In partnership with the Saudi Dutch Bank, the Oxford Business Group released a report on the Kingdom’s economy titled “Saudi Arabia 2015” The report addressed the challenges facing the sector in the development of online and smartphone banking services, particularly security and protection standards for the use of Internet technologies, and highlighted the changes taking place in the banking system.
New Generation Transformations
The Kingdom’s decision comes in response to the major shifts in the new generation of customers—specifically those familiar with modern technology—who rely on smartphones and tablets to meet their primary banking needs. Saudi banking institutions are focused on delivering their services through alternative electronic banking channels, and have taken significant steps toward increasing reliance on these channels, including issuing regulations governing electronic banking services and investing more in the development of new channels, particularly smartphones.
Coinciding with smart apps
The report derives its significance from its alignment with the growing expansion of banking services via smartphones and the internet, as well as the rapid developments in these areas, which in turn necessitates greater attention to raising security and protection standards—a topic that is central to the report’s focus, emphasizing that banks recognize, in this context, the importance of having sound and reliable precautionary measures in place to address the challenges posed by security breaches, thereby ensuring the preservation of customer trust.
In this regard, Dr. Bernd van Linder, Managing Director of the Saudi Dutch Bank, notes that the joint working sessions with the Oxford Business Group extensively addressed the strategies adopted by banks to meet these challenges, and to enhance the effectiveness of their standards, in addition to exploring the benefits that alternative banking platforms offer to both bankers and customers alike.
Reducing service costs
Oliver Cornock, managing editor at Oxford Business Group, agrees with this view, explaining that banks can reduce their costs by developing more online services, in line with the trends among younger generations in the Kingdom—a demographic that offers tremendous potential for growth through increased reliance on electronic channels (the internet and smartphones) for banking services and meeting their needs, especially since the number of smartphone subscribers reached 94.5% of the population by the end of 2014, indicating that all the conditions are in place for banks to focus on creating platforms for smartphone-based services,“ expressing interest in further research on this matter and topics related to the financial services sector in the Kingdom in collaboration with the Saudi Dutch Bank and its experts.
Multiple Economic Perspectives in the Report
The significance of the "Saudi Arabia 2015" report stems from its coverage of a number of economic perspectives, in addition to the macroeconomic situation, infrastructure, banking services, and other developments in the development sectors. The report includes contributions from prominent figures and officials such as the Governor of Riyadh Province, Prince Faisal bin Bandar, the Governor of the Saudi Arabian Monetary Authority (SAMA), Fahd Al-Mubarak; the Chairman of the Capital Market Authority, Mohammed Al-Jadaan; the Minister of Transport, Abdullah Al-Mubarak; and the Minister of Labor, Mufarrij Al-Haqbani.
