iGTB solutions power wholesale banking clients’ digital transformation
Platform handles $40 trillion of global liquidity
The Middle East’s rapidly evolving financial landscape presents challenges and significant opportunities for the region’s leading banks. These banks must also contend with integrating next-gen digital transformation and artificial intelligence (AI) as necessary in their day-to-day operations.
Focusing on innovation, collaboration, and excellence, London, UK-headquartered Intellect Global Transaction Banking (iGTB), the transaction banking division of Intellect Design Arena, is well-positioned to help banks and other fintech players navigate the complexities of an ever-changing financial landscape by leveraging contextual, composable, and hyperscale technologies.
iGTB operates in 97 countries and has strategic partnerships with over 325 leading banks globally.
Middle East News 247 interviewed Manish Maakan, CEO of iGTB. With 30 years of experience in the global banking sector, Maakan shared his perspective on the wholesale banking sector in the Middle East and iGTB’s increasingly prominent role in it.
Excerpts from the exclusive interview:
Where is iGTB positioned in 2024?
Having worked with and continuing to work with more than 325 banks worldwide, we have established ourselves as a market leader. Our esteemed global customers include J.P. Morgan, Citibank, and HSBC. We have also partnered with FAB, Emirates NBD, ADIB, and Mashreq in the Middle East region.
Most large and mid-sized banks in the UAE, such as the National Bank of Fujairah, have recently leveraged our intellect for their banking needs. Our journey in Dubai began in 2000, and we have been a significant player in the local market since then.
Our role in the digital transformation of banking is not just significant; it is pivotal. We manage a substantial portion of wholesale banking operations, supporting large customers and corporates.
In India, 70% of commercial payments run on our platform, demonstrating our ecosystem-scale play. This context is crucial for understanding our work and our position in the industry. We aim to continue leading this transformation and expanding our reach in the coming years.
When you cover somebody in the context of market leaders in wholesale banking, close to $40 trillion of global liquidity flows through us. While some aspects of our work must be kept secret, we are committed to transparency and believe sharing our insights as widely as possible is essential.
How do you perceive the wholesale banking sector in the Middle East?
The Middle East’s wholesale banking sector is vibrant and pivotal, primarily driven by its trading and corporate finance dynamics. The region’s retail banking market is comparatively smaller, making wholesale banking essential for financial institutions.
Banks in the [Middle East] region boast a return on equity (ROE) significantly higher than the global average—often reaching 16%, compared to 8-10% globally. High interest rates and efficient management of corporate client relationships support this strong performance.
Where do you see wholesale banking in the next 10 years?
While fintech challenges traditional wholesale banks, there is a collaborative path forward. Rather than viewing them as competitors, banks can leverage fintech capabilities to enhance their offerings. We advocate for partnerships that allow banks to embed specialised fintech solutions into their core platforms, improving efficiency and service delivery.
This collaborative approach fosters innovation and helps banks navigate the complexities of an increasingly competitive landscape. Our role as a technology partner is to facilitate this integration and provide value-added solutions that meet the needs of corporate clients.
What distinguishes digital transformation and AI integration in the Middle East?
The Middle East is an exciting and complex market. Banks’ significant shift towards cloud computing and AI is palpable, yet data sovereignty issues remain a significant hurdle. Many institutions are transitioning from on-premises systems to hybrid or fully cloud-based models, which can be daunting.
We have a wealth of experience working with banks globally, which informs our understanding of local dynamics. For instance, while younger banks tend to embrace hybrid solutions, local banks increasingly opt for cloud-based services due to the availability of local data centres from providers like Microsoft. However, larger banks with cross-border operations, especially those in Saudi Arabia, face strict data residency regulations that complicate matters.
iGTB recently entered a strategic partnership with Microsoft. Could you elaborate on that?
We currently partner with approximately 325 banks worldwide and manage extensive operations. Recently, we have observed a significant shift among these banks toward adopting cloud data and AI technologies.
In this context, Microsoft emerged as a natural choice for us to enhance distribution while leveraging its strong partnerships with retail banking companies. However, Microsoft does not engage in commercial or wholesale banking partnerships, making us their preferred partner alongside Accenture.
We can harness their cloud services and digital transformation expertise by collaborating with Microsoft and Accenture. Notably, we have just signed our first customer, the National Bank of Fujairah, which will utilise our platform as we expand into wholesale banking.
Our partnership with Microsoft is crucial, a cornerstone of our growth strategy. As banks pivot to the cloud, they require robust partners who understand the unique needs of wholesale banking.
Our collaboration with Microsoft, which emerged as a natural choice for us due to its strong partnerships with retail banking companies, is a testament to our commitment to providing comprehensive solutions to our clients. This partnership allows us to harness Microsoft’s expertise in cloud services and digital transformation, enhancing our distribution and expanding our reach in the market.
IGTB, with its comprehensive solutions, is at the forefront of empowering regional banks to transition to the cloud effectively. Our recent collaboration with the National Bank of Fujairah exemplifies this shift; we have launched wholesale banking solutions on the Microsoft platform, tapping into the growing demand for cloud services.
What are iGTB’s aspirations in the Middle East for the next five years?
Our primary focus is expanding our transaction banking footprint and enhancing our data and AI offerings. We have launched a new platform, Purple Fabric, which leverages vast transactional data to create intelligent solutions for banks. This platform assists banks in streamlining their operations, from user journeys to underwriting processes, improving operational efficiency.
Additionally, we aim to deepen our involvement in real-time payments, lending, and trade finance. As the region grows, so does the need for comprehensive solutions that cater to these evolving demands.
What challenges do you face in this competitive landscape?
While the Middle East is one of our strongest markets, we must remain agile and avoid complacency. In a constantly evolving industry, it is essential to maintain a startup mindset—continually pushing boundaries and innovating. Complacency can stifle growth and allow emerging players to seize opportunities.
What are the typical pain points of your Middle East customers?
They [customers] have grown over time and have several disparate systems with integration challenges. That is where we are looking at helping several of them do application consolidation.
What roadmap do you follow when developing new products and solutions for global wholesale banking players?
Our product development strategy hinges on a few fundamental principles. We maintain a global perspective, examining market patterns and innovations across various regions. This foresight allows us to adapt and innovate based on proven success in similar markets.
Additionally, we engage deeply with our clients, working closely with banks and corporates to understand their specific needs. Our advisory group, composed of industry veterans, provides invaluable insights into market trends and regulatory requirements, ensuring our offerings are relevant and forward-thinking.
How significant is the Middle East region to iGTB’s bottom line?
The Middle East accounts for 15-20% of our global revenue. The region is remarkable for its technology adoption and willingness to embrace innovation, which positions us well for growth. With around 38 major banks currently operating in the area, plus additional players in Africa, the innovation potential is significant.
Can you comment on the recent launch of eMACH.ai Cloud and Purple Fabric?
eMACH.ai Cloud and Purple Fabric have garnered intense interest in wholesale banking.
eMACH.ai Cloud is a breakthrough platform that redefines the way wholesale banks operate. By delivering a unified, integrated solution, the platform enables banks to enhance operational efficiency and reduce costs, tap into new revenue streams, and accelerate their growth ambitions.
In today’s dynamic market, wholesale banks need agility, and eMACH.ai Cloud gives them the tools to deliver exceptional value to their clients while driving innovation in their business models.
eMACH.ai Cloud equips wholesale banks with everything they need to thrive in a complex financial ecosystem – from managing liquidity and meeting evolving compliance demands to achieving ESG targets and enabling sustainable finance. With eMACH.ai Cloud, banks can confidently embrace the future and be secure in the knowledge that they have the most advanced technology.
On the other hand, Purple Fabric is a digital platform that enables banks to digitalise user journeys, effectively enhancing customer experience. We are currently discussing with several banks how to support their digital transformation efforts, and we have a robust pipeline of opportunities.
The enthusiasm for these two innovative platforms reflects a broader trend toward digitisation in the banking sector. As institutions seek to modernise their operations, solutions like ours that enhance customer experience and operational efficiency will continue to be in demand.
The enthusiasm for these platforms reflects a broader trend toward digitisation in the banking sector. As institutions seek to modernise their operations, solutions like ours that enhance customer experience and operational efficiency will continue to be in demand.
How do you ensure client data security with the increasing reliance on cloud services?
Cybersecurity is paramount for us. We have established comprehensive protocols to monitor and manage cybersecurity risks, employing around 32 patterns to safeguard data. We also work closely with external cybersecurity experts to ensure our systems are robust and secure.
Maintaining data integrity and security is crucial in a cloud-centric world, and we are committed to upholding the highest standards to protect our clients.
What new products are on the horizon for iGTB?
We are constantly exploring new avenues for innovation. Our commitment to continuous improvement means we analyse market needs and technological advancements. While I cannot share specifics yet, we are excited about the possibilities ahead and committed to delivering solutions that drive real value for our clients.
What advice would you offer to wholesale bankers in the Middle East?
My advice would be to embrace change and innovation. The financial landscape is evolving rapidly, and staying ahead of the curve requires a willingness to adopt new technologies and approaches.
Collaborating with fintech, investing in data analytics, and focusing on customer experience will be critical drivers of success. Maintaining a culture of agility and openness to change will ensure that banks can thrive in the future.
Featured image: Manish Maakan, CEO of iGTB. Credit: iGTB
Last Updated on 1 month by Arnold Pinto
