Visiting a bank in the Kingdom can often be an unsatisfying experience, as a long wait can be expected in order to complete even a simple transaction, like cashing a check. Despite the effective implementation of the SADAD Payment System by the Saudi Arabian Monetary Agency (SAMA) as the national electronic bill payment service provider and the increased number of banking transactions through wire services, a large percentage of businesses still issue checks that require bank visits. According to information from the Sadad Payment System official website approximately 60 to 70 percent of bills are currently paid in cash at bank branches. Due to the high number of bills generated in the Kingdom, consumers are required to queue for a long time in banks in order to pay their utility bills and other fees. Ali Al-Maliki, a real estate agent, said each time he comes to the bank he has to wait for an hour or more, particularly during the first week of the month. He said he has a frustrating experience each time he comes either to deposit some funds or cash checks. “I cannot afford to wait in long queues, as I have a lot of work to do in my office,” said Al-Maliki. Sami Ruba Al-Suhaimy, an office clerk, said he has been assigned to pay the bills of his office on the first of every month. He said he failed to understand why banks operate only two or three teller counters, while others are kept vacant. “I grow impatient at the delay. It is just a waste of my time,” he said. Moreover, he said he has to be answerable to his superiors at the office for the long delay in returning to work. According to an international banking expert, the retail-banking segment in Saudi Arabia is under-served. Julien Faye, an official of a multinational company that plans to open an office in Riyadh, said the retail-banking segment has immense potential for growth, as local banks have yet to target the masses with innovative products and efficient services. Overcrowding in banks is due largely to the limited number of branches in each Saudi neighborhood, he said. “Opening more branches would create new job opportunities for young Saudis and address the unemployment problem in the country,” he explained. He said the banking industry in the Kingdom is set for a huge transformation, as leading Saudi banks plan to target the largely untapped retail banking sector in the country. “We have demonstrated several times that smaller zones would be the most ideal option to offer better banking services, because banking is purely a local community business, similar to retail supermarket chains,” he said. He said to satisfy the needs of the local community, the ideal number of customers per branch should be 2,000, as against the current 17,000. This will lead to less crowding and better service, he added. “This will also open thousands of job opportunities for Saudi nationals,” he said. __
