Network International is making bold strides into Saudi Arabia, driven by ambitious goals and a vision for the future. In an exclusive insight, Al-Dahmash, Managing Director for KSA at Network International, reveals the company’s dynamic strategy, unique market positioning, and how it is perfectly aligned with Saudi Arabia’s transformative Vision 2030. Discover how Network International is set to redefine the payments landscape in the Kingdom.
Why did Network International decide to expand into the Saudi market?
Network International has always been a leader in providing innovative, seamless, and secure payment systems. We have a significant presence spanning over three decades across more than 50 countries, serving over 250 financial institutions. Our primary focus is on helping economies and businesses grow by simplifying payments and commerce. We view Saudi Arabia as a strategically important market, especially considering its exceptional growth and development. According to International Monetary Fund positive report on the country in 2023, Saudi Arabia is one of the fastest-growing economies in the world and the least affected by inflation. The country is undergoing structural and comprehensive reform in accordance with the ambitious and well-defined Vision 2030 that targets transformation, growth and prosperity in the future.
Given these factors, we believe this is the right time to enter the Saudi market. Our strategic objectives include expanding capabilities to offer a comprehensive suite of payment acceptance solutions within the KSA market which is the largest market in the region. We expect to generate revenues of no less than US$50 million in the medium and long term. Therefore, we obtained a license from the Saudi Central Bank (SAMA) to provide advanced digital payment solutions suitable for financial institutions and merchants and have begun investing in digital infrastructure. We have increased our customer base to 12 clients, including banks, financial institutions and FinTech companies.
What sets Network International apart from its competitors in Saudi Arabia?
Network International KSA provides digital payment services to two categories of clients: financial institutions such as banks, finance companies and FinTechs; and retail stores and government entities. Network International is ideally positioned to assist financial institutions looking to modernise their infrastructure and benefit from the range of services we offer. Given the rapidly growing payment sector, Network International, with its extensive expertise and high-efficiency technologies, can contribute to high levels of growth and swift execution while enhancing operational efficiency and delivering innovative services.
Our company manages over 18 million bank cards, enabling us to serve medium and large banks in Saudi Arabia. Today, we serve over 250 financial institutions in the Middle East and Africa, and provide services to about 12 clients in Saudi Arabia, ranging from real-time fraud prevention solutions using the latest technologies such as artificial intelligence, through a managed service model; to offering unique and innovative loyalty programmes; to providing data services such as data enrichment and analysis, to consulting services that help banks and financial institutions reduce costs and improve operational efficiency.
For FinTechs, Network International KSA has strong qualifications to support its presence in the Kingdom. It has developed an infrastructure that supports the Software as a Service (SaaS) model, which eliminates the need for banks and FinTechs to establish their own operations and technical infrastructure from scratch, allowing them to focus on enhancing their competitive edge in various priorities such as brand presence, distribution capabilities, designing value propositions and improving customer experience.
After obtaining a license from the SAMA, we are currently working on providing unique payment services while introducing additional services to meet the needs of sectors such as entertainment, tourism and travel.
What are the company’s ambitions for this year?
In 2024, Network International KSA has focused on enhancing its customer base among financial institutions and expanding its value-added services, including the most advanced and best-in-class fraud programmes; loyalty programmes; and data-related services and analysis.
We have also successfully attained the Payment Card Industry Data Security Standard (PCI DSS) Version 4.0 certification this year. This milestone reinforces our commitment to protecting our customers’ payment card data and advancing security standards in Saudi Arabia. Being among the first in the Kingdom to achieve this certification highlights our role as a pioneer in the industry allowing us to offer secure payment solutions to merchants and businesses in the evolving digital landscape. Our customers’ data security remains our top priority, and this achievement further solidifies our dedication to fostering secure digital commerce across the Middle East and Africa.
What initiatives do you have to support job localisation in the Kingdom?
At Network International KSA, we are proud that most of our team in Saudi Arabia consists of local talent. Our plan from day one was to run our business in the Saudi market with local staff and to invest in upskilling Saudi Nationals. Our vision is that the payment ecosystem must fully align with the cultural considerations of the market. To ensure a broader understanding of the sector and provide services that meet customer expectations, we must be well-versed in the business culture and the main principles underpinning the payment infrastructure. We believe that selecting national cadres is the best option to lead and deliver payment services.
We are fortunate that Saudi Arabia has a rich and vast pool of outstanding talent. We are very proud of our human resources, which play a crucial role in the company’s growth journey and actively participate in the development of the digital payments sector in the Kingdom.
How do Network International’s policies align with Vision 2030?
The launch of the ambitious Vision 2030 by His Royal Highness the Crown Prince, Mohammad bin Salman bin Abdulaziz, has motivated many global companies to actively contribute to the growth, especially given its transparency, high level of governance, and harmony between public institutions and the private sector. This vision prompted Network International to fast track the implementation towards KSA market entry as a strategic priority.
Following this, we began formulating a strategic plan to enter the market and made appropriate investments exceeding SAR 160 million to date. Through its presence in Saudi Arabia, Network International is keen to play a crucial role in achieving the vision’s goals, particularly in contributing to increasing the share of digital financial transactions to 70% of total financial transactions.
Additionally, the company is progressing towards achieving goals such as raising the number of FinTech companies; increasing the contribution of foreign direct investment to the GDP, supporting small and medium enterprises by providing innovative payment solutions; and supporting new and promising sectors such as entertainment and tourism with innovative payment solutions that fully align with the Kingdom’s aspirations and prestigious status.
How does Network International view cybersecurity challenges and what measures does it take to address them?
We recognise cybersecurity challenges as significant threats that demand proactive measures to safeguard the availability, confidentiality and integrity of financial systems and data. To tackle these challenges effectively, we have adopted a comprehensive approach:
Risk management: We provide end-to-end payment solutions tailored to banks, digital banks, FinTechs and retailers, along with customisable enterprise loyalty solutions, to meet the evolving requirements of the banking sector.
Advanced technologies: Embracing digitalisation, we offer best-in-class enterprise fraud solutions leveraging Artificial Intelligence (AI) and Machine Learning to combat fraudulent activities.
Employee awareness: Our comprehensive employee training programs focus on cybersecurity incident prevention, covering areas such as identifying phishing emails, implementing strong passwords, and adhering to security policies.
Regulation compliance: We prioritise partnerships and collaborate with global entities to enhance our offerings while strictly adhering to cybersecurity regulations to protect customer data and maintain trust.
Disaster management strategy: We emphasise on incident response plans, clear communication protocols, and business continuity strategies, offering advanced APIs supporting the SaaS model on a local cloud with full disaster recovery capabilities in KSA, crucial for any financial institution.
What measures does the company take regarding data security, especially with the global proliferation of fraud?
Network International KSA approaches data security comprehensively, recognising the global proliferation of fraud. Our commitment to protecting sensitive information is underscored by strong governance, operational excellence, and state-of-the-art technological infrastructure. We offer end-to-end payment solutions customised for FinTechs, retailers, digital banks, and banks, including innovative features such as biometric facial verification payments. Our advanced APIs enable the SaaS model on a local cloud with complete disaster recovery capabilities, essential for financial institutions. Leveraging AI and Machine Learning technology, our enterprise fraud solutions address evolving fraud challenges, while our adaptable corporate loyalty programmes support client retention initiatives.
What is your management philosophy, and how do you handle working with teams in multiple countries, considering the challenges and advantages involved?
The philosophy that emphasises the leader’s role in facilitating and empowering their team is one I normally follow. This includes but not limited to providing employees with authority, resources and trust to make decisions and take initiatives that foster higher engagement, more innovation and accountability. Also, given we work with multiple teams in different markets, promoting cross-functional teamwork with data driven decision making is a key to us in Network. Moreover, payments tend to be local business, so we acquire best local talents, that understand the market, and provide them the right level of training required with empowerment to do their job on best way possible.
I am confident that our way of working positions us to stay abreast of the fast-evolving payments industry and to continue developing solutions for emerging opportunities that meet the needs and aspirations of society.
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