Regulatory Alerts2019-01-03
Marketing of Finance Products That Meet Real Individual Needs
The Saudi Central Bank issued this circular to address the overemphasis on marketing consumer-purpose finance products via SMS and other channels, which currently misaligns with Saudi Vision 2030 objectives. The directive requires all operating banks and financial institutions to adopt a balanced marketing approach across all channels, ensuring that promotional efforts prioritize products meeting individuals' actual needs rather than purely consumer-driven offerings. This shift aims to align financial product marketing with the Kingdom's broader economic goals and improve consumer welfare through more targeted financing solutions.
In the Name of Allah, the Most Gracious, the Most Merciful
Saudi Central Bank Headquarters
Banking Policies Department
Reference No.: 67 / 26822 Date: 27/04/1440 Attachments: None
Circular
To Our Respected Colleagues, Peace be upon you, and the mercy of Allah and His blessings.
Subject: Marketing of Finance Products That Meet Real Individual Needs.
The Bank has observed that banks and financial institutions focus on the marketing aspect of consumer-purpose finance products via SMS messages and other means, in a manner that does not serve the trend toward meeting individuals' actual needs and is inconsistent with the objectives of Saudi Vision 2030.
Therefore, the Bank hopes that banks and financial institutions will adopt a balanced approach in marketing their finance products through all marketing channels, and avoid overemphasizing the marketing of consumer-purpose finance products.
Yours sincerely,
Fahd bin Ibrahim Al-Shathry Deputy Governor for Supervision
Distribution Scope:
- Banks and financial institutions operating in the Kingdom.
P.O. Box 2992, Riyadh 11169 | Telex: MARKAZI | Fax: 404400 | Tel: 4633000 | Fax: 4662414