dgtl#u survey: lebanese consumer adoption of online banking and online retailing
DESCRIPTION
It's the digital era; the era of online communities, virtual communication and digitalized business strategies. Change is inevitable, and businesses are embracing the digital revolution! There's no bad news here, and the good news is that the revolution is scoring big on direct sales and ROIs for corporations that are riding this technology wave. Digital business has become a lingua franca for modern business, and customers expect their vendors to speak the language! The question is how can businesses capitalize on this expectation? Lebanon is not an exception and businesses in the country are fast at adopting and adapting to the technological revolution. In order to assess the digital appetite of Lebanese consumers and their preferences when interacting with corporations and brands online, Al-Iktissad Wal-Aamal has conducted a study to examine online habits of Lebanese consumers and take a deeper look at online trends within Lebanon’s leading industry: the banking sector.TRANSCRIPT
Consumers Digital Trends
Lebanese Consumer Adoption of Online Banking and Online Retailing
DGTL#U - BeirutNovember 2013
The Survey
• Evaluate the appetite of Lebanon consumers for online products
• Explore their online habits when it comes to shopping and banking
• Identify the future trends in the sector • Shed light on the challenges hindering
businesses
The Sample
• 500 internet users in Lebanon • Both males (50.5%) and females (49.5%)• Although the survey sample covers all age
groups, 48% of respondents are 25 to 35 years old and 90% are economically active and earning an income while almost 10% are still students as illustrated in the demographic graphs below
• Survey respondents have bank accounts in all major top 10 banks in Lebanon
How Connected Are Lebanese Consumers?
• 97.4% of surveyed individuals connect to the internet on a daily basis from home (89.9%) or at work (85.6%) and 92.5% use their Smartphone to browse the internet.
• When it comes to social media presence, 96.5% of survey respondents have an account in at least one social network.
• While Facebook still accounts for the highest penetration (94.5%) and the highest usage frequency (81.6% connecting daily), LinkedIn (79%) and twitter (73.5%) are fast catching up with Instagram (59%) and Google+ (58%) close behind.
FOCUS ON INSTAGRAM!Recommendation
Who uses smart phones browsing?
• 50.8% of respondents aged between 25-35 years old answered yes, 71.7% of them are employees
• 50% are male and 50% are female• Only 28.6% of the mentioned age range who
don't use their phones for browsing
Happy Shopping Online?
• Shopping online is no longer a privilege of technology savvy consumers
• 3 out of 4 internet users that are employees in Lebanon (73.5%) say they buy products online.
• 41.7% of the survey respondents indicated that they shop online at least once a month.
• A trend which is largely led by the 25-35 years old age segment who are employees (72%) and of which 53.5% are male and 46.5% female.
• The results also indicate that 13.3% shop online at least once a week, while 40% of respondents shop online 3-5 times a year!
Happy Shopping Online?
• Mobile Apps and Airline tickets seem to be at the forefront of consumer online shopping favorites.
• Entertainment products, such as games, movies and books seem to score high on online favorites as well.
• Shopping online for electronics seems to be trendy as well• Only 23.3% of respondents engage in online shopping for
clothes. • Cosmetics, groceries, home furniture, office supplies and
sports equipment rarely make it to online baskets of consumers!
Local vs. International
2012 20130
20
40
60
80
100
120
International sitesLocal sites
Taking things seriously
Comments:• High value goods never leave the customs • Differentiate between personal and
commercial use of purchased phones• Phone registration process• Where is Paypal?
Internet Banking: Does your bank offer online banking solutions
85.3% said yesSurprisingly only one third (39s%) report being frequent users of online banking1 out of 4 (25%) say they use it sometimes15.6% use it rarely26% don't use online banking at all
How connected are Lebanon’s Banks?
Increasingly active on social networks Unable to fully engage their customers
93% of Lebanon banks are active on Facebook 23% have accounts on twitter Active on different platforms such as,
YouTube, Google+ and LinkedIn.
How connected are Lebanon Banks?
• 52.4% say they do not interact with their banks on social media networks• Only 45.1% like their bank's page on
Facebook• 10% who follow their banks on
STOP YOUR PROMOTIONAL TWEETS!ANSWER YOUR CLIENTS
Recommendation
How connected are Lebanon’s Banks?
The situation is even more complex when it comes to mobile applications.
Extra effort providing better offer through mobile Apps Failing at communicating properly on it
43.8% said they didn’t know whether their bank had a mobile App
9% of respondents said their banks didn’t 47.2% confirmed their bank offered an App.
How connected are Lebanon Banks?
To make things worse, of those who said yes their bank has a mobile App, less than 1 out of 3 people (27.8%) said they didn’t download the App.
1/3 who actually downloaded it report using it rarely and mainly to check their balance (95.7%)
Final Thoughts
Rising demand for online products and services
Rising need for online banking and payment solutions
Banks struggling to reinforce their online presence, strengthen their offer, build awareness around their solutions
Final Thoughts
Security concerns emerges as the most important hindrance
Need for a better legislative framework Protecting both the individuals and the
institutions Better banking solutions
?
Thank you
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