Sriranga – Thank you for taking the time to speak with us today. Could you share some insights on the key trends driving change in the banking sector in Oman, and how Bank Muscat is strategically responding to these trends?
Ahmed – The banking sector in Oman is rapidly evolving driven by key trends such as economic diversification and digital transformation. The focus of Oman Vision 2040 is to create a more diversified, sustainable and resilient economy by reducing dependence on oil revenues and focusing towards growth in technology, tourism and renewable energy. Thus, creating a demand for innovative banking solutions to support these emerging sectors.
Scaling digital transformation continues to be a critical priority for banks. As customer expectations evolve, the demand for seamless, intuitive digital experiences that are fully integrated into their primary financial journeys is more prevalent than in the past. To stay competitive, banks must prioritise the development of more immersive mobile apps and efficient digital payment solutions that not only meet but anticipate customer needs. Elevating these digital capabilities is no longer optional—it’s essential for delivering the convenience, speed and personalisation that modern banking customers now expect as the norm.
At Bank Muscat, we are strategically aligned with these trends. Over the past 40 years, we’ve been a reliable partner in sustainable development, and our focus on digital transformation is evident in our growing user base of mobile and Internet banking customers amounting to more than 1.9 million users as of now. This underscores our success in executing plans that promote digital transformation and financial inclusion for individuals, corporates and SMEs.
We have introduced innovative services that cater to the demand for on-the-go banking, positioning our applications as central to our customers’ digital preferences. These enhancements improve customer convenience and align with Oman’s digital society goals. Our advancements in digital banking reinforce our commitment to providing world-class services and supporting government initiatives.
Sriranga – Given the bank’s commitment to providing world-class banking products and services, especially in digital banking channels that enhance convenience and efficiency for customers, how has Bank Muscat positioned itself to capitalise on the growing trend of digital adoption in the market?
Ahmed – Bank Muscat is deeply committed to its vision of “To serve you better, every day.” We are actively transforming our digital channels to align with this mission.
We believe that convenience is a key driver for customer satisfaction. Thus, we aim to make our mobile app a central hub for all banking needs by offering extensive features and capabilities. We’ve streamlined the Know Your Customer (KYC) and onboarding processes, allowing customers to complete these tasks seamlessly from their mobile devices, ensuring speed and security. We have simplified everyday transactions by ensuring seamless mobile payments through QR code scanning and other mechanisms.
Our app now supports variety of fund investments and international money transfers, making it easier for customers to manage investments and conduct cross-border transactions efficiently. We have also introduced features for managing minor accounts, giving parents and guardians convenient oversight through our digital channels.
Beyond traditional banking services, we are embedding value-added features into our mobile app to enhance the overall customer experience. The Asalah Entertainer App allows customers to use the app directly through Mobile Banking, enhancing banking convenience and saving time. Also, API Banking Services is a major initiative by the bank and it has contributed to revolutionising transaction management with an end-to-end digital journey.
Sriranga – How is this channel transformation helping your customers, and what benefits have been realised?
Ahmed – In line with our customer-centric vision and commitment to providing the best digital banking services, Bank Muscat’s channel transformation has brought notable benefits.
In terms of numbers, the number of users of the bank’s digital channels has exceeded 1.9 million.
The bank has redefined the industry benchmarks by crafting digital banking solutions catering to the needs of its corporate customers. The volume of transactions processed over the corporate online banking platform increased significantly by 77% in the first half of 2024, compared to the corresponding period last year. We also registered a remarkable increase of 51% in the number of POS and e-commerce transactions and a surge of 22.7% in transaction volumes during the first half of 2024, compared to the same period in the previous year.
On the qualitative side, our transformation has significantly enriched the user experience. For instance, features like Tap ‘N’ Go, Samsung Pay and QR code payments, have made banking more intuitive and accessible.
We’ve also integrated advanced security measures, which not only enhance security but also offer peace of mind to our customers. The unified login experience across Internet and Mobile Banking has streamlined our customers’ interactions, reducing the complexity of managing multiple credentials.
Moreover, our app now supports a range of new functionalities. Users can scan their debit cards for quick registration, share payment receipts via social media and even perform bill payments using barcode scanning. The introduction of digital KYC and onboarding has enabled customers to complete necessary procedures from the comfort of their homes, cutting down on paperwork and administrative hassles.
Sriranga – How is your bank preparing for the future through technological advancements?
Ahmed – With a commitment to innovation, the bank aims to regularly roll out innovative features and enhancements using agile methodologies based on emerging technologies and evolve based on continuous customer feedback and market trends.
We have invested in scalable infrastructure to manage high transaction volumes and peak loads without compromising performance. This scalability prepares us for future growth and increasing user demands.
Also, exploring partnerships with technology innovators is a key area of focus for us. We want to ensure that our digital channel remains innovative, competitive and at the forefront of technological advancements in the banking and financial domain.
Sriranga – Can you tell me about your relationship with Finacle and how it’s contributed to your digital banking transformation?
Ahmed – Bank Muscat’s partnership with Finacle has been instrumental in shaping our digital banking capabilities and delivering a superior customer experience. Our collaboration began in 2013 with the successful implementation of the Finacle Internet Banking platform.
The platform’s comprehensive capabilities provided us with the tools needed to enhance our online banking services and set the stage for future innovations. It offers a scalable, agile and resilient infrastructure that supports our growing needs and evolving market demands. The platform’s versatility ensures that we can integrate new functionalities and adapt to changing technological landscapes with ease.
A significant benefit of our partnership with Finacle is the seamless integration of Mobile and Internet Banking on the same platform. This unified approach allows us to deliver a consistent and enhanced user experience across all digital channels.
