Mobile applications account for 25% of individual conversions

The Chairman of the Board of Directors of the Group of Banking and Money Transfer Institutions in the Emirates, Mohammed Al-Ansari, estimated the volume of financial transfers of small amounts to individuals, which were made via smart phone applications, at approximately 25% of the total financial transfers via ATMs, during the past year, compared to 16% in 2023. .

Al-Ansari stated to Emirates Today that there is an expansion in promotional campaigns and offers that encourage the use of transfers through these applications for several reasons, including strong competition with “fintech” companies that provide the same services for free, with the aim of forming a customer base in the local market, in addition to the desire to Exchange companies help reduce pressure on branches, especially for transfers of 1,000 dirhams or less.

He explained that customers usually look for lower fees if the amount is small, while they prefer to deal with branches if the amounts transferred are large, noting that “the issue of trust in the presence of a reference for inquiries or direct communication with customer service centers is one of the strong reasons behind preferring to deal.” Directly with ATM branches.

He pointed out that exchange companies have spent very large sums of money on developing their technical infrastructure, and it is natural for them to urge their customers to use it, in addition to the branches spread throughout the Emirates.

Al-Ansari pointed out that the exchange companies operating in the market are all licensed by the Central Bank and subject to its controls and legislation, in addition to their good reputation among their customers, all of which gives them priority in facing competition with companies that provide money transfer services.

According to information collected by Emirates Today, transfer fees through smart applications for exchange companies are approximately 50% less than the fee for dealing with the branch directly to complete the transfer and range between 10 and 15 dirhams, compared to 30 dirhams on average for financial transfers through the branch.

Since the middle of last year, exchange companies have raised fees for money transfers through branches after obtaining the approval of the Central Bank, to confront the increase in operating costs and to cover their increasing expenses, like other sectors. However, in return, they have kept the fees for electronic transfers via the smart application as they are, and from the beginning of December until now. It offers a discount on these fees of up to 30%, equivalent to five dirhams or less.