When Crises Turn into Opportunities: Emirates International University Students Reveal How Banks Foster Innovation Amidst Liquidity Shortages

University Media

In a scholarly event reflecting the depth of academic excellence and the quality of educational outcomes, Emirates International University witnessed the discussion of a unique graduation project by students specializing in Financial and Banking Sciences at the College of Administrative and Financial Sciences. The project, titled “The Impact of Liquidity Shortages on Financial Innovation Trends in Yemeni Banks – An Analytical Study of the CAC Bank Experience,” was prepared by students Shahd Adel Al-Shami, Wiam Mahmoud Al-Badhiji, Afnan Jamil Al-Yousifi, Amal Mohammed Al-Habari, and Haifa Yahya Al-Jaifi. It was supervised by the distinguished academic team of Dr. Mohammed Sajwa and Professor Mona Mohammed Al-Jaifi, and serves as a true model of scientific research relevant to the realities and challenges of the Yemeni banking market.

 The discussion committee consisted of a distinguished group of academics and experts, including: Dr. Abdulwase Al-Daqqaq (external examiner), Dr. Mohammed Al-Kahali, Dr. Jabr Al-Sunbani, Dr. Fahmi Al-Daqqaf, and Professor Ru’a Al-Mujahid, who commended the high level of scientific presentation, the depth of analysis, and the research methodology.

The study employed a descriptive-analytical approach, supported by a field case study within CAC Bank in Sana'a, utilizing professional research tools and statistical analysis using SPSS software. This reflects the high level of academic and practical training received by the university students.

The results showed that the liquidity crisis in Yemeni banks, despite its negative impact on daily operations and lending, has become a strong incentive for adopting financial innovation, particularly in the areas of mobile digital services, modern savings products, and solutions for reducing operational costs.

The study also revealed a striking finding: the more severe the liquidity shortage, the higher the trend toward financial innovation, reaching up to 31.6%. This clearly indicates the banking institutions' ability to adapt and innovate under pressure.

 Despite this, the study identified a number of challenges, most notably weak digital infrastructure, low digital banking awareness among customers, and some regulatory constraints. It offered strategic recommendations to enhance digital transformation and partnerships with fintech companies.

This project is not merely an academic requirement; it embodies the vision of Emirates International University to prepare graduates capable of analyzing real-world challenges and formulating innovative solutions that contribute to the development of the financial and banking sector.

This achievement reflects the high quality of education the university is committed to, by linking theory with practical application and empowering students with research, analytical, and decision-making tools, thus enabling them to become leaders in their fields and agents of change in the workplace.

Here, students don't just graduate with degrees; they graduate with vision, critical thinking, and a genuine ability to shape the future.

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