Since its establishment in 1977, Banque Saudi Fransi (BSF) has built a reputation for probity, innovation and banking excellence as one of Saudi Arabia’s leading full service commercial banks.  

Ranked fifth in terms of total assets of $50 billion, BSF has a network of 82 branches and 2,800 employees across Saudi Arabia. 

Headquartered in Riyadh with regional offices in Al Khobar and Jeddah, BSF serves a strong and increasingly diversified client base meeting local, regional and international banking requirements.

The bank combines Saudi banking interests and its affiliation with the largest French banking group, Credit Agricole. A centrepiece on its corporate floor shows a large photograph of a historic meeting between the late King Faisal bin Abdulaziz Al Saud and the late President Charles De Gaulle at the Elysee Palace in 1967, symbolising the strong historic links between Saudi Arabia and France.

A leading provider of a comprehensive range of financial services and products, BSF is in essence a corporate bank that has progressively extended its reach to the retail area in particular in wealth management and private banking. 

The bank was also one of the first international institutions to recognise the growing demand for Sharia-compliant banking services. 

The corporate mantra for the bank is ‘Think Excellence’ to meet the expectations of clients and competitive trends and, in recent years, BSF has been transformed with the implementation of a new vision and energetic purpose, driven by the charismatic French-born managing director, Patrice Couvegnes. 

Appointed in September 2011, Couvegnes has brought a wealth of international experience at the highest level. In three short years, Couvegnes’s disciplined team approach has helped transform the bank into a leaner and more focused institution.  

In 2014, BSF recorded a spectacular 46 per cent increase in profits, impressive by any standards in this highly competitive sector.


RESTRUCTURE

“The restructuring efforts which took place in 2012 and 2013 are paying-off,” says Couvegnes. “Reasonable loan growth coupled with strong cross-selling and tight risk management is also evident too. We are here to support the Saudi economy.” 

When one enters the BSF’s Riyadh headquarters, one can immediately see the visual transformation of this iconic landmark following a sophisticated refurbishment programme. A great deal of thought and attention to detail has gone into the ambience and style of the interior design.

The main lobby has been transformed as well as the working environment, including the flooring, walls and lighting systems. These changes are not just cosmetic as there is a fresh approach to clients. Staff have a spring in their step and are welcoming and decisive.

“The bank is showing who we are and making an impression, which is also respecting our employees as well as our clients. The banking premises are very important for the clients that we receive and also for our staff, as a bank of excellence. There is a mixture of modernity and a touch of warmth with the choice of colours and Saudi antiques, artworks and cultural artefacts. We are part of the economic history of the country. These roots are very important and we want to present these in our premises,” Couvegnes adds.

BSF has taken a progressive approach to changing its organisational structure which has been executed in different phases, according to Couvegnes.

“The first phase of restructuring was executed between 2012 and 2013 with the major changes in organisational structure now complete. The second phase of transformation is ongoing and underpinned by a medium-term plan from 2014 to 2016,” explains Couvegnes.  “This seeks to adapt the bank to the new regulatory rules and frameworks to meet the changing client environment in the fast-paced Saudi and wider global economy. We now believe the foundations are solid and our house is in order and that we can now build for the future.”

As the chief architect of the medium-term plan, Couvegnes is personally spearheading the bank’s vision of excellence in a proactive way and living the vision too. There is a sign on Couvegnes’s desk that states: ‘Are you here with a solution or are you part of the problem?’ which is both daunting and energising.  Couvegnes does not suffer fools lightly and is a serious-minded ‘no-nonsense’ technocrat.   

“The Bank of Excellence vision is first all about the quality of our service. Large corporate clients or wealthy individuals are used to the highest standards or practice and service. We target the delivery of such high quality and efficient services for our clients,” he emphasises. “The essence of our Bank of Excellence vision is that we do not aim at being the biggest or the largest, but we certainly want to make sure we are the best in our businesses.”


TRAINING THE WORKFORCE

Since its foundation, the bank has enjoyed a very strong brand reputation in Saudi Arabia, thanks to its fine corporate culture and motivated staff.  Many of the staff who have helped to build the organisation have benefited from strong mentoring and continuing education.  

For more than 20 years, BSF has been developing a ‘young graduate’ initiative every year, with ‘Saudiisation’ a key policy of the bank.

“Banks in Saudi Arabia are already very well Saudiised. It is also the case at BSF and we continue this effort,” he explains. “One of the key elements is our Young Graduate Programme which imparts first-class training and very solid base to new entrants.

He continues: “We have also inaugurated a new state-of-the-art BSF Academy which allow us to pursue training needs in an extremely efficient and motivating environment.

“Along with this graduate programme, we can offer an international working environment benefiting from the partnership with Credit Agricole Group. The strong corporate culture of entrepreneurship that is much valued within BSF is also attracting talents.

“We are also looking at ways to set up a school of banking to consolidate a core foundation of future Saudi bankers, by further providing specialised banking education. Finally, we can also leverage on “on-the-job training” with the network of Credit Agricole, the international partner of BSF.”


STOCK MARKET PROMISE

Couvegnes is looking forward to the opening up of the Saudi stock market and the changing dynamics and opportunities in the kingdom’s financial sector.

“The Saudi stock market opening to direct foreign investment in 2015 is a landmark event that will significantly broaden the type and number of overseas institutions that will be able to access this $483.44-billion stock market. We expect that, over time, overseas flows will enhance liquidity, impose greater standards of transparency and governance by rewarding the stock prices of better managed companies, and boost potential brokerage and asset management revenues,” says Couvegnes.

In response to this, BSF, through its capital markets subsidiary Saudi Fransi Capital, is setting up an overseas office in the Dubai International Finance Centre (DIFC) in Dubai, UAE. 

“This entity will focus on broadening our client and revenue base internationally, by capturing a part of the potential new revenue stream that this market opening will provide,” says Couvegnes.

The archetypal high-flying technocrat, Couvegnes has almost 40 years of experience in banking and finance, including extensive international experience. His experience at the highest levels is underpinned by a formidable French education from the elite Sorbonne which includes a doctorate in economic science. 

After completing his doctorate, Couvegnes declined a career in academia. Instead, he began his working career at the French Ministry of Equipment and Transportation before making the move to the banking industry in 1975 entering Banque Francaise du Commerce Exterieur.  

“I moved to banking as I was looking to an active career in the real world and looked to the financial sector,” he says. “My family background is very much creative as my father was an artist, and I have always believed in adopting an aesthetic in conducting my business life. Banking is all about respecting clients, staff and doing what we are doing to the highest standards of excellence.” 

A decade later in 1984 Couvegnes joined Banque Indosuez in charge of the Large French Corporates and by 1996 was the Regional Head of Corporate Banking for Asia Pacific based out of Singapore.  

By 2000, he was Country Head of Credit Agricole Indosuez in South Korea. Then in 2005, he became Country Head of Credit Agricole CIB in Japan and all its subsidiaries including insurance and asset management. 

By 2008, he was Chief Executive Officer of Asia based out of Hong Kong covering 13 countries from India to China before his appointment in Saudi Arabia in 2011.


FOCUS ON STAFF

BSF has a tradition of prudence based upon intensive analysis of risk and reward, and also around the quality of its staff.

“We always want the best people and we believe the best people will deliver banking excellence and provide quality in our solutions. When I first joined the bank three years ago I welcomed the opportunity to understand a new culture and bring the best of my experience into Saudi Arabia,” he says. “I know that the competition is fierce in the kingdom and there are changes in regulations and challenges so we have looked to keep the bank strong and incrementally deliver on our strategy.

“This involves huge investment not only in terms of refurbishment but bringing in new staff and investing in IT, and developing new processes and procedures to meet our objectives. One cannot stand still; we can always do better, so we never rest. In many ways, I see myself as a team coach, to use a football analogy, and that we are very determined and very disciplined as a team in the way we approach our work to deliver on our promise to our clients,” he continues.

As one of the largest banking groups in Saudi Arabia with distinctive branches and ATMs, BSF is looking at its retail investment strategy too.  New branches are being opened as part of the reorganisation of the retail banking group (RBG).  

“We are working on the quality and locations of our branches rather than the number. Importantly, we need to be close to our clients and offer them a functional place where they can do this business efficiently while being at ease. We have revamped our retail product range to meet the requirements of clients who are getting more sophisticated. Our international exposure is helping us to quickly adjust to those new needs. At the same time, we are investing massively in e-channels,” adds Couvegnes.


TECHNOLOGY FOCUS

BSF continues to invest in IT and has superb systems to meet the demand and expectations of clients and intends to stay ahead in the fast-track technology of both conventional and e-banking applications. 

“E-banking is at the heart of our business model. We have set up a dedicated division  – Global Transaction Banking – managing all e-channels with the objective to ensure a coherent and integrated development. This is and will continue to be a massive investment for the bank over the coming three years with introduction of new Internet and mobile platforms as well as corporate e-services where we have been pioneers for the past 15 years,” says Couvegnes.

In the corporate and business banking sectors, BSF also has a leadership position. 

“BSF was a leading force in the establishment of project finance in the kingdom. Such financing structures based on the cash-flow of the project have indeed helped finance numerous petrochemical, power, infrastructure and transportation projects. We are proud to be a leader in this field and continue to develop with local and international players,” he adds.

Couvegnes is confident that BSF is fully aligned to meet the competitive trends and the volatility in the regional and global financial sectors. 

“BSF is focusing on the Saudi market. We have a lot to do there and our view is that it is the most interesting market of the region. There is a fierce local competition but we can play on our strengths to continue to develop. Global financial sector trends are also impacting Saudi Arabia, notably as far as the regulatory environment is concerned. Saudi Arabia is part of the G20 and there is a common understanding to build up a more secure financial environment. We can say that today Saudi Arabia’s financial sector is one of the most solid,” he continues.


PRIVATE BANKING

In terms of private banking and wealth management, the scope of services for high-net-worth individuals (HNWIs) is increasing at BSF.

With the region now representing about 16 per cent of HNWIs global market, Couvegnes says the high-net-worth population in the Middle East is “increasing dramatically”.

“In terms of investable wealth, 2013 was another record year with HNWI wealth reaching $52.62 trillion, an increase of 13.8 per cent from 2012,” he points out.

“HNWIs are getting more sophisticated. We are seeing an evolution from wealth preservation to growth target through a more diversified range of assets such as fixed incomes, alternative investments, real estate and equities.

“In Saudi Arabia, the number of HNWIs is increasing year on year due to several factors such as solid economic growth, inheritance wealth and opportunities in the real estate markets. 

“BSF’s strategy to our HNWI clients is to become a solution provider by identifying opportunities in the local market, GCC and globally through structured products, private equity, third-party products and local and international brokerage.”

Saudi Fransi Capital (SCF), the investment banking arm of BSF, commands a leading position in the equity capital market and is finding it increasingly important to provide alternative financing solutions such as equity capital and sukuks to its corporate clients. 

 “Saudi Fransi Capital has three big IPOs (initial public offerings) each valued at more than SR1 billion ($266 million) in the pipeline. The timing of the IPOs is determined by various factors, including the companies’ state of readiness, discussions with respective regulators and investigation of alternative transactions as well as, most obviously, market conditions,” he continues.

“Saudi Arabia is a unique market for banking with a banking system that is strong and benefiting from a strong regulator.  It is extremely interesting participating in the development and the diversification of the Saudi economy and meeting a lot of entrepreneurs and top-level people. There is certainly no time to get bored,” our Knight of Banking concludes.