Fintech apps in Tunisia are giving traditional banks a run for their money

Updated: Sep 2

Financial institutions should consider incorporating relevant investment and loan products

According to Legacy the Tunisian banking sector is composed of 30 banks, 12 of which are publicly traded on the Tunisian stock market. The largest banks are the state-owned Société Tunisienne de Banque (STB), Banque National Agricole, and Banque de l’Habitat (BH), which collectively represent 40% of banking assets and 34% of banking sector deposits.

A poll conducted by Kasi Insight in March 2022 revealed that the popular banks used by consumers in Tunisia surveyed are Banque de Tunisie, followed by Banque de l’Habitat and Union Internationale de Banques. Across segments, preferences vary, while the older generations; Gen Xers and Baby Boomers prefer Banque de Tunisie, Millennials prefer Union Internationale de Banques, and Gen Zers prefer Arab Tunisian Bank. This is highly attributed to the types of services that these institutions offer.

Investment and loan products are the best sellers for banks in Tunisia

Investment and loan products are the most popular financial services used by consumers surveyed in Tunisia. When asked what financial service they used the most, 40% used investment accounts, 39% home loans/ mortgage, 32% vehicle finance, 32% debit card and 31% credit cards. Across gender, slightly more males (42%) are taking more investment products as compared to females – 39%. On the other hand, a smaller percentage of females are taking more home loans (40%) than males (38%).

Interestingly, while the older generations are prioritizing investment and loan products, Gen Zers prioritize bank accounts such as savings and cheque accounts. Being the youngest faction of workers, Gen Zers cannot afford some of the investment products being offered nor take up loans due to lack of security.

Adoption of fintech apps threatening the popularity of traditional banks

Majority of consumers are familiar with services offered by traditional banks compared to other types of financial services offered by other financial institutions. 36% of those surveyed currently use traditional banks, followed by 23% Mobile money providers, 23% Fintech apps and 18% Payment and Mobile Banking Platforms.

Consumers surveyed would rather recommend Fintech apps to their friends compared to other types of services provided. Based on recommendations, Fintech apps lead at 37% followed by Mobile money providers 26%, Traditional banks 19% and Payment & Mobile Banking Platforms 18%.

When other age groups are reluctant to try other types of services provided by financial institutions, Gen Zers are open to all. Our data shows that majority of Gen Zers are currently using traditional banks, fintech apps, mobile money providers, payment platforms and bank platforms. Though the extent of usage varies, traditional banks services are used the most by the segment.

For financial brands to remain relevant across all consumer segments, they should strive to offer the relevant services to the right segment

The Adoption of fintech is threatening the use of traditional banks. Though traditional banks are currently at the forefront of financial service provided by institutions, fintech apps come highly recommended and this is driven by Gen Zers.

For banks looking to gain market share on the types of services they provide, keen interest should be given to Gen Zers who are quite dynamic and could help types of financial services provided like fintech apps and mobile banking to gain market share from traditional banks.

For older generations, financial institutions should consider incorporating relevant investment and loan products. Additionally, male consumers prioritize investment products while their female counterparts prefer loan products which is worth considering when leveraging these segments.

Our data intelligence platform can provide more insights to help your business make informed decisions in Tunisia and elsewhere in Africa.

Contact us to see how we can help your business today!

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