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Saudi Hollandi Bank - Marketing In The Face Of Changing Banking Needs

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Co-op Training Report


ID No:

Fullfilment for:

Academic Advisor:


1. Acknowledgements - 3 2.

3. Abstract - 4 4.

5. Introduction - 6 6.

7. Banking in KSA - 13 8.

9. SHB - Profile - 19 10.

11. Products (SHB) - 21 12.

13. Problem Description - 33 14.

15. Marketing Activities of SHB - 35 16.

17. PEST Analysis - 36 18.

19. Marketing Strategies - 43 20.

21. Evaluation of Strategies - 47 22.

23. SWOT Analysis - 49 24.

25. Conclusion - 52 26.

27. References 28. 53


I am grateful for the opportunity to acknowledge the pleasure I had in working with the outstanding professionals at The SAUDI HOLLANDI BANK (SHB).

First and foremost, I would like to thank the GM-Marketing of SHB, Mr. Abbas Jammali. Every student should have the opportunity to work with someone so dedicated and talented. And to all those who have worked tirelessly, my warmest thanks to the marketing, advertising, and sales department personnel at SHB for their intense support.

A special thanks to my professor and mentor, Mr. , for his continued enthusiasm for my work and this project. My appreciation also goes to my career advisor, Mr. , for his continued guidance.

My deepest gratitude to my family for their advice and patience.


Customers are faced with an increasing choice of products/services and are becoming more demanding as they see banks competing to offer a higher level of service. If banks do not have good mechanisms for understanding customer needs, targeting customers with a segmented approach (the one size fits all principle will not work any longer), and offering superior service they are likely to face decreasing customer loyalties resulting in increasing cost of customer acquisition and retention.

In this scenario, it is imperative for every financial institution and bank, to be geared up for a more competitive and challenging environment. SHB, the first bank in Saudi Arabia is no doubt the leading bank in Saudi Arabia, but the stiff competition it faces from NCB and SABB, makes it necessary revise its infrastructure and marketing strategies so as to giving a leading edge over its competitors and expand its customer base with the opening of new opportunities and the expanding population.

Enhanced advertising, increased marketing investment, personalized services, efficient Customer Relationship Management, are the order of the day. The report deals in detail all these aspects with suggestions and recommendations to further expand the services and customer base.

Saudi Arabia became a full member of the WTO and soon fully integrates to the global economy in the coming years. With the effects of many other factors including globalization, deregulation and the support of technology, all Saudi enterprises are facing a number of challenges in marketing. In order to overcome the challenges as well as to take full advantage of opportunities, Saudi enterprises have responded by changing the way they conduct marketing in very fundamental ways.

The Saudi Hollandi Bank where I had undergone my co-op training is facing more difficulties than ever before. Identifying, valuating these challenges as well as assessing the marketing strategies, which SHB should implement, are the urgent works and have practical value for the development of SHB in this important period.

This report will assess the key marketing challenges, facing the SHB in the next few years, these are:

- How to innovate, to develop new products and banking services.

- How to improve its performance capacity in order to maintain and develop its market share.


Until the mid-twentieth century, Saudi Arabia had no formal money and banking system. To the degree that money was used, Saudis primarily used coins having a metallic content equal to their value (full-bodied coins) for storing value and limited exchange transactions in urban areas. For centuries foreign coins had served the local inhabitants' monetary needs. Development of banking was inhibited by the Quranic injunction against interest. A few banking functions existed, such as money changers (largely for pilgrims visiting Mecca), who had informal connections with international currency markets. A foreign bank was established in Jeddah in 1926, but its importance was minor. Foreign and domestic banks were formed as oil revenues began to increase. Their business consisted mostly of making short-term loans to finance imports, commercial trading, and businesses catering to pilgrims.

The government issued a silver riyal in 1927 to standardize the monetary units then in circulation. By 1950 the sharp increase in government expenditures, foreign oil company spending, and regulation of newly created private banking institutions necessitated more formal controls and policies. With United States technical assistance, in 1952 the Saudi Arabian Monetary Agency (SAMA) was created, designed to serve as the central bank within the confines of Islamic law.

The financial system has developed several layers intended to serve a number of multifaceted economic, exchange, and regulatory roles. At the apex was SAMA, which set the country's overall monetary policy. SAMA's functions also included stabilization of the



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