Consumer-Driven Strategies for Omnichannel Banking

Customers in the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) demand seamless, omnichannel experiences, but many banks in the region struggle to provide this. Arthur D. Little’s (ADL’s) Omnichannel Survey 2024 found that although 80% of UAE and KSA banks claim to prioritize digital transformation, a much smaller percentage are delivering experiences that satisfy tech-savvy clients. Although customers desire instant, personalized, round-the-clock banking, many banks are bogged down in traditional mindsets.

DIGITAL TRANSFORMATION MEETS HUMAN EXPECTATIONS

Omnichannel banking is redefining customer engagement across UAE and KSA, with banks struggling to balance rapid digital innovation with the region’s unique economic, social, and cultural dynamics. Amid economic diversification and national strategies such as KSA’s Vision 2030 and UAE’s push toward a cashless economy, financial institutions must evolve their service delivery models to meet the changing expectations of a digitally empowered population.

ADL research highlights the pivotal role of digital infrastructure in advancing financial inclusion and strengthening economic resilience. Scalable, integrated digital ecosystems are no longer optional — they are essential to building trust, enabling operational efficiency, and ensuring consistent, seamless customer experiences across touchpoints.

When banks modernize legacy systems and address user experience gaps, they unlock new ways to meet diverse customer needs. Today, omnichannel banking is not a matter of convenience, it’s a strategic lever for socioeconomic progress. With approximately 1.4 billion people globally (6 million in KSA and 1 million in the UAE) still unbanked, omnichannel banking will be relevant well into the future.

Omnichannel banking lets customers move fluidly between mobile apps, online platforms, and physical branches. This model has become central to regional transformation efforts. Mobile apps dominate when it comes to routine transactions (especially among younger users), but physical branches retain a vital role in delivering trust-driven services such as advisory, investment, and wealth management.

This Viewpoint draws on recent ADL survey findings (see Figure 1), analyzing consumer behavior across demographics, income levels, and employment sectors. Our research underscores the importance of personalized, accessible, and consistent engagement strategies. By leveraging advanced technologies like AI and blockchain, banks can create transparent, frictionless journeys — blending the best of digital convenience with the human touch that fosters trust (see Figure 2).

THE UAE & KSA CONSUMER LANDSCAPE

Digital channels for routine transactions

The survey shows that digital channels are becoming the backbone of routine banking activities across UAE and KSA. With widespread mobile device use and enhanced mobile banking platforms, customers increasingly rely on mobile apps and online portals for basic transactions like checking balances, transferring funds, and paying bills:

• Mobile banking apps. Seventy-two percent of respondents in UAE and 46% in KSA use mobile apps as their primary banking channel. This trend stems from the convenience of anytime/anywhere access, intuitive design interfaces, and personalization that responds to a user’s behavior and personal financial goals. The survey highlights mobile-first strategies as a cornerstone for customer-centric innovation, underscoring the need to continually enhance app functionality to maintain engagement.
• Online platforms. Despite the surge in mobile adoption, approximately 41% of respondents in UAE and KSA prefer online portals, particularly for detailed account management and tasks that require a transaction record. This highlights an opportunity to integrate advanced tools like expense tracking and financial dashboards into Web interfaces.

Digital banking’s efficiency can foster financial inclusion by extending banking services to underserved regions, according to International Monetary Fund (IMF) analysis. However, a digital divide could widen unless banks actively support segments less familiar with technology. Generational differences underscore this challenge:

• Younger demographics (aged 18–24). Sixty-two percent of younger UAE respondents and 56% in KSA use mobile banking regularly, valuing convenience and speed.
• Older demographics (50+ years). These customers favor traditional methods such as branch visits, indicating a reluctance to fully embrace digital platforms without guided support.

Income levels significantly shape banking preferences across the Gulf Cooperation Council (GCC). High-income customers in UAE lean heavily toward digital banking, with around 70% favoring mobile apps and online platforms for their financial needs. In contrast, approximately 65% of high-income customers in KSA use digital channels, but many still prefer in-person advisory services for high-value transactions:

• High-income consumers
  • UAE: ~70% digital preference; strong use of AI-driven wealth management
  • KSA: ~65% digital adoption; continued reliance on personal advisory for complex transactions
• Middle-income consumers
  
  • UAE: ~50% digital adoption, benefiting from a balanced “phygital” experience
  • KSA: ~40% digital uptake, with greater reliance on branch services
• Low-income segments (blue-collar workers)
  
  • KSA: 73% depend on branch-based remittance and cash transactions
  • UAE: ~60% rely on branches, indicating a shift toward digital alternatives

These differences underscore the need for tailored strategies to bridge the digital divide and achieve inclusive, phygital banking excellence. KSA should focus on enhancing mobile solutions and digital literacy; UAE should further streamline digital services (see Figures 3 and 4).

Branches for complex needs & advisory services

Branches remain essential for trust-based financial transactions in UAE and KSA, where cultural and economic preferences lead many customers to favor personal interaction. Our survey findings reinforce this reliance, particularly for complex services:

• Loan applications and mortgages. Customers in both countries (35% in UAE, 33% in KSA) prefer branches for complex needs like loans and mortgages, on par with those choosing mobile or online banking. This highlights the ongoing importance of face-to-face support for major financial decisions. However, expanding physical infrastructure isn’t the answer. Instead, branches should evolve into centers for customer acquisition, digital literacy, and complex advisory, while routine tasks migrate to efficient omnichannel platforms. Our survey confirms that trust remains a key driver, particularly for high-value services.
• Remittance and cash services. Among KSA’s blue-collar workers, 73% depend on branches for cash and remittance needs. This underlines the role of physical banking in promoting financial inclusion and calls for hybrid models (i.e., systems that combine both in-person cash services and digital tools).
• Hybrid wealth management. In UAE, 43% of respondents use self-service kiosks for routine tasks but prefer in-person support for advisory services. Affluent clients may track investments digitally but seek human guidance for strategic decisions.

Opportunities for banks

Banks have an opportunity to enhance both operational efficiency and customer engagement through:

• Geospatial optimization. ADL recommends a hub-and-spoke model to optimize resource allocation and accessibility. Strategically placed branches serve as hubs in key locations, providing high-value advisory and complex services, while mobile apps and kiosks act as scalable spokes for routine transactions. This approach optimizes capital expenditures while ensuring broad customer coverage, leveraging advanced data analytics to identify underserved areas for targeted deployment.
• Humanized digital transformation. In-branch digital ambassadors can guide customers in adopting new tools, but this approach is limited by the amount of foot traffic. Mobile apps offer a scalable alternative by providing customer-specific tutorials tailored to individual profiles and needs. For instance, customers aged 50+ could receive personalized guidance on investment products or retirement planning from financial advisors using AI funneled through mobile banking applications, enabling proactive engagement without requiring branch visits.

FOCUS AREAS

KSA and UAE exhibit distinct yet converging trends in omnichannel banking, shaped by cultural, economic, and regulatory factors. KSA, rooted in a trust-based banking culture, is evolving rapidly under the guidance of Vision 2030, which prioritizes digital payments and financial inclusion. UAE is a global leader in digital adoption, with high customer expectations driving demand for seamless, omnichannel banking experiences.

Distinct cultural & economic contexts

The KSA market places a high premium on trust and human interaction, particularly for financial services involving significant commitments, such as mortgages or wealth management. Trust-based financial ecosystems are critical to financial stability, especially in rapidly evolving economies, according to IMF analysis. UAE’s banking sector thrives on technological innovation and customer-centric digital services, but trust and human interaction play a big role in this market as well, especially for premium banking needs. According to the World Bank, UAE’s robust digital infrastruct

• By Arthur D. Little
• 27/05/2025
• Consumer-Driven Strategies for Omnichannel Banking