Al Ghurair shakes up sector with keynote speech attacking ‘greed culture’ at MEED Retail Banking 2011

A worrying culture of greed, increasing pressure from regulations, “rubbish” advertising and growing opportunities in Qatar were the key topics that topped a packed agenda at MEED Retail Banking 2011, held in Dubai from October 4-5. 

Proving once again that MEED Retail Banking is the stand-out event for the industry, it was the comments by Abdul Aziz Al Ghurair, Chief Executive Officer of Mashreqbank, that made the most impact.

"The banks have had problems because they have been greedy," Al-Ghurair told assembled senior executives from across the Gulf at the Address Hotel, Dubai Mall. He said that banks must become more customer-oriented rather than approaching them solely for the purposes of selling products.

However, Al Ghurair, who made his comments as he accepted the MEED Leadership in Banking Award, said he expected 2012 to be a "take-off" year for UAE banking. He said that non-performing loan (NPL) issues had been addressed and that regulations were in place to ensure continuing sound bank performance.

International Bank of Qatar (IBQ) assistant general manager Phillip King told the Conference that there were great opportunities for banks in the Qatari economy. "The outlook in Qatar looks extraordinarily positive," he said. "The banking sector is expected to continue to grow with the outlook strong for retail banks as household consumption is set to grow by 15 per cent in 2011."

King also addressed the increased regulations that are being rolled out by central banks across the Gulf. "It's forcing banks to be sensible and to have customers at the core of everything they do," he told delegates. "We can't roll out branches which is expensive so we will seek to reach them remotely."

The head of Mashreqbank's retail banking group, Farhad Irani, said that such changes could promote positive change among GCC banks. "What these caps do is make certain banks don't take excessive risks unknowingly and they have to start thinking innovatively," Irani said.

"There is a move away from market share to wallet share," National Bank of Abu Dhabi consumer and elite banking division general manager Suvo Sarka said. "The focus in  the past eight years had been product sales. That entire cycle is now different. Now you have to serve the entire banking needs of your customer."

Abu Dhabi Commercial Bank's (ADCB's) head of consumer banking Arup Mukhopadhyay took aim at what he saw as inadequate advertising in the sector. "Marketing and branding is woefully underestimated in this market," Mukhopadhyay said. "What is seen as advertising in retail banking is a load of rubbish." He said that consumer product makers are much more advanced in this area than banks, and that the industry needs to look at other fields for inspiration.

Edmund O’Sullivan, Chairman, MEED Events, said:  “As in previous years, this event proved it was far more than just a talking shop for the industry to pat one another on the back. Some of the speakers made for uneasy listening, but delegates really appreciate a forum in which they can speak their minds.”

“Retail banking is going through really interesting times right now, and at MEED we’re delighted to be hosting such a relevant, debate-worthy event.”