BizBahrain April 2016

Banking & Finance
Changing Patterns in
Consumer Spending
Mazin Khoury
CEO, American Express Middle East
Despite economic uncertainties in the
region, it appears there was little slow
down in consumer spending in Bahrain in
2015. The American Express Middle East
Spending Survey which was conducted by
GfK and involved high income households
in the UAE, Oman, Bahrain, Qatar and
Kuwait also revealed a noticeable shift
in spending habits with many focusing
more on the necessities of life. 68% said
they spent more on transport while 62%
allocated more to eating and drinking at
home, and 55% spent less on dining out.
Innovative MasterCard
solution minimizes fraud and
false payment declines
MasterCard launched the IQ Series
at its Global Risk Leadership
Conference in Dubai. designed to harness
real-time insights and intelligence.
The suite of solutions empower card
issuers and merchants to authorize
transactions with increased accuracy and
limit fraudulent activity. The solution is
now available to financial institutions,
businesses and merchants across the
Middle East and Africa.
The initial two products developed
under the series – Authorization IQ and
Assurance IQ – are aimed at optimizing
These shifting patterns also impacted
the amount respondents contributed
towards their savings and pensions with
43% cutting back in this area, and a further
68% indicated they spent more on rent.
Mazin Khoury, Chief Executive Officer,
American Express Middle East pointed
out, “It is evident that people are spending
more cautiously and are focusing on
essentials,” he continued.
Bahraini residents still have room for
luxury spending but still some way behind
Qatar, the region’s highest spenders, where
the monthly average spend on luxury is
more than $4,000.
Holidays rank as the number one
category for luxury spending in Bahrain.
For nearly a quarter of residents (23%), this
is the priority area in 2016 with a further
fifth (19%) planning to spend their money
on fine dining.
Mr Khoury added: “American Express
has been in the Middle East for over 50
years and throughout this time we have
helped our Cardmembers manage their
finances through the ups and downs of
economic change. Whether they use their
cards to pay for their weekly shopping or
a holiday, they have confidence knowing
that our organisation is behind them
providing them with world class benefits,
customer service and security.”
the payment authentication process,
leading to fewer declines in legitimate
transactions and creating more stable
revenues for issuers and merchants.
Authorization IQ provides card issuers
with relative behavioural insights on
spending, such as total spending on
an account compared to others in the
country, spending in a particular segment,
and frequency of card usage compared
over an extended period of time.
Assurance IQ enables the distribution
of positive e-commerce data indicators
between stakeholders. A balanced
reputation assessment is achieved
considering not only transactional risk
indicators but also positive indicators
better determining the authenticity of a
transaction.
Both products supplement the need
for a robust enhanced data exchange
network between financial institutions,
merchants, and issuers to understand the
digital footprint and behaviour of accounts
better.
Trust Insurance
Management approved as
Lloyd’s Coverholder
Kamal Tabaja
CEO, Trust Insurance Management
Trust Re subsidiary, Trust Insurance
Management W.L.L. has been approved
as a Lloyd’s Coverholder. This allows Trust
Insurance Management to write business
in the more than 200 countries in which
Lloyd’s operates, both on an insurance
and reinsurance basis. As Trust Insurance
Management is writing on behalf of
Lloyd’s syndicates, the capital is rated A+
by S&P, A by AM Best, AA- by Fitch and is
backed by the Lloyd’s central fund.
Additionally, Trust Insurance
Management has entered into an
agreement with Novae Syndicate 2007 at
Lloyd’s. The agreement covers Property,
Energy, Liability and Political Violence
business; there is a view to developing
other lines of business in the future.
Commenting on the announcement,
Trust Re’s Executive Council said “On
behalf of Trust Re, we are very excited
about this latest development, Trust
Insurance Management, which will bring
added value through diversification,
to our business partners. Leading TIM
will be Kamal Tabaja, in whom we have
every confidence to drive the team and to
achieve the strategic targets as set out in
the business plan”.
Kamal Tabaja, CEO Trust Insurance
Management, said “On behalf of Trust
Insurance Management, we are confident
that the value-added services offered,
combined with established expertise
from both Trust Re and our underwriting
partners, provides us with a firm base for
the starting point of this new MGA. We
very much look forward to a profitable and
rewarding first year of operations”.
May 2016
61