Avaloq’s strategic expansion into the Dubai International Financial Centre (DIFC) marks a major milestone in advancing the financial digital transformation within the Gulf Cooperation Council (GCC) region. This move aims to assist financial institutions in adapting to evolving investor expectations and overcoming challenges associated with technology adoption and client trust. Avaloq, a leading technology provider specialized in private banking, wealth management, and investment management, seeks to strengthen its regional presence and build on existing collaborations, including its alignment with InvestGB, the wealth and investment management division of Gulf Bank.
Accelerating Digital Transformation in Financial Services
Propelling Financial Sector Maturity
The primary objective of establishing Avaloq’s Dubai office is to accelerate the digital transformation in financial services across the GCC. Akash Anand, Avaloq’s Middle East and Africa head, noted that the market in the GCC is both dynamic and rapidly growing for sectors such as private banking, wealth management, and investment management. Avaloq’s local presence is intended to facilitate close collaboration with regional financial institutions to enhance the maturity of the Middle East’s financial sector. With its sophisticated core platform, Avaloq standardizes and automates operations across front, middle, and back offices, ensuring seamless integration and high service delivery standards.
The platform’s open architecture allows innovative third-party services to be easily integrated, further enhancing operational efficiency. High service accuracy and straight-through processing (STP) rates contribute to improved client and advisor experiences. The platform’s web and mobile banking solutions enable financial firms to offer an enhanced user experience, benefiting from Avaloq’s comprehensive technology suite. By focusing on digital innovation, the company aims to propel the GCC financial sector towards greater operational efficiency and improved service standards.
Addressing Investor Expectations and Challenges
As Avaloq expands its footprint in the GCC, the company recognizes the region’s unique challenges and opportunities. With economic diversification efforts and a growing affluent population, the GCC is emerging as an attractive wealth management hub. Avaloq’s research, which involved surveying over 3,000 investors and 300 wealth managers globally, identified significant potential for regional financial institutions to enhance their service offerings. In the UAE, key factors contributing to investors switching advisers include a lack of trust, high costs, and insufficient transparency.
Moreover, the research highlighted the importance of clear communication and effective risk management in building trust among UAE investors. To address these challenges, Avaloq’s platform offers digital tools that streamline operations and empower advisers, enabling them to deliver personalized and transparent services. By leveraging Avaloq’s technology, financial institutions in the GCC can better meet investor expectations, improve client trust, and deliver cost-effective solutions, thus strengthening their competitive edge in the market.
Enhancing Wealth Management Through Innovation
Enabling Global and Regional Growth
The opening of Avaloq’s Dubai office underscores the company’s confidence in the GCC’s growth trajectory and its commitment to fostering innovation in financial services. Avaloq’s solutions are designed to enable financial institutions in the region to embrace digitalization fully, thereby enhancing their long-term client service capabilities. By supporting global firms in establishing their onshore wealth management businesses in the Middle East while facilitating offshore activities in Switzerland, Avaloq is playing a pivotal role in the region’s financial evolution.
Avaloq’s sophisticated core platform, with its standardized and automated operations, significantly enhances the efficiency of financial institutions. Through the platform’s open architecture, third-party services can be seamlessly integrated, resulting in improved service accuracy and higher STP rates. The platform’s advanced web and mobile banking solutions empower financial firms to offer an optimized experience to clients and advisers alike, making it a critical tool for institutions aiming to stay ahead in a competitive market.
Building a Premier Wealth Management Hub
Avaloq’s strategic expansion into the Dubai International Financial Centre (DIFC) represents a significant step forward in advancing financial digital transformation within the Gulf Cooperation Council (GCC) region. This initiative is designed to help financial institutions meet changing investor expectations and address hurdles related to technology adoption and fostering client trust. Avaloq, a prominent provider of technology solutions tailored for private banking, wealth management, and investment management, aims to enhance its presence in the region through this move. Furthermore, this expansion is expected to build on existing partnerships and collaborations, including Avaloq’s alignment with InvestGB, the wealth and investment management arm of Gulf Bank. This development underscores Avaloq’s commitment to supporting the GCC financial sector in its journey towards digital innovation and increased client satisfaction, solidifying its role as a key player in the regional financial technology landscape.