UAE leads AI-driven development of financial services

Dubai: Executives from three global companies specialising in financial technology and banking solutions said the UAE has consolidated its position as a global hub for financial innovation and the development of digital payments and wealth-management solutions, supported by an advanced regulatory environment and integrated digital infrastructure. SC Ventures, the innovation and venture-building arm of Standard Chartered, said it has established more than 10 ventures in the UAE in less than three years, describing the achievement as unprecedented across its global markets. Speaking to the Emirates News Agency (WAM) during the second day of Dubai Future Finance Week, the executives said the rapid development of the UAE's FinTech ecosystem is creating new opportunities for investment and international partnerships while accelerating the use of artificial intelligence in banking, instant payments and wealth management. They also stressed the importance of cybersecurity and governance in ensuring sustainable growth and maintaining customer confidence. Mohamed Fairooz, Middle East Lead at SC Ventures, said the company has established more than 10 ventures headquartered in the UAE in around two and a half years, out of more than 33 ventures created globally. He said the ventures launched in the UAE focus on digital banking, digital assets, support for small and medium-sized enterprises, and financial inclusion, adding that what SC Ventures has achieved in the country in less than three years has not been replicated in any of its other markets. Fairooz said the UAE has become one of the company's most important global operating hubs and a launchpad for expanding across borders into regional markets, supported by specialised talent, clear regulatory frameworks and a strategic vision that encourages innovation. He added that SC Ventures combines venture building with investment in strategic partners to expand its commercial capabilities and develop innovative solutions that enhance the competitiveness of the FinTech ecosystem. He said the UAE offers all the key elements the company considers before entering a new market. Saad Karim, Global CEO of Payten, said the financial technology company holds four main licences issued by the Central Bank of the UAE and has operated in the UAE market since 2023. He added that the company is currently engaging with 16 regulators worldwide and holds five regulatory licences globally. Karim said Payten is developing an alternative digital payments ecosystem in the UAE connected to local payment infrastructure, including the Aani instant payment platform and the Jaywan domestic card scheme, with the aim of offering faster and more efficient payment options to consumers and merchants. He explained that QR-code payment solutions allow merchants and small, medium-sized and micro enterprises to receive their funds immediately instead of waiting several days for financial settlements. This, he said, can reduce transaction costs, improve cash flow and enhance money management. Karim said faster access to payments is an important factor in supporting business sustainability, particularly for smaller enterprises, while instant-payment solutions give companies greater flexibility in managing liquidity and meeting operational obligations. He added that artificial intelligence plays a central role in improving payment processes by accelerating procedures, enhancing the detection of suspicious transactions, combating fraud and assessing risks in real time. Karim stressed that such technologies must be integrated with financial infrastructure and regulatory controls. He said responsibility for financial transactions must remain with financial institutions even as the use of AI agents to execute payments expands, stressing the need to define the authority granted to such systems and establish clear frameworks for their use to safeguard customer rights and financial-system integrity. Akash Anand, Managing Director for the Middle East, Africa and India at Swiss banking technology company Avaloq, said the company has achieved exceptional success since establishing operations at Dubai International Financial Centre around two years ago. He said Avaloq, which has four decades of experience and serves markets around the world, develops technology solutions for banking, private banking, wealth management and asset management, with a focus on integrating artificial intelligence into its digital platforms to improve service efficiency and the quality of financial advice. Anand said the company provides intelligent tools that help relationship managers deliver more accurate advice and enable clients to make financial and investment decisions based on advanced information and analysis. He said artificial intelligence should support, rather than replace, human expertise in wealth management. Anand warned that cyber threats are among the biggest challenges facing the global banking sector, stressing that arti