As the banking sector in Egypt witnesses a rapid digital transformation, Daily News Egypt conducted an interview with Ahmed El-Sherif, Head of Mashreq Global Network (MGN) – Egypt, the innovation-led global excellence arm driving growth for Mashreq Group. The conversation focused on the Global Innovation Centers (GICs) and their expected impact on the banking sector. El-Sherif also discussed the role of MGN in supporting the expansion and operations of the regional financial leader, Mashreq, as well as the impact of the current digital transformation on the banking operations and job market.
In addition, we’ve tackled other pressing topics including the remote distributed workforce and the importance of adopting flexible work models to increase the productivity and diversity of GICs teams.
GIC is a new concept in the Egyptian banking sector, what does it mean? How do in-house GIC models differ from outsourced models?
GICs, also known as Global Capability Centers, are specialized entities established by companies in various locations around the world to drive innovation, develop new technologies, and provide specific operational support – the objective is to enable companies to stay competitive in a rapidly evolving industry.
In the banking sector, traditionally, GICs were set up to provide operational support to various banking functions, such as customer service, back-office operations, risk management, compliance, finance, and accounting.
However, in recent years, GICs have evolved into innovation-led global excellence arms that are playing a critical role in the success of businesses worldwide. They have expanded their purview to harness global talent, leverage local expertise, and foster innovation. These centers undertake a wide range of activities and operations, depending on the specific goals and strategies of the banks and other companies.
GICs usually take the shape of two core models: in-house and outsourced.
In Mashreq, the bank operates MGN offices in Egypt, India, and Pakistan. MGN is a separate entity that is 100% owned by Mashreq. This in-house model provides MGN an opportunity to support all banking functions. Widely speaking, this model allows for seamless integration and collaboration between the center and other business functions. It facilitates knowledge sharing, cross-functional collaboration, and alignment with the center’s strategic priorities. The model is also ideal if the company wishes to retain ownership of any intellectual property developed within the GIC.
In some cases, companies can choose to partner with a third-party service provider to establish and operate the center on its behalf. This approach is ideal if the company wishes to achieve cost efficiency in its operations. The outsourced model offers potential cost savings by leveraging the service provider’s expertise and economies of scale. The company can then focus its internal resources and expertise on core competencies.
You’ve stated that MGN has supported Mashreq operations and expansion, could you elaborate on its role and impact on the group?
Over the years, MGN has played a significant role in supporting Mashreq’s operations by bringing in new technologies, 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, fueling Mashreq’s digital transformation and customer experience. Since then, MGNs have been set up in Egypt and Pakistan and its purview has expanded to support strategic business groups within the bank including, Risk Management, Operations, Product Management, Shariah Governance, Credit Management, Legal, Audit, Compliance, Marketing and Corporate Communications.
We have played a key role in Mashreq UAE’s expansion enabling better customer experience, through personalization, contain costs, improve operational efficiency, and facilitate the convergence of front- and back-office operations. We are now assisting Mashreq with its objective of evolving digital finance and the wider digital economy through truly transformational platforms and solutions.
What are the key emerging technologies that you see as having the potential to disrupt the banking industry in the next few years?
We are in an age where advancements in existing tech and work on new tech is happening at a rapid pace. Artificial Intelligence (AI), Internet of Things (IoT), 5G, blockchain, technology convergences, and new use cases are giving rise to new avenues for innovation across industries. This definitely impacts banking.
Emerging technologies like AI and machine learning (ML) have the potential to transform various aspects of banking, including customer service, risk management, fraud detection, and process automation. AI-powered chatbots, virtual assistants, and personalized recommendations can enhance customer experiences. While ML can analyze large volumes of data to identify patterns, detect anomalies, and make accurate predictions for credit scoring, investment strategies, and risk assessment.
Blockchain is another area in which we will see increasing focus in the coming years. We know its benefits involving secure, transparent, and decentralized methods for recording and verifying transactions.
IoT and 5G are two complimentary technologies which are increasingly impacting other industries. In banking, they can facilitate the integration of banking services with everyday objects, providing personalized experiences and real-time data. We are already seeing this play out in the open. Just recently automobile manufacturer Mercedes-Benz announced that soon it will launch a native in-car payment system in cooperation with the payment service provider Visa.
Companies across the globe are moving fast in terms of technology implementation. Most companies expect to maintain or increase their tech budget this year, as per a recent study. The technologies driving these investments include data analytics, AI, and other means to improve the customer experience.
However, it’s critical that the banking industry ensures responsible and ethical use cases with strong oversight and guidelines, for any new tech it is looking to implement.
Why it’s vital for GICs to adopt distributed workforce and flexible remote work models? What differs it from the traditional work environment, and how this could reflect the productivity, efficiency, and innovation?
In our experience, adopting a distributed workforce and flexible remote work models can be highly beneficial for GICs.
For starters, it allows us to tap into a global talent pool without being limited by geographical constraints. This can enhance the innovation capabilities of the GIC by fostering a more diverse and inclusive work environment.
At MGN, the remote model has allowed us to expand our talent pool and create a more diverse and inclusive workforce by providing an opportunity to returning mothers, homemakers, and other underutilized workforce segments that had the right experience and skills but were not able to work due to other obligations and challenges.
This model also provides an added layer of business continuity and resilience. GICs can continue operations during unforeseen events such as natural disasters, pandemics, or disruptions in transportation.
These new work models can foster an environment that encourages innovation and creativity by providing individuals with the freedom to work in their preferred environments and adapt their schedules to maximize productivity.
However, it’s important to acknowledge that challenges may arise while implementing these new work models. At MGN, we believe that technology is key to a seamless remote work model. Employees need to be equipped with the right tools, resources, and guidance to make the remote model work.
To that end, MGN has put in place several best-in-class processes, including HR (HR Connect), Risk (Prism), Fraud Management (Clari5), and Compliance based procedures (SOPs) to support employees and ensure the smooth integration of its WFA model.
The ability to create a more flexible, personalized, and comfortable work environment has allowed our employees to perform at higher levels of productivity and engagement. This has positively impacted employee satisfaction as they not only feel empowered but also valued.
Diversity, equity, and inclusion (DEI) are critical components of any successful organization. How is MGN working to improve its diversity ratio in the workplace, and what steps are being taken to ensure that all employees feel valued and supported?
MGN is actively working to improve its diversity ratio in the workplace. By the end of 2022, MGN Egypt achieved a gender diversity ratio of 41% across its global network, which is a significant progress.
Across MGN globally, we have implemented various DEI initiatives, such as the Mashreq Hope program, People with Determination, and Returning Mothers, with the latter soon being adopted across the group in its expanded form.
In India, our initiatives have received a host of accolades including The Economic Times Best Organization for Women Certification, DivHERsity awards, Great Places to Work Certification, the PeopleFirst HR Excellence Award, and ETHR World Future Skills Awards. These recognitions reinforce our commitment to creating a diverse and inclusive workplace where all employees feel valued and supported.
In conclusion, we are fully committed to creating a diverse and inclusive workplace where employees of different ethnicities, abilities, religions, and cultures can thrive.
In your experience, what’s the impact of AI on the job market and workforce management? How can employees future-proof their career in this era of AI?
As per the latest World Economic Forum ‘Future of Jobs’ report, nearly 75% of surveyed companies would adopt AI. It estimates that the world will see an influx of 69 million new jobs by 2027. The report also found that in the next five years, almost a quarter (23%) of jobs in the world would change.
Technological innovation and its impact on all facets of our lives is inevitable but it’s important to remember that, historically, it has made humans more efficient. It has helped us to communicate easily, access information more quickly, automate tasks, and create new products and services that improve our lives.
Keeping this in mind, my advice to youngsters entering the job market or to those who have been working for a while is to take proactive steps to future-proof careers and remain relevant in the rapidly changing job market.
One key thing to remember is that the value of human-centric skills, such as, self-efficacy skills, analytical and creative thinking, emotional intelligence, complex problem-solving, communication, and leadership, will always stay relevant.
Secondly, it’s important to familiarize oneself with AI technologies, tools, and applications relevant to field. Undertake trainings to understand the basics of how AI works, its potential impact on industries, and its limitations. And actively engage in industry networks, and professional communities to stay updated on industry developments. Networking with peers, experts, and thought leaders can provide valuable insights and support.
