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In an era where digital transformation dominates discussions about banking, it’s easy to overlook the potential of the physical bank branch. However, the humble bank branch, far from being obsolete, can play a pivotal role in nurturing the UAE’s burgeoning culture of entrepreneurship.
The conventional bank branch, as we know it, is rapidly evolving. No longer just a place for mundane transactions, branches are being reimagined as spaces where high-value interactions take place. Bank branches, akin to retail real estate, should maximize the value of the space by what occurs within it. Banks should strive to be present in more convenient locations. This perspective shifts the focus from mere footfall to quality of engagement, positioning branches as hubs for financial advisory and investment planning, and they may even function as co-working spaces.
The reduction in Mashreq’s number of branches from 51 to seven in the UAE is in keeping with this transformation. These seven branches now serve four times the number of clients they used to. With routine services now handled by advanced machines, clients can access a broader range of services without needing human involvement. This frees up exclusive space in the branches, where clients can consult directly with specialists on mortgages, investments, and insurance products. High-value interactions are now front and center, transforming these branches into hubs for personalized financial planning. By moving 99% of routine transactions to digital platforms, Mashreq has unlocked its branches for more meaningful, impactful engagements.
But the transformation doesn’t stop at serving high-net-worth individuals or facilitating complex financial transactions. In fact, the more significant role for bank branches is supporting the UAE’s entrepreneurs, particularly those who are just starting out and are faced with the challenge of finding affordable office space. They need to be visible, to connect, and to access essential services, all while managing their finances.
This approach is not just about convenience; it’s about creating a community. Entrepreneurs often lack the financial literacy needed to navigate the complexities of banking. By transforming branches into spaces where they can learn, connect, and grow, banks can play a crucial role in fostering entrepreneurship. Bank branches are no longer just financial institutions; they can become incubators of innovation, providing entrepreneurs with the tools and resources they need to succeed.
The UAE is already a global leader in integrating government services into everyday spaces, with Dubai’s co-op supermarkets offering everything from legal services to different government department transactions. By extending this model into the banking sector, banks can provide entrepreneurs with a one-stop-shop for all their needs. Whether it’s obtaining a trade license, managing finances, or seeking advice on business growth, bank branches can become the beating heart of the entrepreneurial ecosystem.
The role of the physical branch will evolve further as digital banking continues to grow. Branches will function as a complement to digital platforms offering personalized, high-touch services that cannot be replicated online. This hybrid approach ensures that while clients benefit from the convenience of digital banking, they also have access to expert advice and support when they need it.
Aladdin Al Deesi, Head of Mashreq Gold and Distribution
