AI-Powered Supply Chain Finance: A Game-Changer for GCC SMEs
I recently came across some fascinating insights from Finastra's Corporate Banking Forum in Dubai, where they discussed how AI and digitisation are transforming corporate banking globally. The event brought together banking, technology, and fintech experts, including leaders from Finastra’s Lending business unit and institutions like Dubai Future Foundation, CredAble, and Microsoft.
One of the key takeaways is that AI is set to revolutionise corporate banking by 2030. Imagine AI-powered systems handling transactions, offering real-time financial advice, and creating a personalised banking experience for corporate customers. This concept of Generative AI is particularly exciting because it can predict trends and make personalised recommendations for clients based on their data. By 2030, it's expected that AI could contribute a whopping US$1.5 trillion to the global economy, especially driving growth in the financial sector.
Another big topic was Supply Chain Finance in the GCC region. Apparently, the market there is still largely untapped, with only a small portion being addressed. With the right digital tools and AI, banks can boost efficiency, help SMEs, and streamline capital solutions. The potential is massive for supply chain finance to grow and create more inclusive financial ecosystems in the region.
They also talked about how digital lending ecosystems are redefining the efficiency of corporate banking. For instance, Finastra’s Loan IQ platform can reduce transaction steps by up to 50 percent, while incorporating features like ESG tracking. This push for end-to-end digitisation is a game-changer, making loan processing faster and ensuring that financial institutions comply with sustainability standards.
Emerging technologies like blockchain, machine learning, and optical character recognition are also driving this shift. These tools are helping banks offer customised financial products, manage risks better, and even enhance treasury operations.
And of course, they couldn't ignore sustainability. With the MEA region seeing more ESG-driven investments, banks need to take sustainability-linked financing seriously. AI is playing a crucial role here too—helping track, report, and deliver on ESG commitments. This is especially important given the concerns about greenwashing, where companies may not be as environmentally responsible as they claim. By integrating robust ESG metrics, financial institutions can ensure they’re driving responsible growth.
Doesn’t it all point to a pretty exciting future for corporate banking?
