As we delve into the realm of digital innovation, it's important to understand some of the key terms that will shape the future of banking. Distributed Ledger Technology (DLT) is a digital system for recording the transaction of assets in which the transactions and their details are recorded in multiple places at the same time. This technology underpins cryptocurrencies like Bitcoin and has significant implications for banking security and transparency. Similarly, Advanced Analytics and Artificial Intelligence (AI) refer to sophisticated tools that allow for deeper insights into customer behavior, risk management, and operational efficiency.

Traditional financial firms are embracing technology, including distributed ledger technology, AI, and machine learning. The rise of advanced analytics and AI, known as "AAAI" tools, is reshaping the industry. The rapid evolution of new technologies, including the Internet of Things, is improving accessibility. The next wave of innovation seeks to add a "human" touch to digital functionality, addressing customers' psychological needs for more personal interactions.

The banking sector stands at a pivotal juncture, reshaped by AI and digital transformations. Artificial Intelligence is not just an add-on but a must have reimagining, driving unprecedented efficiency and personalized banking services. We're witnessing a shift from traditional transactions to intelligent banking, where AI predicts customer needs, mitigates risks, and streamline operations, leading to unparalleled efficiency and more customer-centric solutions.

Dr. Hamza Agli
Associate Director,
Digital & Innovation Advisory
KPMG in Qatar

Key Takeaways

  • New technologies introduce novel and emerging risks. Firms must innovate in identifying, measuring, and managing these risks, employing new techniques and tools.
  • New business models, such as joint ventures with technology companies and platforms, complicate the ecosystem and customer interactions, posing challenges in managing conduct and financial crime risks.
  • Given the evolving nature of products, services, delivery methods, and communications with customers and counterparties, regulators emphasize the importance for firms to prioritize the end customer throughout the business and at all stages of a product lifecycle

Change is inevitable, especially in the ever evolving landscape of technological innovation. In Qatar, firms have every opportunity to embrace innovation and emerge as leaders in the market. Regulators play a pivotal role in safeguarding this transformative journey, ensuring protection. Amidst this dynamic shift, customers stand to gain the most, continuously reaping the benefits of ongoing change.

Sanket Kothari
Senior Consultant,
KPMG in Qatar

Download PDF

Thriving in the Digital Era

Qatar Banking Perspectives - 2023

Download the full report ⤓