The Emergence and Evolution of E-Banking in Saudi Arabia
FRONTIERS OF E-BUSINESS RESEARCH 2004
The Emergence and Evolution of e-Banking in Saudi Arabia: The Case of Samba Financial Group
Mohammed Ben-Jadeed1; Alfonso Molina2 PhD Student, The University of Edinburgh, M.Ben-Jadeed@sms.ed.ac.uk 2 Professor of Technology Strategy, The University of Edinburgh, A.Molina@ed.ac.uk
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Abstract The aim of the paper is to look at the emergence and evolution of e-banking in Saudi Arabia, with particular emphasis on the processes of how banks implement e-banking to improve their capabilities as well as to create new value strategies. The paper makes use of a combination of case study approach as research methodology and network approach as theoretical framework. Specific questions addressed are (1) how e-banking has been developed, (2) how banks align their demand and supply-side factors, and (3) what has been the role played by ebanking in shaping the strategic direction of banks. The answers to these questions are grounded on the results of empirical research recently conducted on a major Saudi bank. Keywords e-banking, sociotechnical constituencies, Samba Financial Group, Saudi Arabia Acknowledgements We would like to thank Samba’s interviewees for their positive and open attitude to our research questions. Also we want to thank Samba’s Financial Control & Planning Group for administering the survey, and all other groups and divisions who responded to the survey.
Introduction
The common motivation for banks to implement e-banking is to provide a faster, easier, and more reliable service to clients, to improve the bank’s competitive position and image, and to meet clients’ demands. E-banking may also provide other benefits. For instance, creating new markets, and reducing operational costs, administrative costs and workforce are increasingly important aspects for the banks’ competitiveness, and e-banking may improve these aspects as well. On the other hand, questions have been raised about the banks’ efficiency in
The Emergence and Evolution of e-Banking in Saudi Arabia: The Case of Samba Financial Group
Mohammed Ben-Jadeed1; Alfonso Molina2 PhD Student, The University of Edinburgh, M.Ben-Jadeed@sms.ed.ac.uk 2 Professor of Technology Strategy, The University of Edinburgh, A.Molina@ed.ac.uk
1
Abstract The aim of the paper is to look at the emergence and evolution of e-banking in Saudi Arabia, with particular emphasis on the processes of how banks implement e-banking to improve their capabilities as well as to create new value strategies. The paper makes use of a combination of case study approach as research methodology and network approach as theoretical framework. Specific questions addressed are (1) how e-banking has been developed, (2) how banks align their demand and supply-side factors, and (3) what has been the role played by ebanking in shaping the strategic direction of banks. The answers to these questions are grounded on the results of empirical research recently conducted on a major Saudi bank. Keywords e-banking, sociotechnical constituencies, Samba Financial Group, Saudi Arabia Acknowledgements We would like to thank Samba’s interviewees for their positive and open attitude to our research questions. Also we want to thank Samba’s Financial Control & Planning Group for administering the survey, and all other groups and divisions who responded to the survey.
Introduction
The common motivation for banks to implement e-banking is to provide a faster, easier, and more reliable service to clients, to improve the bank’s competitive position and image, and to meet clients’ demands. E-banking may also provide other benefits. For instance, creating new markets, and reducing operational costs, administrative costs and workforce are increasingly important aspects for the banks’ competitiveness, and e-banking may improve these aspects as well. On the other hand, questions have been raised about the banks’ efficiency in
References: of primary data Survey in, Riyadh (Saudi Arabia) during 3.10-15.11.2003 Interviews in, Riyadh (Saudi Arabia) on 21.12.2003 Abdullah Al-Salamah, Head, Technical Services Division, IT Group, Samba Hasan Afifi, Assistant General Manager, e-Consumer, Consumer Banking Group, Samba Rania Nashar, Business Analyst, e-Consumer, Consumer Banking Group, Samba Web Sites Citibank 2004. URL: http://www.citibank.com SAMA 2004. URL: http://www.sama.gov.sa. Tadawul 2004. URL: http://www.tadawul.com.sa. 106