<\/p>\n\n\n\n
<\/p>\n\n\n\n
Arthur D. Little (ADL) has published a new\nViewpoint, \u201cPursuing Excellence in Corporate Banking\u201d exploring challenges and\nopportunities that illustrate the lasting and even increasing importance of the\ncorporate segment for banks in the Kingdom of Saudi Arabia (KSA). The Viewpoint\nreviews the impacts of recent disruptions and expected, and explores options\nfor banks to strengthen and grow their corporate and investment banking (CIB)\nbusiness.<\/p>\n\n\n\n
CIB\nin the Kingdom of Saudi Arabia represents $485 Bn. assets and $15 Bn. revenue.\nCIB assets are about twice the ones of retail banking . According to the\nreport, regional banks however focus their external communication primarily on\nthe consumer segment, whether it is fintech, strategy, digital transformation,\nproducts, or applications. Further, corporate banking is often perceived as a\nspecialist area and, as a result, innovation is frequently thought to be\nfocused in the retail banking sector. The report outlines an increasingly\ncompetitive, fast-evolving, and complex environment for CIB businesses, which\nincludes a variety of challenges caused by structural trends, COVID-19, and the\nwar in Ukraine.<\/p>\n\n\n\n
ADL\nViewpoint calls for the primary focus to return to corporate banking for a few\nimportant reasons \u2013 an inflationary\nstorm is ahead and CIB will be critically exposed to it and CIB is heavily\nimpacted by environmental, social, and governance (ESG) efforts. While the\nretail segment is more competitive, CIB still benefits from several growth\ndrivers. Clients are facing increasingly complex issues that require new\nsolutions from banks. In addition, the SME segment remains underpenetrated. The\npotential of digital optimization remains mostly untapped as well, and sizable\ninnovation opportunities exist in the space of blockchain and cryptocurrencies.<\/p>\n\n\n\n
Philippe\nDeBacker, Managing Partner and Global Head of Financial Services, Arthur D.\nLittle, said:\u201cThe region offers a positive and transformational environment for\ncorporate and investment banking, which accounts for about 70% of assets in the\nGCC amid high hopes for the economy and enormous private and public sector\nspending. As highlighted in the Viewpoint, banks should anticipate further\nsector consolidation due to shrinking margins and high regulatory requirements.\nTo accelerate their journey to becoming banks of the future, banks need to\nredesign their business models to maximize revenue per customer, protect\ncapital and ensure risk resilience by optimizing the use of financial\ntechnology.\u201d<\/p>\n\n\n\n
Stephane\nUlcakar, Associate Director and Head of Corporate and Government Financial\nServices, Arthur D. Little, said:\u201c The digital transformation trend has caused\nwidespread disintermediation and the need for scale across industries. As a\nresult, banks must transform in much the same way that car manufacturers \u2014 and\nmany other industries \u2014 did during the 20th century. This means moving away\nfrom an integrated model and outsourcing most value steps except a few strategic\nones, such as design, assembly, and control. In response to these disruptive\nforces, however, bankshave an unprecedented chance to broaden their business,\nreduce costs, and become more reactive. However, as was true with car\nmanufacturing, this can lead to additional challenges.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Arthur D. Little (ADL) has published a new Viewpoint, \u201cPursuing Excellence in Corporate Banking\u201d exploring challenges and opportunities that illustrate the lasting and even increasing importance of the corporate segment for banks in the Kingdom of Saudi Arabia (KSA). The Viewpoint reviews the impacts of recent disruptions and expected, and explores options for banks to …<\/p>\n","protected":false},"author":2,"featured_media":61813,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[439],"tags":[],"class_list":["post-61812","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-english-news"],"yoast_head":"\n