tanfeeth

Operations and Contact Centre functions across the Al Rajhi Group were centralised in 2022 and absorbed under the newly established entity Tanfeeth, incorporating Managed Operations, Staffing Solutions, Automation Services and Contact Centre Operations under its services portfolio. During the year in review, Tanfeeth continued to greatly improve operational efficiencies across the Bank, and also across a number of its subsidiaries. Tanfeeth progressed well across key focus areas in 2023, going on to exceed budgeted Net Income target by 61% by year end. Net Financial Loss for the reporting year was contained at SAR 27,000 with Tanfeeth aiming for profit-making operations as its overarching KPI for the next financial year.

Having successfully migrated all core operations processes of Al Rajhi Bank, the operations processes of subsidiaries Emkan and Neoleap were also migrated successfully to Tanfeeth in 2023, recording a net volume growth of 63% this year. Furthermore, 50% of Al Rajhi Capital’s processes were also migrated, with the remaining processes on track to be completed this year. The Al Rajhi Takaful Contact Center and Policy Administration operations were migrated, with reconciliation and other operations units on track for completion in 2023.

With 420 processes budgeted to be automated during the reporting period, 480 processes were successfully automated in 2023, exceeding the budgeted number by 14%, and recording a 32% YoY increase in process automation. Tanfeeth delivered AIRA, an in-house business process management (BPM) and workflow solution, which has successfully reduced human processing times from 25 minutes to 1 minute.

Tanfeeth
performance
highlights for 2023

Net volume growth of

63%

Net Income growth of

61%

YoY increase in process automation

32%

During the reporting period, the Al Rajhi Bank Contact Center SLAs achieved 95% delivery, significantly improving from the 59% delivery recorded in 2022. Abandoned calls showed a significant improvement from 2023. The success of the Bank’s Contact Centre operations enabled Tanfeeth to onboarded the Contact Center for the fintech subsidiary Neoleap during the year in review, recording a consistent delivery >90% SLAs with only <5% abandoned Interactions, a substantial improvement from the performance delivered by the previous outsourced vendor. Credit operations of the microfinancing subsidiary Emkan were also taken over by Tanfeeth, greatly reducing turnaround times to less than 15 minutes. In September 2023, the Contact Center incentive model was implemented by Tanfeeth, which looks to deliver a significant and sustained cost reduction the Bank and its subsidiaries leveraging Tanfeeth services.

With Staffing Solutions for Al Rajhi Bank now falling under its services portfolio, Tanfeeth was able to reduce headcount costs through internal staff migration and consolidation during the reporting period. Operations headcount was maintained at the same level as the onset of 2023 throughout the year despite the net full-time employee (FTE) migration (new operations) of 620 employees. Overall Saudization rate at Tanfeeth was sustained at 96%, with the female employee ratio reaching 77%, driven by the largely female operated Qassim Contact Centre. With the Kingdom’s Human Resource Development Fund (HRDF) providing 30% of the remuneration to private sector employees in their first year of employment to encourage Saudization and raise equality in the labour market, this focused recruitment strategy enabled Tanfeeth to enjoy an SAR 37.3 Mn. subsidy in 2023, more than double the SAR 15.7 Mn. subsidy received in 2022.

Tanfeeth continued to collaborate with the IT Department of Al Rajhi Bank during 2023 and delivered the Newgen Instant Approval credit decisioning engine, greatly decreasing the volume of manual credit processing carried out by the Bank. The IT Department also supported Tanfeeth in further automating SAMA requests with six new enhancements to its intelligent Business Process Management (iBPM). 100% QIWA compliance was achieved through automated processing, while automated solutions were also adopted and extended across the Al Rajhi Group.

The year in review saw the promising development of a three-year strategy – ‘RISE’ – to grow Tanfeeth across a number of focused industry sectors.

RISE Strategy

Reimagine partnership with the Al Rajhi Group by becoming a transformation partner and ensuring operational excellence and supporting process optimization.

Increase Financial Services presence by expanding and deepening presence within the Financial Services sector.

Seek opportunities in new sectors by exploring growth opportunities in new industries and leveraging strengths in common services.

Evolve into solutions orchestrator by transforming into an end-to-end solutions orchestrator and combining efforts with other entities within the Group.