Critical Evaluation of Business Process Models in Local Banks in the UAE

Abstract

In today’s world of globalization, no country can remain isolated from the impact of changes blowing across the world, be it economic, political or technological. The financial meltdown of 2008 in the United States of America had its repercussion throughout the global markets, especially the banking sector. The UAE is an open economy and was affected too, with banking being the hardest hit. As retail banking constitutes a major part of the banking sector in UAE, catering to a relatively small population, it has traditionally witnessed a high level of internal rivalry. This has forced the retail banks in UAE to pursue different strategies to gain a sustainable competitive edge over the rivals and maintain/increase profitability to remain in the race. This research study was conducted within the local retail banks in UAE to critically evaluate the business processes deployed/managed by them. Established research methodologies were used during the research. Primary data were gathered using a self-administered survey questionnaire, whereas secondary data were sourced from various public domains. The empirical research indicated that there are no specific business process models deployed in local retail banks within the UAE. Although the processes of the banks are linked to its strategy, its internal stakeholders are not happy with them neither they feel the need for a structured approach towards designing good processes. This indicates that there is disengagement between the strategy formulation and strategy implementation; mainly in the areas of processes and people which needs to be addressed by the banks.