Mashreq’s Fernando Morillo Discusses How the Digital Banking Revolution Has Already Arrived on AB Majlis Podcast

Mashreq’s Bold Leap: How a Legacy Bank is Winning the Digital Race

In a groundbreaking interview, Arabian Business’s AB Majlis podcast spoke with Fernando Morillo, Group Head of mashreq’s Retail Banking Group. The conversation unveiled how one of the region’s most established institutions is radically transforming itself for a digital-first, human-centric future.

Morillo describes Mashreq’s transformation as “perhaps the boldest I’ve ever seen.” Guided by the founding family’s vision, the bank has undertaken a monumental shift in how modern banking operates.This includes streamlining towards a digital-first experience, including closing nearly 90% of its branch network – a move that’s ironically boosted its customer base threefold. “The tipping point is behind us,” Morillo stated. “Banking no longer needs to happen in branches,between paper and humans. It’s all digital now, and it’s working flawlessly.”

A Region Ripe for Digital Transformation

Morillo highlights the Middle East’s unique position for digital acceleration. The region’s demographics – with half the population under 30 – combined with the progressive regulatory landscape in the UAE and saudi Arabia,provides banks with an unprecedented opportunity to lead innovation. Markets like Egypt and Pakistan, where Mashreq is expanding, are experiencing an certain wave of digital adoption. Morillo underscores that for these digitally native populations, physical banking is becoming the exception, not the rule.

From Bureaucracy to Agile Squads

Beyond technology, customer experience is a central pillar of Mashreq’s strategy. Every executive committee meeting starts with a review of client experience data, and employee compensation is directly tied to customer satisfaction. “it’s not just a tagline – it’s an obsession,” Morillo emphasizes.

This customer-centric approach has transformed Mashreq’s internal structure.The bank now operates in small, autonomous squads, mirroring fintech startups and encouraging direct engagement with customer feedback. Power has shifted to these squads, enabling them to act like independent fintech companies within the bank. Morillo labels this the “bank-tech” model, blending the agility of fintech with the proven risk management of a customary bank. “It’s unbeatable. Clients get innovation and protection simultaneously occurring,” he asserts.AI, Chatbots, and the Hybrid Future

Artificial intelligence is seen not as a trend, but a fundamental shift. Mashreq has launched a chatbot capable of handling nearly 90 types of transactions – a first in the region. “Clients don’t want to be hassled with offers. They want seamless service. Our chatbot gives them what they need in real time,” Morillo stated.

The long-term vision is to make the entire Mashreq app as intuitive as ChatGPT: conversational, adaptable, and personalized. However, Morillo cautions that AI’s potential is fully realized only after complete digitization.He envisions a future where simple transactions are instant and digital, while complex ones benefit from human interaction. The future of finance, according to Morillo, is a hybrid model that blends cutting-edge technology with a human touch.

What specific changes in consumer expectations are forcing banks like Mashreq to accelerate digital change?

Mashreq’s Fernando Morillo: The Digital Banking Revolution is Here

Mashreq’s Head of Retail Banking Group, Fernando Morillo, recently appeared on the AB Majlis podcast to discuss the rapid evolution of digital banking and how Mashreq is leading the charge.The conversation, a deep dive into the current state and future trajectory of financial technology (FinTech), highlighted that the predicted revolution isn’t coming – it’s already arrived. This article breaks down key takeaways from the discussion, offering insights for consumers and industry professionals alike.

The Shift in Consumer Expectations

Morillo emphasized a fundamental shift in customer expectations. Today’s banking customers, especially millennials and Gen Z, demand seamless, personalized, and readily accessible digital financial services. They’re accustomed to instant gratification in other areas of thier lives and expect the same from their banks.

Mobile-First banking: The expectation isn’t just for online banking; it’s for a robust and intuitive mobile banking experience.

Personalized Experiences: generic banking products are becoming obsolete. Customers want tailored solutions based on their individual needs and financial goals.

24/7 Accessibility: Customary banking hours are a relic of the past. Customers need access to their accounts and services anytime, anywhere.

Seamless Integration: Banking needs to integrate seamlessly with other aspects of their digital lives – e-commerce, social media, and more.

This demand is driving banks like Mashreq to prioritize digital transformation, as defined by IBM, which assesses an institution’s processes, products, operations and technology stack to enhance efficiency and get products to market faster.

Mashreq’s Digital Innovation Strategy

Mashreq isn’t simply reacting to these changes; it’s proactively shaping the future of banking in the region. Morillo outlined several key initiatives:

Leveraging AI and machine Learning

Artificial intelligence (AI) and machine learning (ML) are at the heart of Mashreq’s digital strategy. These technologies are being used to:

1. Enhance Fraud Detection: AI-powered systems can identify and prevent fraudulent transactions in real-time, protecting customers and the bank.
2. Personalize Financial Advice: ML algorithms analyze customer data to provide personalized financial advice and recommendations.
3. Automate Customer Service: Chatbots and virtual assistants are handling routine inquiries, freeing up human agents to focus on more complex issues.
4. Improve Credit Risk Assessment: AI is being used to develop more accurate credit scoring models, making lending more accessible.

Open Banking and APIs

Mashreq is embracing open banking, allowing third-party developers to access its data and build innovative financial applications through Submission Programming Interfaces (APIs). This fosters collaboration and accelerates innovation.

Increased Competition: Open banking encourages competition, leading to better products and services for consumers.

New Revenue Streams: apis create new revenue opportunities for both Mashreq and its partners.

Enhanced Customer Experience: Open banking allows customers to consolidate their financial information and manage their accounts from a single platform.

Focus on Cybersecurity

With increased digitization comes increased risk. Mashreq is heavily investing in cybersecurity measures to protect customer data and prevent cyberattacks. This includes:

Multi-Factor Authentication: Requiring multiple forms of verification to access accounts.

Data Encryption: Protecting sensitive data with advanced encryption technologies.

Real-Time Monitoring: Continuously monitoring systems for suspicious activity.

Employee Training: Educating employees about cybersecurity threats and best practices.

The Rise of Digital Payments

The podcast also touched upon the explosive growth of digital payments. Morillo highlighted Mashreq’s commitment to providing customers with a wide range of convenient and secure payment options, including:

Contactless Payments: Utilizing NFC technology for quick and easy transactions.

Mobile Wallets: Supporting popular mobile wallet platforms like Apple Pay and Google Pay.

Real-Time Payments: Enabling instant money transfers between accounts.

Blockchain Technology: Exploring the potential of blockchain for secure and transparent payments.

Benefits of Digital Banking for Consumers

The benefits of this digital banking revolution are numerous for consumers:

Convenience: Bank from anywhere, anytime.

Cost Savings: Lower fees and more competitive interest rates.

Personalization: Tailored products and services.

Financial Inclusion: Access to banking services for underserved populations.

Greater Control: Enhanced visibility and control over finances.

Practical Tips for Navigating the Digital Banking Landscape

For consumers looking to take advantage of the benefits of digital banking, Morillo offered these practical tips:

1. Stay Informed: Keep up-to-date on the latest digital banking trends and security threats.
2. Choose Secure Passwords: Use strong,unique passwords for all your online accounts.
3. Enable Multi-Factor Authentication: Add an extra layer of security to your accounts.
4. Monitor Your Accounts Regularly: Check your account statements and transaction history for any unauthorized activity.
5. Be Wary of Phishing Scams: Be cautious of suspicious emails or messages asking for personal information.

The conversation with Fernando Morillo on the AB Majlis podcast clearly demonstrates that the future of banking is digital, and Mashreq is positioned to be a leader in this