Updated: Sep 14
Understanding the customer is vital for any financial service provider in order to incentivize greater use of financial services as well as to ensure that their needs and preferences are met in their financial journeys.
To date, Egypt has profiles of 16 banks including state-owned banks (e.g., National Bank of Egypt, Manque Misr and Banque du Caire), major private banks (e.g., Commercial International Bank and QNB Alahli) and international banks (e.g., HSBC and Credit Agricole Egypt). The potential for financial service’s growth and development in Egypt is large due to the macroeconomic policies and overall business environment fundamentals being increasingly more supportive. However, a critical challenge in the country is financial inclusion, with sources stating that two thirds of Egyptians remain unbanked (GlobeNewswire).
The government therefore turned to digital payment services to push for greater financial inclusion although the success of this is yet to be determined. According to sources, the dominant digital products are split between mobile wallets and solutions for e-commerce, yet only a small percentage of Egypt's population make use of this. As much as the use of traditional banking system is still a preferred financial provider, it is still low. Understanding why this is the case and what financial providers can do to bring about greater financial inclusion is imperative. Given the opportunities for financial services growth and development, banks can leverage this further through meeting the needs and wants of Egyptians when it comes to their financial needs.
Our brand intelligence study - Banking in Egypt conducted in March of 2022, amongst 506 urban dwellers sets out to understand who and why consumers currently bank with and what they like about their providers. Through examining respondents' awareness, preferences, and considerations in choosing a financial service provider, the study is able to identify ways in which these providers can expand and sustain their customer base.
Despite the VC hype, fintech offerings are not the most popular with consumers
Mobile money, traditional banks and banking apps are currently the most used and most familiar types of financial service providers. In fact, 98% currently use mobile money providers, 80% traditional banks and 61% banking apps, while only 30% currently use payment platforms and 20% fintech's. Majority of respondents are however familiar with payment platforms and fintech's.
In terms of what financial services are utilized, respondents are making use of bank accounts such as savings accounts and checking accounts (93%), mobile money (91%) and medical aid/insurance (84%). Surprisingly, looking across age groups, the use of bank accounts was particularly high between the ranges of 35–39 and 40-44 year old's while the use of mobile money was more common between 18–24 year old respondents. Additionally, for older age groups (55-64), medical/insurance was more commonly used. These findings demonstrate how age can affect financial service usage due to shifting financial priorities over time.
Banque Misr takes the lead amongst the financial providers for meeting consumer needs
Respondents' current financial providers featured three key players: Banque Misr (70%), Central Bank of Egypt (52%) and Principal Bank for Development and Agricultural Credit (46%). These three banks also ranked highest in terms of the respondents main/most preferred service providers. Satisfaction levels for these banks were also very high with 50% of respondents suggesting that were very likely to recommend their main banks to family and friends.
When reflecting on what considerations respondents take when deciding on their financial service providers, 63% considered customer service, 50% considered good security and privacy and 49% considered convenience. Interestingly, when asked what factors they associated with their main banks, these same characteristics came up on top.
Focusing on the financial service provider that ranked on top consistently in this study, Banque Misr can achieve this high ranking and steady customer base by meeting the needs of the customers. In addition to having a 24/7 customer helpline, the provider has around 700 electronically integrated local branches located nationwide to provide the best and most accessible services to it's customers. The bank has won several awards including, ““Best Customer-Centric Banking Brand - Egypt 2020”. Moreover, Banque Misr maintains its standing across age groups suggesting that the bank is able to provide the financial services needed by all consumers.
There is a clear indication in terms of how this bank is building a successful client base and expanding their networks across the country so as to establish greater accessibility. Understanding the customer is vital for any financial service provider in order to incentivize greater use of financial services as well as to ensure that their needs and preferences are met in their financial journeys.
Our data intelligence platform has comprehensive data on this topic and can provide valuable insights to help your business make fast data-driven decisions.
Contact our team today to explore how our brand intelligence can empower your decision-making process. Win with confidence with Kasi insights https://www.kasiinsight.com/thehub