The 8th Future Investment Initiative (FII) held in Riyadh recently hosted a panel discussion on the rapidly evolving financial landscape and the crucial roles of traditional banks, AI, and fintech in defining the future of the banking industry. During the panel, Shaikha Al-Bahar, deputy group CEO of the National Bank of Kuwait (NBK), offered her valuable insights on the evolution and growth of the banking system.
The panel discussion themed ‘Can Traditional Banks Compete with AI and Fintech Disruptors?’ included leading international figures from financial services and technology, who explored the challenges and opportunities that AI, fintech, and traditional banks face as they seek to coexist or outcompete in the digital age. In a world where financial technology is changing the rules of the game, Shaikha Al-Bahar provided insights into how NBK is not only keeping pace with these innovations but also leading the charge.
Fintech and the banking revolution
“Fintech has been labeled a ‘revolution’ in banking, but the data tells a more nuanced story,” Shaikha Al-Bahar stated. “Despite billions of dollars in investments, not a single fintech company ranks among the top 250 global banks. The reality is that fintech isn’t a revolution that will replace traditional banking. Rather, it challenges us to evolve,” she added.
Al-Bahar added that contrary to popular belief, the banking industry’s business model has proven remarkably resilient, withstanding multiple disruptions over the past decade. She emphasized that traditional banks, including NBK, are integrating new technologies to enhance rather than replace core banking functions.
“The progress we’ve seen from the digital era isn’t about fintech replacing us. It’s about integrating digital innovations into a more comprehensive and inclusive business model,” she added.
The new financial ecosystem
FII8 also delved into whether traditional banks and fintech companies are destined to compete or collaborate. Shaikha Al-Bahar argued that the future of banking will be defined not by head-to-head competition, but by cooperation.
“Banks and fintechs have historically competed for customers, but we are entering an era of collaboration,” she added. Traditional banks have the financial capacity, while fintechs have agility and innovation. Al-Bahar says that the key is finding the right balance between these strengths stating that. “It’s not about one outdoing the other, but about leveraging each side’s advantages.”
Navigating the role of AI in banking
As the panel discussion shifted to the role of AI, the conversation turned to the immense potential and risks of artificial intelligence in the financial industry. Banks have already invested billions in AI systems for fraud detection and risk management. However, concerns remain about whether AI might introduce new vulnerabilities into the system.
“AI is a great enabler it allows banks to analyze vast amounts of data, recognize patterns, and simulate scenarios,” Al-Bahar explained. “But while AI enhances our capabilities, we must ensure that it does not make us complacent. Human oversight is critical. Technology recommends, but humans must decide,” she added.
Shaikha Al-Bahar also highlighted the importance of transparency and accountability in AI systems, stressing that while AI can provide powerful insights, banks must ensure that these insights are based on real, verifiable data. She also cautioned against an overreliance on AI, noting, “We cannot let AI be the sole decision-maker. It’s crucial to have a pilot behind the wheel, to monitor, review, and intervene when necessary.”
Balancing regulation and innovation
FII8 also addressed the complex relationship between innovation and regulation. In a rapidly evolving industry, governments are struggling to keep pace with technological advancements. Shaikha Al-Bahar argued that regulators are playing a crucial role in safeguarding the financial system while supporting innovation.
“Regulators have been quick to recognize the importance of digital technologies in banking. Many have created ‘sandboxes’—safe environments for testing new fintech solutions. However, I believe regulators’ primary role should remain that of protectors of the financial system. Banking is highly regulated for good reason — its role in the global economy is critical, and any disruptions can have far-reaching consequences,” she added.
Read: Visa opens new innovation center in Saudi Arabia
Challenges and opportunities facing traditional banks
Finally, the panel addressed the leadership challenge facing traditional banks. Shaikha Al-Bahar argued that to remain competitive in an era of rapid technological change, banks must go beyond simply investing in technology, they must transform their organizational culture.
“Industry leaders need to foster a culture of innovation that permeates the entire organization. It’s not just about adopting digital technologies, it’s about aligning every decision-making process with a digital mindset, from junior staff hires to strategic planning at the executive level,” she stated.
Al-Bahar also emphasized NBK’s leadership in digital transformation, expressing immense pride in the bank’s accomplishments. “Our journey towards integrating digital technologies while preserving the stability and trust of traditional banking is a testament to our commitment to providing the best for our customers,” she noted.
Looking forward to 2030, Al-Bahar concluded: “The CEOs who strike the right balance between traditional banking and fintech agility will define the future of the industry. Success will depend on being able to adapt, innovate, and evolve — without losing sight of the core values that have made traditional banking such a pillar of the global economy.”
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