Capability and Competence

The Saudi Arabian banks‟ technology exposure and adoption according to Aref and
Mohammed (2001) were induced by the increase in banks customers‟ based making the
adoption of the technology a necessity and a catalyst for competitive advantage. Their study
(2001) aligned the recorded technological breakthroughs in various areas of the banking
sector to signify an eye opener for exploration and utilization of opportunities towards
enhancing customer service quality.
In like manner, Mohammad (2010) study also reported the existence of an average
productivity based on operational activities and credited the major increase to the advanced
technology-powered efficiency changes in the Saudi Arabian banking sector. Along this
lines, Saudi Arabian banking sector is reported to have attained weak performance in 2010,
but with recovery mode throughout 2011, and a forecast asset growth of 8.0% in 2012
(SACBR, 2011). The oil-rich Middle East market crisis and the potential loans losses to bad
debts triggered by defaulters of the prominent family background are reported to handle the
economic value drop of the country. However, the limited exposure of the banks to Dubai
world crisis significantly reduces the impact of their non-performing loans, most notably,
with its reduced exposure to long-term loans.
Apart from Mohammad (2010) study, Balogun, Selemogwe and Akinfala (2013) study
examined fraud and extravagant lifestyles among Nigerian bank employees, which findings
revealed the pervasiveness of fraud in Nigeria banking sector. Another study by Odi (2013)
investigated the exposure of fraud among Nigerian banks, and the results showed the
considerable involvement of employees and customers in fraud and fraudulent practices. As
Hoffmann and Birnbrich (2012) observed, there is an association between customer
familiarity, knowledge about fraud prevention measures, relationship quality and customer
loyalty. Primarily, it pointed out that the positive relationship between customer familiarity
and knowledge of fraud prevention and its measure eventually results in customer loyalty,
which in turn influence continuous patronage of the products from the bank. Thus, they
points to the significance of fraud prevention, and the value of building customer loyalty
through it.