Banks urged to upgrade technologies

Manama : Banks need to constantly look towards upgrading its technologies in order to mitigate competition from alternative financial services, said Central Bank of Bahrain Governor Rasheed Al Maraj.

With the growth of financial technology (FinTech), the banking industry will need to adapt to many changes and challenges, said Al Maraj. He said that technology is rapidly changing the banking industry and the banks need to prioritise the adoption of technologies. 

“Banks are not going away anytime soon but have been many huge developments in this space. We as regulators and bankers should always be prepared to cope with the changes.  The banks will have to adopt these new technological developments and they have to be sharp and focused because there will be alternatives to financial services outside their domain,” he said.

Al Maraj said that CBB is always keen to adopt new technologies. 

“We issued a consultation paper on a Regulatory Sandbox yesterday which will allow companies to test their fintech technologies. He added that the CBB will announce draft rules for consultation on crowd-funding platforms next month,” he said.

“Technology was once the back-office function of a bank. Then came the time when technology took the front seat and started driving the industry. Now we are witnessing the next phase when technology is defining financial services. Technology influences the banks’ strategy heavily,” Al Maraj said.