RAKBANK

RAKBANK

Type	Public Joint Stock Company
Industry	Banking Financial services
Headquarters	Ras Al-Khaimah, United Arab Emirates
Area served	United Arab Emirates
Key people	H.E. Sheikh Omar Saqer Mohd Al-Qassemi (Chairman) H.E. Sheikh Salim Sultan Saqer Al-Qassemi (Board of directors) Graham Honeybill (Chief Executive Officer) Ian Hodges (Head of Personal Banking) Anil Sukhia (Head of Corporate Banking) Dharmesh Pandya (Head of Finance)
Products	Credit Cards Wealth Management RAKFinance Insurance Mortgages Auto Loans Personal Loans
Total assets	Dh. 22.6 Billion
Website	RAKBANK.ae

RAKBANK, also known as the National Bank of Ras Al-Khaimah PSC, is a retail bank in the United Arab Emirates (UAE) with assets of Dh. 22.6 billion as at 31 June 2011.^[1] It was named the second most profitable bank among GCC top 50 Banks in 2009 according to Gulf Business magazine.^[2] RAKBANK is listed on the Abu Dhabi Securities Exchange (ADX).

Founded in 1976, the Bank is one of the region’s oldest local financial institutions offering a range of personal banking services through its branch network as well as its Telephone, Online and Mobile Banking channels. A major provider of credit cards in the UAE, RAKBANK was the first to launch features such as ‘Free for Life’ and ‘Cashback on Purchase’, now adopted by many industry players.^[3] RAKBANK was voted the number one Credit Card provider in the Middle East and North Africa region by The Banker Middle East Product Awards 2011.^[4] It has also established itself as a leading mortgage and personal loans provider among conventional commercial banks in the UAE, with award-winning customer service.^[5] In addition, RAKBANK is one of the most active banks in the area of small to medium enterprise (SME) finance, with a dedicated business unit that offers financial solutions to SME clients.^[3]

RAKBANK was amongst the few commercial banks in the UAE which posted profit growth in 2009. Due to the Bank’s withdrawal in 2006 from lending in the construction and civil engineering segments outside of its base Emirate, it has very little residual exposure in those segments and has no exposure to construction involving high-rise towers.^[6] RAKBANK's conservative credit policies and risk management allowed RAKBANK to be less affected by the credit crisis in 2008, with retail losses running at a third of its UAE competitive retail banking peer group.^[7]

Corporate History

Established in the 1970s, the National Bank of Ras Al-Khaimah underwent a major transformation in 2001, with a shift in focus from corporate banking to retail and small businesses. With a remodelled business strategy and new brand identity, RAKBANK emerged as a noteworthy player, injecting innovative ideas and services into the banking industry.

Starting with only 5,000 retail customers in 2001, the Bank has close to 450,000 customers today. Branches have also expanded from an initial 7 to 31 branches, while full-time staff numbers have grown from 150 in 1996 to 2,040 employees at the end of 2010.

Milestones

1976

• Formation of National Bank of Ras-Al-Khaimah

2000

• Rebranding of the Bank as a retail bank
• Launch of Wealth Management business
• Establishment of RAK Academy

2001

• Launch of 24-hr call centres with Interactive Voice Response (IVR)
• Re-branding of the Bank to RAKBANK
• Launch of first credit cards - Visa Classic and Gold - first ‘Free for Life’ credit cards in the market
• Launch of Auto loan business

2004

• Launch of mortgage loan business for freehold properties in Dubai– one of first in the market among conventional banks
• Launch of MasterCard Standard credit card
• Launch of NMC co-branded MasterCard credit card - amongst largest co-branded cards in the market
• Launch of Small/Medium Enterprise business

2006

• Launch of MasterCard Titanium credit card – the Bank’s premium card and first in the market to offer ‘cashback on purchases’
• Opening of the Bank’s first dedicated wealth management centre for customers in Burjuman Business Towers
• Launch of Bancassurance business
• IPO/listing on Abu Dhabi Securities Exchange

2007

• Launch of Géant co-branded MasterCard credit card

2008

• Launch of Online Banking service
• Launch of Smart Chip-based debit cards
• Launch of Mortgage Loans for freehold properties in Abu Dhabi

2009

• Launch of MasterCard Debit Card with Cashback facility
• New RAKBANK Head Office premises in Ras Al-Khaimah
• New Support Office premises in Dubai Silicon Oasis

2010

• Launch of Fast Saver online-only account
• Launch of RAKBANK Twitter accounts

2011

• Launch of RAKBANK Direct
• Launch of RAKBANK Prepaid Cards
• Launch of RAKBANK Mobile Banking
• Launch of Chinese-Enabled ATMs in the UAE^[8]
• Launch of RAKBANKdeals.ae

Operations

Location

RAKBANK is a public joint stock company, headquartered in the emirate of Ras-Al-Khaimah in the UAE. The head office of the Bank is situated in RAKBANK Building, Oman Street in Ras-Al-Khaimah, and the Bank offers a comprehensive network of branches, ATMS, and EDMs (Electronic Deposit Machines) at locations across the seven emirates of the UAE.

The Bank is 52.75% owned by the Government of Ras-Al-Khaimah with shares that are publicly traded. The Board consists of several members of the ruling family of the emirate and businessmen from across the UAE and Kuwait. RAKBANK is engaged in providing retail and corporate banking services through a network of 31 branches in the United Arab Emirates.

Management

• Graham Honeybill - Chief Executive Officer
• Ian Hodges – Head of Personal Banking
• Anil Sukhia – Head of Corporate Banking
• Ananthraman Venkat - Chief Financial Officer
• Saleh Ali Saleh - Head of Branches (North)

Board of Directors

• H.E. Shaikh Omar bin Saqr Al-Qasimi - Chairman
• H.E. Shaikh Salem bin Sultan Al-Qasimi - Member of the Board
• Mr. Hamad Abdulaziz Al Sagar - Member of the Board
• Mr. Abdul Aziz Abdulla Al Zaabi - Member of the Board
• Mr. Yousuf Obaid Al Nuaimi - Member of the Board
• Mr. Essa Ahmed Abu Shuraija Al Neaimi - Member of the Board
• Mr. Ahmed Essa Al Naeem - Member of the Board

Financial Results

Directors’ report and financial statements for the year ended 31 December 2007
Directors’ report and financial statements for the year ended 31 December 2008
Directors’ report and financial statements for the year ended 31 December 2009
Directors’ report and financial statements for the year ended 31 December 2010

Products and Services

Corporate Banking

The Corporate Banking division of RAKBANK caters to medium size businesses. The Bank offers customers products ranging from fund-based facilities such as overdrafts, term loans, loans against invoices, bill discounting, import and export finance to non fund based facilities such as letters of credit, guarantees and foreign exchange forward cover facilities.

Products

Cards

Credit Cards

Following its entry into the Credit Card market in 2001, the Bank gained around 20 percent market share in the country's credit card sector with around 300,000 customers.^[9] After introducing various product features, RAKBANK became known for offering ‘Free for Life’ cards that eliminated the requirement of an annual fee for credit cards. In 2006, RAKBANK launched its first premium credit card – the MasterCard Titanium – with a new concept of card reward programs in the UAE through the ‘Cashback’ program. The Titanium card was awarded with the MasterCard Worldwide Gold Awards in 2006.^[10] Besides the Titanium Credit Card, RAKBANK offers the Visa Gold, Visa Classic and MasterCard Standard Credit Cards. It also provides co-branded cards, the MasterCard NMC and Géant La Carte. RAKBANK was awarded the title of Best Credit Card issuer in the region by The Banker Middle East Product Awards 2011, a region-wide awards program open to banks and financial institutions in the Middle East and North Africa region.^[4]

Debit Cards

Since 2009, RAKBANK has also offered a MasterCard Debit card, the first debit card in the UAE to offer customers the advantage of cashback as a percentage of purchase.^[11]

Prepaid Cards

Launched in early 2011, RAKBANK Loaded and RAKBANK Bling are reloadable Cards that can easily be topped up with money and used at any merchant outlet that accepts MasterCard Cards globally, including online merchants. They replace cash and allow clients to make transactions much like conventional credit or debit cards. The Cards are not linked to any specific account and, therefore, are available to anyone.^[12]

Wealth Management

The Wealth Management Division was initiated as part of the Bank’s rebranding and retail banking strategy in 2001. It includes a priority banking service ‘Al Momiaz’ and the RAKinvest investment offering introduced at the end of 2003.

The Wealth Management Division currently comprises Private, al Momiaz, and select Business Units, supported by an investment unit and client support and services team. RAKBANK’s high net worth investor clients have access to a range of benefits and services, with a Relationship Manager acting as a single point of contact.^[7]

Wealth Management products include Fixed Deposit accounts with free Life Insurance protection, RAKvantage current account which offers preferential interest rates, the RAKsave savings account and the online Fast Saver account. The Division’s investment products include mutual funds, structured products, fixed-income securities, unit linked investment plans, savings plans and life insurance products.

RAKBANK currently has four dedicated Wealth Management Centres in the UAE, offering a range of investment and deposit products as well as a dedicated and personalized service to help customers manage and grow their wealth. Wealth Management services are available to customers throughout the Bank’s 31 branches located across the UAE, with dedicated Wealth Management teams in select branches.^[13]

RAKFinance

In 2005, RAKBANK established its Business Finance department to cater to banking requirements of Small and Medium Enterprises (SMEs) in the UAE. The unit provides personalized service to its clients through business centres. The Bank extends loans (termed as RAKFinance Loans) without the need for the borrowing companies to place deposits or assets as financial securities against the loans.^[14] The unit also has an extensive range of deposit and transaction banking solutions.

Insurance

RAKBANK offers its customers a range of savings, investments and insurance products under the Insurance products family, including motor insurance, term, and life insurance policies as well as savings and insurance plans, death and disability protection and travel protection. These products are offered by Oman Insurance company and other international insurance providers.

Mortgages

RAKBANK began mortgage financing in Dubai in 2004 for freehold residential, followed by its entry into Abu Dhabi’s property market in 2008. The bank offers mortgage finance for residential projects developed by a selected group of major developers in Dubai and Abu Dhabi.^[7]

RAKBANK offers mortgages only on reputed projects and for end user financing, in accordance with the bank’s practice of being a cautious lender. Therefore, at a time when other banks scaled down lending, RAKBANK’s credo for 2010 is: “We are open for business”.^[7] The bank offers up to 75% mortgage finance and up to 25-year loan tenures through a number of dedicated mortgage sales centers.

Auto Loans

Since 2001, RAKBANK offers finance solutions to prospective car buyers in the UAE and conducts various promotions for auto brands.

RAKBANK auto-loans are offered to self-employed or salaried customers, as well as to businesses interested in commercial cars or buses, and offers finance for both new and pre-owned vehicles. RAKauto loans are paid in monthly installments that can go up to 60 months.

Personal Loans

RAKBANK offers Personal loans to eligible nationals and expatriates living in the UAE. The Bank extends conservative loan amounts, allowable as per the guidelines of the UAE Central Bank.

Services

RAKBANK Direct

With the start of 2011, RAKBANK launched RAKBANK Direct, a new and contemporary method to banking in the UAE. RAKBANK Direct provides customers with online transactions for Banking and Insurance products such as Online Savings Accounts, Motor Insurance, Critical Illness plans, Savings Plans, and Travel insurance, all of which are provided by Oman Insurance Company. Other features of RAKBANK Direct include interactive rate calculators and videos that tell customers about the features and benefits of their products.^[15] Visitors to www.rakbankdirect.ae can also apply for other Banking products including a suite of RAKBANK credit cards, deposit accounts, and Wealth Management solutions.^[16] RAKBANK Direct also seeks to change the way banks communicate with customers by allowing customers to chat in real time with representatives through Live Chat.

Online Banking

RAKBANK’s Online banking service was launched in 2008 to allow customers to perform banking transactions online, including viewing balances, availing salary advances, and making payments and transfers.

Mobile Banking

In April 2011, RAKBANK launched its Mobile Banking service, an alternative channel that provides customers with the opportunity of conducting banking transactions via their mobile phones. RAKBANK’s Mobile Banking is available on smart phones as well as conventional mobiles to ensure that all their customers can make use of this service.^[17]

Phone Banking

RAKdirect is RAKBANK’s phone banking service, providing support to customers with their banking requests or enquiries. RAKdirect also offers customers the option of performing banking transactions via telephone.

Social Media

Twitter

On March 1, 2010, RAKBANK launched two Twitter accounts: RAKBANKlive and RAKBANKhelp. One of the earliest users of the Twitter platform among banks, RAKBANK launched a broad advertising and educational campaign to encourage its users to tweet and respond to Bank’s tweets. RAKBANK vigorously started tweeting to communicate with and inform its existing client base of any promotions and time-bound benefits.^[18] RAKBANKhelp was created to resolve and answer queries regarding any poor customer experience which required the Bank’s attention.

Service Quality

Ever since RAKBANK’s relaunch in 2001 as a retail bank, its corporate emphasis was on customer satisfaction and one of its first appointments was to recruit a team dedicated to service quality.^[19]

Excellence in customer service has become a central theme of the Bank’s activities and staff. RAKBANK earned a reputation for offering one of the highest levels of customer service in the industry, retaining its position as “Best Overall Bank” in the UAE since 2005 for five years in a row in the Service Quality Bank Benchmarking Study conducted by independent service specialists Ethos Consultancy.^[20]

In addition, RAKBANK has topped a list by Gulf News of companies in the UAE for consistent and thorough customer service feedback.^[21]

Marketing Approach

Advertising has played a key role in the Bank's emergence as a leading retail bank in the UAE over the last decade. RAKBANK’s advertising approach is summarized by its internal marketing guidelines in what the Bank calls its ‘Four Cs of Marketing’, requiring all marketing messages to be Crystal Clear, Confident, Cheeky and Combative.^[22] Even during the economic downturn in early 2009, for instance, RAKBANK lived up to its guidelines by openly addressing the credit crunch in its flyers, billboards and broadcasts including a drive around Valentine with the slogan of ‘don’t let the credit crunch ruin your life’ and encouraging jewelry purchases via credit cards.^[22]

In mid-2009, a campaign promoted the Titanium Credit Card under the theme of “Don’t Get Bitten by Other Cards”, centered on a creature that lurks in people’s wallets waiting to bite.^[23] The campaign also included an online game, which pitted the RAKBANK Titanium card, personified through the RAKMAN superhero, used in previous advertisements. Players who correctly answered all questions got more chances to win Titanium semi-annual million-dirham draw, once they apply for a credit card.^[23]

In late 2009, the Bank conducted a full takeover of bus-shelters branded from top to bottom as part of a larger campaign to promote the Bank’s prize of a new apartment for its winning account holder.^[24]

Most recently, RAKBANK participated in a cross-border promotion for its MasterCard customers during the summer of 2010, giving them the chance to win back their travel costs when using their cards while on holiday.^[25] Also, Marketing is constantly involved in numerous tie-ups and promotions with various retailers and service providers, the most recent of which have included promotions with Virgin Atlantic,^[26] Nokia,^[27] Home Center^[28] and Pure Gold Jeweler=Corporate Social Responsibility= As part of the Bank’s commitment to environmental well-being, RAKBANK took part in the Can Collection Drive organized by Emirates Environmental Group (EEG) in April 2010 in an effort to help reduce carbon emissions from raw aluminum production process. In addition, RAKBANK is committed to reducing paper usage at the Bank by launching electronic bank statements for its customers, known as e-statements. RAKBANK also recycles the paper consumed at its back offices and plans to introduce this initiative across all Bank branches in the near future.^[29]

In regards to natural preservation in the region, RAKBANK is committed to supporting a local publication, Wildlife ME printed newsletter and online resource, which addresses the issues and concerns of the wildlife and the environment of the Middle East.

Standards and recognition

Awards and accreditations

• No. 1 Bank in Customer service in the Annual Bank Benchmarking Survey conducted by Ethos Consultancy for 2006, 2007, 2008, 2009 & 2010^[30]
• Best Credit Card in the Middle East and North Africa in 2011 by Bankers Middle East^[4]
• TICSS certification by the International Customer Service Institute in 2008^[31]
• 5th Most Admired Company in the Middle East by Arabian Business magazine in 2007^[32]
• MasterCard Worldwide Gold Award for Titanium Credit Card
• Full Compliance with the Standardized Approach under Basel II^[33]

References

1. ^ "RAK Bank posts Dh296m profit for second quarter". Gulf News. 2011-07-25. http://gulfnews.com/business/banking/rak-bank-posts-dh296m-profit-for-second-quarter-1.842549. Retrieved 2011-08-24. 
2. ^ GCC Top 50 Banks, Gulf Business Magazine, 2010-05-01 
3. ^ ^{a b} Best Under a Billion, Arabian business Magazine, 2009-01-25 
4. ^ ^{a b c} Products Awards 2011, Banker Middle East Magazine, 2011-04-01 
5. ^ "RAKBank rewarded for customer service". Arabian Business. 2008-03-17. http://www.arabianbusiness.com/property/article/513954-rakbank-rewarded-for-customer-service. Retrieved 2008-03-17. 
6. ^ "Rakbank to Focus on Abu Dhabi Mortgage Market in 2009". Khaleej Times. 2010-10-02. http://www.khaleejtimes.com/DisplayArticleNew.asp?section=uaebusiness&xfile=data/uaebusiness/2009/february/uaebusiness_february82.xml. Retrieved 2010-10-02. 
7. ^ ^{a b c d} Risk Management Not Aversion, Khaleej Times, 2009-04-29 
8. ^ "RAKBank cash machines to offer options in Chinese". The National. 2011-05-05. http://www.thenational.ae/business/banking/rakbank-cash-machines-to-offer-options-in-chinese. Retrieved 2011-08-024. 
9. ^ "Thousands leave UAE without paying credit cards - banker". Reuters. 2009-05-24. http://in.reuters.com/article/idINIndia-39845920090524. Retrieved 2009-05-24. 
10. ^ "2006 Mastercard Worldwide Gold Awards". Mastercard Online. 2006-04-02. http://www.arabianbusiness.com/press_releases/detail/114. Retrieved 2006-04-02. 
11. ^ "First debit card in UAE to offer 'Cashback' on purchases". AME Info. 2009-02-02. http://www.ameinfo.com/183376.html. Retrieved 2009-02-02. 
12. ^ "Glow-in-the-dark cards pull consumers towards the financial light". The National. 2011-03-25. http://www.thenational.ae/portal/site/thenational/menuitem.051b64b1e928c042a6dfd610359c71ca/?vgnextoid=dbee9d32ee6ee210VgnVCM100000e56411acRCRD. Retrieved 2011-05-09. 
13. ^ RAKBANK, Wealth ME magazine, 2004-04-23 
14. ^ "RAKBANK to promote small firms". The Gulf Today. 2009-12-05. http://www.btflive.net/exchanges/company.php?op=viewnewdetail&compid=129&newid=35095. Retrieved 2009-12-05. 
15. ^ "RakBank offers real-time help through online chat". The National. 2011-02-19. http://www.thenational.ae/lifestyle/personal-finance/best-buy-rakbank-offers-real-time-help-through-online-chat. Retrieved 2011-03-28. 
16. ^ "RAKbank launches new online service". The Gulf Today. 2011-02-10. http://gulftoday.ae/portal/2406925b-9296-4cb5-8ea5-a7465495f24a.aspx. Retrieved 2011-03-28. 
17. ^ RAKBANK unveils mobile services, Khaleej Times, 2011-04-11 
18. ^ "Promoted tweets getting popular with advertisers". Emirates 24-7. 2010-06-20. http://www.emirates247.com/2.277/media/promoted-tweets-getting-popular-with-advertisers-2010-06-19-1.257382. Retrieved 2010-06-20. 
19. ^ Holding On, Arabian Banking and Finance Magazine, 2009-01-01 
20. ^ "Customer Service Ranks High on UAE Banks’ Agenda Amid Recession". Khaleej Times. 2009-11-20. http://www.khaleejtimes.com/biz/inside.asp?file=/data/uaebusiness/2009/November/uaebusiness_November94.xml&section=uaebusiness&col=. Retrieved 2009-11-20. 
21. ^ "Companies on the spot". Gulf News. 2010-05-01. http://gulfnews.com/opinions/your-say/companies-on-the-spot-1.562248. Retrieved 2010-05-01. 
22. ^ ^{a b} "Innovative advertising is thriving". Gulf News. 2010-04-15. http://gulfnews.com/business/features/innovative-advertising-is-thriving-1.64102. Retrieved 2010-04-15. 
23. ^ ^{a b} "RAKBank launches latest Titanium campaign". GMR Online. 2009-09-15. http://gmr-online.com/news-in-detail/882/3/index.html. Retrieved 2009-09-15. 
24. ^ "Right Angle Out of Home Case Study". Right Angle. 2009-07-15. http://www.rightangle.ae/pdf/case/rakbank.pdf. Retrieved 2009-07-15. 
25. ^ "How holiday expenses may add up to US$20,000 prize". The National. 2010-07-08. http://www.thenational.ae/lifestyle/personal-finance/how-holiday-expenses-may-add-up-to-us-20-000-prize. Retrieved 2010-07-08. 
26. ^ "Fly For Less with RAKBANK". Zawya/RAKBANK Press release. 2010-04-13. http://www.zawya.com/story.cfm/sidZAWYA20100413103651?q=rakbank. Retrieved 2010-04-13. 
27. ^ "Noor Islamic closes $240m syndication". Gulf News. 2010-09-17. http://gulfnews.com/business/banking/noor-islamic-closes-240m-syndication-1.683181. Retrieved 2010-09-17. 
28. ^ "Rakbank offers customers discounts on Home Centre furniture and decor". AME Info. 2010-10-13. http://www.ameinfo.com/245056.html. Retrieved 2010-10-13. 
29. ^ "Yes we can to a greener UAE". Khaleej Times. 2010-10-05. http://www.khaleejtimes.com/DisplayArticleNew.asp?xfile=/data/theuae/2010/May/theuae_May244.xml&section=theuae. Retrieved 2010-10-05. 
30. ^ "5th Annual Service Quality Bank Benchmarking Study shows a dramatic increase in customer satisfaction levels while RAKBank wins ‘Best Overall Bank’". Ethos News. 2009-11-14. http://news.ethos.ae/en/post/2009/11/14/5th-Annual-Service-Quality-Bank-Benchmarking-Study-shows-a-dramatic-increase-in-customer-satisfaction-levels-while-RAKBank-wins-e28098Best-Overall-Banke28099.aspx. Retrieved 2009-11-14. 
31. ^ "RAKBank first in Middle East to achieve BSI accreditation for TICSS customer service standard". Business Intelligence Middle East. 2008-03-18. http://www.bi-me.com/bime2_dev/main.php?id=18395&t=1. Retrieved 2008-03-18. 
32. ^ "Revealed: Gulf's most admired companies". Arabian Business. 2007-04-15. http://www.arabianbusiness.com/revealed-gulf-s-most-admired-companies-126064.html#5. Retrieved 2007-04-15. 
33. ^ "H.E. Sheikh Omar bin Saqr Al Qassimi". Marcopolis. 2008-08-06. http://www.marcopolis.net/h.e.-sheikh-omar-bin-saqr-al-qassimi.htm?Itemid=69. Retrieved 2008-08-06. 

External links

• RAKBANK
• RAKBANK Direct
• RAKBANK's Twitter Account