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Gulf Insider
28-07-2025
- Business
- Gulf Insider
National Bank of Bahrain's Usman Ahmed: leadership outlook
Usman Ahmed, Group Chief Executive Officer of the National Bank of Bahrain, discusses the bank's role in supporting Bahrain's financial stability, its community focus, and how it's embracing digital innovation amid shifting scenarios in this exclusive interview. Now in its third edition, Business Leaders in the Middle East brings together sharp insights from across the region. These aren't mere interviews; they're windows into how leadership is evolving in a world shaped by rapid digital transformation. Technology touches nearly every industry now, and these leaders show us how to navigate change with purpose. The FinTech ecosystem in Bahrainhas flourished thanks to a progressiveregulatory framework. At NBB, We see great value in collaborating with FinTechs to enhance niche customer experiences and expand our offerings. We're exploring partnership models in the UAE and Saudi Arabia, using our commercial banking licences to offer banking as a service. Recently, we partnered with a FinTech to introduce digital ID verification on our retail app. FinTech involvement has broadened the industry's scope, and we remain committed to both partnerships and investing in best-in-class digital services for our customers. As Bahrain's largest domestic bank and a systemically important financial institution, NBB carries a responsibility that goes beyond serving customers, shareholders, and employees. Everything we do, whether it's product development, liquidity management, or resilience planning, supports not only our growth but also the soundness and stability of the broader financial sector. We view challenges as opportunities, always asking how we can better serve our customers and grow sustainably. Today's challenges are deeply tied to the broader environment, including geopolitical shifts. Being prepared for turbulence and adapting to rapidly changing scenarios is crucial. Another significant challenge is balancing innovation with legacy operations. We are rapidly investing in new technologies while still running a full-service bricks and mortar network. Unlike FinTechs, we have an extensive nationwide branch network in Bahrain and also have a presence in the UAE and Saudi Arabia. Whilst this multiplicity of channels offers our diverse customers in Bahrain the ability to choose from the best of both worlds, it comes with its associated challenges from an infrastructure perspective. However, we are proud of the role that the National Bank of Bahrain plays in the wider economy and optimise investments to serve all segments of society. This dual responsibility means we must serve all customer segments across both digital and traditional channels. It's a delicate balancing act but one that's central to our role in supporting a resilient, inclusive, and forward-thinking financial ecosystem in Bahrain and beyond. It all begins with a digital-first mindset. At NBB, we focus on serving customers efficiently and conveniently through mobile platforms. This requires not only technology but also internal capabilities, so we continuously up skill our teams, including AI training and internal innovation contests. We also partner with accelerators to support Bahrain's wider tech ecosystem. Our tech strategy revolves around three pillars: serving customers, running the bank, and protecting it. Across all, we prioritise agility, innovation, and staying ahead of the curve. The scale of personalisation enabled by technology has been surprising. What's fascinating is how its blurred sector boundaries; financial services are no longer delivered just by banks or fintechs. Today, you find them embedded in e-commerce platforms, delivery apps, and even telecom providers. Technology has expanded the landscape, allowing diverse industries to offer financial services through personalised, cross-sector value propositions. Watching this unfold has been remarkable, and the pace of change is accelerating. With AI, we can expect even greater hyper-personalisation in the years to come, reshaping how customers engage with services across the board. The key prediction is to expect the unexpected. Just 12 to 18 months ago, few would have anticipated AI's pivotal role in finance, and that unpredictability will persist. Another major trend is the acceleration of tokenisation. Fractional ownership and using tokens as alternative stores of value or mediums of exchange, whether for retail or corporate clients, will become increasingly significant. Quantum computing is also worth watching. While its real-world applications are still evolving, it holds vast potential to disrupt the sector. Tokenisation seems clearer in its scalability, but quantum computing could well be the next big surprise in financial innovation. Fortunately, since joining NBB, I haven't faced a crisis as massive as the COVID-19 pandemic. However, during the recent geopolitical tensions, we came close. The heightened uncertainty pushed us to activate elements of our crisis management playbook, evaluating business continuity, reassessing physical operations, and strengthening our balance sheet for liquidity and resilience. It was a valuable exercise in preparedness. While every day involves decision-making, it's the tough, unexpected moments that truly test leadership. Responding swiftly, and being ready to take on a crisis are qualities that leaders need to build long before facing a challenge. Engaging both the management team and wider organisation is vital; not just to reach the best decision, but to ensure execution buy-in. I focus on clearly explaining the 'why', listening carefully, and aligning decisions with our long-term vision and strategy. Day to day, prompt decision-making is essential. It's important not to become a bottleneck that slows down progress across the organisation. When we refreshed our organisational values, we identified four key traits. First, agility is essential in an unpredictable, fast-changing environment with new technologies and disruptors. Second, a mindset of innovation, both individually and collectively. Third, ownership – the ability to drive decisions and execution. The fourth trait, undeniably, is collaboration. These qualities underpin effective leadership. and go hand-in-hand with transparency and strong communication. The SME segment is vital for any economy, and at NBB, we are deeply committed to supporting it. We are upgrading our SME business model, designating specific branches across Bahrain as SME centres to provide dedicated services. We are also investing in technology, rolling out our revamped corporate online banking platform for SMEs. Additional relationship managers are being hired, and lending programmes are being revamped and expanded in partnership with Tamkeen, for both NBB and ourIslamic subsidiary, Bahrain Islamic Bank. We are also streamlining SME onboarding through digital platforms. Regionally, in the UAE, we have hired staff focused on SMEs, and in Saudi Arabia, we collaborate with financing companies that serve the sector, supporting them indirectly. Beyond business, NBB allocates up to 5% of net profits annually towards community initiatives, with key focus areas including social welfare, health, youth and education, and national initiatives. We partner with organisations like the Zakat Fund and INJAZ Bahrain, support talent development in the tech sector, and run innovation-focused activities such as hackathons. In health, we fund awareness campaigns, infrastructure, and supplies. We also align with Bahrain's Vision 2030, ensuring our people, capabilities, and sponsorships contribute meaningfully to national development. It's essential to explain changes in the context of the bank's long-term strategy and vision. Organisational structures evolve to enhance focus, launch new business lines or better serve customers. We make sure that every change offers growth, learning, and mobility opportunities. Clear communication and a sincere purpose help ensure changes benefit both the organisation and individuals, while improving customer service. More Insights
Time of India
02-07-2025
- Business
- Time of India
66% of Indian fintech company loans were directed towards customers under 35, RBI report claims
A report from the Fintech Association for Consumer Empowerment (FACE), an RBI-recognised Self-Regulatory Organisation in the FinTech Sector (SRO-FT), claims that 66% of the loan value sanctioned by fintech companies in India was directed to customers aged below 35. Tired of too many ads? go ad free now This highlights fintech's significant reach among younger borrowers. The report, based on credit bureau data from April 2018 to March 2025, provides an overview of fintech's role in India's personal loan market. It indicates that fintechs are increasing access to formal credit through small-value loans, serving previously unaddressed segments. While fintechs account for 12% of the personal loan market by value, they contribute over 74% of loan volumes. Here are some key highlights from the report: Sanction Volumes: FinTech NBFCs sanctioned 10.9 crore personal loans worth Rs 1,06,548 crore. FinTech NBFCs sanctioned 10.9 crore personal loans worth Rs 1,06,548 crore. Portfolio: As of March 2025, FinTech NBFCs held an outstanding loan value of ₹73,311 crore, a 0.7% year-on-year increase. As of March 2025, FinTech NBFCs held an outstanding loan value of ₹73,311 crore, a 0.7% year-on-year increase. Market Expansion: In FY 24-25, sanction value grew by 11% and volume by 22%. In FY 24-25, sanction value grew by 11% and volume by 22%. Youth-Centric: Beyond the 66% for under 35s, 39% of sanctioned loans went to borrowers from Tier III towns and beyond, with their share increasing. Beyond the 66% for under 35s, 39% of sanctioned loans went to borrowers from Tier III towns and beyond, with their share increasing. Ticket Size and Risk: The average ticket size was ₹9,786, but 46% of loans by value had ticket sizes above ₹50,000. 56% were sanctioned to borrowers with a credit bureau vintage of 5+ years. 59% of loans were extended to borrowers with mid- to low-risk profiles. The average ticket size was ₹9,786, but 46% of loans by value had ticket sizes above ₹50,000. 56% were sanctioned to borrowers with a credit bureau vintage of 5+ years. 59% of loans were extended to borrowers with mid- to low-risk profiles. Gender Inclusion: Female participation in fintech lending reached 16% of sanctioned value. What FACE said about loans approved by fintech companies in India Commenting on the report, Sugandh, CEO of FACE, said: 'The report shows assorted offerings across ticket sizes, demographics, and bureau risk profiles make FinTechs the preferred choice for the borrowers. Customised and convenient digital loans bring immense value as millions navigate their economic lives. The 's Digital Lending Regulations and self-regulatory framework provide the FinTech sector with solid ground and guardrails to drive responsible credit, and market trends attest to this. The reach of FinTechs amongst the young demographic in Tier III and beyond is a key driver of inclusive and resilient economic growth. And with innovation and customer-centricity, FinTechs will continue to deepen and widen their value for borrowers.'
Business Standard
02-07-2025
- Business
- Business Standard
RBI Deputy Governor says technology, policy, and innovation converging to democratise credit access
We stand on the cusp of a transformative financial era where technology, policy, and innovation converge to democratise credit access, according to Rajeshwar Rao, Deputy Governor, Reserve Bank of India. He noted that various initiatives, collaborative partnerships and sustained regulatory support are laying the foundation for a more inclusive, resilient, and sustainable economy. But at the heart of a sustainable credit landscape lies an empowered consumer which is enabled when we have a financially aware and literate customer. While regulations mandate transparency and awareness, the responsibility needs to be fulfilled by all of us. Financial literacy cannot be achieved through a one-time campaign; it has to be a sustained commitment for all the institutions and entities involved. While the institutions in the financial system have done commendable work, the journey is far from complete. Rao opined that Reserve Bank has been endeavouring to create an enabling regulatory environment for fostering innovation and ensuring financial system integrity. With a view to put in place a regulatory framework for FinTechs that maintains a balance between maximising their creative potential while minimising the idiosyncratic risks they pose to the financial system; the Reserve Bank issued a Framework for Self-Regulatory Organisation(s) in the FinTech Sector in 2024. The Reserve Bank Innovation hub, a wholly owned subsidiary of RBI, commenced an initiative to foster a vibrant infrastructure for facilitating the progress of FinTechs in the country. The initiative - Fintech and Startup Acceleration (FAST) - aims to connect the stakeholders, viz., the startups, incubators, accelerators, investors, regulators and banks and financial institutions to accelerate innovation and financial inclusion.
Yahoo
25-06-2025
- Business
- Yahoo
JPMorgan Begins coverage of Q2 Holdings (QTWO) Stock, Gives Overweight
Q2 Holdings, Inc. (NYSE:QTWO) is one of the 10 Worst Aggressive Growth Stocks to Buy According to Short Sellers. On June 18, JPMorgan initiated coverage of Q2 Holdings, Inc. (NYSE:QTWO)'s stock with an 'Overweight' rating and a price objective of $115. The firm believes that the company continues to modernize customer-facing software for credit unions and regional banks. Furthermore, it believes that Q2 Holdings, Inc. (NYSE:QTWO) possesses elevated levels of customer retention and 5–7 year contract lengths, which aid in revenue visibility. A finance professional at their computer logging into the company's branded digital banking platform. Also, the firm sees the monetization model as defensive, which is based on the number of bank accounts on the respective platform and the number of products a bank subscribes. Q2 Holdings, Inc. (NYSE:QTWO)'s Q1 2025 bookings performance was characterized by significant renewals and expansion activity. The company opines that the breadth of its customer base and resilient business model, together with a strong pipeline and healthy renewal opportunity ahead, place it well. Q2 Holdings, Inc. (NYSE:QTWO)'s Remaining Performance Obligations total, or Backlog, rose $74 million sequentially and $379 million YoY. This resulted in a total committed Backlog of approximately $2.3 billion at quarter-end. For Q2 2025, the company expects total revenue of $191.0 million – $195.0 million, reflecting YoY growth of 10% – 13%, while adjusted EBITDA is expected to be between $41.0 million – $44.0 million. Q2 Holdings, Inc. (NYSE:QTWO) offers digital solutions to financial institutions, financial technology companies, FinTechs, and alternative finance companies (Alt-FIs). While we acknowledge the potential of QTWO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than QTWO and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None.
News18
06-06-2025
- Business
- News18
Flipkart Secures RBI's NBFC License To Offer Direct Loans To Buyers And Sellers
Last Updated: Flipkart becomes first major ecommerce to get the RBI licence to work as an NBFC. Flipkart has successfully secured a Non-Banking Financial Company (NBFC) license from the Reserve Bank of India (RBI), allowing it to facilitate lending business independently. This license allows Flipkart to provide loans directly to both customers and sellers on its platform. It marks a pivotal moment in the e-commerce journey that has so far depended on third-party. Flipkart Finance Private Limited received its registration certificate in March 2025, making Flipkart the first major Indian e-commerce firm to gain such authorization. Currently, Flipkart collaborates with financial institutions like Axis Bank and IDFC First Bank to offer consumer loans. The new NBFC license enables Flipkart to independently enter the lending market. Flipkart is reportedly planning to offer loans directly via its e-commerce website and its fintech application – Walmart acquired a majority stake in Flipkart in 2018 at a deal worth $16 billion. Flipkart's move into direct lending is anticipated to enhance its profitability while improving financial services for its extensive user base. The company plans to integrate lending solutions into its e-commerce platform and the Super Money fintech app, offering personal loans and credit options to both buyers and sellers. A PwC report highlights that India's lending market has grown significantly over the past five years, from FY18 to FY23, with a CAGR of 14.8 percent. From FY21 to FY24, the number and value of loans disbursed by FinTechs have increased dramatically, with a CAGR of 81% (from 1.72 crores to 10.19 crore) and 46% (from INR 0.47 lakh crore to INR 1.46 lakh crore), respectively. The growth is attributed to innovations by FinTechs, leveraging technology to expand their reach, automate operations, and improve credit access. PwC report states that a significant majority of digital lending, amounting to 96% of the value of disbursed digital loans by FinTechs, has been in the form of personal loans – predominantly below INR 5,000. First Published:
