Interview: Tariq Sulaiman Al Farsi
In what areas do the most significant opportunities lie for non-banking financial institutions (NBFIs) to innovate their service offerings?
TARIQ SULAIMAN AL FARSI: The most promising avenues for NBFIs are found in improving access, speed and personalisation across financial services. As customer expectations evolve, namely among underserved segments such as small and medium-sized enterprises (SMEs), NBFIs are uniquely positioned to fill critical gaps that traditional banks often cannot address. SME financing, in particular, stands out as such enterprises have diverse and dynamic needs, from working capital and equipment leasing to warehousing and scaling support. Many SMEs lack formal financial records or collateral, which limits their access to traditional credit, creating a space for NBFIs to offer customised solutions that combine technology with flexible lending models.
Digital lending also presents significant growth potential. While regulatory safeguards remain essential to mitigate risk, the sector is already seeing gains through digital onboarding, mobile apps and even communication tools like WhatsApp for loan servicing. The next wave of innovation will likely involve credit scoring driven by artificial intelligence (AI), real-time approvals and advanced data analytics, further enhancing the speed and precision of lending decisions.
Which trends are emerging in the increasingly competitive NBFI space in Oman?
AL FARSI: Several trends are reshaping the NBFI space in the sultanate. Among the most notable are the rise of lifestyle-focused consumer financing, the broadening of corporate finance offerings and an increased emphasis on sustainability and financial products that utilise environmental, social and governance (ESG) integration. There has been a noticeable shift in consumer lending towards solutions that enhance the quality of life – from electronics and appliances to home decor and equipment financing. This demand is being met through more accessible and varied lending products tailored to meet individual needs.
We are witnessing increasing demand for diversified financing tools in the corporate space. Businesses are keen to pursue not only short-term liquidity, but also capital to support long-term growth and resilience. Fixed deposit products and structured financing are gaining traction as organisations seek investment yields and flexible access to capital. As environmental and social responsibility increases within the corporate agenda, NBFIs are responding by embedding these principles into their offerings – financing clean energy initiatives, supporting green infrastructure and aligning with national sustainability objectives. Evolving ESG trends are redefining the ways in which financial institutions engage with retail and corporate clients, setting the stage for more inclusive, sustainable and diversified growth across the sector.
To what extent are financial technology (fintech) and digitalisation influencing the operations, out-reach and competitiveness of NBFIs?
AL FARSI: Digitalisation is transforming the operational backbone and the customer engagement strategies of NBFIs. As Oman moves forwards with its digital economy agenda, adopting fintech solutions enables financial providers to improve service accessibility, operational efficiency and inclusivity. In the near term, digital onboarding, mobile platforms, AI-powered chatbots and self-service kiosks are already making financial services more streamlined and user friendly. Enhanced digital payments and multilingual support tools are helping institutions reach broader demographics. In the medium term, deeper collaboration between fintech start-ups and financial institutions will likely accelerate. The long-term impact will be a more resilient, adaptive financial ecosystem that is better equipped to serve evolving customer needs and contribute to Oman’s digital transformation goals.
