Adoption and Proliferation of Digital Technology in the Banking Sector of the Middle East

The internet has spread its network to the remotest parts of the world. The availability of digital technologies, infrastructure, and devices like laptops, tablets, smartphones, and wearables has enabled a lot of commercial transactions online. Banking could not remain untouched by these transformations as customer preferences in both their personal and professional lives have changed as there is a great demand for digital banking services like mobile apps, internet banking, digital wallets, and electronic payment systems (Sardana & Singhania, 2018). The consumers in the Gulf are not far behind. A McKinsey Report indicates that in the UAE, with an internet penetration of 92%, at least 80% of these customers prefer to utilize banking facilities online and are willing to shift some part of their financial assets to banks that offer an extensive digital solution (Shirish et al., 2016; Sharma, 2022). The research aim was to comprehend the consumer’s acceptance of digital banking in the Middle East, focusing largely on the current challenges (infrastructural, cultural, and behavioral) and the vast opportunities, considering that only a fraction of the Middle East’s digital potential has been captured (Elmasry et al., 2016). The research methodology includes an extensive literature review on digitization in banking, available fintech solutions, consumer behavior toward e-commerce, and the region’s rapid transformation into a digital economy. A remarkable insight gained from this research is that, in the Middle East, there is a robust consumer adoption of digital solutions, but consumers would like multichannel options available to meet their complex financial needs. Other pertinent requirements from a digital banking experience are trust, security, and ease of usage. A major drawback is the lack of qualified digital talent and a strong IT sector that can complement the bank’s journey toward digitization.