Commercial Bank of Dubai to Target Tech-Savvy Citizens with Digital-Only Bank

The Commercial Bank of Dubai (CBD) is getting ready to launch a mobile app-based digital bank for its clients in a bid to change the relationship between the bank and its customers, according to a report from Computer Weekly.

Expected to launch early next year, the digital bank will be known as CBD NOW, which is intended to target Millennials, the generation of people who tend to carry out their day-to-day activities via their phones.

According to a British Banking Association [PDF] report, in 2015 there were 11 million logins to banking apps each day compared to 4.3 million logins to Internet banking through bank websites. The number of mobile banking apps in 2015 rose by 25 percent to 13.5 million from 2014 figures.

Murray Sims, general manager personal banking group at CBD, said:

CBD NOW will redefine what a bank should be. It is built around customers and offers a unique experience that is simple, smart and safe, whereby everything can be done by smartphone.

Digital-Only Banks

The Commercial Bank of Dubai, however, is not the only bank to turn its attention to digital-only banks.

In 2014, the easy payment app Circle released its first Circle apps for iOS and Android, giving customers the option to use the apps to make payments, send and request money, and instantly deposit and convert money between fiat and digital currencies such as bitcoin and later, ether.

Earlier this year, Abra, a non-custodial bitcoin wallet app became available in the U.S. and the Philippines, giving people the option to send money for free from their bank accounts. The company’s goal is to become a global financial inclusion app for the expanding cross-border remittance market.

This month, the finance minister in India, Arun Jaitley, announced that banks should start to promote digital banking to limit the use of physical currency. His remarks come after the banning of two of the biggest fiat banknotes in the country.

It is hoped that the withdrawal of the Rs 500 and Rs 1,000 notes will help to push the Indian economy toward digital transactions.

FinTech Development

With the development of FinTech a hot topic for discussion at the moment, it’s not surprising that banks are attempting to target their customers by turning their attention to mobile bank-based apps.

As the world we live in becomes more technologically-minded it makes sense that this is how things will be in the near future that makes it simple and safe for a customer to use.

Featured image from Shutterstock.