"Chapter 4: Results and Discussion

4.1 Introduction

The primary objective of this research was to analyze the perspectives of industry experts regarding the establishment of Multi-Bank Cash Centers (MBCCs), their potential impact on ASSSCO, and the overall benefits and challenges associated with implementing SAMA guidelines in Saudi Arabia. Through the collection and analysis of primary and secondary data, this chapter presents a comprehensive overview of the study’s findings, which address the research questions and objectives. It further discusses the critical linkages between the literature review results and the primary findings.

4.2 Critical Discussion on the Research Question

The initial research question aimed to determine to what extent the professionals in the cash management domain support the establishment of MBCCs in Saudi Arabia. The collected primary data consisted of interviews with 83 experts in various positions within the cash management industry, both from ASSSCO and from external organizations. Based on the interviewees’ responses, 75% expressed full agreement with the establishment of MBCCs, while 13% were in agreement, 1% disagreed, and 11% were unsure (see Table 1).

These findings indicate a strong overall support towards implementing MBCCs in the industry, thus suggesting that the implementation of MBCCs would be a strategic move for ASSSCO’s business sustainability. With a majority of industry professionals agreeing on the potential for MBCCs to positively impact cash management in Saudi Arabia, it is crucial for ASSSCO to consider this option in order to stay competitive in the market and maintain its position as a leader in the cash management sector.

As highlighted in the literature review, the establishment of MBCCs can contribute to operational efficiency, technological innovation, and better strategic management, all of which are crucial factors for business sustainability. This is further reinforced by the results obtained from the interviews, where the majority of participants affirmed the benefits associated with MBCCs.

4.3 Critical Discussion on the Linkages between Literature and Findings

The results obtained from the interviews and the insights derived from the literature review reveal a strong correlation between adopting SAMA’s guidelines and the achievement of business sustainability at ASSSCO. The establishment of MBCCs is expected to bring about significant operational efficiencies in cash handling, processing, and transportation, while also providing scope for adopting innovative technologies in the cash management sector.

According to literature findings, the application of digitization, automation, and other tech-driven solutions can help streamline cash management processes, reduce operational risks, and elevate the quality of services provided by MBCCs. In line with these findings, the interviewed participants expressed their strong belief that technology plays a critical role in improving cash management services and enhancing the overall operational efficiencies of cash handling providers.

Moreover, the interviewed professionals highlighted the importance of strategic alignment and the need for ASSSCO to adapt to the evolving regulatory environment in Saudi Arabia, especially when implementing SAMA’s guidelines. This finding further strengthens the connection between the primary results and the secondary data obtained from the literature review.

4.4 Implications of the Study

The findings of this research have several implications on ASSSCO and the wider banking and financial sectors in Saudi Arabia. First, the strong support for the establishment of MBCCs from the interviewed professionals indicates that ASSSCO must move quickly to establish MBCCs in accordance with SAMA’s guidelines in order to stay competitive in the market. Delaying the implementation of these changes may result in missed opportunities and deteriorated market position.

Second, the incorporation of advanced technology solutions is likely to provide a competitive edge for ASSSCO in the cash management sector. ASSSCO must invest in tech-driven cash management solutions and align their services with the evolving digital transformation witnessed in the Kingdom.

Lastly, the results highlight the need for ASSSCO to strategically adapt to the regulatory environment in Saudi Arabia, particularly with regard to SAMA’s guidelines. Building partnerships with banks, private companies, and government organizations will be essential for the successful implementation of MBCCs and for fostering long-term business sustainability.

4.5 Conclusion

This chapter has presented an in-depth analysis of the primary findings obtained from the interviews, along with a critical discussion on the linkages between literature review results and the study’s primary data. The conducted interviews with professionals in the cash management sector indicate that establishing MBCCs in accordance with SAMA’s guidelines is essential for ASSSCO’s business sustainability and growth prospects.

The findings of this research contribute to a better understanding of the challenges and opportunities associated with the establishment of MBCCs, thus providing valuable insights for ASSSCO and other stakeholders in the cash management industry. With the majority of interviewees supporting the establishment of MBCCs, it is crucial for ASSSCO to strategically align its operations with SAMA’s guidelines, adopt innovative technological solutions, and invest in expanding its MBCC network throughout Saudi Arabia.” 

For the previous research study, use what you find useful from the following draft text to revise chapter 4, you can add or modify but don't delete any ideas from the chapter. Use what you can find online or information you find in the draft to add what you find necessary. If you find no need in adding anything, keep it as it is. Write any additional references not mentioned in the study above.                                         
 “2. LITERATURE REVIEW

The service sector represents an important part of the economy in the Kingdom of Saudi
Arabia, which is run by individuals or companies for profit and is not subject to the
control of the state due to the presence of little or no participation from the government.
It aims to earn money and employ more workers than the public sector. The service
sector is concerned with providing services for people, and there are many opportunities
for the private and public sectors to invest in the service sector, which is relied upon to
increase the domestic product and increases with time because the service sector is the
largest field that accommodates the employment of national manpower. It reflects the
level of interest of decision-makers in the national economy and in the services that are
provided to consumers. Therefore, the service sector represents an important part of the
economy. Rather, the m contributing to addressing issues and obstacles that prevent the
development of the sector to keep pace with &quot;Vision 2030&quot; which focuses on service
development and increasing the participation of non-oil sectors in the gross product, in
addition to the fact that the service sector is one of the most labor-intensive sectors. It
contributes significantly to solving the problem of unemployment among Saudi citizens,
and the Kingdom of Saudi Arabia ranks first in the Middle East in terms of service sector
output, where the output of the service sector in the Kingdom contributed 43.4% of the
GDP in the second quarter of 2021 (compared to a participation rate of 46.5% in the first
quarter of the year 2021), including the following services: wholesale and retail trade,
restaurants, and hotels; transportation, storage, information, and communications;
financial services, insurance, real estate, and business services; collective, social, and
personal services; and government services. The contributions of each of them separately
amounted to 0.4%, 2.1%, 1.3%, 3.0%, and 0.3%, respectively. The growth of these
activities in GDP on a quarterly basis amounted to 3.9%, 8.5%, 3.9%, 5.3%, and 0.5%,
respectively, in the first quarter of 2021. The &quot;Government Services&quot; activity (which
includes all government departments, central and local administration units, and defense
and security agencies) came in first, followed by justice and units specialized in planning
economic development, social welfare planning, education, health, culture, and social
services that are provided for free or at a nominal cost, and social security bodies. While
the activity of financial, insurance, and business services contributed 6.1% of the
Kingdom’s GDP in the second quarter of 2021. The services sector is expected to register
rapid growth in the coming years considering the huge tourism and entertainment projects
announced within the Kingdom’s Vision 2030, including the Qiddiya project and the Red
Sea project, the NEOM project, as well as the development of the city of Al-Ula, which
will contribute billions of riyals to the gross domestic product. In this regard, Saudi
Arabia is one of the most Gulf countries that seeks to increase the volume of investment
in the service sector in the country, and Saudi Arabia is based on several main ingredients
that make it a suitable solution for the success of the service sector, as these ingredients
are summarized in the multiple natural resources that the country possesses and the
abundance of hands Qualified patriotism, distinguished geographical location,
availability of land, financial liquidity that paves the way for establishing services, and
purchasing power related to the final consumer These developments come at a time
when, in 2016, Saudi Arabia monitored about 53 service investment opportunities in
various regions of the country, at a time when the Saudi Industrial Estates Authority
began to lead the local service sector towards a very large transformation, a
transformation that would lead to the realization of the most important features of the
long-term national strategy for the country&#39;s economy. The process of providing
developed service land at very symbolic prices is one of the most important support tools
provided by Saudi Arabia to investors in the service sector, in addition to providing high
financial loans to these investors. The pivotal role of the service sector in growth and
development, and in consolidating and sustaining wealth in the Kingdom by maximizing
the returns of its natural resources and investing them to localize productive human
expertise and diversify the economy.
As mentioned earlier, the Kingdom of Saudi Arabia has robust economic indicators globally
as one of the influential members within the Group of Twenty countries. Additionally, it has
experienced commendable progress across different key metrics necessary for global
competitiveness like Economic Performance, Business Efficiency, and Infrastructural
advancement. The Service Sector plays an indispensable part in driving job creation while
facilitating access to vital services for consumers, making it a compelling site for further
private or public investments.
Multi-Bank Cash Centers (MBCCs) ASSSCO proves highly relevant amidst this context
due to heightened demand stemming from increased trade volume, various needs, and
expanded banking reach across the country. This trend highly aligns with ASSSCO&#39;s core
expertise and operational competence in enhancing cash-related services while providing
investors with promising and attractive returns.
2.3 Commercial Banking sector growth:
The growing banking sector and the expanding number of branches and ATMs in the Kingdom
reflect the expanding trade activities and the growing population. Therefore, there is a rising
demand for services such as money transfers, cash replenishment for ATMs, and cash
management. This is where ASSSCO&#39;s expertise becomes highly relevant. As a company
specialized in cash management, ASSSCO recognizes the significance of establishing efficient
cash centers to meet the evolving needs of the banking industry and the broader service sector.
By establishing Multi-Bank Cash Centers (MBCCs), ASSSCO aims to provide comprehensive
cash management services that cater to the specific requirements of financial institutions and
businesses. These services include cash logistics, secure transportation, currency sorting, and
other related solutions. ASSSCO&#39;s expertise in cash management, together with their knowledge
of industry best practices, positions them as a trusted partner for banks and businesses seeking
efficient and secure cash services.
In correspondence with the service sector&#39;s role in driving economic growth, ASSSCO&#39;s
establishment of MBCCs contributes to the localization of expertise, diversification of the
economy, and the creation of employment opportunities. By utilizing their experience and
investing in the development of cash centers, ASSSCO actively participates in the achievement
of Saudi Arabia&#39;s long-term national strategy and the objectives outlined in Vision 2030.
The importance of MBCCs in the cash management landscape is unquestionable. With the
increasing reliance on electronic transactions and the growing need for efficient cash flow,
ASSSCO&#39;s establishment of MBCCs offers a valuable solution. By combining their expertise in
cash management with the rising demand for cash-related services, ASSSCO plays a crucial role
in supporting the banking industry, enhancing trade activities, and contributing to the overall
economic development of the Kingdom of Saudi Arabia.

2.5 General Considerations for MBCC Planning:
2.3.1. The MBCC should align with various factors, including stakeholders, SAMA and
government regulations, sustainability, and technology.
2.3.2. It is crucial to keep up with electronic advancements in the banking sector and offer
services that match this progress. This will enhance the chances of success and long-term
sustainability of the studied MBCC project.
2.3.3. The MBCC should provide services for the sale, installation, and maintenance of ATMs,
as well as deposit machines, cash recycling machines, queuing systems, note and coin counting
and sorting devices, protection systems, and other devices commonly used in the banking
industry.
2.6 Stakeholders
There are numerous stakeholders in the MBCC delivery domain, including owners, bank
branches throughout the Kingdom, various retail companies, commercial companies, mining
companies, gold and jewelry companies, and other institutions requiring services such as money
transfers (e.g., government institutions, ministries, agencies, diplomatic embassies, gold shops,
etc.).
Owners play an important role in driving the establishment and success of MBCCs, providing
the necessary resources and support.
Bank branches across the Kingdom benefit from the services offered by MBCCs, enabling them
to efficiently manage cash transfers and meet the demands of their customers.
Retail companies and commercial entities rely on MBCCs for secure and reliable cash
management solutions, ensuring smooth operations and financial stability.
Furthermore, companies operating in the mining, gold, and jewelry sectors need the services
provided by MBCCs, facilitating secure transactions and the movement of funds.
Government institutions, including ministries, agencies, and diplomatic embassies, also benefit
from MBCCs&#39; capabilities, enabling seamless money transfers and financial operations. Overall,
the involvement of these diverse stakeholders underscores the essential role of MBCCs in
meeting the cash management needs of various industries and institutions.
2.7 SWOT Analysis:
SWOT analysis is a tool that focuses on objectives and is used for analyzing the strengths,
weaknesses, opportunities. By examining both internal factors (strengths and weaknesses) and
external factors (opportunities and threats), SWOT analysis provides a comprehensive
understanding of the project&#39;s current situation and aids in the development of a competitive
plan. It helps identify the project&#39;s advantages and areas for improvement which allows for
effective goal-setting and strategic decision-making. Simultaneously, by examining external
factors, such as market trends and potential risks, the SWOT analysis enables the project team to
identify and capitalize on opportunities while mitigating potential threats. This comprehensive
evaluation helps shape a clear vision for the project and ensures a competitive strategy that aligns
with its goals.
2.8 Budget: The budget is a plan or process for the upcoming period that outlines how the
company will allocate its financial resources to meet future needs, including capital expenditures
(capex) and working capital requirements.


Chapter 3: Research Process

3.2 Data collection strategy:
• From the official sites of SAMA, banks websites, ministry of statices, Ministry of
population, journals, and newspapers.
• The global and internal reports issued regarding the economy.
• Interviews with some employees who have experience in the cash management sector.

3.4 Techniques &amp; Procedures: data collection
• Demography of respondents: people who have experience in this business sector and
other random samples inside Riyadh city.
• Type of sampling technique used: quantitative and qualitative.
• Data collection tool: Primary and Secondary (reports, company reports , journals and
newspapers , some government publication through the websites in google and by
investigation).
3.5 Data Analysis:
3.5.1 Marketing analysis summary: -
By analyzing the economic situation of the Kingdom, it is one of the strongest economies in the
world, and it ranked seventh among the G-20, and 24th globally in the global competitiveness
criterion, and second globally among the G-20 countries within the digital competitiveness of
2021. The banking sector in the Kingdom is witnessing significant growth and has a share of the
Kingdom’s Vision 2030, as it seeks to achieve total banking assets of 4.553 billion riyals in
2030.
3.5.2 The volume of expected demand for MBCC project services
The following is an explanation of the market size for the target groups:
A) The banking sector:
The company targets the branches of commercial banks in the Kingdom, where the number of
branches in the Kingdom reached 2,014 in 2020, and a cumulative growth rate of 2.4%,

Page | 26
Table 1: Branches of commercial banks according to the administrative regions in the period
from (2010-2020)
Table 1: Branches of commercial banks according to the administrative regions in the period
from (2010-2020)

Kingdom
Total
Al
Riyad
h
Makk
ah
Al-
Madin
a
East
ern
Al-
Qassi
m
As
eer
Tab
uk
Ha&#39;
el
North
ern
Board
ers
Al-
jouf
Jiz
an
Najr
an
AL-
Bahaa
Ye
ar
1,591 481 360 70 303 96 99 40 30 13 20 34 20 25 20
10
1,630 490 371 69 309 98 102 40 33 14 20 36 22 26 20
11
1,677 505 379 71 320 101 106 42 33 14 21 37 23 25 20
12
1,749 535 386 77 331 104 111 43 37 13 23 40 23 26 20
13
1,909 590 408 89 370 111 117 49 39 15 24 46 25 26 20
14
1,976 613 423 92 386 114 119 49 40 15 25 49 25 26 20
15
2,029 624 433 100 393 116 124 50 42 16 27 50 27 27 20
16
2,069 631 436 106 405 119 126 51 42 17 28 53 27 28 20
17
2,064 629 435 105 401 120 127 50 42 17 28 55 28 27 20
18
2,076 626 442 104 408 120 128 51 42 17 27 57 27 27 20
19
2,014 612 424 101 387 117 125 50 43 19 28 55 27 26 20
20

Source: SAMA website: www.sama..gov.sa
and accordingly, the number of branches was expected for the coming years and targets the
ATMs of banks located in various regions in the Kingdom, where the ATMs in the Kingdom
reached 18,299 “Table 2”, and the cumulative growth rate is 5.4%.
Table 2: Automated teller machine (ATM) statistics

Year Number of ATMs in the
Kingdom

Number of cards issued in the

Kingdom
2010 10,885 12,162,407
2011 11,766 14,261,993
2012 12,712 16,440,258
2013 13,883 17,810,653
2014 15,516 20,550,274

Page | 27
2015 17,223 22,459,275
2016 17,887 26,537,349
2017 18,333 28,402,914
2018 18,685 28,559,828
2019 18,882 31,540,067
2020 18,299 34,336,693

Source: SAMA website: www.sama..gov.sa
B) The size of the retail company’s sector:
According to the statistics of the Ministry of Municipal and Rural Affairs, the total number of
commercial activities licenses issued for wholesale and retail trade activity and licenses for
companies and institutions in the Kingdom amounted to about 142,389 licenses in 2019, with a
cumulative growth rate of 59% during the period 2017-2019 (Affairs, 2020), These commercial
activities are among the target groups of the MBCC project to provide money and document
transfer services to them in addition to other cash management services.
C) The volume of demand for commercial companies:
According to the data of the Saudi Central Bank (SAMA), the number of existing commercial
records for companies reached 185,116 companies in 2020 compared to 175,725 companies in
2019 and through the number of companies in the period from (2018-2020) the growth rate was
calculated, which amounted to 59% “Table 4”, so that the estimates are not exaggeration, the
growth rate of 10% is relied on, as it is expected that their number will reach 223,990 companies
in 2022 .
Table 4: The volume of records for commercial companies in the Kingdom in the period
from (2018-2020)
Year The volume of records for commercial

companies in the Kingdom (2018-2020)

2018 82,681
2019 175,725
2020 185,116
Cumulative growth rate 59%
Source: SAMA website: www.sama..gov.sa


3.5.3 SWOT analysis points
3.5.3.1 Strengths Points: -
• Strong market reputation
• Solid financial position
• Extensive experience in money transportation and handling precious metals, which are part of
the cash management services provided by the cash centers.
• Numerous existing clients, making it easier to promote the cash management services offered
through the centers.
• Establishing 10 cash centers in various cities across the Kingdom, enabling the company to
reach a wide range of targeted sectors and become one of the largest cash management service
providers in the country.
• The MBCC project aims to expand in the future and enhance electronic services in the banking
sector.
• Cash withdrawals through ATMs in the Kingdom reached approximately 140.7 billion riyals in
the third quarter of 2021.
• The Kingdom&#39;s commitment to developing a thriving financial sector as a key facilitator in
achieving the goals of Vision 2030.
• The MBCC project targets a significant segment of Saudi society, including the banking sector
and other industries, as its services cater to retail traders, government institutions, commercial
companies, healthcare providers, and other economic entities dealing with cash.
3.5.3.2 Weaknesses
• Entry of new competitors with huge investments, which leads to a decline in the number of
customers and a decrease in the project&#39;s revenues.
• Implementation of a pricing plan less than the prevailing prices for services, which will reduce
the targeted profits.

• The permanent lack of recreation of the project, which leads to the lack of popularity of the
project&#39;s name among the target groups, and thus lower profits.
3.5.3.3 Opportunities Available
• A huge boom in the banking sector.
• Benefiting from the Kingdom&#39;s vision 2030 regarding the development of the service and
banking sectors.
• Remarkable economic growth in the Kingdom serving the project&#39;s trends.
• Ease of marketing and advertising due to the availability and prevalence of digital marketing.
• The increased volume of bank branches and ATMs in the Kingdom that aim to provide the
services.
3.5.3.4 Threats
● The introduction of new competitors with significant investments beside existing
competitors.
● The unavailability of sufficient funds for the targeted marketing range.
● The limited number of trained workers specialized in the field.
Through SWOT analysis, there are the opportunities and threats that can be addressed:
● Providing services in an innovative and attractive way.
● Focusing on delivering high-quality services to customers and continuously improving to
establish a strong position.
● A strong marketing team that can implement marketing strategies, advertisements, and
publicity campaigns to persuade the target audience.
● Executing the project and launching it quickly to occupy the first and major space in the
market before new competitors enter.”