Twenty-two per cent of banking consumers in Saudi Arabia are less than satisfied with their bank's existing product offering, a report said, adding that as high as 62 per cent of them demand better banking standards.
As high as 38 per cent of Saudi Arabia respondents would recommend their bank as a first choice to friends or colleagues, according to the first ever NPS Survey conducted in the Kingdom by Souqalmal.com, Saudi Arabia's leading financial comparison website.
The results of the survey have been used to conceptualize the inaugural Souqalmal Bank Satisfaction Index. The ripple effect of the findings will be discussed in greater detail at a high-profile FINTECH event to be held in collaboration with Google in Dubai, UAE on February 25. Senior representatives from several top tier Saudi Arabia-based banks will participate in these discussions.
Souqalmal.com will also be factoring in data from the NPS Survey to award the Most Recommended Bank in Saudi Arabia and UAE at the event. The nominees from Saudi Arabia are National Commercial Bank, the Saudi British Bank and Alinma Bank.
Ambareen Musa, the founder and CEO of Souqalmal, observed that the numbers seen in Saudi Arabia are highly positive and indicative of a tangible paradigm shift towards transparency both from the banking sector and the government which has been well-received by consumers.
"The time is right now to capitalize on this upward swing by educating and advising customers more to deliver improved service and in turn drive growth," said Musa.
"With only 12 banks and around 400 banking products, the offering in the Kingdom is constantly evolving and the opportunities are truly endless," Musa elaborated. The call seems to be for a greater focus by banks on sophisticated customer segmentation, smarter product-bundling, along with cross-selling and up-selling based on comprehensive customer insights.
Women in Saudi Arabia provide a huge opportunity for banks, according to Musa. “They are now being more integrated into the workforce and this creates a need for banks to better target and serve them,” she said.
Some financial institutions have been quick to take steps to benefit from this situation by providing ladies-only bank products. Musa stressed that this focused trend needs to continue.
According to the Saudi Arabian Monetary Agency (Sama), the number of bank branches in Saudi Arabia as of December 2015 was 1989, an increase from the 2014 figure of 1912. The trend is positive but 17 per cent of survey respondents would still like to see a wider branch network, and a significant number of them also want better ATM coverage in Saudi Arabia.
"With a young, vibrant population, it is only natural that in the Kingdom customer expectations are outpacing the induction of improvements and innovations from technology.
Banks in Saudi Arabia, therefore, need to realize that their success will not just be driven by adding more bells and whistles, but by balancing functionality with ease of use and then clearly communicating features and benefits to customers," Musa added.
"This is where we come in! As an online channel we are a great conduit for consumers to communicate with their bank. As such we will endeavour to stay the key resource for financial information, helping providers meet the specific needs of customers in the Kingdom. Bearing these findings in mind we have conceptualized our FINTECH event to be a great platform for discussion and debate on the needs of the hour including refining digital strategy in 2016 to increase customer penetration and engagement," she concluded. – TradeArabia News Service