RAKBANK
Encyclopedia
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. It was named the second most profitable bank among GCC
top 50 Banks in 2009 according to Gulf Business magazine. RAKBANK is listed on the Abu Dhabi Securities Exchange
(ADX).
Founded in 1976, the Bank
is one of the region’s oldest local financial institution
s 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. 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. It has also established itself as a leading mortgage and personal loans provider among conventional commercial bank
s in the UAE, with award-winning customer service
. 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.
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. 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.
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.
2000
2001
2004
2006
2007
2008
2009
2010
2011
, 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.
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
division of RAKBANK caters to medium size businesses. The Bank offers customers products ranging from fund-based facilities such as overdraft
s, 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.
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. 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. 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.
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.
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.
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.
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 fund
s, 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.
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. The unit also has an extensive range of deposit and transaction banking solutions.
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.
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.
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”.
The bank offers up to 75% mortgage finance and up to 25-year loan tenures through a number of dedicated mortgage sales centers.
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.
s living in the UAE. The Bank extends conservative loan amounts, allowable as per the guidelines of the UAE Central Bank
.
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. 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. 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.
service was launched in 2008 to allow customers to perform banking transactions online, including viewing balances, availing salary advances, and making payments and transfers.
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.
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. RAKBANKhelp was created to resolve and answer queries regarding any poor customer experience
which required the Bank’s attention.
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.
In addition, RAKBANK has topped a list by Gulf News
of companies in the UAE for consistent and thorough customer service feedback.
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. 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.
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.
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.
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.
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. 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, Nokia, Home Center 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.
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.
Dirham
Dirham or dirhem is a unit of currency in several Arab or Berber nations, and formerly the related unit of mass in the Ottoman Empire and Persian states...
. 22.6 billion as at 31 June 2011. It was named the second most profitable bank among GCC
Cooperation Council for the Arab States of the Gulf
The Cooperation Council for the Arab States of the Gulf , also known as the Gulf Cooperation Council , is a political and economic union of the Arab states bordering the Persian Gulf and constituting the Arabian Peninsula, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates...
top 50 Banks in 2009 according to Gulf Business magazine. RAKBANK is listed on the Abu Dhabi Securities Exchange
Abu Dhabi Securities Exchange
Abu Dhabi Securities Exchange [ADSM] is a stock exchange in Abu Dhabi, United Arab Emirates . It was established on 15 November 2000 to trade shares of UAE companies. There are trading locations in Abu Dhabi, Al Ain, Fujeirah, Sharjah, and Ras Al Khaimah...
(ADX).
Founded in 1976, the Bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
is one of the region’s oldest local financial institution
Financial institution
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...
s offering a range of personal banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
services through its branch network as well as its Telephone, Online
Online banking
Online banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.-Features:...
and Mobile Banking
Mobile Banking
Mobile banking is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant . The earliest mobile banking services were offered over SMS...
channels. A major provider of credit cards in the UAE, RAKBANK was the first to launch features such as ‘Free for Life’ and ‘Cashback
Credit card cashback
When accepting payment by credit card, merchants typically pay a percentage of the transaction amount in commission to their bank or merchant services provider. Many credit card issuers, particularly those in the United Kingdom and United States, share the commission with the card holder by giving...
on Purchase’, now adopted by many industry players. 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. It has also established itself as a leading mortgage and personal loans provider among conventional commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s in the UAE, with award-winning customer service
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
. 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.
RAKBANK was amongst the few commercial banks in the UAE which posted profit
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
growth in 2009. Due to the Bank’s withdrawal in 2006 from lending in the construction and civil engineering
Civil engineering
Civil engineering is a professional engineering discipline that deals with the design, construction, and maintenance of the physical and naturally built environment, including works like roads, bridges, canals, dams, and buildings...
segments outside of its base Emirate
Emirate
An emirate is a political territory that is ruled by a dynastic Muslim monarch styled emir.-Etymology:Etymologically emirate or amirate is the quality, dignity, office or territorial competence of any emir ....
, it has very little residual exposure in those segments and has no exposure to construction involving high-rise towers. RAKBANK's conservative credit policies and risk management
Risk management
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...
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
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
peer group.
Corporate History
Established in the 1970s, the National Bank of Ras Al-KhaimahRas al-Khaimah
Ras al-Khaimah is one of the emirates of the United Arab Emirates , in the east of the Persian Gulf. It is in the northern part of the UAE bordering Oman's exclave. The capital city and home of most residents is also called Ras al-Khaimah. The city has a population of 263,217 as of 2008. The city...
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 ResponseInteractive voice responseInteractive voice response is a technology that allows a computer to interact with humans through the use of voice and DTMF keypad inputs....
(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 DubaiDubaiDubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
– 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 BancassuranceBancassuranceThe Bank Insurance Model , also sometimes known as 'Bancassurance', is the term used to describe the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products.BIM allows the insurance company to...
business - IPOInitial public offeringAn initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
/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
- Launch of RAKBANKdeals.ae
Location
RAKBANK is a public joint stock companyJoint stock company
A joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the 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
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
, 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
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
. 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 2007Directors’ 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
Corporate Banking
The Corporate BankingCommercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
division of RAKBANK caters to medium size businesses. The Bank offers customers products ranging from fund-based facilities such as overdraft
Overdraft
An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be "overdrawn". If there is a prior agreement with the account provider for an overdraft, and the amount overdrawn is within the authorized overdraft...
s, term loans, loans against invoices, bill discounting, import and export finance to non fund based facilities such as letters of credit
Letter of credit
A standard, commercial letter of credit is a document issued mostly by a financial institution, used primarily in trade finance, which usually provides an irrevocable payment undertaking....
, guarantees and foreign exchange forward cover facilities.
Credit Cards
Following its entry into the Credit Card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
market in 2001, the Bank gained around 20 percent market share in the country's credit card sector with around 300,000 customers. 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. 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
Géant
Géant part of French retailing giant Groupe Casino, is a European hypermarket chain and is based in France.Géant has about 113 hypermarkets all over the world. The concept is to have all kinds of items available under one roof - from common household items and food to computers and home theater...
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
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
and North Africa
North Africa
North Africa or Northern Africa is the northernmost region of the African continent, linked by the Sahara to Sub-Saharan Africa. Geopolitically, the United Nations definition of Northern Africa includes eight countries or territories; Algeria, Egypt, Libya, Morocco, South Sudan, Sudan, Tunisia, and...
region.
Debit Cards
Since 2009, RAKBANK has also offered a MasterCard Debit card
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
, the first debit card in the UAE to offer customers the advantage of cashback
Debit card cashback
Debit card cashback is a service offered to retail customers whereby an amount is added to the total purchase price of a transaction paid by debit card and the customer receives that amount in cash along with the purchase. For example, a customer purchasing $18.99 worth of goods might ask for...
as a percentage of purchase.
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.
Wealth Management
The Wealth ManagementWealth management
Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services...
Division was initiated as part of the Bank’s rebranding
Rebranding
Rebranding is the creation of a new name, term, symbol, design, or a combination of them for an established brand with the intention of developing a differentiated position in the mind of stakeholders and competitors....
and retail banking strategy in 2001. It includes a priority banking service ‘Al Momiaz’ and the RAKinvest investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
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.
Wealth Management products include Fixed Deposit
Time deposit
A time deposit is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time...
accounts with free Life Insurance protection, RAKvantage current account which offers preferential interest rates
Interest rate
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for...
, the RAKsave savings account
Savings account
Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money . These accounts let customers set aside a portion of their liquid assets while earning a monetary return...
and the online Fast Saver account. The Division’s investment products include mutual fund
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
s, 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
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
and deposit
Deposit
Deposit may refer to:*Deposit , New York*Deposit , New York*Deposit account, a bank account that allows money to be deposited and withdrawn by the account holder**Demand deposit, the funds held in demand deposit accounts in commercial banks...
products as well as a dedicated and personalized service to help customers manage and grow their wealth. Wealth Management
Wealth management
Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services...
services are available to customers throughout the Bank’s 31 branches located across the UAE, with dedicated Wealth Management teams in select branches.
RAKFinance
In 2005, RAKBANK established its Business FinanceCorporate finance
Corporate finance is the area of finance dealing with monetary decisions that business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize shareholder value while managing the firm's financial risks...
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. 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 insuranceLife insurance
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...
policies as well as savings and insurance plans, death and disability protection
Disability insurance
Disability Insurance, often called DI or disability income insurance, is a form of insurance that insures the beneficiary's earned income against the risk that a disability will make working uncomfortable , painful , or impossible...
and travel protection
Travel insurance
Travel insurance is insurance that is intended to cover medical expenses, financial default of travel suppliers, and other losses incurred while traveling, either within one's own country, or internationally...
. These products are offered by Oman Insurance company and other international insurance providers.
Mortgages
RAKBANK began mortgageMortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
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.
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”.
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 expatriateExpatriate
An expatriate is a person temporarily or permanently residing in a country and culture other than that of the person's upbringing...
s living in the UAE. The Bank extends conservative loan amounts, allowable as per the guidelines of the UAE Central Bank
Central Bank of the United Arab Emirates
The Central Bank of the United Arab Emirates is the central bank of the United Arab Emirates.-See also:*Economy of the United Arab Emirates*United Arab Emirates dirham*Mohammad Al Gaz-External links:*...
.
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 InsuranceInsurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
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. Visitors to www.rakbankdirect.ae can also apply for other Banking products including a suite of RAKBANK credit cards, deposit accounts, and Wealth Management
Wealth management
Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services...
solutions. RAKBANK Direct also seeks to change the way banks communicate with customers by allowing customers to chat
Chat
-Conversation:* Casual conversation* Online chat in an internet chat room or instant messaging system* Synchronous conferencing, the formal term for online chat technology* Bluechat with Bluetooth devices* SMS chat, a form of Text messaging-Geography:...
in real time with representatives through Live Chat.
Online Banking
RAKBANK’s Online bankingOnline banking
Online banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.-Features:...
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 BankingMobile Banking
Mobile banking is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant . The earliest mobile banking services were offered over SMS...
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.
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.Twitter
Twitter is an online social networking and microblogging service that enables its users to send and read text-based posts of up to 140 characters, informally known as "tweets".Twitter was created in March 2006 by Jack Dorsey and launched that July...
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. RAKBANKhelp was created to resolve and answer queries regarding any poor customer experience
Customer experience
Customer experience is the sum of all experiences a customer has with a supplier of goods or services, over the duration of their relationship with that supplier. From awareness, discovery, attraction, interaction, purchase, use, cultivation and advocacy...
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.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.
In addition, RAKBANK has topped a list by Gulf News
Gulf News
Gulf News is a daily English language newspaper published from Dubai, in the United Arab Emirates with a December 2009 BPA audited circulation of over 117,036 qualified copies...
of companies in the UAE for consistent and thorough customer service feedback.
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 advertisingAdvertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...
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. 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.
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.
The campaign also included an online game
Online game
An online game is a game played over some form of computer network. This almost always means the Internet or equivalent technology, but games have always used whatever technology was current: modems before the Internet, and hard wired terminals before modems...
, 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.
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.
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. 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, Nokia, Home Center 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.
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.
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
- Best Credit Card in the Middle East and North Africa in 2011 by Bankers Middle East
- TICSS certification by the International Customer Service Institute in 2008
- 5th Most Admired Company in the Middle East by Arabian Business magazine in 2007
- MasterCard Worldwide Gold Award for Titanium Credit Card
- Full Compliance with the Standardized Approach under Basel II