How is the Bank growing its SME segment? What initiatives are in place? “The SME sector is being given preferential attention within the bank. The pace at which we are manning the department is evident of the initiatives undertaken as well as the level of growth exhibited, which is the result of a major strategy push in the segment. “BSF is providing a complete range of solutions to the SME clientele where currently three units are in place in the central, western and eastern regions. Our future strategies include setting up of trade finance desks in select branches, as well as devising a programme, of lending by offering a host of new products and services. “BSF has also given special attention to financing under the SIDF Kafalah Programme where there is a significant level of activity, according to the strategy of the Bank and its management.”

Kindly tell us of growth within the trade finance division? In its effort to enhance the trade finance business, Banque Saudi Fransi has embarked on a specific initiative by incorporating the Trade Finance Sales & Solutions department specifically to market its trade products and solicit trade flows from its existing as well as new business. The department is a specialised sales arm, providing the impetus for originating primary trade finance deals in KSA, gaining support from its partner Credit Agricole (CIB), for cross-border trade finance deals.”

How is the Bank managing with compliance and reporting? “Banque Saudi Fransi (BSF) has greatly expanded the scope and complexity of its compliance activities in order to cope with the changing and increasingly complex regulatory environment. This was necessary in order to avoid any compliance failure that can result in litigation, financial penalties, regulatory constraints, and reputational damage that can strategically affect the Bank. “During 2014, the Bank in general and with regards to compliance in particular has increased emphasis on various regulatory requirements, such as consumer protection, Consumer Financing law, Foreign Account Tax Compliance Act (FATCA) and Real Estate law. That was necessary in order to ensure compliance and awareness with those regulatory requirements. “In order to cover all regulatory challenges (both locally and internationally), a highly qualified and dedicated compliance team has been set in place at the bank to stay abreast of any changing regulatory requirements, expectations and industry practices. “It is our intention to ensure that BSF is ranked amongst the leaders in terms of covering regulatory compliance. “The compliance team is assigned to ensure that the Bank is well protected from any compliance risk, offering practical regulatory compliance advice as well as ensuring compliance through permanent control and continuous monitoring and better protection of the Bank’s stakeholders.”

What are your new plans for 2015? “We will continue to unfold our medium-term plan which is centered on “Excellence at Clients’ Service”. This will cement our moving from a commercial bank toward a relationship bank, where the different business lines of the Bank are mobilised and positioned as solution providers for our clients. On the corporate side, senior bankers are ensuring a seamless integration between business lines to come-up with relevant solutions. “On the retail side, we have put strong emphasis on eChannels with a new version of our eBanking and mobile applications delivered in early January 2015. We will continue to develop in that eChannel area which is well appreciated by our clients. “From a risk management point of view, we will continue a prudent policy which has been at the center of the strategy. BSF is well-positioned to face a more challenging economic environment. We actually think that a lot of opportunities will come up from the period we are entering.”

What’s new for your high net worth individual (HNWI) customers? HNWI are always demanding new opportunities and ideas to increase their wealth. Based on that, wealth management at Banque Saudi Fransi always strive to become solution providers by identifying those opportunities in the local market, GCC and globally through structured products, private equity, third party products and brokerage.”

What technology investment are you making for online and mobile banking? What’s the take-up rate? Which services are in greatest demand? “BSF has implemented a multi-delivery channels concept since spring 2002 that included a new branch system, new contact centre and internet banking. Later in 2008, BSF introduced mobile banking and SMS channels. To stay in line with the latest technology and new design trends BSF invested in 2014 to replace the contact centre, internet and mobile banking. “To be a multi-channel enabled bank BSF introduced its customer global file and account global file and invested heavily to build and run complex integration services. “BSF channels are rich in functionality to support account services, bill payments services, ministry of interior services and transfer services i.e. within Bank and with local and international transfers; it also supports the cards business i.e. management, information, settlements and statements. “It’s worth mentioning that BSF channels are PCI compliant, certified by local and external security firms. BSF channels are under SAMA review on a yearly basis whilst BSF remains committed to complying with SAMA eBanking rules. “Mobile banking has evolved from a ‘nice to have’ to ‘must have’ banking. In fact, it is predicted that in the very near future, mobile banking will overtake all other conventional banking, evidenced by the fact that mobile penetration is on the rise, demanding that financial and other service institutions gear up and stay ahead in an effort to manage customers’ expectations. In recent years, BSF mobile banking has doubled in usage and in a number of transactions. Last year alone, BSF has seen 40 per cent growth rate compared to earlier years, which clearly proves the trend. Furthermore, BSF has seen noticeable demand from customers in that what matters most to them when using the mobile app, for a start, is performance and simplicity followed by security. These three factors amply demonstrate that for mobile app users, time is of an essence.”

What initiatives are in place for AML and KYC? How will this strengthen investor confidence? “Banque Saudi Fransi (BSF) has been implementing significant improvements by strengthening its monitoring and control over its AML-CTF function. AML-CTF is and shall remain a high priority for banks in general and BSF in particular. In this respect, BSF Senior Management stress on ensuring the engagement of top management in AML efforts. “BSF ensures applying the best approaches available (both locally and internationally) in order to cover AML risk. In addition, the bank emphasises to all Bank staff that AML is to be watched over and ensures that they being trained on AML techniques. “Furthermore, the bank has put efforts to cover transaction monitoring system by having in place the best tools for such a monitoring. “Given the impact that AML compliance can have on the reputation of BSF, competent and trained personnel have been assigned in order to have the ability to better understand and quantify the risks of being exposed to financial crimes at both business and client levels. “Ongoing changes in KYC standards are being applied, as adequate customer due diligence is being implemented in addition to applying enhanced due diligence whenever applicable. Due to the importance of “Know your Customer” principle, the Bank ensures that continuous updates to KYC are adopted in addition to applying control all the time.