Surge in bank account ownerships positions UAE among most banked nations

13/05/2025 02:21 AST

The UAE has emerged as one of the world's most banked nations on the back of remarkable surge in bank account ownerships, according to a new independent survey.

The YouGov study, commissioned by the personalised financial marketplace Daleel, reveals that 94 per cent of UAE residents now hold a personal bank account, a notable increase from 85 per cent in 2021, according to the World Bank's Global Findex Database. This positions the UAE among the world's most banked nations, rivaling the United States and reflecting the success of the UAE's ambitious financial inclusion strategies under the 'We the UAE 2031' vision and the UAE Digital Economy Strategy.

The YouGov survey, which explored how UAE residents engage with financial services - from product research to confidence in their financial tools - highlights both progress and challenges in the nation's financial landscape.

"The UAE's near-universal bank account ownership is a testament to its forward-thinking policies," said PK Shrivastava, CEO of Daleel. "However, there's a clear opportunity to offer more personalized financial products to move beyond the 'one-size-fits-all' model."

The UAE's rise in account ownership aligns with its strategic goals to enhance digital transformation and financial inclusion. According to the Central Bank of the UAE (CBUAE), total bank deposits grew by 1.2 per cent, from Dh2,840.7 billion in January 2025 to Dh2,874.6 billion in February 2025. This growth was driven by a 0.8 per cent increase in resident deposits, reaching Dh2,625.5 billion, and a 5.1 per cent surge in non-resident deposits, totaling Dh249.1 billion.

Within resident deposits, government-related entities saw a 3.8 per cent rise, private sector deposits increased by 1.4 per cent, and non-banking financial institutions recorded a 5.6 per cent uptick, though government sector deposits fell by 4.0 per cent. These figures underscore the UAE's robust financial ecosystem, supported by initiatives like the CBUAE's Financial Inclusion Framework, which promotes accessible banking services. The UAE's digital banking infrastructure, including mobile banking apps and fintech innovations, has also played a pivotal role in expanding access, particularly for underserved communities.

Despite high account ownership, the survey reveals a significant confidence gap in financial products. While two-thirds of account holders trust their current accounts, 76 per cent lack confidence in at least one financial product they use. Specifically, 65 per cent of mortgage holders doubt they have the optimal plan, 62 per cent question their personal or auto loans, and 50 per cent are uncertain about their credit card choices. This uncertainty often stems from product complexity, opaque terms, and insufficient consumer education.

Behavioural trends also emerged from the survey. Women are twice as likely as men to periodically review their financial products, reflecting greater diligence in seeking better options. Meanwhile, 90 per cent of respondents regularly review or switch products, with many prioritising tailored solutions. Emirati nationals stand out as the most proactive, with 80 per cent annually reassessing their financial portfolios.

The findings signal a growing demand for transparency and personalisation in the UAE's financial sector. "Consumers need clear, jargon-free information to make informed decisions," said Ridaa Shah, COO of Daleel. "In 2025, we expect the UAE's financial industry to prioritise transparency and customization, empowering residents to choose products that align with their needs."

The UAE's fintech sector is responding to this demand. Platforms like Daleel leverage data analytics to offer personalised product recommendations, while banks are investing in user-friendly digital interfaces. The CBUAE's 2024 Consumer Protection Regulations further support this shift by mandating clear disclosures and fair practices.

Banking sector analysts said the UAE's near-universal bank account ownership marks a milestone in its journey toward financial inclusion, driven by strategic vision and digital innovation. However, addressing the confidence gap in financial products is critical to sustaining this progress.

They said by prioritising transparency, simplifying product offerings, and leveraging fintech, the UAE can empower residents to make smarter financial choices, reinforcing its position as a global leader in financial services.

Khaleej Times