Banking Goes High-Tech, but Branch Network Will Grow

JEDDAH, 20 May 2003 — The arrival of electronic banking in the Kingdom will be accompanied by an expansion of the network of bank branches that may at first sight seem counterintuitive, according to bank professionals. Far from replacing the traditional branch, phone and Internet banking are simply adding another dimension to customer service.

The Saudi British Bank (SABB) is investing heavily in Internet and telephone banking services. “Extensive investment is planned in both our SABB Direct Telephone Banking and ABBNET Internet banking services,” Abdul Aziz Al-Manie, senior manager for public affairs, told Arab News. He added that SABB would continue to increase the branch network as well as ATMs and self service terminals.

Nabil Al-Ajroush, senior vice president of Riyad Bank, also said the bank was expanding Internet and telephone banking as well as the number of branches.

“Customer surveys show that branches are still the preferred delivery channel for financial services,” Al-Ajroush said. “The ratio of bank branches to the population in Saudi Arabia is not high, hence we do not want to decrease the number of branches,” he added.

Although Saudi costumers welcome new banking technologies they are still looking for more branches from their favorite banks. Gamal Rashid, a 40-year-old contractor, needs to make daily banking transactions. “ I have never used the online option for my banking transactions, and I never use the ATM machines to deposit my money,” he said. I just use them to withdraw cash or to get a statement.

“I feel more confident dealing with a teller,” he added.

Zuhair Nour is a 37-year-old businessman with accounts in several banks. “I use online banking and ATM machines for almost all my transactions. But I trust banks that have branches everywhere in the city more than banks with a few branches.

“It seems to me that banks with many branches take better care of their customers, and it’s good to see your favorite bank’s name everywhere. If I have any inquiries it’s easy to get in touch with my bank.”