Three spices of UAE: how banks serve a ‘Menu’ for expats Indians, Pakistanis, and Filipinos.

The United Arab Emirates’ development program, aimed at financial and technological leadership on a global scale, is bearing fruit: the UAE has transformed into a magnet for people from around the world seeking better life opportunities and the realization of their own ideas about prosperity.

Today, the UAE’s population features a diverse demographic group of expatriates. Notably, the Indian community represents the largest group of expatriates, accounting for about 28% of the total population of the UAE. They are followed by Pakistanis, who make up approximately 12%, while Filipinos also constitute a significant portion of the foreign workforce. This growing trend towards multiculturalism has compelled UAE financial corporations to adapt and innovate their digital banking services to effectively meet the diverse needs of these groups.

UAE banks for expats: meeting the challenge

Thus, in 2024, the UAE can be characterized as a multicultural hub with a significant expat population. In response to such demographic diversity, UAE banks strive to adapt their digital services to align with the cultural and economic preferences of the three main expatriate communities.

What is the complexity involved? It lies in the fact that the cultural habits of very different expat communities manifest in very different user experiences — the “natural” ways of managing finances in these groups significantly vary. There is also a stark difference in levels of financial literacy, as well as proficiency in the English language. As a result, banks are compelled to seek solutions ranging from specialized remittance services that facilitate seamless money transfers to countries of origin, to offering customer service and banking interfaces in various languages.

Expatriates tend to choose banks in the UAE that best reflect the banking practices and services they are accustomed to in their home countries, equating familiarity with quality.

New initiatives are being implemented, reflecting a keen understanding of the specific needs of the community. By integrating these services with cultural nuances in mind, UAE banks aim not only to enhance the user experience but also to ensure financial inclusivity, thereby strengthening their market presence among the expatriate population.

The Importance of cultural sensitivity in banking

Understanding cultural nuances in financial services is essential. The financial behaviors, preferences, and expectations of expatriates from different cultural backgrounds can vastly differ. For example, the importance of features like interest-free banking for Pakistani customers adhering to Islamic banking principles, or the need for high-frequency, low-cost remittance options for Filipino workers sending money home regularly, are pivotal in designing services that resonate with these user groups. Special difficulties arise for expats from less developed countries or those who are less technologically advanced.

When discussing “expatriates from less developed countries or those who are less tech-savvy,” it refers to individuals arriving in the UAE from countries with less developed economic and technological infrastructure. These countries may include certain regions of Africa, Central and South Asia, and some parts of Eastern Europe, where access to modern technology and quality education may be limited.

Main difficulties in using UAE digital banking services for expatriates

Expatriates from such countries might face difficulties using digital banking services in the UAE due to a lack of previous experience with advanced technologies or because of language barriers in English, which is often the main language used in many digital platforms’ interfaces. Such expatriates might require additional support and training to effectively utilize digital banking tools and services.

Digital division in the context of banking services means that certain population groups, including expats from less developed countries or those who are not sufficiently tech-savvy, may have difficulties accessing digital banking resources. This division can manifest in several aspects, such as:

1. Access to the internet: In some less developed countries, access to fast and reliable internet may be limited, making the use of online banking challenging or impossible.
2. Technological literacy: A lack of experience with digital technologies can make using complex digital banking interfaces difficult.
3. Language barriers: Banking applications and services are often provided in English or other international languages, which can be a barrier for expats who do not sufficiently understand these languages.

Examples of banking service features:

These features may be inaccessible or challenging to use for expatriates without the appropriate technological skills or access to technology. Therefore, UX adaptation should primarily consider these areas. Such is the main challenge for the banking system today, evolving towards a customer-centric approach.

So, the impact of cultural sensitivity on customer satisfaction and loyalty in banking cannot be overstated. When banks demonstrate an understanding of and respect for cultural differences, they build trust and deepen relationships with their customers. This not only leads to increased customer retention but also attracts new customers through positive word-of-mouth in tightly knit expatriate communities. Furthermore, banks that successfully implement culturally aware strategies often see a competitive advantage in an increasingly globalized market, where expatriates have a choice of providers who can offer tailored, culturally congruent financial services.

Now let’s take a look at exactly how the UX of banking digital services is shaped for the three main expat groups in the UAE.

Navigating the digital banking landscape for diverse expatriate communities in the UAE is akin to a chef preparing a meal in a gourmet restaurant, where the menu must cater to the varied palates of diners from different cultures.

Indian expats: the largest community

Indian expatriates constitute the largest demographic group within the UAE, making up about 28% of the total expat population. This community plays a pivotal role in various sectors including technology, construction, and healthcare, significantly contributing to the UAE’s economy. Their economic influence is profound, with a substantial portion of their income being repatriated to India, impacting financial flows between the two nations.

Tailored banking features

UAE banks have developed specific banking features to cater to the needs of the Indian expat community. Prominent among these are:

• Remittance services to India: Banks offer streamlined and cost-effective remittance channels that allow Indian expats to transfer money back home swiftly. These services are often equipped with competitive exchange rates and low transaction fees.
• NRI accounts: Non-Resident Indian (NRI) accounts are specialized accounts designed for Indians living abroad, providing them with the ability to save in Indian Rupees with attractive interest rates.
• Investment opportunities in India: Many UAE banks collaborate with Indian financial institutions to offer unique investment opportunities in Indian equity markets, real estate, and government bonds, which are particularly appealing to those looking to invest back in their home country.

Successful marketing campaigns and products

UAE banks have successfully marketed several products aimed at the Indian expatriate community:

• Targeted loan products: Products such as NRI home loans that offer special rates for purchasing property in India have been well-received, as they directly cater to the common aspirations of owning home back in India.
• Cultural engagement campaigns: Marketing campaigns during major Indian festivals like Diwali and Holi, which offer special remittance rates or fee waivers, have seen high engagement rates. These campaigns are often coupled with cultural celebrations, enhancing brand visibility and community goodwill.
• Digital danking apps in multiple languages: Introduction of mobile banking apps that support multiple languages, including Hindi, has made banking more accessible for those who may not be fluent in English.

These tailored services and culturally sensitive marketing strategies not only meet the specific financial needs of Indian expatriates but also help banks in building a loyal customer base, ensuring long-term engagement and satisfaction.

Pakistani expats: a substantial minority

The Pakistani expatriate community constitutes a significant portion of the UAE’s population, making up approximately 12% of the total expat community. This group plays a crucial role in various sectors, especially in construction, transport, and services. Given their substantial remittance flows back to Pakistan, estimated at billions of dollars annually, their banking needs are unique and significant, focusing heavily on remittance services and Islamic banking products that conform to Shariah law.

Special banking services for Pakistanis

UAE banks have tailored specific services to meet the needs of Pakistani expats:

• Tailored remittance programs: Many UAE banks offer specialized remittance services that allow Pakistani expats to send money back home efficiently and at low cost. For instance, Emirates NBD has partnerships with banks in Pakistan to facilitate quicker, more reliable money transfers.
• Islamic banking services: Recognizing the importance of Shariah-compliant products for Pakistani customers, UAE banks such as Abu Dhabi Islamic Bank (ADIB) and Dubai Islamic Bank (DIB) offer a range of Islamic banking services. These include interest-free loans, Islamic mortgages, and investments that are compliant with Islamic principles.

Case of engagement

• Dubai Islamic Bank (DIB): DIB has been particularly successful in catering to the Pakistani community by offering products that align with Islamic financial practices, which are preferred by the majority of Pakistani expats. The bank’s marketing campaigns often coincide with religious and national holidays significant to Pakistanis, enhancing engagement and brand loyalty.
• United Arab Bank (UAB): UAB offers a ‘Non-resident Pakistani Account’, which not only facilitates easy remittances but also offers attractive returns on deposits, free online banking, and a debit card that can be used both in the UAE and Pakistan. This product has been well received due to its convenience and cost-effectiveness.

Through these tailored services and understanding of cultural nuances, UAE banks have not only enhanced the banking experience for Pakistani expatriates but also ensured their financial inclusion in the expatriate banking sector.

Filipino expats: bridging the gap

Filipino expatriates are an integral part of the UAE’s workforce, predominantly employed in the hospitality, healthcare, and retail sectors, as well as domestic services. This demographic represents a significant portion of the expat community, with estimates suggesting that Filipinos make up approximately 5–10% of the total population in the UAE. Their contribution is not only vital to the sectors they are involved in but also significant in terms of remittances sent back to the Philippines, which are crucial for the economy of their home country.

Tailored banking services for the Filipino community

UAE banks have recognized the specific needs of the Filipino community and have tailored various banking services to cater to these needs:

• Remittance facilities: Given the high volume of remittances sent to the Philippines, banks like Emirates NBD and Abu Dhabi Commercial Bank (ADCB) offer specialized remittance services. These services often come with reduced fees and competitive exchange rates. For instance, Emirates NBD has a feature that allows Filipinos to send money directly to bank accounts in the Philippines at lower transaction costs.
• Savings programs for overseas workers: Recognizing the transient nature of expat working period, some banks offer savings programs that cater specifically to the needs of Filipino workers. The National Bank of Abu Dhabi (NBAD), for example, offers a savings account that includes life and disability insurance, which is a beneficial feature for overseas workers.

Initiatives on financial literacy

UAE banks also engage in initiatives aimed at enhancing financial literacy among Filipino expatriates:

• Financial education programs: Several UAE banks run financial literacy workshops specifically designed for Filipino expats. These programs cover essential topics such as savings, investment, and effective remittance management. ADCB, in partnership with local Filipino organizations, has conducted multiple sessions that educate Filipinos on financial planning and wealth management.
• Digital literacy initiatives: To further bridge the gap, banks like Dubai Islamic Bank have initiated programs to improve digital literacy among Filipinos, enabling them to make better use of online banking tools for managing finances and remitting money to the Philippines.

Through these dedicated services and educational initiatives, UAE banks not only cater to the banking needs of the Filipino community but also contribute to their overall well-being and financial security in the UAE. This targeted approach not only enhances customer satisfaction among Filipino expatriates but also fosters long-term loyalty to these financial institutions.

Markswebb’s insight for UAE’s banking sector

Looking towards the future, the landscape of multicultural banking in the UAE is expected to continue evolving. With the expatriate population growing, banks are likely to further leverage new technologies to enhance service delivery and inclusivity. Innovations such as blockchain for secure and transparent transactions, and the integration of fintech solutions into traditional banking systems, are anticipated to play a significant role. Artificial Intelligence (AI) and machine learning are further revolutionizing the banking experience by providing personalized services. These advancements will not only streamline operations but also offer greater convenience and security to expat customers.

The potential impact of these technologies and emerging policies on expat banking is substantial. They promise to create a more dynamic banking environment where services are more aligned with the global nature of the UAE’s population. However, with rapid technological advancements and shifts in demographic profiles, there is a pressing need for banks to conduct thorough audits and research into best practices. Experts in banking and financial services need to continuously evaluate and adapt these innovations to ensure they meet the complex requirements of a diverse expatriate community, thus ensuring that the banking sector remains robust, compliant, and ahead of the curve in customer satisfaction and regulatory adherence.

Main challenge: the necessity of continuous UX adjustments in UAE’s banking services for expats.

That is why upcoming Markswebb’s study “Mobile banking rank & review UAE 2024” will delve into the key trends and effective practices for enhancing the user experience of expatriates in the UAE. By focusing on the unique needs and expectations of the expatriate community, the study aims to provide actionable insights for improving digital banking services in the region.

Technological innovations in banking necessitate that expatriates continuously update their skills and knowledge, which can pose a significant challenge for those lacking access to educational resources or time for training. Consequently, financial corporations must meet their clients halfway by adapting the latest technologies for a simple and seamless customer experience. This ongoing adjustment of user experience (UX) is critical not only to accommodate the diverse backgrounds and capabilities of the expat community but also to ensure that banking services are universally accessible and effective. Therefore, the challenge for banks is to integrate these innovations in a way that enhances usability without compromising the sophisticated features that can benefit all users.

To summarise

As the UAE continues to solidify its status as a global financial hub, the significance of inclusive banking strategies cannot be overstated. Ensuring that banking services meet the diverse needs of a multinational expatriate community is paramount. To achieve this, banks need to stay ahead of the curve in terms of technological integration and user experience enhancement.

Markswebb is poised to provide professional support to banks in analyzing their digital services, forecasting optimal solutions, and benchmarking against best practices. Our expertise enables us to assist financial institutions in refining their digital offerings to ensure they are not only technologically advanced but also inclusive and user-friendly. This partnership approach ensures that banks can adapt effectively to the dynamic demands of their clientele, thus maintaining and enhancing customer satisfaction and loyalty in a competitive global market.