Evolving Consumer Expectations Present Transformation Opportunities for Kingdom of Saudi Arabia’s Banks and Fintechs – New Capco Survey

Seven in ten respondents are comfortable having AI guide day-to-day financial decisions

86% would be attracted by an app providing a view of all their financial products in one place

RIYADH, Saudi Arabia & LONDON–(BUSINESS WIRE)–Positive attitudes towards personalization, the sharing of additional personal data, the use of banking apps, and incorporating artificial intelligence into their daily financial affairs are key themes to emerge from a new survey of KSA retail banking customers conducted by Capco, the global technology and management consultancy.

With digitalization driving innovation in the banking space, Capco’s Bank of the Future survey of over 1,200 Saudi banking service users between the ages of 18 and 65, found that 68% of respondents are comfortable to be guided by AI when making financial decisions, including 29% who say they are ‘extremely comfortable’ with this option.

The survey also reveals that 84% of respondents would be attracted by apps that provide personalized insights into their finances, including how their finances might be improved. Furthermore, 67% would ‘probably’ or ‘definitely’ share more personal data, such as social media profiles or wearables data, to unlock personalized products and services.

A desire for convenience and more tailored services informs many of the survey’s findings, highlighting opportunities for Saudi banks and fintechs to deliver lifestyle-oriented products that cater more precisely to customers’ individual needs and aspirations. The survey report also offers recommended paths forward for banks looking to capitalize on the positive attitudes towards innovation captured by the research, such as through the deployment of next-generation data-enabled services leveraging AI/GenAI technology.

Anne-Marie Rowland, CEO of Capco, said: “The banking landscape of the Kingdom of Saudi Arabia is being reshaped by a wave of innovation, as banks wrap new services around customer lifestyles that are increasingly digitally enabled and mobile-oriented. This will drive the adoption of analytics and AI at scale and the rapid deployment of other new technologies that can transform traditional banking processes.”

James Arnett, Managing Partner, APAC & Middle East at Capco, said: “The consumer must be at the heart of today’s digital banking innovation. Offering products and services relevant to consumers’ daily needs, habits and life milestones will require a sophisticated 360-degree view of the customer. This will involve fresh investment in data management and analytics – including the latest AI/GenAI-enabled strategies – and the modern system architectures that underpin them.”

Naim Alame, Managing Partner, Middle East at Capco, said: “Deeply personalized data-driven services and seamless customer experiences are the keys to future success. However, this will mean progressively replacing legacy systems with flexible and agile architectures that can better deliver service innovation and real-time interactions. Banks must move swiftly to meet customer demands for convenience and personalization while ensuring they can continue to optimize their cost base.”

As part of the wider report, Capco also conducted a more focused supporting survey that looked at the adoption of digital-first banking services. This found that eight in ten respondents (81%) have digital-first accounts and use them for a range of services, including money transfers (49%) and current accounts (47%). By some margin the most popular choice of provider was STC Pay (59%).

Other key findings in Capco’s Kingdom of Saudi Arabia survey report include:

The majority of respondents – 81% – now access banking services using mobile apps, with 36% using desktop PCs or laptops and 30% via a bank branch.*

• Less common methods include the telephone (31% of respondents), mail (15%) and wearable technology (12%).

The same percentage (81%) would be happy to receive advice from their bank that crosses product areas – e.g. advice about insurance based on their travel-related purchases.

• This includes 35% who say they would be ‘very happy’ to receive such advice.

82% of respondents would be attracted by a banking app that integrates financial services with the non-financial services they use in daily life such as ride hailing and e-commerce.

• Four in ten (41%) would find such an app ‘extremely attractive’.

With digitalization accelerating, two-thirds of respondents (65%) using payment services identify online payments as one of their preferred payment methods, and over half (57%) mention digital wallets.*

• Card payments were cited by 65%, while cash remains a preferred payment method for over half of respondents (55%). Cheques are cited by only 11%, however.

Nearly half of respondents (46%) cited cashback options as one of the value-added features they consider when selecting a new card or account.*

• Other features respondents would consider include the ability to use points against purchases (34%) and monthly offers such as retail discounts (32%).

*Multiple responses permitted

Capco’s Kingdom of Saudi Arabia survey report can be accessed here.

About Capco

Capco, a Wipro company, is a global technology and management consultancy specializing in driving digital transformation in the financial services industry. Capco operates at the intersection of business and technology by combining innovative thinking with unrivalled industry knowledge to fast-track digital initiatives for banking and payments, capital markets, wealth and asset management, insurance, and the energy sector. Capco’s cutting-edge ingenuity is brought to life through its award-winning Be Yourself At Work culture and diverse talent. To learn more, visit www.capco.com or follow us on LinkedIn, Instagram, Facebook, and YouTube.

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