We invested over $100m in technology and currently moving towards AI-powered banking – Interview with NBB Official

By: Ahmed El Shamsy

Manama – Exclusive: Zaina Alzayani, Group Chief Strategy and Sustainability Officer at the National Bank of Bahrain (NBB), said the bank has moved from being technology- and digitally enabled to becoming AI-powered while expanding the integration of AI into its daily operations and digital transformation strategy to enhance customer experience and improve operational efficiency.

Speaking to on the sidelines of Fintech Forward 2026 in Bahrain, Alzayani said NBB invested more than $100 million in building its technology platform and continues to invest in this area. She noted that the bank is currently focusing on generating tangible returns from digital investments through higher revenues, greater operational efficiency, or improved customer experience.

Alzayani explained that traditional banks will continue to benefit from essential advantages like trust, security, governance, and compliance with regulatory requirements. However, they will boost collaboration with fintech companies to reach new customer segments and target niche markets, including retail as well as small and medium-sized enterprises (SMEs).

The Group Chief Officer added that economic diversification across the GCC while expanding in infrastructure, logistics, technology, tourism, healthcare, and SMEs projects will shape the banking sector over the next decade. This is in addition to witnessing stronger competition to deepen customer relationships, growth in wealth management, and capital deployment.

You are participating in Fintech Forward for the fourth consecutive year. What distinguishes this year's edition from previous years?

We are very proud to participate in Fintech Forward for the fourth year in a row.

I think one of the key differentiators this year is the results of our investments in technology and our digital transformation strategy.

We have moved from being technology- and digitally enabled to becoming AI-powered. We are increasingly incorporating AI into our transformation strategy and embedding AI into how we implement everyday work.

Our goal is to use these technologies to deliver an enhanced experience for our customers.

How can traditional banks compete with fintech companies without affecting customer trust?

I believe the banking sector will always provide trust, security, and governance, which are the backbone of the financial system. Banks are also regulated by central banks.

Traditional banks will remain capable of competing and achieving success in areas where they have clear strengths.

However, moving forward, we will increase collaboration with fintech companies because there are many opportunities for partnership that will help us reach new customer segments and enter specialized markets.

We have invested well in enabling our bank to collaborate with fintech companies.

As part of our Banking-as-a-Service offering, we have built the necessary technology infrastructure to become ready for integration with fintech companies through application programming interfaces (APIs).

How do you view regional tensions and their impact on the banking sector?

Regional tensions have demonstrated the unity of the region and the GCC countries.

We have succeeded in demonstrating great resilience and cooperation among the member states to deal with these circumstances. And I believe we have reached a stage of relative stability, despite the ongoing uncertainty.

When will NBB utilize AI to move from improving customer experience to generating measurable financial returns?

We view investment in AI not only as a way to enhance customer experience, but also to generate commercial returns from these investments.

When evaluating AI application in their initial use, we ensure that the right measures are adopted to achieve tangible outcomes.

We want to make sure these investments deliver returns, whether through increased revenues, improved operational efficiency by reducing turnaround times, or offering enhanced customer experience.

Ultimately, a satisfied customer will engage more with the bank and deepen their relationship with it, creating greater financial value for the bank.

How much is NBB investing in AI and digital transformation?

In the past, we invested more than $100 million in building our technology platform, and we continue to invest in this area.

NBB is now at a stage where we are beginning to see commercial returns from our digital investments.

We are also closely monitoring the return on our technology investments across different areas of the business to ensure that they deliver the expected results.

Given regional tensions, what should Bahrain do to turn challenges into a competitive advantage in fintech?

I believe there are extensive opportunities in the fintech industry, and collaboration between financial institutions and fintech companies is inevitable.

Looking ahead, I strongly believe in the value that fintech companies can bring to economy. We can see this across different areas, particularly through targeting niche markets, whether in retail or the SME sector.

Such collaboration can also help banks build a customer base in these specialized markets.

What economic and investment trends will shape the GCC banking sector over the next decade?

I believe that the economic and investment trends shaping the banking industry will be driven by the economic diversification initiatives led by governments.

We expect growth in infrastructure projects, logistics, technology, tourism, healthcare, and the SME sector across the GCC.

The region also has a relatively young population, so government investment in these sectors is expected to increase over the next decade.

Banking solutions will, therefore, need to evolve in response to the needs of these sectors, which will lead to creating financial services tailored to each sector and its specific requirements.

Second, we believe competition will increasingly focus on winning the customer's primary banking relationship rather than simply owning an account. Banks that succeed will be those that capture a larger share of their customers' financial activity and spending, while building a deeper, primary relationship with them, rather than handling only a small portion of their banking needs.

Third, regional wealth is growing, which will make banks required to help customers with investing, risk management, and financial planning across generations, instead of being limited to traditional banking services.

As a result, wealth management is expected to become a growing market segment in the coming period.

Another trend shaping the banking industry will be funding and discipline in capital deployment. This will become increasingly important as interest rates rise and liquidity flows relatively decline.

Banking operations will focus more on improving how capital is employed while ensuring that the return from the full customer relationship provides meaningful value to the bank.

Overall, I believe these trends will contribute to shaping the banking sector in the region in the coming years.