Interview with Ms. Rania M. Nashar, CEO, Samba Financial Group

30 Aug Interview with Ms. Rania M. Nashar, CEO, Samba Financial Group

Country Reports: Three years into the Crown Prince’s Vision 2030 plan to reduce Saudi Arabia´s dependence on oil by diversifying its economy and developing public service sectors such as health, education, infrastructure, mining, entertainment and tourism. What are the biggest challenges and opportunities that lie ahead in order to achieve the Kingdom’s goals?

Ms. Rania Nashar: It was like a dream when Vision 2030 was announced three years ago, and everybody wondered if the dream would ever come true. People wondered if it were possible for the country and its leaders to make this vision a reality — could it be done?

What I like about Vision 2030 is that it bet on the citizens of Saudi Arabia, its youth, and it bet on the future. Saudi Arabia will celebrate its 89th National Day this September. If you were to compare it to a person, eighty-nine years is one lifetime but if you compare it to the age of nations, such as the United States or countries in Europe, their histories are much longer. Their journey is double or even quadruple the length of time it has taken us to get to where we are today. Despite of this we have beaten them in some of the world’s key metrics, even surpassing what some of these more advanced countries have achieved. I find that incredible.

When you look at this country perhaps it will make you say, “it’s only a desert” but we bet on our resources. The Saudi citizen has always had this inner strength – the guts – and is able to make the best out of what they have. In essence, this I believe is what the Crown Prince and the nation’s leadership bet on when they said that the sky is our limit.

I always compare our nation’s journey to being on a race track, tensely waiting for the light to turn green, and when it finally does, we just run with everything we’ve got. We are running in one direction, towards one vision, and a shared future.

In terms of challenges, some of the goals or KPIs (key performance indicators), if you will, that were set for Vision 2030 have yet to be achieved. Public and private sector resources deliver, as they should, and the beauty of this is that revisions and reviews indicate that we are on the right track. In fact some of the objectives for Vision 2030 were already achieved even before their target dates. We still lag behind in some areas but these are being reviewed and addressed.

What I also like about Vision 2030 – and I don’t see this in a lot of other countries – is that the government and the ministries have KPIs. Leaders are being appraised based on their performance similar to CEOs of companies. Now the country’s public sector is growing at a faster rate than the private sector, which is really challenging for us. When we look at e-government and what the government is able to offer electronically to citizens, it beats what the banks are currently offering. It’s amazing.

I am sure that someone who visits our country every few months can readily see the changes from the moment they land in the airport. They will see all these buildings, all the on-going construction — they will see the progress. We are a nation that is only eighty-nine years old but what we have achieved, no one else has.

The changes that are happening now, it surprises many people. If you recall, women were allowed to drive only recently. Last week we just celebrated one year of women being allowed to drive in Saudi Arabia.

Country Reports: For lady pilots as well…

 Ms. Rania Nashar: That’s right. Last week also marked the first year that women were allowed to  pilot planes. Now we also have a lady ambassador. If you look at the Saudi national year and you plot what we have achieved just last year, you will be able to see an achievement every day, if not more. It is an amazing thing.

Country Reports: It’s exciting times. Saudi itself is completely changing. The information about Saudi that you get from outside is not up-to-date.

Ms. Rania Nashar: That is why we focus a lot on changing perceptions, particularly how Saudis are perceived. When we focus on ourselves, however, and learn about our achievements, we find that they also change perceptions. It is happening naturally — people are changing how they see Saudi not because we put so much effort into it, going out, reaching out and showing the world we are different now. No, we are simply adopting to change. We see change as the new reality, and it is the best way.

Country Reports: Tell us how the financial services sector is contributing to the implementation of Vision 2030.

 Ms. Rania Nashar: The financial sector is one of the main contributors to enhance public-private partnerships, which are one of the goals of the Vision. Banks are now becoming more innovative, creative, and they are tapping sectors that were previously unbankable. They are creating solutions, they are working hand-in-hand with the government, and the achievements that the banking sector contributed to are significant. For instance, in the housing industry, banks have partnered with the real estate development fund and the Ministry of Housing where forty thousand (40,000) loans have been approved for forty years now. In the span of a year, more than a hundred thousand loans have been approved.

We also have a partnership with Monshaat,which is the higher authority for the small and medium enterprises (SME) sector. Banks create products and services that support SMEs, which is the key driver of the economy. Banks are changing the way they are working. They are working more where entrepreneurs are present.

Country Reports: Fintech companies are having a great effect on the conventional banking sector. Tell us how SAMBA is adapting to this new landscape and investing in technology?

 Ms. Rania Nashar: We are propagators of different technologies. We welcome innovation, and the collaboration that we have now with other entities, including our regulator. Saudi Arabia became the first Arab country to become a member of FATF or the Financial Action Task Force, which is the global organization that governs anti money laundering and combats terrorism financing. Being inducted as a member, and being the first Arab country to be done so, is a big achievement for us. The contribution was made through financial services authorities like the Central Bank and the Capital Market Authority as well as with the support of all Saudi banks that continue to work hard towards improving their rules, their regulations and enhancing their level of financial reporting.

Saudi banks are one of the first when it comes to the implementation of international accounting standard. This is why foreign investors are attracted to dealing with Saudi banks, and they are reaching out to Saudi banks to help them fund and inject money into the economy. The financial services industry has done a really good job overall, in addition to its role as one of the main contributors to the country’s GDP (gross domestic product).

The financial services industry is also known as a significant talent pool. If you look a the cabinet, most high-ranking government officials come from the banking sector.

When it comes to corporate social responsibility, the financial services sector is also becoming more innovative with its activities. For instance, Samba contributes to the housing industry by  coming up with a specialized program wherein the bank sets aside a budget and purchases five hundred (500) housing units through the Ministry of Housing. The bank buys them fully furnished, and then hands them over to the needy. We do not just go to the poor area for this, we go to the middle class areas because there is a great need in these communities also. The impact becomes larger to the community. You are not just giving a shield, you are also changing the lives of people.

There is also an autism centre of excellence that was established through the contributions of Saudi banks. More than two hundred eighty (280) million Saudi riyals went towards establishing this autism centre of excellence that will save a lot of money from the local budget in the long run because we don’t have the right level of support that is adequate for helping people with autism in the country. Saudi Arabai used to spend a lot of money sending these people to education institutions in Jordan, the UAE, in Europe or in the States. So the banks, by contributing and establishing this centre of excellence we help those with autism. Plus the service will be localized and the experience will be publicized across the board.

Coming up with new ways to support the community, developing talents, promoting right business practices, educating the community while generating income for the economy are just some of the major contributions of the financial services industry.

Country Reports: We understand that one of the biggest contributions that you have made to the group has been with the development of its digital services. Could you share with us any new initiatives or innovations that you may have in the pipeline.

Ms. Rania Nashar: When it comes to FinTech and technology, Samba has always been known for its many firsts. The first ATM (automated teller machine), the first full fledged online STP (single touch payroll) solution and the first local broker system in the country are Samba’s. We’ve always been the pioneer in technology; it has always been a part of our DNA.

We are shifting to a new era because millennials are going to be our future customers. 70 percent of our customers in the coming five to six years will be millennials. We really have to adapt to the way they think. I always say that they compare bank applications to Uber. They think a bank transaction should be one click away like Uber.

They want everything to be digital. In Samba we have a dedicated digital group working on all these innovations, and they report directly to me. FinTech is meant to disrupt the classic banking industry, however the way we see it is that it is more of a collaboration. As banks we have the trust, while they have the innovation. We have to embrace FinTechs and encourage further collaborations.

The good thing is that SAMA (Saudi Arabian Monetary Authority) – our Central Bank, is a strong believer in technology. They have created the sandbox, and Saudi FinTech. Saudi FinTech is basically a forum that is comprised of banks, the regulators, entrepreneurs as well as university students. We always meet in these forums and we make sure that we all converge ideas towards the development and delivery of better products and services with our future customers in mind, and not just our current ones.

Currently, we are heavily focused on transforming our core banking system and then we will add on the new applications, the new technologies that will help us not only create new revenue streams to reach operational efficiency but also to give each customer a more personalized experience.

Our slogan is “think Samba”. When somebody wakes up in the morning, he has to think Samba. When he needs to buy coffee, he thinks Samba. He wants to buy a home, he thinks Samba. We would like to be there for the client throughout the stages of his or her life.

That is our aim. We have our own challenges but we are also addressing and overcoming them.

Country Reports: The company is performing well if last year’s results are any indication. 2018 was a record profit year for you, with SR5.5 billion.

Ms. Rania Nashar: It’s the highest in Samba’s history. I’m proud of it as the female CEO to have helped achieve that.

Country Reports: You entered the company in February 2017, and then you had a record year the year after that. You must feel very satisfied indeed.

 Ms. Rania Nashar: It’s really challenging. I cannot sleep at night because I have to continue to deliver and keep up the momentum.

We know that this year is a bit challenging. We want to make sure that even with the change in leadership – because we have a new board, and with a new vision on how to deliver things, we would still be able to deliver on our promise to our stakeholders. This year we are planning to invest more in our people and technology to make sure that we are ready for the coming five to six years.

Country Reports: Do you think this kind of growth is sustainable?

Ms. Rania Nashar: Some people think that once you achieve a milestone like this, you just sit back and relax. But in order to sustain the growth, I have to reinvest in the organization, the people, the technology and the infrastructure so that I can have another leapfrog in the years afterwards.

Sustainability is crucial as well as the ability to deliver on our promise. Our strategy has always been towards getting high quality credits to target customers, while making sure that to our old clients remain satisfied with us.

2019 has been a challenging year so far. We cooperate with our partner agencies in the public sector towards the efficient delivery of national projects and programs. We expected the economy to pick up earlier than how it is currently but hopefully towards the year end the economy will pick up then. Therefore we expect 2020 or 2021 will be another record year. That is what we are aiming for.

Country Reports: Samba is currently the third largest bank in terms of assets. Tell us a little bit about your growth strategy over the coming years?

 Ms. Rania Nashar: Right now we are working in a very challenging environment where four banks are merging. Our position will definitely be impacted once the merger of these four banks are finalized. But we are optimistic. We see this situation as more of an opportunity wherein we can get their resources, and we can get their clients. For instance SABB (Saudi British Bank) will be merging with Alawwal, and the clients who do not like SABB and will look for a new bank can go to Samba.

Our rank as the third largest bank may be affected, and we may drop by one or two notches soon however we would rather embrace the opportunities this circumstances present. We will pick up and work towards not only maintaining our position but to grow even bigger.

Country Reports: Tell us about your international footprint, I know that you already have branches overseas. What are your plans, moving forward?

 Ms. Rania Nashar: Our Samba footprint was mainly regional. We have some presence in the UAE and Qatar. We are also in South Asia, in Pakistan. There are some challenges and that is why we are not focusing on this at the moment.

Our focus over the coming years is to expand our footprint in the UAE and to benefit from all of the opportunities and joint programs encouraged by the two countries. In spite of our focus mainly on the UAE, we will still review proposals and opportunities to see if there is a need that we can fulfil or if there is an opportunity that will benefit our shareholders, our organization and even our country, and then we will seize those opportunities.

Country Reports: You are the first Saudi female to become CEO of Samba Financial Group and the first female CEO of a listed Saudi commercial bank. You have been named by Forbes as one of the most influential women in the Middle East and you are a role model and example to women. Tell us about your journey getting to the position you hold today.

 Ms. Rania Nashar: It has not been easy. I have been working for this bank for the last twenty-two years. Samba for me is home. I spend more time here. If a day has 24 hours, I spend nine to ten hours of it in Samba each day. If I compare the time I spend with my family versus the time I spend in Samba, then Samba is home. I know each and every smell of each brick in this building. The journey has not been easy. I will not say that it has been easygoing. One time I was a guest on a TV show to talk about my biography and I told them that from day one, when I came to work every morning I looked at the ninth floor, which is the executive floor, and I always told myself that one day I will be there on that floor.

Country Reports: You already had that dream from when you first started here twenty years ago?

 Ms. Rania Nashar: Yes, I started my career in Samba because back then it was the only bank that gave equal opportunity to both genders. In terms of salaries and opportunities, Samba had the right environment for females. Not only does the company have international exposure through its ties with Citibank, it also rewarded employees based on competency. Gender was not a factor. This is why I believe that I have chosen the right organization for me.

I was so keen on being on this executive floor but I never thought that I would be the CEO. I just thought I would be one of the executives. How and what it took – blood, sweat, tears – it did not matter, I just did what I had to. It was not easy, I started as temporary staff doing menial tasks like cutting and pasting of files, highlighting reports – very basic things, but I never gave up.

What helped me was that I had all-around experience. I worked in business, in operations; I worked in risk, in compliance, in audit. I din’t say “no” to any work that came to me no matter how big or small it was and no matter what my position would be. I was just trying to seize all the opportunities that came my way. It is why I was first in so many things – I was the first female AML (Anti-Money Laundering) certified officer in Saudi Arabia, I was the first compliance GCC group head,and I was the first female chief auditor of a Saudi bank. I always believed in my self and the organization really helped me realize that as an individual. Here at Samba if you have the talent and the drive, the leadership always says ¨the sky is the limit¨, and I am an example of that.