UAE banking sector sets global model in AI-driven digital banking security

The UAE banking sector has emerged as a global leader in digital banking security. In addition to rolling out digital channels for customer services, UAE banks have invested heavily in data platforms, advanced analytics, and artificial intelligence solutions to personalise services, strengthen fraud detection, and enhance the overall customer experience.

In statements to the Emirates News Agency (WAM), cybersecurity experts said that the UAE banking sector is undergoing a fundamental transformation in digital innovation and cybersecurity, capitalising on advanced infrastructure and flexible legislation. The sector continues to combine investment in the latest technologies with strengthened protection capabilities to counter growing threats.

Richard Cassidy, Chief Information Security Officer for Europe, Middle East, and Africa at Rubrik, a data management and cybersecurity company, said the UAE’s banking sector is entering a new phase of digital transformation accompanied by an increasing focus on strengthening cyber defense, in response to rapidly evolving global threats and regulatory requirements.

He added that artificial intelligence and big data have become central elements of digital security strategies. Banks in the UAE are deploying AI-powered tools to monitor unusual behaviour in real time and to analyse vast amounts of data quickly and accurately to detect suspicious activities. Multi-factor authentication, including biometric verification and app-based login systems, also contributes to strengthening protection for both individual and corporate clients.

He stressed that the adoption of artificial intelligence technologies represents a promising opportunity for banks-not only in enhancing their ability to detect and prevent financial fraud but also in enabling their defensive systems to continuously learn from past incidents, becoming smarter and more adaptive over time.

He noted that UAE banks demonstrate high resilience in development and innovation despite the evolution of cyber threats, through close collaboration with all stakeholders, customer awareness initiatives, and the maintenance of effective emergency response plans.

For his part, Zeid Shubailat, Director at Infobip, a cloud communications company, said that in recent years, UAE banks have witnessed a qualitative leap in their approach to digital security, moving from traditional protection models to advanced intelligence- and analytics-driven systems.

He added that the rapid adoption of digital channels-from online banking services to instant payments and mobile-first experiences-has increased the pace of threats, prompting banks to adopt sophisticated real-time fraud detection systems and activate secure, multi-channel communication that immediately notifies customers of any unusual activity.

He emphasised that artificial intelligence and big data are now the cornerstones of these advanced efforts. By analysing device identity information, login patterns, and transaction behaviour, AI models can detect unusual activity in fractions of a second, while big data analytics helps uncover broader fraud networks and the fake accounts linked to them.

He pointed out that some UAE banks have already begun implementing these intelligent models, alongside automated digital assistants that efficiently handle common fraud scenarios at scale while seamlessly escalating complex cases to specialised teams when needed.

He explained that regulatory frameworks have played a decisive role in accelerating this transformation, encouraging banks to move away from traditional authentication methods such as SMS or email activation codes, towards more advanced and secure authentication solutions, including app-based authentication and biometric verification.

He affirmed that fraud prevention systems will be reshaped in the next phase through behavioral biometric verification, unified alerts across multiple channels, and interactive customer experiences that enable smooth transitions from alert to action, within a streamlined, simplified process.

The UAE Banks Federation (UBF) launched in 2017 its cyber threat intelligence sharing platform, “Tasharuk” initiative, launched by UBF. The platform allows banks to share incidents of cyber-attacks and findings of investigations to help them thwart potential malicious threats.

Meanwhile, The latest GCC Banking Sentiment Index, published by PwC Middle East in collaboration with DataEQ, reveals a notable decline in consumer sentiment towards GCC banks despite a sharp increase in online conversations across the region.

This year’s index analysed consumer sentiment towards leading banks across Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait and Bahrain. The volume of online conversations about GCC banks reached 2.8 million between September 2024 and February 2025. This escalation in activity, driven in part by promotional campaigns, reflects the growing role of social media as a primary channel for consumers to engage with banks in the region.

WAM