Interesting interview with Wio Bank’s CEO

Interesting interview with Wio Bank’s CEO Group CEO Of Diriyah Company: Transforming Diriyah into a Global Cultural and Tourism Destination

Q. Wio Bank became profitable in its first full year of operations, making it the first neobank to do so. What does this mean for the bank and how will it influence your future business strategies?

We are proud to be one of the few neobanks globally to achieve profitability so quickly. This success stems from several factors. Firstly, we are incredibly focused on what we want to offer our customers.
We are clear about our business objectives. Secondly, we develop solutions that our customers love. In fact, four out of five customers join us because of referrals, which is fantastic and demonstrates that we are meeting their needs.
Our profitability is rewarding for our shareholders and our team, who find great satisfaction in knowing that our customers are happy. It also reassures customers that they are investing their money in a profitable and sustainable organisation.

Q. What steps are you taking to ensure long-term profitability and stability amidst market uncertainties?

Our SME platform was developed in close collaboration with 100 customers, and our goal is to become the operating platform for businesses, similar to how iOS functions on a phone. Entrepreneurs don’t start businesses to learn banking; they want to optimise their finances with minimal effort.
That is why Wio’s product offerings include multi-currency accounts, expense management, and virtual cards, among others.
These features not only provide excellent service but generate strong revenue streams for us. As customers use more of our products, our revenue grows.
On the retail side, we offer fantastic savings rates and a range of products, such as international transfers, debit cards with virtual card capabilities, and investment options. Our goal is to help customers achieve their short-term and long-term financial goals while providing value and security. Wio’s approach has led to good growth and customer adoption, and we are optimistic about the future.

Q. What are the opportunities and main challenges facing neobanks in the GCC region?

Wio was established to build and serve the customers of tomorrow, whether they are businesses or individuals. We have a clear and focused objective. While there are many fantastic incumbent banks that drive the economy and do great work, we have a different approach to serving customers.
Traditional banks are offering better services and products than neobanks in some areas and we are also doing much better than them in some. It is important to identify these areas and focus on them.
Our strategy revolves around enhancing mobile engagement, exploring embedded finance, and offering banking as a service. By focusing on these areas, we aim to provide value to our customers and build a sustainable and profitable business.
We saw a clear opportunity to enhance customers’ interactions with mobile apps and launched Wio Business for SMEs. This has been a success, with around 4,000-5,000 new accounts being opened each month.
We invest heavily in innovative technologies, and with BaaS, our aim is to democratise finance. Financial regulators in the UAE are taking initiatives to open up finance and payments, making it easier to access financial services.
For neobanks, it’s crucial to understand what to do and what not to do. We are not a wallet or a travel card; we are a bank at our core. We focus on core banking capabilities: keeping and growing your money, providing credit when needed, offering investment opportunities, and providing payment instruments.

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