As Egypt’s banking sector witnesses a rapid digital transformation, Daily News Egypt is head of Mashreq Global Network (MGN) in Egypt, an innovation-driven global excellence unit that drives growth for Mashreq Group. , conducted an interview with Ahmed El Sherif. The conversation focused on the Global Innovation Center (GIC) and its expected impact on the banking sector. Elsherif also discussed MGN’s role in supporting the expansion and operations of regional financial giant Mashreq, and the impact of the current digital transformation on banking and the job market.
Additionally, we have addressed other pressing topics such as remote distributed workforces and the importance of adopting flexible work models to increase the productivity and diversity of GIC teams.
GIC is a new concept in the Egyptian banking sector, what does this mean? How does the in-house GIC model differ from the outsourced model?
GICs, also known as Global Capability Centers, are specialized organizations established by companies in various locations around the world to drive innovation, develop new technologies, and provide specific operational support. Its purpose is to enable companies to remain competitive in a rapidly evolving industry.
Traditionally, the banking sector has established GICs to provide operational support to various banking functions such as customer service, back office operations, risk management, compliance, treasury and accounting.
However, in recent years, GIC has evolved into a global innovation leader and plays a key role in the success of businesses around the world. They have leveraged global talent, leveraged local expertise, and expanded their reach to foster innovation. These centers carry out a wide range of activities and operations according to the specific goals and strategies of banks and other companies.
GIC typically takes the form of two core models: an in-house model and an outsourced model.
At Mashreq, the bank operates MGN offices in Egypt, India and Pakistan. MGN is a separate entity 100% owned by Mashreq. This in-house model offers MGN the opportunity to support all banking functions. At a high level, this model enables seamless integration and collaboration between the center and other business functions. This facilitates knowledge sharing, cross-functional collaboration, and alignment with the Center’s strategic priorities. This model is also ideal if a company wants to retain ownership of intellectual property developed within his GIC.
In some cases, companies may choose to partner with a third-party service provider to set up and operate a center on their behalf. This approach is ideal when companies want to achieve cost efficiency in their operations. The outsourcing model provides potential cost savings by leveraging the service provider’s expertise and economies of scale. This allows companies to focus their internal resources and expertise on their core competencies.
MGN says it supports the operation and expansion of Mashreq, can you elaborate on its role and impact on the group?
Over the years, MGN has played a key role in supporting Mashreq’s operations by introducing new technology, expertise and access to a diverse talent pool from Egypt, India and Pakistan.
MGN was first established in India as a global hub for technology solutions to power Mashreq’s digital transformation and customer experience. Since then, MGN has been established in Egypt and Pakistan and its scope covers strategic business groups within banks such as Risk Management, Operations, Product Management, Shariah Governance, Credit Management, Legal, Audit, Compliance, Marketing and Corporate. Expanded to support. communication.
We have played a key role in Mashrek UAE’s expansion to deliver a better customer experience by controlling costs, improving operational efficiency and facilitating the integration of front and back office operations through personalization. . We are now supporting Mashreq’s goal of advancing digital finance and the broader digital economy through truly transformative platforms and solutions.
What are the key emerging technologies that could disrupt the banking industry in the next few years?
We live in an era of rapid advances in existing technologies and the development of new ones. Artificial intelligence (AI), Internet of Things (IoT), 5G, blockchain, convergence of technologies, and new use cases are creating new avenues of innovation across industries. This will undoubtedly affect banking operations.
Emerging technologies such as AI and machine learning (ML) have the potential to transform many aspects of banking, including customer service, risk management, fraud detection, and process automation. AI-powered chatbots, virtual assistants, and personalized recommendations can improve the customer experience. ML, on the other hand, can analyze large amounts of data to identify patterns, detect anomalies, and make accurate predictions for credit scoring, investment strategy, and risk assessment.
Blockchain is another area that will receive more attention in the coming years. We know the benefits of a secure, transparent, decentralized way to record and verify transactions.
IoT and 5G are two complementary technologies that are increasingly impacting other industries. Banking can facilitate the integration of banking services and everyday objects to deliver personalized experiences and real-time data. We have already witnessed this development in public. Just recently, automaker Mercedes-Benz announced that it would soon introduce a native in-vehicle payment system in collaboration with payment service provider Visa.
Companies around the world are moving rapidly when it comes to technology adoption. A recent survey found that most companies expect to maintain or increase their technology budgets this year. Technologies driving these investments include data analytics, AI and other means of improving the customer experience.
However, it is important to ensure responsible and ethical use cases with strong oversight and guidelines for any new technology the banking industry is considering adopting.
Why is it important for GICs to adopt a distributed workforce and flexible remote work model? How does it differ from traditional work environments? And how does this reflect productivity, efficiency and innovation? Is it possible?
In our experience, embracing a distributed workforce and flexible remote work model is very beneficial for GIC.
First and foremost, you will be able to tap into talent pools around the world without being restricted by geographic constraints. This will promote a more diverse and inclusive work environment and strengthen GIC’s innovation capacity.
With its remote model, MGN has expanded its talent pool by providing opportunities for returning mothers, housewives and other underutilized workforces who had the right experience and skills but were unable to work. , could create a more diverse and inclusive workforce. Due to other obligations and challenges.
This model also provides an additional layer of business continuity and resilience. GIC can continue to operate in the face of unforeseen events such as natural disasters, pandemics, and transportation disruptions.
These new work models foster an environment that fosters innovation and creativity by giving individuals the freedom to work in their preferred environment and adjust their schedules to maximize productivity.
However, it is important to recognize that there can be challenges when implementing these new working models. At MGN, we believe technology is key to a seamless remote work model. Employees should be equipped with the right tools, resources, and guidance to make the remote model work.
To this end, MGN has developed human resources (HR Connect), risk (Prism), fraud management (Clari5), compliance-based procedures (SOP) to support employees and ensure smooth integration. We have introduced some best-in-class processes such as: of the WFA model.
With the ability to create a more flexible, personalized and comfortable work environment, employees are now performing at higher levels of productivity and engagement. This also had a positive impact on employee satisfaction as they felt empowered as well as valued.
Diversity, Equity, and Inclusion (DEI) are key ingredients of a successful organization. How is MGN working to improve diversity ratios in the workplace and what steps is being taken to ensure all employees feel valued and supported mosquito?
MGN is actively working to increase diversity in the workplace. By the end of 2022, MGN Egypt has achieved a 41% gender diversity ratio across its global network. This is great progress.
Across MGN worldwide, we have various DEI initiatives such as the Mashreq Hope program, People with Determination and Returning Mothers, the latter of which will soon be adopted across the Group in an expanded form.
In India, our work has received numerous awards, including Economic Times Best Organization for Women, DivHERsity Awards, Best Places to Work, PeopleFirst HR Excellence Award, ETHR World Future Skills Awards, etc. increase. These recognitions reinforce our commitment to building a diverse and inclusive workplace where all employees feel valued and supported.
In conclusion, we are committed to building a diverse and inclusive workplace where employees of different ethnicities, abilities, religions and cultures can thrive.
In your experience, what impact will AI have on the job market and workforce management? How can employees secure their future careers in this age of AI?
According to the World Economic Forum’s latest Future of Jobs report, almost 75% of the companies surveyed are expected to adopt AI. The report estimates that by 2027 there will be an influx of 69 million new jobs for her globally. It also reveals that almost a quarter (23%) of global jobs will change over the next five years.
Technological innovation and its impact on all aspects of our lives are inevitable, but it is important to remember that historically it has increased human efficiency. This has helped us communicate easily, access information faster, automate tasks, and create new products and services that improve our lives.
With this in mind, my advice to young people entering the job market, or those who have been working for some time, is to take proactive steps towards a promising career and stay ahead of the rapidly changing job market. to maintain relevance in
One important thing to remember is that the value of human-centered skills such as self-efficacy skills, analytical and creative thinking, emotional intelligence, complex problem solving, communication and leadership will always remain relevant. about it.
Second, familiarize yourself with the AI technologies, tools, and applications relevant to this area. Get training to understand the basics of how AI works, its potential impact on the industry, and its limitations. Stay up to date on industry developments by actively participating in industry networks and professional communities. Networking with peers, experts, and thought leaders provides valuable insight and support.
