Detailed Business Model Canvas: Examining Bank Albilad's Operations

This assignment provides a detailed Business Model Canvas (BMC) analysis of Bank Albilad, a Saudi Arabian joint-stock company. The analysis covers all nine components of the BMC, including Key Partners (Ministry of Housing, REDF), Key Activities (Corporate Banking, Retail Banking, Treasury), Key Resources (skilled workforce, positive work environment), Value Proposition (wide range of services, CSR activities), Customer Relationships (awards and recognitions, focus on Muslim customers), Channels (online advertisements, Enjaz Network, mobile applications), Customer Segments (retail and wholesale), Cost Structure (variable and fixed costs), and Revenue Streams (interest on loans, fees, forex). The analysis highlights Albilad's strengths, such as its Shariah-compliant products and CSR initiatives, while also suggesting areas for improvement like expanding its global presence, enhancing digital transactions, and improving performance recognition. The document references several sources to support its findings and recommendations, providing a comprehensive overview of Bank Albilad's business model and strategic considerations.

Running head: BUSINESS MODEL CANVAS
A Business Model Canvas of Bank Albilad
Name of the student:
Name of the university:
Author note:

1BUSINESS MODEL CANVAS
Table of Contents
A Business Model Canvas...............................................................................................................2
References......................................................................................................................................17

2BUSINESS MODEL CANVAS
A Business Model Canvas
Business Name: Bank Albilad
Key Partners
Albilad has a
partnership
with the
Ministry of
Housing and
REDF. This
partnership
helps Albilad
design and
offer many
loan products.
These loan
products are
Moajaal,
Madooum and
AlMuyassar.
With the help
of its business
partners,
Key Activities
1. Albilad
does
‘Corporat
e
Banking’
to focus
more on
corporates
, public
sector and
institution
al
markets.
Albilad
offers
many
products
and
services
Value Proposition
Albilad offers a
wide range of
services to its
business clients and
the common
people. Besides,
there are good
perks and benefits
available to
employees. Albilad
does many CSR
related activities.
This includes
pilgrim services,
which helps it
deliver values to its
Muslim customers.
Albilad also has a
sign language
Customer
Relationships
Albilad has
received awards
and recognitions
for best
performing
Islamic Bank as
well as the
strongest Islamic
retail Bank
(Bankalbilad.com
2020). It shows
their capability to
integrate
practices with a
specific culture.
However, it
should go further
in search of new
Customer
Segments
Customer
segments for
Albilad can be
divided into
two
categories,
retail and
wholesale. It
offers retail
services to
common
people. The
wholesale
banking is for
a bulk
business to be
done with the
corporate

3BUSINESS MODEL CANVAS
Albilad has
introduced
many Shariah-
compliant
products and
services.
These
products and
services are
Ijara and
Supply Chain
Finance
(Bankalbilad.c
om 2020).
Shariah-
compliant
services and
products will
be considered
a great
initiative
considering
the demand
to its
clients.
Additiona
lly, it also
targets
several
other
markets
like
treasury,
transactio
ns, trade,
and debt
capital
markets.
Albilad
also
assists in
deal
execution.
2. Business
banking
also
banking dictionary
to help physically
challenged people
to do banking on
their own. The
organization
provides significant
supports to cancer
patients.
Environmental
awareness and
cleaning activities
are running under
their name. They
do traffic
awareness
campaigns to
educate people on
how to cross the
road as well as to
drivers on how to
avoid a potential
auto crash. Albilad
opportunities that
have not been
touched yet. In
the era of
globalization,
Albilad should
not be limited
just to serving its
Muslim
customers but the
people of the
whole world. It
should have a
retail presence in
other parts of the
world as well as
developing
nations. There
will be problems
like how to set up
a facility at a
global location,
which entry mode
companies. In
the retail
segment, the
banking
products and
services are all
the same as
offered in
other major
banks. Albilad
should try and
be
distinctively
different from
its rival banks.
It can do this
by serving its
retail
customers in
unique ways.
One of the
suggestions
would be to

4BUSINESS MODEL CANVAS
for such
services in
Saudi Arabia
is huge.
People there
in Saudi
Arabia follow
Shariah in
every aspect
of life be it
their schooling
or doing
business.
Besides,
Albilad is also
doing
investment in
various
programs such
as the
'Tamalok
Program' to
acquire and
makes up
to the
business
lines of
Albilad.
Business
banking is
aimed to
serve its
clients
particularl
y those in
the
middle
markets
as well as
small-
and-
medium
enterprise
s.
3. Albilad
also
also leads women
craft training
(Bankalbilad.com
2020). The list of
its CSR related
works is quite
bigger; however, it
needs to achieve
remarkable
milestones in a few
other areas as well.
These are (Arora
2018):
1. Supporting
zero waste
by saying
no to
paper-
based
transactions
, which are
unproperly
to choose, how
and where to
source the
required
resources from
and much more.
However, Albilad
should still
consider an
expansion to
Asian countries
where the
population of
people is huge.
China and India,
for example, are
the two world's
largest populous
countries. Albilad
should get many
retail customers
as well as
business clients
charge low
interest on
several
personal loans
like housing
loans,
education
loans, etc.
Students
pursuing
higher degree
studies in
universities
require a good
loan scheme,
so that, their
worries for
loan
repayment is
reduced.
Albilad should
target this
market

5BUSINESS MODEL CANVAS
construct
many
educational
buildings
(Bankalbilad.c
om 2020).
focuses
on banks
as well as
non-banks
financial
institution
s. The
purpose
of all
these
activities
is to get
as many
clients as
is
possible.
4. Like
many
other
banks,
Albilad
has a
significant
disposed of
by the
people.
Instead, it
should
facilitate a
completely
digital
transaction
system at
its various
branch
facilities.
All paper
works
should be
replaced
with
computer
works.
Although,
physically
challenged
in China and
India (Chatterjee
and
Sahasranamam
2018).
segment. By
offering the
most flexible
loan scheme,
Albilad can
create a
distinct image
as compared
to rival banks.
In the
wholesale
segment,
Albilad should
pay more
attention to
business
people who
require loans
to fund a new
startup. If
business
people can get
better loan

6BUSINESS MODEL CANVAS
presence
in the
retail
banking
sector.
Retail
banking
involves
providing
retail
services
to
common
people.
The list of
services
includes
but not
limited to
deposit-
taking and
servicing,
remittance
people who
cannot see,
hear or say
by birth or
accidentall
y; however,
it still
would be a
great
initiative.
Paper
waste that
is
unproperly
handled
could be
avoided
with the
digital
transaction
in place.
Such
actions
schemes and
that the
repayment
scheme offers
more
flexibility to
the customer
as compared
to the rivals,
customers will
go for it. All
these changes
will happen
only if there is
intensive
marketing
research for
understanding
the customer
needs and also
there are
adequate
resources to

7BUSINESS MODEL CANVAS
, saving
products,
auto and
personal
loans,
mortgage,
debit and
credit
card
facilities,
and
currency
exchange
scheme.
These are
a few
services,
which
serve the
common
banking
needs of
the
should help
Albilad win
global
recognition
.
support any
such change.
Marketing
research will
indicate the
areas where
banks
normally
underperform.
Such largely
untouched
areas need to
be targeted
with
appropriate
business
schemes. A
good
marketing
plan is
recommended
to Albilad that
should help

8BUSINESS MODEL CANVAS
people.
5. In regards
to the
treasury,
Albilad
offers
trading
options,
foreign
exchange,
money
market,
financial
derivative
s as well
as other
treasury
services.
6. Albilad
offers
many
other
products
the company
in taking
appropriate
and relevant
actions.
(Bankalbilad.c
om 2020)

9BUSINESS MODEL CANVAS
as well.
This
includes
investmen
t banking,
asset
managem
ent,
brokerage
,
securities
services,
research
and
advisory.
(Bankalbilad.com
2020)
Key Resources
 Albilad
enjoys a
skilled
workforce
comprisin
Channels
 Online
advertise
ments for
banking
services

10BUSINESS MODEL CANVAS
g of
profession
als in
different
expertise.
The
working
environm
ent at
Albilad is
very
positive.
There is
appropriat
e support
for
employee
s from the
managem
ent
departmen
t. It is
because
and
schemes
at
appropriat
e
platforms
can help
attract
newer
customers
. For this
purpose,
the
official
website of
the
company
can be
used.
Press
rereleases
and public
relations

11BUSINESS MODEL CANVAS
of this
workflow
happens
smoothly
(Bankalbil
ad.com
2020).
However,
Albilad
does not
score well
in terms
of
recognizin
g a
performan
ce.
Moreover,
financial
growth
also is not
very
convincin
will also
help in
fulfilling
the
purpose.
 Albilad is
accessible
through
Enjaz
Network.
The
services
are also
accessible
on mobile
devices
and
through
internet
banking.
Internet
social
media is

12BUSINESS MODEL CANVAS
g. It is
recommen
ded that
Albilad
should
have
better
recognitio
n schemes
in place to
acknowle
dge a
performan
ce.
 The HR
managers
in Albilad
should
look to
strengthen
their
understan
ding of
used to
get better
customer
insights.
 However,
it is
recommen
ded that
Albilad
should
offer its
customers
a mobile
compatibl
e
applicatio
n. The
applicatio
n should
solve
many
customer
problems

13BUSINESS MODEL CANVAS
the
operations
process.
This is
needed to
cross-
verify a
performan
ce and
provide
the
organizati
on with a
hierarchy
of
performan
ce
assessmen
t work.
 The use of
technolog
y such as
to
and serve
many
banking
needs of
customers
(Bankalbil
ad.com
2020).

14BUSINESS MODEL CANVAS
facilitate
the digital
transactio
n could be
an
important
act.
 It should
invest
more in
training
programs
to be run
aligned
with
logical
goals and
executed
by a team
of
relevant
expertise
(Pandey

15BUSINESS MODEL CANVAS
and
Hewapath
irana
2016).
Cost Structure
 Total variable costs for Albilad increase
when production is also on a rise.
However, total variable costs during such
a period do not change.
 When production decreases the total
variable cost also decreases. Total fixed
costs remain the same.
 Variable cost areas are direct materials,
direct labor, etc.
 Total fixed costs comprise of rent,
advertising, insurance, depreciation, etc.
(Bankalbilad.com 2020)
Revenue Streams
Albilad earns revenues from several
resources. This includes interest on loans,
fees income, interest on investments, 5
commissions on the third-party products, 4
forex operations, etc.
 Albilad provides several types of
loans and advances to individuals,
industries and corporates. The
amount of interest received on these
loan types is its primary source of
income.
 Albilad also invests in several
governments as well as rated
securities. These investments earn
Albilad dividends and interest.
 Albilad also earns from fees
income. The company charges

16BUSINESS MODEL CANVAS
certain fees for performing different
services. The list of such services
includes syndication of loans,
providing safety vaults, accepting
exchange bills, etc.
 Albilad also effectively deals in
foreign exchange. It acts as brokers
in the foreign exchange sector. The
income generated from these
operations is its earning.
 Albilad also distributes mutual
funds and insurance as products to
its customer base. Albilad gets a
commission on doing such activities
(Bankalbilad.com 2020).
 It is recommended that Albilad
should also look for reloadable
cards for its retail customers. This
should give Albilad an additional
boost to its earning.
 White labeling is also
recommended as this can also be a
good revenue stream. It involves the

17BUSINESS MODEL CANVAS
reselling of funds disbursement
platforms to the business customers.
The treasury department of Albilad
will have to take care of this act
(Ngware, Olweny and Muturi
2020).

18BUSINESS MODEL CANVAS
References
Arora, N.K., 2018. Environmental Sustainability—necessary for survival.
Bankalbilad.com 2020. [online] Bankalbilad.com. Available at:
https://www.bankalbilad.com/Documents/shareholders%20relations/BAB%20Corporate
%20Profile%20Q12019%20EN%20Final%20-%2025-4-2019%20v1.2.pdf [Accessed 23 Feb.
2020].
Chatterjee, D. and Sahasranamam, S., 2018. Technological innovation research in China and
India: A bibliometric analysis for the period 1991–2015. Management and Organization
Review, 14(1), pp.179-221.
Ngware, S.G., Olweny, T. and Muturi, W., 2020. Do Bank Size Moderate Relationship between
Banks’ Portfolio Diversification and Financial Performance of Commercial Banks in
Kenya?. SEISENSE Journal of Management, 3(2), pp.14-30.
Pandey, S. and Hewapathirana, G.I., 2016. Human Resource Development in South Asia.
In Global Human Resource Development (pp. 75-97). Routledge.