QIB integrates digital innovation and sustainability

Constantinos Constantinides, Chief Strategy and Digital Officer of Qatar Islamic Bank (QIB), discussed how the bank is redefining the future of banking through a committed integration of digital innovation, strategic fintech collaborations, and a strong focus on environmental, social, and governance (ESG) principles. QIB has implemented initiatives that enhance customer experience, operational efficiency, and contribute to a more sustainable and inclusive banking ecosystem.

Digital banking and financial inclusion

QIB's digital transformation journey, recently highlighted at the Union of Arab Banks meeting hosted by the Central Bank of Qatar, includes the development of a digital banking platform tailored to various customer segments. One significant aspect is an app designed specifically for blue-collar workers, available in eight languages, which facilitates international transfers and payments. This initiative is part of QIB’s effort to promote financial inclusion, particularly for segments that traditionally have limited access to banking services.

Financial inclusion is a crucial focus in the Middle East, where many migrant workers and lower-income individuals face barriers to accessing financial services. QIB’s app directly addresses this gap by providing an easy-to-use platform for essential banking activities. The app's success is evident in the 27% year-on-year increase in international transfers from January to August and a 493% growth in direct corridors, supporting transactions with eight key countries. This not only illustrates QIB's dedication to financial inclusion but also positions the bank as a facilitator of cross-border transactions for underserved communities.

The app has garnered positive feedback from users, who appreciate the simplified and accessible interface that allows them to manage finances and send money home efficiently. This initiative aligns with Qatar's broader financial inclusion goals and highlights QIB's commitment to enhancing the financial well-being of blue-collar workers and other underserved segments.

Collaboration with fintechs and inorganic growth

A significant component of QIB's growth strategy is its active collaboration with fintech companies. The bank has a history of partnering and acquiring with fintechs to introduce innovative solutions. These collaborations have allowed QIB to diversify its offerings and remain competitive in the rapidly evolving digital banking space.

QIB's partnerships with fintechs have been crucial in expanding its digital ecosystem. For instance, the acquisition of a fintech company has strengthened their acquiring business, and further collaborations have added flexibility to customer payment options. These partnerships are part of QIB's inorganic growth strategy, where embedded finance models extend the bank's reach by integrating services into other ecosystems.

The partnerships landscape in Qatar and the Middle East is becoming increasingly competitive, with banks seeking to differentiate themselves through innovation. QIB's approach, which includes embedded finance and partnerships with sectors like telecommunications and entertainment, has enhanced customer engagement and offered more integrated financial services. Through the QIB Marketplace, customers can shop using credit cards, points, or by debiting their current or savings accounts. QIB also collaborated with Damaan Islamic Insurance Company – BEEMA and Medgulf Takaful to offer instant takaful plans through the platform. Customers can also track carbon emissions resulting from banking transactions in the app. These collaborations position QIB at the forefront of digital banking trends, enabling it to offer cutting-edge financial solutions to its customers.

Sustainability and the carbon emission tracker

Sustainability is a core component of QIB's strategic focus, with the bank actively integrating ESG principles into its operations. One of its key initiatives is the launch of carbon emission tracker, developed in partnership with Visa and a German fintech company. This tool allows customers to monitor their carbon footprint based on their spending patterns, offering personalised recommendations to encourage more eco-friendly practices.

The carbon emission tracker provides customers with insights into the environmental impact of their spending, helping them make more sustainable choices. It raises awareness about sustainable practices and aligns with QIB’s goal of promoting responsible consumption. Although specific engagement metrics were not detailed, the tracker’s ability to engage customers in sustainable practices highlights QIB's role in fostering an environmentally conscious customer base.

In the Middle East, where sustainability and ESG considerations are gaining importance in the financial sector, QIB's carbon emission tracker stands out as an innovative approach to customer engagement. It aligns with Qatar’s national sustainability goals and reflects the growing trend among banks to integrate environmental, social and governance (ESG) initiatives into their services.

QIB’s digital-first approach, including the closure of one-third of its branches to reduce energy consumption and paper usage, shows a tangible commitment to reducing its environmental footprint. The tracker has successfully raised awareness about sustainability among customers, with many becoming more conscious of their carbon footprint as a result of using this tool.

Resilience and operational robustness

QIB places a strong emphasis on digital resilience and operational robustness. The bank has focused on ensuring quality software delivery, enhancing incident responses, and transitioning towards a cloud-ready state. These efforts are crucial in maintaining a secure and efficient digital environment and integrating AI into various processes to streamline operations.

The bank's commitment to resilience is demonstrated by its successful transition to a new data centre and the execution of exercises to simulate disaster scenarios, including weather events and ransomware attacks. These measures ensure that QIB can maintain a strong operational stance and respond swiftly to emergencies, safeguarding both the bank and its customers.

Employee well-being will also become a key component of QIB's operational strategy. Plans include moving to a new head office, fostering a collaborative and innovative work environment that supports overall operational resilience and employee satisfaction. This focus on employee well-being is part of QIB’s broader ESG commitment, demonstrating a holistic approach to sustainability that extends beyond environmental considerations.

QIB is also leveraging artificial intelligence (AI) to enhance its operational efficiency and customer service. The integration of AI into processes aims to streamline operations, reduce human error, and improve response times, contributing to a more resilient digital infrastructure.

Future strategy

The bank’s new long-term strategy is poised to further enhance QIB's digital banking capabilities and deepen its focus on becoming a data-driven organisation. While the specifics of this strategy remain undisclosed, it signals QIB's ongoing dedication to innovation and sustainable growth. This new strategy is expected to build on the bank’s achievements in digital innovation and ESG integration, setting the stage for future developments in customer personalization and data-centric decision-making.

Leading the future of banking

QIB’s forward-thinking approach to digital transformation, fintech collaboration, and ESG integration showcases its commitment to leading the future of banking in the Middle East. By focusing on financial inclusion, promoting sustainable practices, and enhancing digital resilience, QIB is not only transforming the customer experience but also setting a benchmark for responsible banking practices in the region.

Engaging stakeholders

As QIB continues to evolve and implement its strategic initiatives, it seeks customer, partner, and stakeholder engagement with its vision for a more sustainable and digitally advanced banking ecosystem. By fostering innovation and integrating sustainability into its core strategy, QIB is paving the way for a future where banking serves as a catalyst for positive change, both in the financial sector and the broader community.