CAIRO: Inconvenient hours, long queues and bad customer service are common complaints among bank patrons in Egypt. That's why online banking, though still relatively new across the Middle East, has a lot to offer Egyptian consumers. The past 15 years have seen a steady increase in the establishment of banking websites in Egypt, but it was not until 2002 that the first banks were licensed to provide online banking services, according to the National Bank of Egypt's website. National Société Générale Bank (NGSB) and Arab Bank Egypt were among the first to pioneer internet banking for their customers. Since then, a total of 12 banks have received licensing to operate online banking services, including HSBC Egypt and Citibank. Despite the obvious benefits of online banking, and the number of banks offering the services, the trend has been slow to catch on in the Egyptian market for a variety of reasons. Low internet penetration, security concerns, and ineffective business practice have contributed to the industry's lagging development in recent years. Sherif Hashem is the executive vice president of the Information Technology Industry Development Agency (ITIDA), a government body responsible for promoting the development of technology that supports endeavors such as online banking. The industry has a lot of obstacles to overcome before it can be expected to provide efficient and secure services to Egyptian bank customers, he said. "Egyptians are reluctant to use banks, not to mention online banking services, due to both the lack of online security, and the lack of quality customer service at most banks. Add to those things the low level of internet penetration in the country, and it's easy to see why online banking has not thrived so far. Hashem says that the ITIDA is attempting to overcome some of the security concerns associated with online banking transactions by raising awareness about identity theft, introducing more secure technology, and pioneering an e-signature project that is expected to take internet business transactions to a new level of reliability. Meanwhile, Egyptian banks are stepping up their efforts to attract customers to online banking services. "Online banking is not only a solution to customer frustration with overcrowded branches, but it also saves banks money and promotes efficiency, so banks are making a huge effort to encourage clients to use the online features, said a customer service representative at HSBC. Hashem agreed, saying that despite the increased risks of identity theft and hacking, the financial benefits of online banking for banks and customers alike outweighed the costs. But what does online banking really have to offer the Egyptian consumer? By using online banking services, patrons can enjoy instant access to their account balances, in addition to the option of paying bills online, managing transactions, and even inputting timed payments, which are managed by the system after initial set up. All these features can be accessed from the customer's home, which saves them the hassle of going to crowded bank branches at inconvenient hours. Customers seem to like the concept, even if some remain a little wary. Karema Eldahan, an executive secretary at ORASCOM who recently opened an account at NGSB, had no qualms about using the bank's online services. "I didn't think twice about it; I figured that if it wasn't secure then the bank wouldn't be offering the service. I've had no problems so far, and the online features save me the hassle of going to the bank, she said. With the development of more secure technology, and more consumers open to the idea of trying online banking what is holding the industry back? According to Sherif Hashem of the ITIDA, it boils down to trust. "In Egypt the risk management side of online banking is not very developed, so consumers feel more exposed to possible problems. Customers have to be able to trust the system if online banking is going to thrive in Egypt. As government projects to increase internet penetration proceed, and banks improve their security and customer support services, Egyptian consumers are expected to become more comfortable with the idea of banking online. A new project supervised by the ITIDA seeks to expand the pool of banking customers in the country. A credit bureau created a year and a half ago tracks citizens' credit ratings based on payment of landline telephone bills. This proof of good credit will allow more Egyptians to access banking services - and potentially utilize online banking features. To read the other stories in our monthly special focus on Egypt s banking sector, click here: http://www.thedailynewsegypt.com/article.aspx?ArticleID=16712 http://www.thedailynewsegypt.com/article.aspx?ArticleID=16711 http://www.thedailynewsegypt.com/article.aspx?ArticleID=16710
