An extensive evaluation of the leading retail banks in Saudi Arabia reveals that while there is a growing positive sentiment towards the banking industry, persistent challenges continue to impact the overall perception and reputation of financial institutions.
PwC Middle East and DataEQ conducted the first joint KSA Banking Sentiment Index, which analyzed consumer sentiment towards seven major retail banks in Saudi Arabia. These banks include Al Rajhi Bank, Alinma Bank, Al Bilad Bank, Riyad Bank, Saudi National Bank, Saudi Awwal Bank, and Banque Saudi Fransi.
The index examined over 5 million posts on X (formerly Twitter) related to these banks. DataEQ’s proprietary method, which combines Crowd and AI technology, was used to process the data. The conversations were categorized into operational and reputational aspects, forming the Net Sentiment towards each organization.
Overall, the industry demonstrates signs of improvement, with an 11.3 percentage point increase in Net Sentiment compared to 2022. This improvement can be primarily attributed to a 9.1 percentage point increase in reputational Net Sentiment. Factors such as CSI initiatives, strong financial performance, and enhanced customer experience (CX) contribute to this positive shift. However, despite improvements in CX, customer service and turnaround time remain significant pain points. Additionally, digital downtime has a negative impact on the industry and erodes customer confidence in financial institutions in the Kingdom.
Read more: Saudi banking sector continues to capture benefits of economic expansion
Importance of customer acquisition and retention
Mark Stanley, partner, Financial Service Consulting at PwC Middle East, said: “Customer acquisition and retention are deeply intertwined with consumer sentiment. Our index harnesses the power of social media feedback, offering direct, unfiltered insights into the experiences of an outspoken online population. For banks, ignoring these potent voices is more than just oversight—it’s a lost opportunity in understanding and meeting modern consumer needs.”
Role of social media as a complaint channel
Social media platforms often serve as channels for customers to express their complaints, especially when traditional communication channels fail to meet their needs. Consequently, operational discussions on these platforms often tend to lean towards the negative side. While some banks have successfully leveraged their reputational Net Sentiment, improving the quality of operational interactions holds significant potential for enhancing the overall Net Sentiment.
Customer service: Low net sentiment and prolonged resolution times
Customer service emerged as the predominant topic with the highest volume of social media conversations, indicating a low Net Sentiment of -82.1 percent. This signals the need for improvement across all banks, primarily due to prolonged resolution times for customer issues. Products were the next major subject, registering a Net Sentiment of -37.4 percent. Negative feedback regarding debit cards and similar offerings highlighted transactional problems and delays in card issuance. Reputation, the third most discussed topic, exhibited a positive Net Sentiment. It showcased community programs, educational initiatives, and environmental efforts that garnered positive engagement from consumers. Many customers also praised banks for promoting fraud awareness and encouraging customer vigilance on social media.
Digital experience ranked among the topics with the most negative perception, largely attributed to system outages and app downtime. These technical disruptions left customers unable to complete essential transactions, leading to frustration and contributing to a negative Net Sentiment of -81.1 percent.
Empowering stakeholders for swift action and strategic planning
“This analysis is intended to empower stakeholders for swift action and the development of long-term strategic plans, which can contribute to both enhancement of public sentiment and profits,” added Stanley. “As the Saudi banking industry witnesses dynamic shifts, ensuring focus on improving operational performance in areas such as customer service and digital reliability stands to provide significant business advantage.”
Melanie Malherbe, Managing Director at DataEQ, said: “This index not only highlights the challenges facing the Saudi banking industry, but also outlines clear opportunities for transformation. Amid escalating competition from new market entrants and a greater need for digital customer support, banks must not only maintain their good reputation, but also strive for continual operational improvements to ensure a holistic, customer-centric banking experience.”
“By embracing and acting upon consumer feedback on social media, Saudi banks can successfully turn the tide of negative sentiment and pave the way for a future where consumer trust and satisfaction are at the heart of their operations.”
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