“Now is the time to capitalise on the global digitalisation drive and leverage the paradigm shift in the banking industry with a transformative approach to business,” maintains Said Abdullah Al Hatmi, Chief Executive Officer of ahlibank, as he presents his take on the critical significance of digitalisation and transformation in Oman’s banking industry.

As the global banking industry prepares to redefine business operations and strengthen its position in the digital arena, banks in Oman are gearing up to fully integrate digital transformation into their systems and processes to ensure that they keep up with customers’ evolving needs and the changing business landscape. Whilst digital transformation dictates focusing on process, technology, data and organizational change, banks are driving their digital journeys by not only rebuilding their direct and indirect relationships with customers but restructuring their operating model and technology backbone. As ahlibank’s CEO notes, “the ongoing transformation is revolutionary, to say the least.” In an interview with OER, he highlights the merits and significance of adapting to the new banking culture, which has digital transformation at its core.

Today, we talk a lot about digitalisation, especially for banking and financial transactions. What does it really mean from Oman’s perspective?

To put it succinctly, it means the beginning of a new era—an era that breaks the rules of traditional banking processes to redefine both the customer experience and how we engage with them on the back of digital transformation. Although digitalisation became a requisite in the wake of the pandemic, banks and financial institutions in Oman were compelled to adopt the ongoing global transformation and accelerate adoption of digital in their products, services and systems. ahlibank had already embarked on its digitalisation journey even before the onset of the pandemic, however, we are now placing more emphasis and focused investments in strengthening our digital capabilities and infrastructure as part of a long-term digital roadmap.

The onus now is on all of us in Oman’s banking industry to collectively lead digitalisation and actively contribute and enable the economic recovery process by offering innovative banking products, services and financial solutions and providing more frictionless, seamless and convenient customer service touchpoints that will allow for an enhanced customer experience.

What role has digitalisation played in Oman’s overall economic development? What role did the banks play in this development?

A positive and progressive economic environment is defined by the level at which digital transformation has been integrated into businesses and the economy and the extent to which it has been adopted by each sector or industry. Oman’s continued growth and development is mostly the result of the adoption of technology and digital innovation, which effectively and efficiently streamline business processes, operations and supply chains for a more productive output.  Oman could very well be considered a country that has gradually strengthened its foundation in digital transformation in line with Digital Oman 2030 vision to become one of the top 20 countries in eTransformation.

In the banking sector, the integration of digitalisation into each bank’s operational and functional processes has helped increase efficiencies and services, thereby contributing to the economy’s advancement and growth.

The government has focused on encouraging more active participation and involvement by the private sector to augment its strategic growth and has introduced a number of measures and policies to establish a more conducive environment for the banking and financial sector to grow. With digital platforms poised to amplify this growth, the banking sector is seen to play a pivotal role in supporting Oman’s development. This has already been evident in the last few years.

What is the outlook for the banking industry? How do you think it will benefit from a digital economy?

It goes without saying that banks will be better positioned after gaining the benefits of a digital environment and there is also much to be achieved. Whilst digital transformation gained a lot of ground stemming from the COVID-19 pandemic, in the current environment, banks need to further commit to the digital transformation journey and goal.

A digital economy will enable and provide greater opportunities for the banking sector to leverage by creating a base framework. It will help create a base framework or technological environment within which each bank can strengthen their relationship with their customers and increase their potential to attract more customers. Further, customer data and analytics is going to play a vital role in terms of offering products and services which are relevant personalized to the individual customer’s need. In today’s digital ecosystem, ‘data is the new oil’ and a one size fit all approach in the banking industry will soon become a thing of the past.

If the sector; however, is not quick to adapt to this economy and is not as swift to make the change in light of existing market and customer requirements, it will stand to lose the full benefits of a digital economy.

How would you define ahlibank’s role in Oman’s digital transformation journey?

The journey, of course, is long and challenging, and far from over, but we have a strong foothold in the industry, which has helped us make a positive difference to the transformation process that is currently underway in the country. We have followed a proactive approach to keep track of the changing market trends and continual assessment of customer requirements. We continue to upgrade our products and services to enhance customer experience with online and digital platforms that complement Oman’s long-term digitalisation objective.  An example of this is being the first Islamic bank in Oman to allow new to bank customers to instantly open an account digitally.

Our inspired vision to be a ‘vibrant and innovative center of banking’ continues to shape our present with increased resilience and adaptability. It is our constant endeavor to make ahlibank the ‘Digital-First’ Bank in Oman by providing best-in-class digital offerings leading to improved TAT, enhanced customer experience and improved customer stickiness.

Indeed, our role in Oman’s digitalisation journey is commendable including active support to the growing SME sector, but we acknowledge the fact that it is the collective effort of the industry that has set in motion Oman’s ambitious digitalisation process.

How is the digital roadmap of the country contributing to the fulfillment of the goals of Oman Vision 2040?

The adoption of digital platforms and processes reflects the larger objectives of Oman Vision 2040, which seeks to move towards a sustainable, competitive and diversified economy based on technology, knowledge and innovation. It is helping to build economic competitiveness and supports its readiness to keep pace with the global business environment.

A digital-based economy also heavily boosts the country’s technology sector and market, which, in turn contributes to wider economic inclusion and increase in the overall GDP contribution. On a larger scale, it indirectly contributes to growth in tourism, education, healthcare, agriculture and hospitality sectors as a result of more advanced and efficient services, technological capabilities including tech start-ups and fintech and sustainable infrastructure. This will help position Oman itself as an ideal business and investment destination.