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Consumer Banking

Throughout 2021, FAB continued to deliver exceptional banking services to millions of customers, building on its prominent position as the leading consumer bank in the UAE, offering unique customer propositions catering across the Bank’s physical footprint and digital channels in both conventional and Islamic banking segments.

From our 66 branches and cash offices across the UAE, FAB is the leading consumer bank in the nation, with unique client propositions catering to individual client segments. We seek to build deep and lasting relationships with our target segment customers by leveraging our market leading product portfolio, customer experience and digital proposition.

During 2021, FAB Consumer Banking achieved significant strategic milestones and noteworthy achievements, including carving out Magnati to accelerate growth in the payments space and further enhancing our digital and mobile offerings to deliver seamless, efficient, and user-friendly services to our increasingly digitally savvy customer base.

Our progress during the year, which was recognised by a range of prestigious awards and recognitions, reinforced our strategic direction, including the application of advanced technologies, data, and analytics to refine and personalise customer experience, has positioned the business for further strategic growth in the coming year.

consumer banking

Expanding proposition and profitability in 2021

FAB Consumer Banking generated a revenue of AED 4.9 billion, 5% lower year-on-year, as growth in net interest income was offset by lower fees and commissions in 2021. Loans, advances and Islamic financing grew 5% and CASA deposits grew 6% year-on-year, driven by mortgages, higher consumer spending and enhanced customer propositions.

Sales momentum continues to remain strong. Issuance of FAB credit cards in the UAE grew by over 50% in 2021, driven by score-based lending, market leading products and the success of our referral programme. UAE mortgage lending increased by 19% driven by leading rates and partnerships with top tier real estate developers. UAE personal loan lending grew by 26% when compared to 2020.

Completion of the carve-out of Magnati

In April 2021, FAB completed the carve-out of its existing payments business into a fully owned and operational subsidiary. This strategic milestone cements FAB’s leadership position in the payments space and unlock new growth opportunities, through a focused and agile model, underpinned by an intelligent payments platform that creates value for our merchants, partners, government and institutional clients.

Magnati witnessed 46% growth in transactions processed over pre-pandemic levels and surpassed full-year 2021 expectations significantly, as the economy opened up gradually and Expo 2020 inspired growth in consumer spending. It also succeeded in increasing its market share considerably during the year – seeing around 40% growth in new client acquisition and 46% growth in Total Processed Volume (TPV).

Through a growing ecosystem of partners, Magnati continued to extend its reach and impact throughout the year. These partnerships included:

  • Al-Futtaim, to offer ‘Buy Now, Pay Later’ at IKEA online
  • Emarat, to offer customers seamless, secure payment solutions
  • Dubai Refreshment Company – Pepsi, to offer the region’s first-of-its-kind direct integration payment solution for vending machines deployed at Expo 2020
  • RSA, to deliver seamless omni-channel payment experience to insurance customers
  • Launched end-to-end subscription-based ‘Business in a Box’ solutions for in-store and online SMEs

Working alongside fintech partners, Magnati enhanced its Payment-As-A-Platform offering. The exceptional proposition and progress of Magnati was recognised through several leading industry awards during 2021, including the ‘Fintech Partnership Award’ by The Fintech Abu Dhabi Awards 2021 and ‘Best Customer Experience’ by MEA Finance Awards for our ‘Buy Now, Pay Later’ offering.

consumer banking

Magnati in 2021 by the Numbers

  • +46% acquiring processed transactions
  • +46% processed volume
  • +39% new acquiring clients onboarded
  • +19% spends on issuer processing

Making further strides in digital adoption

FAB Mobile, which received a 4.5 rating on Apple Store in December 2021, continues to provide customers with simple and convenient banking experiences. As a result, both registrations and engagement with our digital platforms increased in 2021, and 88% of transactions and service requests were performed through FAB Mobile compared to 85% in 2020.

2021 saw the launch of end-to-end digital journeys for Multi- CASA new-to-bank (NTB) and Credit Card NTB customers on FAB Mobile, as well as the rollout of new Digital Secure Key and e-Sign features on the platform. As a result, 37% of all current accounts and savings accounts sold were executed independently through FAB’s digital channels.

In addition, new digital journeys and capabilities launched across multiple channels helped reduce transactions and service requests through our contact centre and physical channels. Calls into our contact centre reduced by 15% when compared to 2020 and the Bank closed eight branches and converted a further three to a digital operating set up.

FAB also launched the UAE’s first ever location-based cashback gamification experience on Dubai First during the year, and became the first bank in the country to provide instant issuance of in-principle approval letters for mortgages.

The Group’s mobile platform and advanced use of analytics received recognition in the period, with FAB winning ‘Best Mobile Banking Service Implementation’ at the MEA Finance Awards 2021 for the Bank’s data-driven campaign promoting easy payment plans.

Delivering services to meet the needs of Elite, UAE nationals and expatriate segments

Consumer Banking aims to become the leading bank for Elite, UAE nationals, expatriate customers wanting to make the UAE their permanent home, and young adults. This will be achieved by delivering enhanced services to meet the specific needs of these groups – including in the areas of family finances, home buying and wealth management.

Through the introduction of a new Elite World segment, with an enhanced proposition and coverage model, we improved service, raised deposits, and grew Elite investment AUMs by 46% year-on-year. Meanwhile market leading product rates and features, together with an enhanced Islamic sales model, helped us acquire 30% more UAE National customers in 2021 compared to 2020.

Going forward, we will further personalise our products and services to cater to the unique needs of these groups and capture full banking relationships by rewarding loyalty and becoming central to customers’ day-to-day lives.

Delivering an enhanced customer experience

FAB Consumer Banking continued to implement new initiatives to enhance customer satisfaction and streamline processes to provide seamless banking experiences throughout 2021, achieving an overall Net Promoter Score (NPS) of close to 60 in 2021, with a 5% drop in customer complaints.

FAB deployed advanced analytics across the business to deepen customer relationships. AI-driven campaigns, hyper contextualised location-based notifications and gamification were deployed to improve spends, product cross-sell, product utilisation, retention, and employee productivity.

Consumer Banking also activated a number of new customer-centric partnerships in 2021, including with the Abu Dhabi Residents Office to serve Golden Visa holders, the Mohamed Bin Rashid Housing Programme, Danube Home, Zomato, Noon, and the Al Futtaim Group (offering exclusive discounts from IKEA to National Housing Loan customers along with free delivery and assembly).

Our people continue to be key to delivering leading customer experiences, and the knowledge and best practices of customer facing employees were enhanced via drop-in clinics, virtual events, and internationally accredited training programmes.

Looking ahead

Consumer Banking enters 2022 with a robust pipeline of initiatives to enhance product offerings, scale up digital sales and transform distribution. Planned product rollouts in 2022 include innovative relationship bundles, loyalty offerings, a new employee banking proposition, child and youth propositions and overdrafts.

New digital offerings will include end-to-end personal instalment loan journeys, new housing, wealth management and investment platforms, and mobile family banking solutions. Physical distribution will be transformed by equipping staff with digital tools and further optimising branches. At Magnati, we are currently working on 28 fintech partnerships and our Payment-As-A-Platform is taking a much larger shape to become the Appstore/Playstore of payments.

consumer banking

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First Abu Dhabi Bank P.J.S.C

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