Resilience, rather than size or legacy, will define long-term success for banks navigating disruption and digital native challenger banks, says a new report by Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East.
The Changing Face of Banking: Building Resilience Through Change report examines how global banks must adapt their operating models to absorb disruption, evolve, and remain resilient amid AI, digital-native challengers, and shifting global demand.
Built on AI-driven, cloud first and asset light models, challenger banks are setting new standards for speed, personalisation and cost efficiency – and in doing so, exposing the limitations of traditional operating models. Their rapid growth is reinforcing pressures on established institutions, accelerating a shift in which both sides must innovate faster to stay competitive. Without decisive transformation, industry profit pools could fall by $170 billion by 2030, pushing many institutions below their cost of capital.
The report emphasises that AI offers the clearest path out of this conundrum. Rapidly becoming core infrastructure, AI is already delivering the productivity uplift the sector urgently needs and building the foundation of the next-generation operating model that digital native banks have turned into the industry’s new template.
Arif Amiri, Chief Executive Officer at DIFC Authority, commented: “As the global banking industry undergoes its most significant transformation in nearly two decades, institutions must embrace innovation, resilience and adaptability to thrive in a rapidly evolving financial landscape shaped by AI, digital assets and shifting global markets. In Dubai and specifically at DIFC, we are committed to enabling this transformation through a future-focused ecosystem that connects global institutions to high-growth opportunities across the Middle East, Africa and South Asia, while supporting banks in building the agility and resilience needed for the future.”
As the second in a four-part series on the Future of Finance that will be published over the course of 2026, the report draws on insights from a high-level roundtable held at the Centre at the start of the year, which brought together senior financial services leaders. The report features insights from the roundtable which have been augmented by network-based research, along with interviews with distinguished industry experts, including: Ambareen Musa, CEO of GCC, Revolut; Rohit Garg, Chief Digital Officer & Group Head, Retail Products, Emirates NBD; and Fernando Morillo, Group Head of Retail Banking, Mashreq.
Strategic geographical relevance
The report identifies that banks moving early and decisively will not only defend profitability but unlock new client groups, new regions and frontier asset classes. In doing so, they position themselves to capture a larger share of global finance.
As a bridge between the East and the West, Dubai’s geographical location enables banks to connect emerging FinTech innovation with global capital and reach high growth markets across Asia, the Gulf and Africa. Thus, Asian FinTech companies and European challenger banks also choose Dubai as a base to tap into booming consumer markets in Asia, the Middle East and Africa where mobile-first banking is becoming the norm.
In this way, DIFC acts as a vibrant hub where both established players and digital entrants can compete, collaborate and grow.
Embracing digital innovation and evolving regulation
Banks are likely to use jurisdictions with supportive regulation to pilot new services and test model accuracy and governance in a controlled environment before scaling them across the region. As the world’s first AI‑native financial centre, DIFC is integrating intelligence into regulatory processes and market infrastructure, enabling firms to build, test and scale AI‑driven financial services.
An integral part of the DIFC ecosystem are 290 banks and capital markets firms, including 17 of the world’s 19 global systemically important banks, reinforcing DIFC’s role as a strategic base for institutions navigating structural change.
Unlocking opportunities with new groups and markets
DIFC’s new report reveals entrepreneurs, family offices, and women represent influential banking clients whose distinct and evolving financial needs remain underserved. AI-driven insights and bespoke advisory backed by more accurate anticipation of client needs allows banks to deliver targeted, personalised offerings to these groups and unlock new revenue pools.
In addition, family offices, especially in emerging markets, are increasing in number and sophistication, yet remain fragmented and underserved in areas such as cross-border structuring, private market access, and succession planning. Emerging capital hubs such as Dubai stand out in this regard, with DIFC offering support to these groups with next‑generation banking services, including AI‑enabled client engagement, digital assets, and new operating models tailored to evolving client needs.
DIFC’s pro-innovation regulatory framework, robust laws, regulations, and market infrastructure position Dubai as a leading global capital hub. Supporting next-generation banking services, the Centre showcases AI-enabled client engagement and new operating models tailored to evolving client needs, reinforcing DIFC’s role as a global platform shaping the future of finance. -TradeArabia News Service
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