Take a Look at Latest Trends in Banking Industry - Backbase

1. Digital banking appetite in the GCC A look at digital banking trends and shifting consumer habits in the region

2. Backbase GCC Insights Backbase GCC Insights / 2 / 2 GCC consumers want more digital banking services: Backbase report reveals shifting trends and how financial institutions can maximise opportunities Backbase Digital Banking Appetite in the GCC report delivered insights from more than 2,000 banking customers in the region. GCC Customers are looking for a digital banking experience in a post-pandemic reality Report reveals how consumers in the region now approach banking and their expectations of financial service providers.

3. Backbase GCC Insights / 3 Table of contents Introduction 00. Summary of results 01. The opportunity 01.2 The recommendation 01.3 Matthijs Eijpe - Q&A 01.4 About Backbase 02.

4. Backbase GCC Insights Backbase GCC Insights / 4 / 4 Introduction The banking sector in the Gulf Cooperation Council (GCC) has undergone a fundamental paradigm shift over the last two years. As the impact of COVID-19 became clear, so did the limitations of traditional banking methods. Banks in the region were already on the path towards digitization, but the pandemic became the catalyst for accelerated change. As consumers got used to superior online shopping, health, and governmental services, they increasingly demanded that banks follow suit with their lacking digital offerings. branch, while around a third feel that their bank provides weak online banking services. These are important insights that highlight the business case for the digitization of financial services. Banks and financial institutions must embrace this technology or risk losing customers to those that do. This is where engagement banking plays a pivotal role – providing a single unified, integrated platform that breaks down the barriers between once-siloed functions. This approach empowers financial institutions to quickly identify and cater to ever-evolving customer demands. This is reflected in Backbase’s “Digital Banking Appetite in the GCC” report. Backbase and YouGov polled 2,016 people in Saudi Arabia and the United Arab Emirates, and the research gives the clearest indication yet that consumers want their banks to go digital. The report reveals that more than 80% of consumers now prefer to do their banking online rather than visit a physical

5. Backbase GCC Insights / 5 01 Summary of results

6. Backbase GCC Insights / 6 Summary of results Consumers who were previously resistant to using online payment channels have amended their purchasing behavior and now rely heavily on digital infrastructures. As such, the adoption of digital practices has become the cornerstone of a competitive, high- productivity banking economy. With government-enforced border lockdowns, constantly changing quarantine rules, and fluctuating COVID-19 cases, there’s been a heightened requirement for digital infrastructure to be implemented within the financial services industry. Still, the positive momentum brought on by the fully integrated experience will remain a driver of profit and innovation for the foreseeable future. 01. Post-pandemic, how likely are you to opt for digital services instead of visiting your bank’s physical branch? 1 65% 60% 89% Net: top 2 box 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 04% Net: bottom 2 box 5% Not at all Not very likely Neither likely nor unlikely Somewhat likely Very likely 1 Source: Backbase & YouGov

7. Backbase GCC Insights / 7 A staggering 89% of respondents to the survey said they’re now more likely to opt for digital banking services rather than make a physical visit to a bank branch, with consumers noting that they prefer digital self-service banking solutions delivered with the same convenience as their ecommerce, entertainment, and transport solutions. Today, the substitution of bank lending with finance companies and fintech solutions is becoming increasingly popular in the GCC. Still, 33% of respondents perceive their bank’s online offerings as weak. As the pandemic recedes, banks have the opportunity to provide enhanced customer engagement online, which will pave the way for physical branches to deliver more complex, high-value activities. 02. Which of the following areas would you say are weak in the current digital offerings from your bank? 2 17% Other ? 34% Customer relationship & support ? 23% Open a new bank account ? 31% Access to online banking for basic operations ? 25% Personalisation of services ? 34% Subsribing to new products or services ? 2 Source: Backbase & YouGov

8. Backbase GCC Insights / 8 According to the survey, there have been several other notable shifts in consumer behavior. 82% of respondents claimed that better customer experience – and the presence of self-service banking that is fully accessible online – would make them decide to shift to a different bank. To make sure that banks can capitalize on changing customer demands, they’ll need to break free from siloed technology infrastructure and bring engagement to the forefront of their digital operations. 03. Which of the below factors could make you decide to switch to a different bank? 3 44% Low cost of services 41% Self-service banking fully accessible online 41% Better customer experience 38% Seamless mobile application to manager my finance 37% 24/7 accessibility and availability 33% Personalization of services to my needs 9% Others 3 Source: Backbase & YouGov

9. Backbase GCC Insights / 9 Nowadays, customers are used to obtaining services “when they want it, where they want” with 77% of survey respondents revealing that they access digital banking services once a week. As such, digital capabilities are crucial in how banks decide to build for their future. 04. How often do you use the digital banking services presently offered by your bank? 4 30% Once a day or more 29% 2 to 6 days a week 17% Once a week Once 15% a month or less Not 8% applicable I do not have a bank account 4 Source: Backbase & YouGov

10. Backbase GCC Insights / 10 Summary points   01 Redefine your customer’s banking experience: 02 Leverage shifting consumer demand for company gain: Deliver digital-first solutions that exceed customer expectations and build customer loyalty. Move from high-friction processes to seamless journeys that get the job done – optimizing customer conversion rates and improving the top line of the bank.   03 Agility and flexibility are key 04 Innovate faster with a robust, digital-first banking platform Upgrade your core banking operations, from new customer onboarding and loan origination to payments, lending, and collections. Implement a future-proof solution with customers and employees at the center to help you get ahead in today’s competitive digital landscape.

11. Backbase GCC Insights 01.2 The Opportunity / 11 Companies like Amazon and Netflix have reinvented funnel optimization by putting the customer at the heart of the process and successfully navigating them from awareness to loyalty. But there is good news: the same technologies used by challenger banks are available to incumbents too. The challengers may have raised the bar, but the opportunity is ripe for traditional banks to level the playing field. The adoption of maturing new technologies will be essential to enable new propositions and drive efficiencies. For example, machine learning underpins new approaches in areas such as customer authentication and onboarding, as well as credit assessment and fraud profiling. The goal is to drive seamless, omni-channel, conversational dialogues. At the same time, operational efficiencies are driven through automation, increasing flexibility for fast, business-driven changes. This has resulted in modern consumers expecting a simple onboarding process and frictionless service that is easily accessible – one platform for all their needs. The only option left for traditional financial institutions is to evolve. The challenge that many of these institutions face is dependence on outdated legacy systems with siloed point solutions such as call centers, ATMs, and mobile and online services.

12. Backbase GCC Insights 01.3 The Recommendation / 12 Leverage the power of an engagement banking platform thanks to a unified, cross-channel view of each customer. This approach allows banks to innovate at scale and speed to raise customer satisfaction levels. While many banks have relied on the rollout of standalone applications and self-contained systems to add new functions and services to their online banking offerings, this has created fragmented systems that fail to create exceptional customer experiences. With further digital transformation ahead, financial institutions need to ensure that they have the right platform to manage future expansion. A robust, agile, digital-first banking platform will connect to – and empower – all parts of the organization and enable omni-channel customer journeys. By hosting all services on a dedicated platform, banks are able to orchestrate their customer interactions through a single access point, delivering a consistent experience at every point of contact. An engagement banking platform works alongside legacy systems – connecting, aligning, and informing support staff and customers. Having both employees and customers on the same platform allows the bank to enable superior service and facilitate greater engagement When all systems can communicate, tailored advice and real-time support are instantly available to customers. Frontline staff are freed from slow, paper-based processes and empowered to deliver excellent service with all the information they need right at their fingertips. The user experience works – from onboarding to upselling – and this drives digital sales. Enhanced financial insights help customers to manage their financial lives and allow banks to strategize. The engagement banking platform connects all the dots, delivering superior experiences for the end customer and ensuring the bank can compete well into the future.

13. Backbase GCC Insights 01.4 Matthijs Eijpe Q&A / 13 Backbase’s Regional Vice President EMEA discusses regional trends and discusses how financial institutions can become digital-first 01 What is the current state of digital transformation in the GCC region? Banks and financial institutions in the GCC are in varying stages of their digital journeys, with quite a few prioritizing the disruption of the traditional banking model. The ongoing pandemic has forced a restart, with many banks rethinking their digital transformation programs and strategies. There’s a hyper-focus on customer engagement beyond physical branches and call centers. Today, it’s all about being even more customer- driven and platform-oriented. More importantly, it’s about overcoming legacy technology, embracing new ways of working to be digitally fit and resilient amid the uncertainties ahead, strengthening innovation muscles, protecting margins, and growing revenues. It calls for integration of digital technologies with the comprehensive transformation of business processes, engagement strategies, channels, and business models of banking. The banks that will succeed in digital on the road to 2025 will be able to use the right tools, technology, platforms, and frameworks that are good for their own unique brand of digital. They’ll also have to orchestrate hyper-personalization so that personalization happens every single time. As we update our assessment of various types of organizations in the race to becoming digital-first, we find a story of two extremes. There are those that have built foundations for reacceleration into digital-first and will be multiple times more capable of personalization at scale. They’ve widened the gap against other organizations that still need to gather momentum in this reinvigorated race for being truly digital- first. 02 What does being “digital-first” mean for these banks? The real sense of being digital-first for a bank is to extend the capabilities of products and services to bring it closer to clients. It helps the bank increase the “true value” it adds to customers while also ensuring that they gain a better understanding of performance.

14. Backbase GCC Insights / 14 03 What are the immediate steps financial institutions can take to play catch up? of digitization. Start small, but in an intelligent way, to build up confidence and scale up your digital delivery operation. This could look like improving one or two key areas at a time, using small, focused teams. As areas of friction are eased, a more productive feedback loop and positive momentum is gained which leads to further scaling up of processes in the future. It opens the door to achieving faster ROI following digitization by achieving incremental and valuable milestones along the way. Banks can use “platform thinking” as a jumping- off point to success in customer engagement. Think of the engagement platform and its role in ensuring hyper-personalization capabilities and the technology platform to ensure hyper- personalization happens all the time. 04 What advice can you give banks to achieve faster ROI in their digital strategies? Banks that have established a clear digital strategy that relies on a single platform and then sets out achievable goals will enjoy the benefits

15. About Backbase Backbase is on a mission to re-architect banking around the customer. innovate at scale. Industry analysts Forrester, Gartner, Celent, Omdia and IDC continuously recognize Backbase’s category leadership position. Over 150 financials around the world have embraced the Backbase Engagement Banking Platform - including NBB, Banque Saudi Fransi, Ila, BIAT, Barclays, Bank of the Philippine Islands, BNP Paribas, Citibank, Citizens Bank, CheBanca!, Discovery Bank, Greater Bank, HDFC, IDFC First, KeyBank, Lloyds Banking Group, Navy Federal Credit Union, PostFinance, RBC, Société Générale. Backbase is a privately funded fintech company, founded in 2003 in Amsterdam (global HQ), with regional offices in Atlanta (Americas HQ), New York, Boise, Mexico City, Toronto, London, Cardiff, Dubai, Kraków, Singapore, Sydney, Australia and Tokyo. Backbase created the category-leading Engagement Banking Platform (EBP) that helps banks and credit unions to power the full customer lifecycle through a single, white- labeled platform, replacing their limiting, standalone point solutions. We make it simple for banks and credit unions to orchestrate seamless customer journeys, all on a unified platform. From customer onboarding, to customer servicing, customer loyalty and loan origination, we help financial institutions surpass customers’ expectations in every phase of the customer lifecycle. Built from the ground up with the customer at the heart, our Engagement Banking Platform easily plugs into existing core banking systems and comes pre-integrated with the latest fintechs so financial institutions can European HQ Jacob Bontiusplaats 9 1018 LL Amsterdam, The Netherlands Phone: +31 20 465 8888 sales-eu@backbase.com Americas HQ 10 10th Street, Suite 325 Atlanta, GA 30309, United States Toll-Free Number: +1 866 800 8996 Phone: +1 470 881 8780 sales-us@backbase.com Regional Office Toronto 150 King Street West Toronto – ON M5H 3T9 Canada sales-us@backbase.com Regional Office Dubai Marina Plaza, Level 27 Dubai Marina – Dubai, United Arab Emirates sales-eu@backbase.com Regional Office Princeton 202 Carnegie Center, Princeton NJ 08540 Suite 300 United States of America sales-us@backbase.com Regional Office London Second floor, 3 Sutton Lane London EC1M 5PU UK +44 20 3735 8437 sales-eu@backbase.com Regional Office Singapore 22 Cross St Level 3 WeWork Building Singapore 048421 sales-eu@backbase.com Regional Office Boise US Bank Plaza, 101 S Capitol Blvd. Suite 1750 Boise, ID 83702 – United States sales-us@backbase.com Regional Office Cardiff Ground Floor, The Bounded Warehouse, Atlantic Wharf, Cardiff, CF10 4HE – United Kingdom sales-eu@backbase.com backbase.com