Consumer-Driven Strategies for Omnichannel Banking

How to seamlessly integrate digital & physical banking experiences

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 infrastructure makes it an ideal environment for implementing advanced omnichannel solutions.

Both countries are working to align their banking ecosystems with global best practices. Our survey shows UAE and KSA banks can learn from Southeast Asia’s success in combining digital innovation with strong regulatory frameworks to accelerate omnichannel transformation. Figure 5 compares the banking behaviors and preferences in KSA and UAE across several areas, including omnichannel availability, self-service solutions, cash services, digital wallets, and wealth management. It highlights each market’s data insights and provides recommended actions tailored to those insights. It shows where each market stands in terms of digital adoption and seamless banking experiences and offers strategies to meet evolving customer needs.

Opportunities for alignment & growth

The following opportunities offer a pathway for greater alignment and growth:

• Leverage omnichannel innovations across markets. Both KSA and UAE consumers expect seamless, around-the-clock support across digital and physical channels. Adopting AI-driven chatbots, on-demand video consultations, and consistent user experiences across mobile apps, online portals, and branches would increase satisfaction and trust in both markets.
• Expand and enhance self-service and remittance solutions. KSA is still building familiarity with self-service kiosks and digital remittances, but UAE’s more advanced adoption is an opportunity for shared best practices. Introducing more sophisticated self-service kiosks (e.g., for card issuance and loan applications) and user-friendly mobile remittance options would streamline transactions and drive higher engagement.
• Drive unified digital wallet and wealth management strategies. KSA’s Vision 2030 objectives and UAE’s growing mobile wallet usage highlight an opportunity to boost cashless payments through incentives and strategic partnerships. Similarly, aligning on digital wealth management tools (while maintaining in-person advisory for complex decisions) would strengthen relationships with high-value clients and create scalable, tech-enabled growth.

UAE has set a high bar with its digital-first approach, but KSA offers lessons in fostering trust and inclusivity — 61% of respondents in UAE mentioned being somewhat or very comfortable while using mobile banking for sensitive transactions versus 66% in KSA.

ACHIEVING OMNICHANNEL SUCCESS

As the financial landscape in UAE and KSA undergoes a significant shift, omnichannel banking is emerging as a cornerstone for delivering exceptional customer experiences. To remain competitive, banks must focus on harmonizing digital and physical touchpoints while addressing the evolving needs of diverse customer segments.

Key strategies for omnichannel transformation

Successful omnichannel transformation hinges on three key strategies:

1. Customer-centric innovation. Our survey results highlight the need for UAE and KSA banks (particularly KSA) to prioritize improving mobile interfaces and educating customers on digital tools. AI can play a dual role here: enabling hyper-personalization for tailored financial solutions and creating seamless, engaging mobile experiences that drive adoption. By addressing usability challenges and leveraging AI-powered insights, banks can enhance customer satisfaction, loyalty, and digital engagement.
2. Technology integration. Cloud computing has been identified as a transformative tool by ADL and IMF because it enables scalability and agility. UAE and KSA banks can accelerate their omnichannel transformation by investing in this technology.
3. Trust and financial inclusion. Financial inclusion remains a challenge in this region. For example, 74% of KSA and 88% of UAE’s total population had an account with a financial institution versus 95.5% in the US in 2021, according to the World Bank. Although UAE has made strides in digital adoption, KSA’s focus on trust-based ecosystems highlights the need for education and engagement to encourage the use of digital channels among traditionally underserved groups.

Next steps for UAE & KSA banks

To achieve phygital excellence, GCC banks must seamlessly blend digital innovation with trusted physical interactions. KSA and UAE, though distinct in their banking landscapes, share a common need for strategic omnichannel integration. ADL’s six-step plan can help banks optimize customer engagement, drive digital adoption, and enhance security. By assessing customer behaviors, piloting new models, and strengthening trust, financial institutions can build a unified and inclusive omnichannel ecosystem. From incentivizing digital wallets to expanding literacy programs and security measures, this roadmap aims to ensure GCC banks can deliver seamless, customer-centric experiences that balance automation with human interaction:

1. Conduct a channel assessment and customer segmentation.
2. Develop a unified omnichannel experience roadmap.
3. Pilot service models.
4. Incentivize digital wallet adoption (KSA).
5. Expand digital literacy programs.
6. Strengthen data security and build customer trust.

By assessing customer preferences, investing in mobile banking to enable hybrid models, expanding digital literacy efforts, and strengthening security frameworks, UAE and KSA banks can position themselves as omnichannel banking leaders. Financial institutions that excel in delivering consistent, personalized experiences across channels will secure customer loyalty and drive sustainable growth in today’s competitive market.

Conclusion

GOING PHYGITAL

The UAE and KSA banking sectors stand at a critical juncture, driven by rapid digital transformation, evolving customer expectations, and national agendas like Vision 2030 and UAE’s digital economy strategy. To thrive, banks must embrace phygital strategies — merging digital efficiency with human-centered trust. High smartphone usage and growing digital ecosystems provide a solid foundation, but true success hinges on inclusive design:

1. Personalization through data. Banks must harness AI-driven data analytics to anticipate customer needs and deliver tailored solutions.
2. Trust-building in digital spaces. Blockchain and advanced fraud-prevention tools can reinforce confidence in digital transactions.
3. Hybrid service models. The continued relevance of branches, particularly for complex services, requires a blended approach that integrates self-service tools with expert advisory support.

By , Martin Rauchenwald, Dr. Raymond Khoury, Rezwan Shafique, Mustafa Khider, Michael Hofreither, Sameer Kumar, Rodolph Salem

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