Bahrain's Financial Services Hailed

A micro-financing bank in the Kingdom, Ebdaa Bank, has revealed its plans to implement innovative technology solutions, within the bank, considering Bahrain’s position as a regional center for financial technology.

Speaking at the third edition of the Arab Banks Union conference, held in Jordan, CEO of Ebdaa Microfinance Bank – Bahrain, Dr. Khaled Waleed Al-Ghazzawi, provided an overview of Bahrain’s experience in the application of modern financial technology in the banking sector. “Ebdaa Bank seeks to benefit from Bahrain's position as a regional center for financial technology through the application of innovative technology solutions at the bank,” stated Dr. Al Ghazzawi.

“This will further enable us to provide financial services to our customers in a manner that ensures the highest degree of ease, transparency and effectiveness,” he added.

Through the efforts of the Central Bank of Bahrain (CBB), Bahrain has developed into a leader in the use of financial technology in banking. “The CBB has activated the process of digital transformation and innovation in the financial and banking sector within the Kingdom,” he said.

During a session on ‘The Role of Financial Technology in the Service of Small and Medium Enterprises’ at the conference, Dr Al-Ghazzawi stated that the Arab Gulf Development Program (AGFUND) supports the transformation in all its banks, in the Arab region, towards a paper-free environment while utilising the latest technology tools.

“The AGFUND has succeeded in converting its banks in Jordan and Sudan to use technology in the complete process of lending funds, and even providing advice and guidance to micro entrepreneurs,” he explained.

Having amassed over 20 years of experience in microfinance, in various countries around the world, including the United States, Egypt, Lebanon, Jordan, the United Arab Emirates and others, Dr. Al-Ghazzawi elaborated the experiences of these countries in the field of integrating technology into microfinance.

“Through its banks in nine countries across the region, the AGFUND is constantly testing new technologies in providing financial support to clients. The AGFUND studies loan applications through applications developed for this purpose, the disbursing of loans and collection of funds through electronic wallets for customers,” he explained.

“They further study the addition of video technology to communicate with the client, and examine the activity of the project and its development through Google Maps services among others,” he further elaborated.

AGFUND banks will eventually develop into digital banks through the use of Blockchain technology and other FinTech advancements, thus contributing to the reduction of operating costs. “In the wake of these digital developments, it is imperative that financial institutions take the necessary measures towards preventing and protecting against cyber-attacks,” he stressed.

“In the framework of its application of the concept of financial inclusion, AGFUND is also keen to encourage its bank customers to switch to digital banking, especially in poor areas where the residents are not fully aware of dealing with modern technologies,” he added.

Ebdaa Bank has entered into talks with financial companies on the provision of soft loans to new segments of beneficiaries, including low-income workers who want to start micro-enterprises. “The bank is currently looking to cooperate with a commercial bank to issue credit cards through which the loan is disbursed and used by the client in the payment of its loan payments, after obtaining the approval of the Central Bank of Bahrain,” he concluded.