AB Majlis Podcast: Mashreqs Fernando Morillo Says Tipping Point For Digital Banking Is Already Behind Us

Morillo describes Mashreq’s transformation as “perhaps the boldest I’ve ever seen” in his decades-long career. Guided by the vision of the founding family and leadership team, the bank has moved aggressively to redefine what modern banking means.

That includes shuttering almost 90 percent of its branch network, a radical step that has nevertheless tripled its customer base. “The tipping point is behind us,” Morillo said.

“Banking no longer needs to happen in branches, between paper and humans. It’s all digital now, and it’s working flawlessly.”

Demographics, regulators, and the digital opportunity

The Middle East, Morillo argues, is uniquely positioned for digital acceleration. “Half the population is under 30, and regulators in the UAE and Saudi Arabia are among the most progressive anywhere,” he said. This blend of youthful demographics and forward-looking regulation has given banks a clear runway to innovate.

In markets like Egypt and Pakistan – where Mashreq is expanding – digital adoption is not just possible, it’s inevitable. “You’re talking about hundreds of millions of people who are digitally native. For them, physical banking is the anomaly,” Morillo noted. While challenges remain, such as connectivity gaps or hesitancy around cloud adoption in some countries, Morillo insists the positives far outweigh the barriers.

From old hierarchies to fintech-style squads

If technology is one pillar of Mashreq’s strategy, customer obsession is the other. Morillo explained that every executive committee meeting begins with a review of client experience data. Salaries and incentives are tied directly to customer satisfaction. “It’s not just a tagline – it’s an obsession,” he said.

That ethos has transformed the way Mashreq organises itself internally. The bank now operates in small, autonomous squads – mirroring fintech startups – that listen directly to customer feedback and adapt quickly. “Old banks were arrogant. They imposed processes on people. In our setup, power is pushed to the squads closest to the client. They act almost like independent fintechs inside the bank,” Morillo explained.

This “bank-tech” model, as he calls it, combines the agility of fintech with the risk management expertise of a traditional bank. “It’s unbeatable. Clients get innovation and protection at the same time.”

AI, chatbots, and the hybrid future of finance

Artificial intelligence, Morillo believes, is not a passing trend but a permanent shift. Mashreq has already deployed a chatbot capable of handling nearly 90 types of transactions – a first in the region. “Clients don’t want to be hassled with offers. They want seamless service. Our chatbot gives them what they need in real time,” he said.

The long-term vision is for the entire Mashreq app to function like ChatGPT: conversational, intuitive, and adaptive. But Morillo is quick to stress that AI only works if the groundwork of full digitisation is done first. “If you don’t digitise absolutely everything, AI is a wasted investment,” he warned.

For Morillo, the future lies in a hybrid model that blends high-tech with high-touch. Simple transactions should be instant and digital, while complex ones – such as mortgages or large investments – still warrant human interaction. Mashreq’s “one-click” process already enables clients to finalise high-value transactions digitally after a brief human consultation.

“Ultimately, it’s about quality of life,” Morillo concluded. “Digital banking is not just efficiency – it’s giving people back their time.”

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