DARB

In the wake of a global economic recovery, the banking sector in Jordan finds itself navigating through a landscape marked by transformative changes. As banks recalibrate their operations amidst evolving regulatory policies and the lingering effects of the pandemic on global trade, they are also faced with the challenge of meeting high expectations set by the government and the Central Bank of Jordan (CBJ) in terms of promoting economic growth and financial stability.

In this report, our financial services team delves into several critical aspects shaping the banking industry in Jordan. Embracing modernization in operational strategies is paramount for banks to thrive in the new working reality and to effectively compete with emerging market players. Furthermore, a steadfast commitment to Environment, Social, and Corporate Governance (ESG) programs is becoming increasingly vital, not only for meeting customer expectations but also for aligning with broader stakeholder interests.
The regulatory landscape, both in Jordan and globally, has assumed unprecedented importance over the past two years. Banks find themselves grappling with compliance uncertainties amidst the challenges posed by an extraordinary year for their accounting and governance, risk, and compliance (GRC) functions. The adoption of technology emerges as a crucial avenue for banks to enhance their regulatory compliance capabilities and navigate through the evolving regulatory environment effectively.

Operational resilience emerged as a cornerstone for adapting swiftly to pandemic-induced disruptions. Banks that successfully incorporate the lessons gleaned from the past two years into their resilience strategies are poised to drive positive transformation within their institutions. Similarly, cybersecurity assumes heightened significance in an increasingly digitized banking ecosystem, necessitating proactive measures to safeguard against potential cyber threats.

The fintech industry presents both challenges and opportunities for traditional banking establishments. While fintech disruptors chip away at the market share of traditional banks, there exists a compelling opportunity for collaboration and innovation. Traditional banks stand to benefit from leveraging the agility and technological prowess of fintech firms, thereby enhancing their service offerings and customer experience.

Looking ahead, the journey towards resilience and innovation remains imperative for banks in Jordan. By embracing technological advancements, fostering a culture of innovation, and prioritizing regulatory compliance and cybersecurity, banks can navigate through the evolving landscape with confidence. Our Financial Services team stands ready to engage in further discussions and explore avenues for collaboration to help organizations capitalize on emerging opportunities and drive sustainable growth.

As the banking sector continues to evolve, it is essential for stakeholders to remain vigilant, adaptive, and forward-thinking in their approach. By staying abreast of emerging trends, embracing innovation, and fostering collaboration, banks can position themselves as catalysts for economic growth and prosperity in Jordan and beyond.