Damian Hitchen, CEO at Saxo Bank MENA
Financial inclusion is crucial for a thriving and fair global economy. However, many people face barriers to accessing financial services. We need to work together to overcome this challenge and develop innovative solutions that are available to all in society to create a solid and inclusive economy. Financial inclusion must also highlight opportunities to successfully leverage the best trading platforms across the UAE.
Enhancing Financial Inclusion Through Mutual Funds
Online trading platforms offer a gateway for individuals from all walks of life to participate in the financial markets, irrespective of their geographical location or socio-economic background. By embracing these innovative platforms, individuals can effortlessly explore and invest in diverse mutual funds available in Dubai and beyond. Whether it’s a novice investor looking to diversify their portfolio or a seasoned professional seeking strategic investment options, Dubai’s online trading platforms democratise access to investment opportunities, of which mutual funds have historically been a well-used and popular asset class for UAE-based investors over the last decades, fostering financial empowerment and inclusivity on a global scale.
Access to formal financial services is essential for effective financial management, which enhances personal economic stability and quality of life. Financial inclusion simplifies this access and empowers individuals to manage their finances effectively. Universal access to financial services remains uneven due to limited financial literacy, socio-economic disparities, cultural and gender biases, regulatory frameworks, and technological limitations. To surmount these hurdles, concerted efforts in innovation, policy reform, and targeted interventions are necessary. Effective strategies include enhancing financial literacy and simplifying access to the global financial markets and investment opportunities in regions like the UAE.
Future Trends and Opportunities
Emerging technologies are poised to revolutionise the accessibility and efficiency of financial services, particularly in regions like the UAE.
- Mobile Payment Solutions: With high mobile penetration rates in the Middle East, mobile payment solutions are increasingly vital for financial inclusion. These technologies allow users to transact directly from their smartphones, bypassing traditional banking hurdles. Mobile wallets and apps can integrate services like money transfers, bill payments, and savings, making them accessible even in remote areas.
- Artificial Intelligence and Machine Learning (AI and ML) can personalise financial services, offering tailored advice and products to consumers. AI can also automate and optimise operations, risk assessment, customer service, and fraud detection for businesses. This technology helps reach underserved segments of the population by lowering the costs of financial services and enhancing user experience.
- Increased digitisation of access to global financial markets: online investment platforms offer a quick and easy way to access investment opportunities from your mobile or desktop. This compares to, say, a decade ago when traditional methods such as speaking with a Financial advisor local or international Bank were the main distribution and access options. This also tended to include lots of paperwork and manual processing of investment choices and the rapid move to the digital delivery of global markets has made this more inclusive, easier and a vastly improved Client experience for the majority of residents in the UAE.
These innovations will simplify engaging with markets and are particularly promising for potential investors in UAE stocks and mutual funds in Dubai.
Expanding access to financial services is vital to crafting a more inclusive and resilient global economy. Stakeholders, including policymakers and the financial sector, must actively improve financial inclusion mechanisms. The financial industry has a substantial opportunity and responsibility to guide and sustain this advancement, especially in dynamic markets like the UAE.
