Mashreq solidifies position in SME banking with suite of enhancements

Its innovations have provided the sector with a wider array of banking services, improved access to banking, and enhanced customer experience.

Small and medium-sized enterprises (SME) serve as the backbone of any economy, and the United Arab Emirates (UAE) is no exception.

In its vision of becoming the region’s most progressive SME bank, Mashreq continues to enable innovative possibilities for colleagues, clients, and communities through its significant SME Banking business, which currently caters to over 60,000 SMEs in the country, approximately 20% of the SME market.

In 2023, Mashreq SME Banking’s revenues increased by 67% and accounted for an important part of the company’s overall revenues in the UAE. Profits increased by 85%, and deposits went up by 19%. The number of SME clients increased by 27%, with the Net Promoter Score improving to 60%.

During the same period, Mashreq fortified its position as a leader in SME Banking in the UAE by implementing substantial digital and physical improvements, which were designed to streamline processes, enhance customer experiences, and foster innovation across the industry.

Amongst these enhancements include a faster account opening for its SME digital bank NEOBiz, providing a fully digital account opening experience to SMEs, coupled with a world-class online and mobile banking platform, a dedicated contact centre, and a full suite of international and local transaction banking services.

Previously, the time it takes to open SME accounts had become a key challenge for the sector, especially for newly set up companies. As such, Mashreq has ramped up usage of technologies such as electronic facial recognition, intelligent document recognition, and associated process improvements, to completely transform this process. Mashreq also launched its digital lending solutions for SMEs in 2023.

These solutions have helped the company reduce the overall time needed to open and activate an SME account by 36% in 2023. This has also resulted in an increased customer acquisition rate by 37%, compared to 2022.

Mashreq has also invested in capabilities to support SMEs beyond banking. Its Value Added Services portal now boasts over 40 business apps for SME clients, making it easier for them to conduct their day-to-day business.

Beyond the digital enhancements, Mashreq has also focussed on physical enhancements for its SME Banking business.

This includes the addition of 21% more SME Relationship Managers (RM), serving as trusted advisors and offering expert guidance and support to SME clients. Through proactive engagement and personalised assistance, RMs gain valuable insights into the intricacies of each client's business, allowing them to deliver customised solutions that address their unique requirements effectively.

These RMS also undergo specialised training, focussing on trade finance and transaction banking, in recognition of the fact that a majority of SMEs in UAE are involved in foreign trade to varying degrees.

These initiatives have helped Mashreq increase its SME Baking income significantly, whilst maintaining an efficient cost-base. Its SME business has delivered a cost-to-income ratio of below 30% for 2023.

“By setting a benchmark for digital transformation and customer-centric banking practices, Mashreq has inspired other banks and financial institutions to prioritise SMEs and invest in digital solutions. This industry-wide innovation ultimately benefits SMEs across the UAE by providing them with a broader range of banking options,” said Rajeev Chalisgaonkar, Head of Business Banking and NeoBiz.

The remarkable impact made by Mashreq's innovative approach to SME banking has been recognised by the ABF Retail Banking Awards 2024, with the bank being lauded as the SME Bank of the Year - UAE.

The prestigious awards programme honours outstanding entities that are reshaping the retail banking landscape through innovative solutions, retail products, digital banking breakthroughs, and exceptional customer experiences.

The ABF Retail Banking Awards is presented by Asian Banking & Finance Magazine. To view the full list of winners, click here. If you want to join the 2024 awards programme and be recognised for your company's cutting-edge products, services, and solutions that made a positive impact on your customers, please contact Julie Anne Nuñez at [email protected].