Sriranga: Could you briefly introduce Zand Bank and your journey towards becoming the CEO of the bank?
Michael: Zand Bank is a unique player in the digital banking space. We are the UAE’s first fully licensed digital bank empowering corporate, institutional and wealth clients to unlock new opportunities, foster sustainable growth and drive positive impacts in the digital economy.
We are fortunate to have a strong and diverse group of shareholders, including Al Hail Holding and international companies like Franklin Templeton and global entrepreneurs like Mohamed Alabbar.
Our proposition goes beyond traditional banking models. We leverage advanced technologies such as AI and blockchain to transform the financial landscape. This innovation is crucial, especially in the UAE, where the financial market is highly competitive with 60+ banks. We aim to carve out a niche by bridging traditional finance (TradFi) with decentralised finance (DeFi).
As for my journey, I’ve had the privilege of living and working in multiple countries. I’ve held roles in global markets, tech, corporate development and digital initiatives, which have equipped me with the tools to bring a business- and tech-driven mindset to Zand Bank, setting the stage for our success in the UAE.
Sriranga: Zand has been carving a unique niche in the market. Can you talk about evolving into an AI-led digital bank?
Michael: We see ourselves as a fintech – but with a banking license, and this is what sets us apart. Our focus is not just on capturing the market but addressing the real shortcomings in the ecosystem. The UAE has been incredibly successful in attracting investments, wealth and fintech companies, providing them with a robust environment to grow locally, regionally and globally. However, the necessary support is often missing in the traditional banking landscape. That’s where we come in – building a supportive ecosystem for startups and corporations in the digital space.
We have been on this transformative journey with AI for over a year now. For instance, we have been launching various AI initiatives within Zand, later expanding to our clients. Our approach has been to leverage a mix of technologies, including blockchain and AI to really push the boundary on what banking can be.
I’d also like to highlight the role of Infosys Finacle in this transformation. The team has demonstrated a strong vision in leveraging AI to address pain points not just in banking but also in fintech. Their open architecture approach plays a crucial role in enabling and supporting the broader ecosystem.
Sriranga: How is Zand approaching the cloud evolution, and what impact does it have on its operations?
Michael: At Zand, we’ve embraced the cloud from day one. We believe this cloud-first approach is essential not only for our growth but for the broader evolution of the banking sector.
One of the biggest advantages of being on the cloud is the ease with which data can be utilised for AI modeling. When data resides in the cloud, it becomes much simpler to apply advanced AI engines and large language models to drive faster innovation and growth. Conversely, hosting data elsewhere often requires extensive integrations, which can slow down processes and increase complexity.
Sriranga: How did you select your cloud partner, and what criteria were important in your decision-making?
Michael: The decision to choose a cloud partner involves addressing fundamental concerns such as data security, privacy, scalability and control.
At Zand, we conducted an extensive study to evaluate these factors and chose to go 100% cloud from day one, ensuring that we were prepared to overcome these challenges effectively. With traditional infrastructure, scaling up often requires significant reinvestment, which can be time-consuming and expensive. The cloud eliminates this limitation, offering seamless scalability and flexibility. A critical factor for us was finding a partner who could meet our pace of innovation and share our vision for rapid growth.
Security was another key criterion. We were impressed by the work Finacle has done to ensure a secure and cloud-agnostic platform. Additionally, the cloud enables faster time-to-market, which is vital in today’s competitive banking environment.
Sriranga: Talking about wallets, Zand is pioneering in this area. This is a space where we also hear about custody management solutions. How does Zand see its role in this space?
Michael: The digital wallet space is evolving rapidly, with telcos and traditional banks increasingly entering the arena. At Zand, we see ourselves uniquely positioned as a bridge between TradFi and DeFi, offering both fiat wallets and digital asset wallets. Our vision extends to becoming a leader in this space within the MENAT region.
In today’s world, there’s a growing need for secure custody of tokenised and digital assets. This shift is already gaining traction in regions like Europe and the Americas, and Zand aims to lead the charge in MENAT.
In this regard, we are creating an ecosystem of digital assets, Zand obtained an approval from the Virtual Asset Regulatory Authority (VARA) to become the first UAE bank to provide institutional-grade digital asset custody services under its own banking license for our corporate and institutional clients.
Going hand-in-hand with this development is Zand’s soon to be launched AED-backed stablecoin.
Sriranga: Please share your experience on the collaboration between Zand Bank and Finacle, and how has it benefited Zand in the market?
Michael: The collaboration between Zand Bank and Finacle thrives on shared vision and agility. This synergy has enabled remarkable milestones, such as achieving full migrations within just 100 days — a testament to the seamless collaboration and technological alignment.
Finacle’s modular architecture and deep understanding of Zand’s needs have been pivotal to our growth. Their API-first approach aligns perfectly with Zand’s 100% cloud-based operations. The partnership has enhanced our scalability, flexibility and speed to market, giving us a competitive edge.
Sriranga: Let’s wrap with some rapid-fire questions. What’s the top two apprehensions that you had with cloud?
Michael: Data security and data privacy.
Sriranga: What is the most significant advantage that Zand got in the market with Finacle Next Gen platform?
Michael: I believe it’s scalability, flexibility and time to market.
Sriranga: What do you think are the biggest myths about modern technologies?
Micheal: Bankers believe they are complicated, costly, but in fact, they’re not.
Sriranga: What has been a key success factor for Zand – AI or blockchain?
Micheal: I think our key success factor is that we understand the client problems. We are trying to use innovations and technologies to solve these problems.
Sriranga: I have seen this first-hand, so I agree. Thanks a lot Michael for taking time out for such an insightful and engaging discussion.
