Combined strengths offer a win-win scenario where Benefit's member banks and other GCC banks will now gain access to a diversified portfolio of card payment solutions while Network International will gain a strong presence in the Gulf and beyond.
Bahrain, 28 January 2009: Bahrain Electronic Network for Financial Transactions (BENEFIT) today signed a joint venture agreement with Network International –the region's leading card payment solutions provider, to provide third-party ATM & card processing services for banks in Bahrain and GCC. The deal marks the strategic alignment of two industry leaders, and is aimed at responding rapidly to GCC's growing demand for globally proven third party card processing practices and solutions, as well as to accelerate the development of the Cards industry across the wider GCC. Given the impact of the joint venture, more than 500,000 cards will be hosted with the JV over the next five years, with revenues projected at nearly USD 10 million for the same period. It is expected that JV's share of the target market will be between 8% - 10%.
SINNAD Launch Press Conference, Manama, Bahrain-L-R Mr. Abdulwahid Janahi, Chairman, SINNAD and CEO, Benefit, Mr. Abdulla Qassem, Chairman, Network International
Announcing the JV, Abdulwahid Janahi, CEO of BENEFIT, who also takes over as Chairman of the new entity SINNAD, said: "This alliance is a coming together of two like- minded entities with a view to provide exceptional breadth of services, supported by the depth of individual competencies. This JV will allow diversification of BENEFIT's portfolio while offering our customer banks globally proven third-party ATM and card processing practices. The new alliance will further allow us, as one entity, to build strength upon strength, and compete more effectively in the cards market. This alliance is timely for Bahrain and the GCC countries, and a landmark achievement in many respects."
Speaking at the press conference in Bahrain, Abdulla Qassem, Chairman, Network International and Vice Chairman of the joint venture, said: "Partnerships are about synergies and this alliance is a clear result of two separate entities building a valuable shared platform to drive our respective and shared ambitions. This is an important milestone for each, and reflects our shared commitment to strive for sustainable growth, by building an uncommon advantage. The JV (S INNAD) wll deliver seamless integration and be operational from Day One, offering our new partners significant speed to market advantage. This partnership is meaningful at many levels, and we are very excited with our near and forward plans together."
BENEFIT on track to diversify its card services offerings
Today Bahrain is one of the main and important financial centers in the region, with BENEFIT as the National Switch and Credit Reference Bureau in country. BENEFIT is a unique entity in Bahrain that plays the role of national switching for card transactions with a portfolio of twenty three banks; one of its main objectives is to provide cards and ATM ancillary services to all the member banks. Bahrain's retail banking transactions are growing rapidly and need to adopt the new global standards in the card and ATM industry. As part of BENEFIT's responsibilities, it has recognized this need and seized the alliance to diversify its services. The JV will commence operations immediately with a complete back-end infrastructure already in place. Bahraini debit and credit cards market will be further energized by this alliance, bringing advantages to BENEFIT's member banks.
NETWORK on track to expand regional footprint
Network International recently reported high growth figures buoyed by both organic growth and powerful alliances across the region. Last year Network International acquired a wholly-owned subsidiary in Egypt making it the largest third party cards processor and issuer in the MENA region. This latest move marks the company's foray into the lower Gulf, and contributes to consolidating its position as a leader in the region. To date Network's card third- party processing business aligns it exclusively with 38 banks across the GCC and MENA region
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Posted on : 01/02/2009
