Barriers to e-Commerce Adoption in the MENA region- ArabNet Digital Banking Report

Lynn Bizri, Aug 11 2016

Digital banking adoption in the MENA region is rapidly changing as younger, tech-savvy customers expect digital to be a primary channel – from ordering goods to buying the latest fashion, and certainly banking. Realizing the benefits of more efficient online/mobile banking, e-payment services and cashless transactions; leading banks in the MENA region have been taking noticeable steps towards a more digitized economy. In collaboration with On Device Research, OMD and Arabnet, aimed to shed some light on the subject with a report based on a survey of 2,500 individuals across 5 countries.

While the report clearly shows that mobile banking is here to stay, the real issue is customer conversion as a large percentage of customers are still not highly enthusiastic about digital banking. In order for banks to implement self-service technology more efficiently, an understanding of why these customers are not adopting Internet banking can be of assistance.

The survey results clearly highlight high adoption rates of digital banking, yet around 38% are non-adopters of digital banking of which 24% do not use digital banking, 7% have used digital banking but not currently and 7% weren’t even aware of whether their banks offers digital banking services. These customers could be easily converted to online channels through effective communication campaigns.

Digital Banking Report 1

The leading barrier issues were shown to be related to trust, with 40% of the surveyed users preferring to deal with the bank directly, and 27% that worry about security. Other barriers included a common belief that digital banking does not add value (12%) and external obstacles such as mobile coverage issues (12%). Overall, non-adopters of digital banking in Egypt, Lebanon and Jordan shared these sentiments the most across countries.

 Digital Banking Report 2

To increase the adoption rate, banks must first reinforce the key factors encouraging non-adopters’ conversion to digital banking. According to the survey, these factors revolve around the themes of real-time transactions and time saving processes. 24/7 access (27%), reduction of banking time (26%) and easier follow up on transactions (22%) were the top motivators to adopting digital banking.

In addition to more insights on digital banking vis-à-vis non adopters, the report also includes information and statistics on digital banking adoption rates in the region, adoption by income, usage frequency of digital banking and more.

To read the full report, click on the banner below:

Digital Banking Report 3

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