SAB posts strong retail growth, accelerates digital shift: Al Gheshayan

Bander Al-Gheshayan, Chief Wealth & Personal Banking Officer at Saudi Awwal Bank (SAB)

Bander Al-Gheshayan, Chief Wealth & Personal Banking Officer at Saudi Awwal Bank (SAB), said the Saudi retail banking market is witnessing rapid growth, with the sector expected to expand by 2.5 times by 2030, reflecting the strength and sustainability of this momentum. He noted that SAB delivered strong growth over the past 12 months, reinforcing its market position.

Speaking to Argaam in an interview, Al-Gheshayan highlighted that SAB has invested heavily in the digital space, leveraging data analytics, artificial intelligence (AI), and partnerships with fintech companies. SAB’s digital journey, he said, has enabled the bank to achieve growth for the second consecutive year while posting robust results in lending products.

He added that SAB’s ambition is to move beyond traditional banking and play a pivotal role in the Kingdom’s digital financial ecosystem, pointing out that more than 92% of active customers are now digitally engaged—a true reflection of the bank’s digital maturity.

Here’s the full interview with Al Gheshayan:

*Retail banking in Saudi Arabia has recently undergone a fundamental shift. How do you assess these changes in the market, and where does SAB stand in this evolving landscape?

- Over the past five years, retail banking in Saudi Arabia has undergone a significant transformation, shifting from traditional to digital banking. This transformation was driven by the Financial Sector Development Program (FSDP) under Vision 2030, resulting in significant regulatory changes, major investments in technology and innovation, and the enabling of more financial companies to be part of the ecosystem.  All these initiatives have increased customer adoption, supported the growth story, and helped enhance the customer experience.

SAB Wealth & Personal Banking (WPB) transformation journey started with a digital-first strategy to deliver personalized, forward-looking financial solutions. In addition, the bank’s partnership with HSBC Group enables it to meet the diverse needs of local and international clients.

SAB has invested heavily in the digital space, embracing data analytics, AI, and Fintech partnerships, which have helped transform the customer journey with a strong focus on enhanced convenience and security. 

*From your perspective, what are SAB’s key strengths in retail banking today, and where do you see the greatest opportunities for further growth?

- The Saudi market is on the rise and projected to grow by 2.5 times by 2030, which affirms robust and sustained growth in the retail banking sector.SAB had strong, bank-wide growth over the past 12 months, cementing our leading position in the market.

SAB is well-positioned in terms of average products per customer based on the recent market research, which is a testimony to SAB’s growth aspiration.Our strength lies in our ability to deliver a superior digital experience, which has fueled our mobile and online adoption, helping us achieve nearly 90% digital acquisition and migrate customers away from traditional channels. We are also proud of our digital journey and the use of data analytics and AI, which have enabled us to grow for the second consecutive year, reaching market-leading levels of output and achieving significantly higher penetration in higher-value lending products.

Additionally, the combination of high-quality investment solutions, competitive consumer lending, and advanced digital services continues to strengthen our market position. We expect this positive trajectory to continue as more clients seek long-term, trusted wealth solutions with SAB through our investment arm, SAB Invest.

*Digital banking in Saudi Arabia is becoming increasingly competitive with the rise of new digital banks and fintech players. How is SAB positioning itself in this space, and what makes your digital offering stand out?

- The rise of digital banking is primarily attributed to Vision 2030 and initiatives such as open banking for all financial institutions, which have led to a growth-oriented competitive market.

Our digital roadmap is multifaceted, and our goal is to move beyond traditional banking to being a digital financial ecosystem player.With over 92% of our active customers digitally registered, we lead the market in penetration, a true reflection of our platform’s maturity.

*With moving quickly toward a cashless society, how is SAB driving innovation in digital payments, and what new solutions are you offering to meet customers’ needs?

- One of the objectives of the Financial Sector Development Program is to increase the cashless society, which accounted for 79% of retail transactions in 2024.This reflects the evolution of the electronic payment system.

SAB offers a range of digital payment services, including Apple Pay, Samsung Pay, and mada Pay, providing customers with convenient, secure alternatives as well as the ‘Tap to Activate’ card service that allows customers to activate their cards using their smartphones instantly.

Furthermore, SAB customers can also transfer money from their accounts to their HSBC accounts worldwide quickly and securely, in addition to services such as Buy Now, Pay Later, Split Payments, and Request to Pay, ensuring a seamless payment experience.

*Looking ahead, how is SAB preparing for the future of finance from open banking and Banking-as-a-Service, to AI adoption and other new initiatives shaping the Kingdom’s financial ecosystem?

- SAB has been among the early movers in aligning with the open banking roadmap, thereby enabling fintechs and third-party providers to integrate their platforms using APIs, which has helped deliver value-added services such as personal finance management, credit decisioning, and saving dashboards to the end customer.

We have successfully implemented and delivered several GenAI and advanced analytics use cases, resulting in multiple-fold benefits. This has enabled us to provide 24/7 support, manage risk using AI to detect anomalies, and enhance cybersecurity.

Banking-as-a-service is another area that has the potential to grow, and it will fundamentally shift from the traditional way of banking. SAB has embraced this change through collaboration with fintechs, various partners, and HSBC in both the retail and corporate spaces.

*How is SAB bank transforming customer experience, what role do personalization and data analytics play in shaping your services through different customer’s segments/personas?

- We have launched several channels to support customers (e.g., Chatbot and Live Chat) and used different tools to hear the voice of the customers and continue the enhancement of the customers' experience and also invested in our bank-wide loyalty program (ICSAB+), which gives our customers a variety of options to explore and redeem points seamlessly.

Building on this foundation, we are leveraging Gen AI-based solutions through internal process re-engineering. As a result of this program, SAB has taken deliberate steps to operationalize customer-centricity across all functions.

*How does SAB bank incorporate sustainability and ESG principles in retail offering? And are there specific initiatives to promote financial literacy among customers?

- SAB leads in the ESG space across the Kingdom’s banking industry. We integrate sustainability and ESG principles into our retail offerings through initiatives such as green deposits, recycled-PVC credit cards, green/social mortgages, alongside broader green financing solutions and investments that support renewable energy and sustainable infrastructure; all aligned with Saudi Arabia’s net-zero vision.

We are also committed to enhancing financial literacy by offering advisory services, investment solutions, and educational programs that help customers make informed and sustainable financial decisions. For example, the SAB 360 personal finance management tool enables customers to manage their budgets and track their spending.

In addition, we provide tailored financial plans, educational initiatives, and advisory environments that support confident and well-considered investment decisions. A range of savings products is also available to help customers manage their savings plans effectively.