UAE Banking Sector Sees $3.76 Billion Increase in Savings Deposits in Q1 2024
The UAE’s banking sector saw a significant influx of savings deposits in the first quarter of 2024, reflecting strong financial growth and stability.
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The apex bank’s statistics showed that during the first quarter of 2024, savings deposits in the UAE’s banking sector, excluding interbank deposits, saw an increase of approximately AED13.8 billion, according to recent data from the Central Bank of the UAE (CBUAE).
The apex bank’s statistics reveal that savings deposits reached AED286.67 billion by the end of March 2024, marking an 8.9% increase (equivalent to AED23.5 billion) compared to AED263.14 billion in March 2020.
On a monthly basis, savings deposits rose by 3% (equivalent to AED8.3 billion) from AED278.37 billion in February to AED286.67 billion in March 2024. Additionally, there was a 5.1% increase in savings deposits during the first quarter of 2024, up from AED272.8 billion at the end of 2023.
The statistics indicated that demand deposits rose to AED 1.056 trillion at the end of last March, with an annual growth of 15.02%, compared to AED 918.9 billion in March 2023, an increase equivalent to AED 138 billion.
Demand Deposits increased on a monthly basis by 0.09%, or the equivalent of AED 1 billion, compared to about AED1.05 trillion in the previous February. They also increased during the first quarter of this year by about AED 37.5 billion or 3.7% compared to AED 1.019 trillion at the end of last year.
The Demand Deposits were distributed as follows: AED757.78 billion in local currency “dirham,” accounting for 71.7%, and about AED299.2 billion in foreign currencies, accounting for 28.3%.
The Demand Deposits have continued to grow over the past years, rising from AED 577.6 billion at the end of 2018 to AED 599.6 billion at the end of 2019, AED 696.8 billion at the end of 2020, AED 848 billion in 2021, and AED 907.3 billion in 2022.
According to the Central Bank‘s bulletin, Time Deposits reached AED 840.1 billion at the end of last March, with an annual increase of about 27.4% compared to about AED 659.6 billion in March 2023, an increase equivalent to AED 180.5 billion.
The local currency, the dirham, accounted for the largest share of time deposits at about 57.5% or AED483 billion, while the share of foreign currencies was about 42.5% or AED357.1 billion.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
The agreement offers innovative and customer-centric solutions to CBD cardholders across all segments
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Commercial Bank of Dubai (CBD), one of the leading banks in the United Arab Emirates, has announced an exclusive multi-year strategic partnership with Visa, a global leader in digital payments, for credit and debit cards. This partnership aims to enhance digital payment adoption in the UAE, offering innovative and customer-centric solutions to CBD cardholders across all segments.
The agreement was signed by Khaled Al Hammadi, General Manager of the Personal Banking Group at CBD, and Salima Gutieva, Visa’s Vice President and Country Manager for the UAE.
The signing ceremony was attended by Dr. Bernd van Linder, CEO of Commercial Bank of Dubai, and Andrew Torre, Visa’s Regional President for Central and Eastern Europe, the Middle East, and Africa.
As part of this partnership, CBD and Visa are also partnering to establish a ‘Centre of Excellence’ powered by Visa Consulting and Analytics (VCA), dedicated to accelerating and simplifying customer’s payment experiences. By leveraging core data assets and deriving insights, VCA will formulate actionable recommendations that aim to address business challenges and offer personalized solutions to customers. This collaborative approach will support CBD’s goals of market expansion, product design, customer acquisition, and engagement improvement, focusing on areas such as encouraging card usage through engaging and rewarding gamification, positioning CBD Visa cards as the top choice in digital wallets, enhancing cross-border transactions and payment speed, and expanding our footprint through strategic digital merchant collaborations.
Moreover, CBD and Visa are redefining the marketing landscape for the CBD card business through initiatives such as leveraging advanced technology to enhance digital customer onboarding experiences, sponsoring high-profile events like the Olympics, launching the Visa Instalment Solution in the UAE to introduce flexible payment options for our customers directly through Point-of-Sale (POS) machines, and offering comprehensive local and international benefits, focusing on the complete lifecycle of new and existing CBD Visa cardholders.
Dr. Bernd van Linder, Chief Executive Officer, Commercial Bank of Dubai, said, “We are excited to build on our partnership with Visa as we continue our mission in providing innovative and customer-centric payment solutions. The financial sector landscape is changing dramatically with technological disruption, emergence of new players, as well as constantly evolving customer expectations. Our collaboration with Visa will help us in developing new business models and providing more personalized customer offerings. At CBD, we are committed to playing a leading role in the digitization of the financial payments sector and introducing innovative financial solutions that meet our customers’ evolving needs and deliver seamless banking experiences.”
Khaled Al Hammadi, General Manager, Personal Banking Group at CBD, further added, “We are proud of this extended and strategic partnership with Visa. With Visa’s global expertise and CBD’s dedication to meeting the needs of our customers, we aim to provide a more seamless payment solution, delivering a variety of competitive and innovative features, products, and offers that are data-driven and are based on customer feedback. This includes recognizing and rewarding our customers, enhancing their banking experience, and delivering tangible benefits.”
Salima Gutieva, Visa’s VP and Country Manager for UAE, said, “We are delighted to expand our partnership with CBD with this exclusive multi-year partnership for their credit and debit portfolio. We will continue to work together to develop attractive products that deliver seamless, secure and rewarding experiences to the bank’s customers. CBD will be able to leverage Visa‘s industry-leading data and analytic capabilities to further drive innovation with personalized experiences for Visa cardholders. We also look forward to bringing value to local retailers and contribute to the UAE government’s efforts to grow the digital economy.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
