The UAE banking sector is undergoing a significant transformation as customers increasingly demand seamless digital and in-person services, according to a new survey by global consultancy Arthur D. Little (ADL). The study, conducted across 24 banks in the UAE, highlights the growing popularity of mobile banking while underscoring the continued relevance of traditional bank branches.
According to the report released on Wednesday, 72% of UAE banking customers now prefer mobile apps as their primary channel for managing finances. This figure surpasses the global average of 65%, as reported by Statista in 2024. Customers are drawn to the ease of use, intuitive design, and personalised features offered by mobile banking platforms.
Despite this digital surge, in-person banking remains crucial, particularly for complex financial decisions. The survey found that 35% of customers still visit physical branches for services such as mortgage applications and personal loans, valuing the trust and expertise provided by in-person advisors. High-income clients, in particular, prefer digital tools for everyday transactions but turn to bank staff for high-stakes financial decisions.
Self-service banking is also gaining traction. About 43% of respondents regularly use kiosks for services such as cash withdrawals and account inquiries. This signals a growing demand for “phygital” banking — a blend of digital efficiency and human interaction.
Mobile wallet adoption is also accelerating, especially among younger, tech-savvy, middle-income customers. The mobile payment sector in the UAE is projected to grow by 8.2% annually through 2030, driven by innovations in contactless payments and digital remittance platforms, according to PwC’s 2025 report.
Martin Rauchenwald, Global Head of Financial Services at ADL, said, “Integrating advanced digital platforms with in-branch advisory services is crucial for building trust and customer loyalty. A seamless omnichannel experience is no longer optional — it’s essential.”
Rezwan Shafique, Principal at ADL Middle East, emphasized the importance of AI-powered personalization and digital literacy. “To bridge the digital divide, banks must invest in user-friendly mobile tools and customer education, while also enhancing in-branch support.”
With the UAE’s financial sector contributing 14.2% to the national GDP in 2024, industry experts stress that adopting hybrid banking models is key to staying competitive. By merging technology with human expertise, UAE banks are poised to meet the evolving expectations of a diverse customer base.
