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Al Rajhi aims big in retail sector

Barely a week after officially launching its operations in Malaysia, Al Rajhi Bank – the world's largest Islamic banking group – is now setting its sight on becoming a significant force in Islamic retail banking.
Retail head for the Malaysian operations Sabry Ghouse said: “Give us 12 months and we will become a strong player in retail banking. We have the expertise, experience and infrastructure.
“Currently, about 70% of Al Rajhi's revenue comes from the retail business and we want to replicate this in Malaysia, although the bank will continue to emphasise other areas,'' he said in an interview.
Sabry said the bank hoped to achieve double-digit growth in retail banking in the first year of operation.
Saudi Arabia-based Al Rajhi Bank officially commenced operation in Malaysia on Feb 5 – its first overseas venture outside Britain – when it opened 12 branches simultaneously.
According to Sabry, the bank had formulated strategies to help it achieve its objective of becoming Malaysia's frontrunner in Islamic retail banking.

Sabry Ghouse says Al Rajhi hopes to have a total of about 20 branches before year-end.

To this end, Al Rajhi would, among other things, focus its retail products on the middle and upper-income markets.
The bank will also this year expand beyond the Klang Valley and set up branches in Johor, as well as other regional hubs by year-end.
This, Sabry added, would help the bank to widen its reach and enhance its retail business.
Al Rajhi hopes to have a total of about 20 branches before year-end.
Sabry said the bank would also use Malaysia to leapfrog into other countries in the region.
Technology and product innovation, he added, would be key in boosting the bank's retail business.
The bank, he added, would roll out home financing products in the next few weeks, followed by auto and unit trust products.
Al Rajhi has also invested substantially in information technology and systems that would speed up delivery and reduce turnaround time in its daily transactions.

“Our technology is capable of handling up to 50 branches, which we plan to have in the next few years. We are the first to introduce the Queue Management System in all our branches.
“With this system, a customer needs only to slot his MyKad into the machine and choose the relevant accounts he needs to open.
“The teller can then pull up the relevant customer information and attend to him immediately without having to look for his details,'' he said.

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