The world has seen technology infiltrate almost every sector the world has known, and the financial industry is no different. Traditional banking was getting the job done, and it almost felt like this was how things would be forever. Yet, innovation strikes, and the world is introduced to eclectic solutions to problems consumers never considered, but leaders and innovators were ahead in the game. The virtual card payment system arrived to refresh banking and transaction as we know them. And Dubai and the whole of the United Arab Emirates (UAE) are in the center of it, leading the Middle East and North Africa (MENA) and becoming a true force to reckon with.
Legacy and Innovation
Dubai has been a staple in the banking sector for generations, and the UAE has the most extensive banking sector in the Gulf Cooperation Council (GCC) and its region. Dubai is home to the Middle East’s largest banks and its most significant financial free zone. Around thirty foreign banks operate in the UAE, and twenty banks are based in Dubai. A true pillar of the banking sector is Dubai, where almost half of the UAE banks dominate the market, making it a financial anchor point in the world and the MENA region.
UAE built a legacy anchored in Dubai and spread across the nation, a legacy based on furnishing trustworthy banking services through traditional and established routines, such as highly secure bank accounts, the utmost respect for client privacy, and immense belief in high-potential projects. Clients always find comfort in what is stable, and the banking sector in the UAE gave its clients what is deemed crucial yet challenging to deliver stability optimally. The Emirates offered a sturdy, secure, and transparent banking experience that became regarded as a haven in the Middle East. People around the globe are seeking a rigid banking system that can deliver on the sought-after promise of security and expertise required to provide proficient banking. The UAE’s banking legacy is rooted in both banking traditions and Islamic and Arabic traditions. UAE’s Islamic banking sector operates at peak standards, delivering tailor-made services for Islamic-oriented services and introducing the world to Arabic traditions, even during the rising digital era.
Such a legacy is set in stone. Skeptics always preferred what was tested over what was yet to be battle-hardened when the dawn of innovation came. Even its vast potential financial and technological solutions initially clashed with legacy banking. Implementing such innovative ideas was always going to be challenging, yet Dubai and the UAE thrive on overcoming challenges, surpassing expectations, and defying odds.
Virtual cards showed up as the latest fintech solution and started garnering the population among the populace. The average user would have always been a challenge to win over and convincing them to take a leap of faith and trust the potential of such innovation was going to be formidably challenging. When it came to financial maturity, Dubai shifted its attention from focusing on differences to seeking the fulfillment of a statelier goal, becoming a leader in the world of finance. There is no denying that Dubai is considered one of the ultimate players in the league of financial inclusion through technological adoption. It has entered the realm, but to remain in it, the city of the sun must accept innovation and not oppose it. And Dubai sure did step up to the meeting of innovation and legacy.
The Virtual Cards and Legacy Banks’ Equilibrium
After realizing that this is not a case of an idea overshadowing another, the UAE adhered to the inevitable fact that virtual cards, among the many fintech solutions, are here to revolutionize banking, not be a substitute. Virtual cards can be used as a refinement to some of the rusty edges of the traditional banking system. Refining constituents of a foundation does not alter it. It improves it. Business in the UAE and Dubai, especially, has seen a surge in the adoption of virtual card payments due to its enablement of more extensive offerings from digital banks on all fronts. Companies were prompted to enforce virtual cards’ presence simply due to their efficiency. Virtual cards can enable companies to save time and costs as they operate on a simple yet intricate premise. They have a set date they work within, with a set capital, enforcing a higher security level. Digital credit cards are less prone to theft or breaches since they don’t allow the culprit to trace back to a company’s account since they have a preset amount, and often, virtual cards won’t even work if they did land in the hand of a wrongdoer. Such security and efficiency characteristics make virtual cards tough to fend off.
Virtual cards enable the decentralization of companies when it comes to their purchasing operations—an indispensable aspect of most establishments in the Emirates, more accurately, Dubai. Most of these institutions operate internationally and need the non-central element added to their banking experience in the UAE. Virtual cards deliver on this promise since they are conceptually ideal for dictating the whole transaction before its occurrence. A head of a company can issue a virtual card to tend to a specific need and knows exactly who, why, and when they will use it. Such a level of ‘Controlled Invoice’ is what CEOs strive for, and to have this on top of a juggernaut of a traditional banking system is a match made in heaven. It is all possible thanks to the UAE’s keenness to evolve and become a leader on every front.
Virtual cards might be an enigmatic piece in a colossal field such as UAE’s banking sector. The presumption that a digital solution can offer efficiency, mobility, and flexibility is reasonable, but pairing it with a secure, authorized, and robust legacy banking system becomes groundbreaking, which is precisely what the UAE did. Finalizing your company’s transactions using a fluid, secure virtual car payments system while having the peace of mind that your finances are in the safe hand of an iconic legacy banking system is the equilibrium any person would want.
A Step Within a Thousand Steps Journey
Virtual card payments are gaining serious traction. Yet, it is still in its earliest state, and for it to mature, it needs guidance and perfect implementation, which is the case in the UAE. The experience currently taking place in the UAE primarily can serve as a case study on merging traditional banking with the latest innovation in the financial sector. No fruit can be born without roots deeply grounded, and for the fruits of fintech solutions to be enjoyed, there is a need for the origins of legacy banking.
Inside Telecom provides you with an extensive list of content covering all aspects of the tech industry. Keep an eye on our Fintech sections to stay informed and up-to-date with our daily articles.