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More opportunities in retail banking
24 July 2008
Lloyd’s TSB, the UK bank, is planning to open a full-scale branch network in the GCC, in a sign that more international banks are going to make efforts to break the branch restrictions currently placed on them by regulatory authorities.
Local banks in the GCC offer far more job opportunities at the moment. They currently account for 77.4% of total assets in the region because they have access to government fund surpluses and no restrictions on their branch networks.
Lloyds currently has a regional hub in Jumeirah and four more customer service centres in Arabian Ranches, Healthcare City, the Green Community and Uptown Mirdiff.
Bert De Ruiter, managing director of Lloyds TSB Middle East, says: “We would love to have more branches, especially in Abu Dhabi, and are currently talking to the Central Bank. I would be really pleased if we got a full banking licence in the second half of this year.”
The UAE has also been under pressure to open up its banking sector to foreign competition. Throughout 2007 the aggregate assets of foreign banks increased by 30.4% and local banks by just 22.1%, according to a study by Abu-Dhabi investment bank the National Investor.
Barbara Van Meir, director of recruiters WoodHamill Ingram Dubai, says: “Retail banks persistently strive to differentiate themselves from their rivals by offering innovative products and services to attract and retain customers. Naturally, this economic growth, coupled with increased demand for consumer finance, has meant hiring within this sector has risen over the past six to 12 months.”
As for choosing between local or multinational banks, James Storey, consultant at Michael Page in Dubai, says it depends where you hail from.
“Locals are obviously happy working for local banks. If people are from Europe you have a split between those getting involved with local organisations or those sticking with multinationals. People from the sub-continent, however, are keen to get names like Barclays and Lloyds on their CVs over the local banks.”
What are you worth? Retail banking monthly salaries UAE (AED)
Branch manager
31,500 ($8,576)(average)
23,000 ($6,262) (low)
40,000 ($10,890)(high)
Head of credit cards
57,500 ($15,519) (average)
45,000 ($12,251) (low)
70,000 ($19,058)(high)
Head of cards operations
47,500 ($12,932) (average)
35,000 ($9,529) (low)
60,000 ($16,336) (high)
Head of retail
67,500 ($18,242)(average)
50,000 ($13,613) (low)
85,000 ($23,143) (high)
Product officer
15,000 ($4,084) (average)
10,000 ($2,722) (low)
20,000 ($5,445) (high)
Product manager
35,000 ($9,529) (average)
25,000 ($6,806) (low)
45,000 ($12,251) (high)
Head of product development unit
45,000 ($12,251) (average)
35,000 ($9,529) (low)
55,000 ($14,974) (high)
Chief operating officer
72,500 ($19,575) (average)
55,000 ($14,850) (low)
90,000 ($24,300) (high)
CEO
125,000 ($33,750) (average)
100,000 ($27,000) ((low)
150,000 ($40,500) (high)
Country head
150,000 ($40,500) (average)
130,000 ($35,100) (low)
170,000 ($45,900) (high)
Source: The Charterhouse Partnership
As an Int'l HNW Private Bank Branch Manager expatriate of: "18 yrs in the GCC" who started, operated and managed 23 retail and corporate Arab branches; I relay that foreign bank assets shall grow in the GCC. Their operational activities, although compatible to Arab banks; tend to be creative by offering a multitude of products that appeal to Arab investors. I subscribe to the notion that: Retail Banking offer unique opportunities. It's the "bread and butter" to bottom line profits; in particular now that banking giants are seeking help from Arab Sovereign Wealth Funds! Speed and efficiency; while marketing to GCC clients offshore and diversified products; Islamic Funds-Asset Allocation P'folios that appeal to a golden era of growing GCC wealth shall enable foreign banks to attract more depositors. Many more banks are eyeing the GCC to establish a presence there. Countries whose trade with the MidEast is growing; namely: Turkey, East Europe, Benelux, Ireland; Russian, FarEast-South Asian banks shall join the club. Costs are reasonable to bear! Market share and profits shall be earned. M. Hannoush-Fin'l Security Advisor-Mutual Funds-Private HNW C'ltant-Retail Bank Branch Mgt-Montreal
muradhanoush 26 Jul 2008
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