition [Music] [Music] these are the first ones the second point is that um and we have this case for Kareem after we have developed mobile eBay to open their wallets We Are The Trusted Bank from Hawaii in Saudi Arabia to open their wallet so our API is now over a lot of their financial services are already uh maybe I've been talking today about one of the solutions we did some piece of it so today we are ready with a large number of API which we can help when things to consume uh going out of the procurement process and what our recruit is here we have mentioned we are just signing an nde and three magazines we don't offer completes losses for collaboration so once you sign these two agreements so that's we start collaborating we have workshops where your business team and our business team then your technical team and our technical team are working together to look at the solution sometimes the solution you have just consumed our lives or two apis which we have already developed for mobile and if not we can work together to develop those API so you would like if we have for another company called Hala or a point of sale navigation so this is the process however universities in terms of development we're talking about something like three weeks up to really total markets which might be if a solution is but we're not talking about the old days of banks where we have to take years to developers Your solution come fast to the market so this is my message to everyone today that the bank calculate we are happy to collaborate our process to onboard any with the company it's very easy if you want to operate there we are happy to collaborate and that's why I really want people in a cabinet that's good so I I myself have gone from you know my position but it's a business that's very easy to understand they have no access they have very very steep digital uh production also it's pretty so happy now definition depending the same depression what is the business model or uh I mean what would make these uh remittance app sustain in the long term compared to Banks I mean I can tell you right now that our regions in the maintenance is already sustainable right we do not incentivize the business so we're not giving anything back to the clients in order to do our differences with us that's why I said the first thing it was creating a journey which clients of course decided was easy to be onboarded which was easy for them to text us and to be a water and then decide if you wanted to or they wanted to do deals with us or not then we had one element which at the moment we haven't seen by the competition so I didn't really ask my team is there let's what is there that clients normally do they think their rates every day right they read as the the price is right and then the transaction with the best summer let's say let's put it down let's show their clients directly instead of them shopping around goes one after another sitting in front of a competitor and looking at the rates just show them in the app is the rate is the real competition you don't believe you've got to check right and then that probably created this kind of trust it's at one point in time so we're not wasting time looking around I know already if this rate is better or not if it's better it will be your money it's just not lose somebody else and we give them the freedom we know that some days if you check our release date or some days it's not the best right we don't hide it right we just tell you that that moment maybe for whatever reason for Treasure operation the competitor and the better rates or sometimes it's a market share it in obviously some competitors are willing to lose money and not to lose clients right it's part of the the way you work so that was the second anime in that first third element that we're working on is the Automation and reduction of course of course we don't have branches we don't have become more customers we don't have agents so we need to be this brings down the fixed cost of the infrastructure it's Yvonne that allows us then to bring down thermal cough and therefore also to make rates with margins which just that's the pigeon for us but not a loss I don't know if this answer device but what do you think these advantages are long-term sustainable planning because banks will catch up banks will catch down and even since we launched I can tell you it is a serious competition there now we're almost like Amazon we adjust the race two or three times a day and as soon as we could be showing the app the competition and you have to wait immediately right but that's okay it's part of the competition I think that the game will not be won on the best price but there's also again and best features corridors then of course we have some solution back you know this plane the secret sauce in the competition but even going down for sure there would be some winners and losers the winners are the ones that bring down in general cost right and if banks or competitors in the arena are not able to bring down the internal costs then at one point we can bring down down down and down and then somebody will not be able to cope with it thank you very much Ryan from Citibank a very heavily regulated so just uh it's actually quite interesting with uh with the leads and open Banking and pretty much the entire Legion here uh I believe that a lot of the framework that was implemented in primary was very similar to the UK framework and even though there were only a couple of other countries in the world that had actually kicked off open banking every big way for Bahrain did uh now we see an emergency of API open banking multiple companies earlier conversation do you see a good level of standardization uh in these multiple countries as local open banking is being it's been implemented that it's been looked at and do you see uh you know a level of growth that can happen you know in monthly countries the services that you provide uh give the standardizations are actually reach into that level so I'm not sure we can answer this yeah yeah well honestly I'm actually going to find the easy way um we're quite fortunate that open banking hasn't hit that corporate and SME site [Music] um particularly when it comes to the corporate side of things where you have makers Checkers and um lots of layers of authentication that's required um we haven't seen that come through yet on the open banking side for smes it's a lot easier on the consumer side when it's one account um one authorizer thing so um that's our my at least my answer to the question um maybe I have some experience in the international way of doing online things so maybe my study will be about opening government yeah it's one of the differences to show between the ranking and government sector the same right it is the same thing I studied the key to apply Arabic countries [Music] are there India Egypt and Jordan so I am invited and was lucky to participate in the discontent with leaders in the governments of these five countries was the CIO of one of the Ministries in one of these countries they see no private Team No Country agility I had one kids one president or one country of me to give you complete about the students of this country in in my country and I refuse and I told him that why not with the consent of the customer if I wanted to recover the stream by the treatment level or a certification or information to the Ministry of Education Saudi Arabia because I'm coming from Egypt so why don't I give my consent to this ministry or education to get my data from minister of Education or hide the kitchen immediates and we can get spy records without me having to go everywhere as I test my certificate and pay time and money together so in the similar way I think open banking one day should reach that level where I came from Saudi Arabia accounts in Egypt as well as my accounts in Saudi Arabia so that standard is my take time but it will happen definitely today in Europe we have over 20 countries I don't remember your exact number but they are maybe facing starvation with the internal operability and you know they have different uh language but for example Arabic region who might be much simpler to achievements but worldwide is going to take time but definitely I can promise you from sitting here today that this will happen one day that you can open account in New Zealand while you are sitting here in Bahrain you can see your accounts everywhere while you are sitting in at home and even you can do a lot of transactions a lot of not only uh at the level of the retail but also at SME and corporate for sure in the future actually we have here a case that it's if you live in Bahrain you have even Jersey right of course Brazil is the only bank that you can as a VCC student that you can onboard yourself anyway so this is the highest level we have seen for inter country relation however the maybe I might be not that optimistic language but this will not happen soon but it's very um yeah it's it's very tough because of many aspects uh one thing in the security but for example I was speaking with someone just before the session that is how we are allowing around you is that your core Bank in a different country who's not big but not even next 10 years you know you still have an instance on soil that they said by word so for for this regulatory uh for this regulatory aspect I believe it's still very early to do so questions so I actually found a different question but just how do you say to skip one spot um I'm coming from um it's a facial recognition and identity verification company basically you maybe know because how far so yeah um the thing which you mentioned um about uh not a Saudi company okay like buttercups however but what what do you think about it was a Spanish company or like French company about accounts in afraid let's say is it something that you see viable possible doesn't make sense it will happen but nothing not in the new future you know he's thinking about the G60 countries which they are very close to each other in terms of many things well you know if this is not happening in the gtt countries okay definitely if you want to reach Europe or New Zealand or Brazil it will take much much time however what we can build what we what we believe that the digital the international digital banks will take over at the end you'll be regulated but it will take over so for me for example I have read more account however I'm not I'm not a USA so I still can do that I still can do so anyway in the last few weeks here I'm meeting with somebody here in the uh with somebody here and it's one of the biggest specs in the Middle East okay and he said to me you know I don't I cannot onboard myself in my back he was a German because he had an American passport because he must have sold they they don't they cannot allow anybody from another country even if we have the same nationality but because nothing to onboard himself it's it's a regulatory system so we are here speaking about two different mindsets maybe that he wants something once the financial model to be very stable and very secure which is they are absolutely the work but technology here wants to withdrop and wants to argue everything which is a totally different mindset are we reaching a middle point yes sometimes yes sometimes definitely not that's my opinion the reason why I asked if uh my political friend she had a consultant of being paid and it's definitely do is hugely which I see happening it's not there so let's say you have a company like small companies saying you're making around thousands hundred euros per year if you have an entities in Spain you end up paying 46 percent of taxes now it is possible for you to open a U.S entity don't worry on whatever you can open certain in certain banks in Europe not being residents yes you're gonna end up paying like five times less taxes this is possible people get into knowledge and yeah like I honestly came to my friend almost two days ago the the whole region are fighting each other out there in a good way to to have to help you to open that they will tell you definitely because they don't close Spain they will tell you uh no of course I I don't believe in Banks this will not happen soon I I'm not sure yes I I maybe can disrupt this discussion and sorry maybe some people who like really and some people who disagree but I'm always revolutionary in that aspect today we are living this world tomorrow we are going to be in the networks okay forget about all regulations forget about all aspects of restrictions that we have today very few years from now okay we will be all living there okay so all what you are saying now is going to be a reality in the virtual reality okay and in the winter verse and I believe some countries started already moving to that verse so tomorrow we are not going to be distributed by a lot of implementations uh maybe some banks will like to continue but I knew that Ahmed is upset from me now and maybe some things we will like to continue working under the relation of their countries but I believe that's a good percentage when it moves just like the startups that we have who made changes to the world I think some of them also will move to that verse and we will have customers doing transactions there without the need to be limited with any country or any currency today after the currency is unregulated Ray Banks central banks are moving into the cbdc so they start believing all inhaling a risk of currency related by themselves but still the world is going to move with their acceptance or their rejection it's unhappy um with all my aspects all their keenness about maintaining the economy and everything but today what we have seen the cryptocurrency across the world is an example of people moving away from this celebration so basically you're suggesting and to people this business model to move from page recognition to age the question is like almost like I mean be personal like I would like to be like moving faster just what you mentioned about let's not offer forget it's not a bad religion social taxes you will never be able to have a legal limit in Spain opening an offshore Council but that's unless you're establishing somewhere else yes corrected once you're savagely elected enough first the Spanish company it's legal into the year away but you know Europe is the same but yeah it's not so much about like employee types it's just optimizes in a sense of like if you're a small business hello God so just the original question um you mentioned about uh very fine people in Egypt only with space without heavy document because it's something you already do um it's a vision of honor of our company it's like like they would decide in a couple of days ago that's why it's curious [Music] [Music] [Music] one more question last question last question okay uh during the discussion we have mentioned about uh problems of Western being but you haven't mentioned that okay what Solutions are available so there is a really really well maybe there is no product research there is no insurance companies that I mean with your knowledge for free Tech and startup is there anything in the pipeline way that's nothing or after me not discounting their way or giving their working capitalism alternate needs other than the bank foreign [Music] um at least in Saudi Arabia now have come across um multiple sort of thing texts that are working on uh financing for essays we're working on the product as well um to help with cash flow management um you know we're about to mention something earlier you have this um decision that we make or do we buy so do we build something ourselves or do we go out and partner with somebody and most of the cases with fintechs we because we're not licensed at a bank we're not allowed to use the deposits that we're holding so how do we then lend to um our users so that's where we need to look at creating Partnerships those could be Partnerships with uh Traditional Bank so they will use their books to do the lending they use our platform it could be perhaps you know your car leasing business or then be it could be the same kind of idea there or we raise the money as debt and we lend that to them and we're seeing some quite then you know you've got invoice discounted and Factory going on you've got um um receivables or people who have digital businesses that are selling Purity online Digital Services based on their um payment Gateway Revenue that they're generating from there so there are some interesting things that could check our uh um and I think you'll see a lot more coming in the next six to 12 months specifically for Bahrain I don't know but perhaps maybe have some residents here that are working on that on those things too absolutely there are some solutions [Music] for joining us as well thank you to all of our panel members it was a pleasure to perform from you all and I wish you a lovely recipe

2023-02-04 20:12

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