Deloitte launches the Middle East Financial Services Regulatory Barometer 2018 that says adaption and agility will be the key to success in the year ahead.
The Deloitte report focuses on the top ten regulatory priorities for banks in the Middle East: from recovery and resolution planning to financial crime compliance. The report highlights key challenges and opportunities related to these priorities, based on understanding, experience and interactions with the industry.
“Many regulatory changes in the industry today are being driven by the international community. In the Middle East, we face the challenge of interpreting requirements to suit the needs of our own unique financial services market, where the products, players, market maturity, and existing regulatory environment vary greatly to those in Europe and the US (where many international standards are set),” said Bhavin Shah, Partner, Financial Advisory, Deloitte Middle East.
As financial institutions in the Middle East navigate an increasingly complex regulatory environment, the Regulatory Barometer serves as a guide for the industry – identifying success factors to observe, risks to mitigate and pitfalls to avoid.
The power of technology
The Deloitte report examines transformative new technologies, from blockchain to biometrics, providing exciting opportunities for firms to increase efficiencies – not only when it comes to compliance, but across their operating and business models.
Cross-border compliance issues
Middle East banks are recognizing the need to think (and act) globally – not only to mitigate against a relatively small, oversaturated local market, but also to better serve international clients seeking reliable, easy banking wherever they go. While the standards set by international bodies are globally recognized and can facilitate harmonization across different countries, the idiosyncrasies of the local market still matter.
Risk and compliance cultures
The tone at the top matters, but so does the tune from the middle. There must be awareness, understanding and ownership of risk at all levels within banking institutions, to ensure financial resilience is prioritized both today and in the future.
Firms in the Middle East can take advantage of the evolving financial services landscape to refresh their strategies, rethink their processes and identify new ways to increase efficiencies while reducing risks. Adaptation and agility will be key to success in the year ahead.
The full report is available to download here