RIYADH: Al-Rajhi Bank defies global financial crisis by expanding the existing network of Al-Rajhi Tahweel Remittance Centers across the Kingdom in a staggered schedule within next two years. The Tahweel Al-Rajhi, which has already set up 124 dedicated centers for handling remittances to over 50 countries, has also grabbed the largest share of the remittance market despite stiff competition.
Hazem G. Elhagrasey, the newly appointed head of remittances at Al-Rajhi Bank, made the announcement yesterday. In his first interview, Hazem said, “Tahweel Al-Rajhi is planning to increase the number of its Tahweel centers during 2009 and 2010 based on continuing market demand and in strategic locations close to its customers.”
“Already the market leader in remittances, Tahweel centers offer bank-to-bank remittances, ‘Instant Cash’ money transfers, and direct drafts to customers,” he added.
Hazem said that the customers could now remit money to more than 50 countries, including all major countries which have deployed their workers in Saudi Arabia.
He pointed out that Tahweel centers offered instant money transfer services with cash payout to selected countries, but the focus was on reliable bank-to-bank transfers, usually done within a matter of hours. He went on to say that Al-Rajhi Bank has launched an initiative to further improve the speed and quality of the Tahweel services.
There may be seasonal promotions throughout the year under this initiative, while the bank is also currently finalizing the terms of customer loyalty program, which will include rewards for frequent customers. Hazem pointed out that “the loyalty program will be attractive and useful, as well as simple to understand and easy to use.”
Commenting on market growth in view of the global economic crisis, he said: “I feel that the remittance market will see a slow-down in terms of the large-value remittances which were primarily being sent for investment or business purposes.
The Saudi Arabian remittance market, he said, is the second largest market globally, valued at between $15 billion and $17 billion annually.
These figures include remittances from expatriate workers as well as international investors. There are rules set by SAMA regarding high value transactions, which have been put in place to protect the customer and to prevent abuse of the system for money laundering or other illegal purposes, he noted.
“We do have mechanisms in place to ensure that only clean funds are transferred outside the Kingdom,” explained Hazem. “Tahweel Al-Rajhi follows the Anti-Money Laundering (AML) guidelines and requirements set forth by SAMA to ensure integrity of the system and the funds transferred,” he added. This includes a wide array of tools and systems, but the most simple and effective tool is the knowledge and identification of the sender and receiver for every transaction, a concept known as “Know Your Customer” (KYC).
