CBUAE partners with Accenture to enhance SupTech initiative

The Central Bank of the UAE (CBUAE) has partnered with Accenture to implement a range of transformative services for the CBUAE’s Supervisory Technology (SupTech) initiative and the Enterprise Data Management (EDM) programme through the adoption of best-in-class digital solutions.

SupTech is one of the key initiatives under the Financial Infrastructure Transformation (FIT) Programme and aims to enhance the effectiveness of the CBUAE’s supervisory processes through digital transformation and the adoption of new technologies.

SupTech will automate and streamline activities for banks and licensed financial institutions, enabling best-in-class processes, ensuring compliance with regulations, strengthening the financial system’s stability, and protecting the nation from money laundering and other financial crimes.

The EDM programme will ensure the integrity of the CBUAE’s data and provide advanced capabilities for analytics, automation, and AI-driven decision-making through a single unified supervision portal.

The programme will develop a holistic and comprehensive view of the entire CBUAE ecosystem, ensuring that the required data governance standards are applied while leveraging available technology to enhance data management, analytics, and reporting.

Under the partnership, projects and initiatives aimed at achieving the digital transformation of the CBUAE will be implemented in focused spheres, including licencing, supervision and enforcement functions over the next two years.

Accenture was appointed following a comprehensive evaluation process, which included measuring the company’s solutions’ ability to meet the requirements of establishing an integrated infrastructure.

Ahmed Al Qamzi, Assistant Governor of Banking and Insurance Supervision at the CBUAE, said, “This partnership signifies a major step forward in the CBUAE’s journey towards digital transformation and innovation, building upon the achievements of the SupTech and Enterprise Data Management programmes. It will also contribute towards growth and diversification in the financial services sector and support in enhancing the UAE’s position as a global financial centre.”

Omar Boulos, Regional Managing Director of Accenture in the MENA region, said, “We are pleased to collaborate with the CBUAE on this transformative initiative and to leverage our digital expertise and the power of artificial intelligence to enhance the UAE’s financial infrastructure. The establishment of the supervisory technology platform will represent a new achievement in the close partnership between the CBUAE and Accenture, continuing our work on the instant payments platform.”

aDCB logs 26% profit: Abu Dhabi Commercial Bank (ADCB) on Thursday reported its financial results for the first quarter of 2024 (Q1’24).

ADCB has continued growth momentum into 2024, delivering a first-quarter net profit before tax of Dhs2.431 billion, an increase of 26 per cent year-on-year (YoY). Net profit after tax was Dhs2.139 billion, with a return on average tangible equity of 14.1 per cent. This strong earnings growth was broad-based and primarily driven by solid loan growth in the Corporate, Investment and Retail Banking businesses.

Net interest income reached Dhs3.301 billion, increasing 16 percent, while non-interest income settled at Dhs1.285 billion, growing 21 per cent.

Operating income rose 17 percent to Dhs4.586 billion, with the cost-to-income ratio settling at 30.9 percent, improving by 60 bps.

The personal loan portfolio was 12 percent higher YoY, with auto loans up 28 percent and mortgages rising 26 percent. Over 205,000 new customers joined the Bank in the first quarter, with 84 per cent onboarded digitally.

Separately, According to the 4th Quarter Report of 2023 issued by the Central Bank of the UAE (CBUAE) on the Monetary, Banking & Financial Markets Developments, the technological and structural advancements in the UAE financial sector continues to enhance security, operational efficiency, accessibility of mobile banking applications, online banking and overall customer experience,

‘’Owing to the widespread implementation of technology throughout the economy, the UAE financial system is more secure and efficient than ever before,’’ the report noted.

At the end of the fourth quarter of 2023, the number of locally incorporated banks (excluding investment banks) remain constant at 22 banks. The branches of these locally incorporated banks decreased to 489 branches at the end of December 2023. The number of electronic banking service units of these banks fell to 46 units at the end of the fourth quarter of 2023. The number of Cash Offices remained constant at 21 Cash Offices at the end of December 2023.

The number of GCC banks continue to remain steady at the end of the fourth quarter of 2023 at 6 banks, plus one wholesale GCC Bank.