Simon Clements (page 1 of 2)

Q. How is the NBK developing its Internet banking system? And are you focusing on the retail or corporate customer?

A. NBK has been providing online services since 1997 when we launched 'Watani-Online' our flagship online banking service. Today it is probably the most advanced and functionally rich offering in the region, and compares well with the offerings from leading banks in the US and Europe.

We have concentrated on the consumer banking market, although we will soon be launching Internet services for our corporate clients to replace the aging PC based application that we have had for several years.

Q. What are your strategic objectives for Internet Banking?

A. I could make the simple and grandiose statement that we want to retain our position as the leading online services provider in the region. Well of course we do but there is a coherent strategy behind that.

Online servies will continue to be an integrated part of our multi-channel ( click and mortar ) delivery strategy . Today 34,000 customers currently bank online and we have challenging targets to increase this substantially over the next two years. We will continue to develop the offering and the internet will become a larger and larger part of the mix. Within 5 years the internet may well become the dominant delivery channel.

Internet banking users will increase as Internet penetration spreads, multi device access becomes reality as wireless and other technologies mature, the teenage " techie " population becomes bankable and the intenret becomes easier and easier to use.

We are close to completing phase one of our strategy which is to migrate the functionality available in the physical world to the Internet. Phase two will see NBK offering an increasing array of personalised offerings. This will be achieved through the integration of click stream data, life style date with the customer activity data already held in our data warehouse.
Products and services will be presented to clients based on their preferences and their web site activity when they are online. The Internet then becomes a focussed interactive marketing channel.


Q. How important is Internet Banking to NBK?

A. I think the fact that we have set up an e-business group within the bank indicates how we importantly we view this part of our business. Customers are becoming more and more demanding, they a want convenience, they want speed and they want to feel as though they are treated as individuals, the Internet enables this to happen in a way that hasn't been possible before.

As I have said we expect the Internet to become a dominant channel in the mix over five years. We recognise too that by that time online banking will become a commodity and that we will have to differentiate ourselves by the quality of our services, the array of services available and the level of personalization we will provide.

Q. Does NBK offer online share trading?

A. NBK was the first bank in the region to introduce an online brokerage in October 2000. Forming a strategic alliance with the US brokers Pershing we have provided our clients with the ability to trade online in US equities. We have had some good success with this service, and are expanding it in the near future.

Q. Do you think regional banks are at a disadvantage to the internationals in developing e-banking?

A. Two issues here I think, one is investing in the technology and what is a bank's objective in moving into the space, and secondly the issue of Internet penetration in the region.