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Credit Cards Shows the Highest Growth in 2010

According to Synovate's Banking Survey
Cairo, 29 December, 2010 - Synovate, Egypt's leading global market research firm, announced the findings of its second wave banking study, following a previous study conducted in 2009. Overall, the study results in 2010 are consistent with 2009, with the exception of significant increase shown in credit cards awareness and usage.

According to Synovate, amongst those who deal with banks, the number of credit card owners has increased from 66% in 2009 to 72% in 2010 among the upper and middle-upper class. Additionally, customized credit cards have also shown a significant leap in 2010 compared to 2009. Awareness of youth credit cards has increased from 18% in 2009 to 33% in 2010; and the awareness of females' credit cards has also increased from 10% in 2009 to 22% in 2010.

Synovate's study also revealed growth of bank users in 2010 (59% compared to 52% in 2009) of the upper and upper-middle class; with males representing 62% compared to females (38%).

Similar to 2009, Synovate's 2010 study shows that the awareness of governmental banks remains higher than private banks.

"Although Egyptian bank users have a strong sense of loyalty, more consumers are now seeking convenience and service efficiency when conducting their bank transactions", commented El-Naggar. "Our study in 2010 shows that 85% of bank users would not change their banks vs. 92% in 2009", added El-Naggar. "92% of the respondents ranked efficient customer service and the banks' network distribution (85%), as their top selection criteria, in addition to the bank's reputation (93%)", concluded El-Naggar.

Except for credit card awareness and usage, Synovate 2010 study shows minor changes in terms of banking products usage and awareness. Current accounts, saving accounts and personal loans continue to top the awareness list of banking products in 2010.

"There are some challenges facing the growth of the consumer banking products", said Dr. Mohamed Kamal, Business Development Director for Synovate North Africa. "51% of respondents in 2010 compared to 54% in 2009 said that they do not deal with banks due to lack of funds. Personal beliefs and convictions are also a challenge, since dealings with banks is considered usury by some (25% in 2010 vs. 35% in 2009)", Kamal added.

Relatively high interest rates on personal loans also continue to limit the potential growth of this vital banking product. According to Synovate's study, only 9% of the surveyed Egyptians in 2010 intend to take personal loans; compared to 11% in 2009; and over 80% of respondents in both surveys mentioned low interest rates as the main motivation to taking loans.

"Internet banking, on the other hand, has great growth potential, and is slightly increasing especially among young Egyptians who are more computer and internet literates", commented Kamal." Phone banking services grew by 6% and E-banking has also witnessed 50% growth", added Kamal.

The total sample surveyed in this study is 994, 54% males and 46% females representing upper and middle-upper class segments. The sample size by region was 66.4% residents in Greater Cairo; 25.75% residents in Alexandria; and 7.85% residents in the Red Sea.

-Ends-

About Synovate Banking Survey
Synovate's Banking Survey is conducted bi-annually. The study analyses the consumer behavior towards the banking market dynamics by covering the following:

- Penetration of bank usage

- Trigger/barriers for bank usage

- Banks image, awareness and perception

- Key choice drivers for choosing a specific bank/banking service

- Awareness and penetration of the different bank services

- Reasons for not having (current account, Deposit account, Credit card, Debit card, Loan).

- Level of satisfaction with current bank

About Synovate
Synovate is a global firm specialized in market research. Synovate Egypt, which also headquarters North Africa including Morocco, Tunisia and Algeria, was the first operation to launch in the Middle East in 1976; and is the fastest growing research firm in Egypt.

Synovate brand name was launched in 2003, a culmination of over 40 market research agencies worldwide joining forces. With revenues close to US$ 1 Billion in 2008, Synovate is also one of the largest research firms around the world with 116 offices in 63 countries and 7,000 employees, 3,000 research professionals and 750 qualitative research specialists. In Africa, Synovate has the largest footprint through its 15-branched offices in the African Continent.

For more information, please contact:
Blue Ocean Public Relations
Maha Saad : 012 319 2140
Email: maha.saad@blueoceanpr.com
Marwa El-Kady
T: 2016 552 0853; 011 273 1110;
marwa.elkady@blueoceanpr.com

© Press Release 2011