The Egyptian government in general, the Central Bank of Egypt (CBE), the country’s banking sector, and its startup ecosystem have been striving for years to boost digital banking solutions and cashless payments. Their main stated goal behind this pursuit is the speeding up of financial inclusion and harvesting the economic benefits it could bring forth in the long-run. This only means that customer loyalty programs are now essential for banks in Egypt more than ever! Read on to find out why that is the case…
Cashless Payments are Becoming Increasingly Popular
This relatively recent societal push towards digital banking solutions and cashless payments has already had positive results and was accelerated by the early days of the novel coronavirus pandemic when digital and cashless options were the safest. It’s quite clear that Egypt is on its way to achieving financial inclusion through digital banking services and products, including cashless payments. The CBE has been actively pushing banks towards making sure that Egyptian citizens have access to financial services through strategies that focus on digital payments and mobile wallets over the past couple of years. In 2018, they even required banks to have 10% active mobile wallet customers by September 2019. Another directive mandated that banks grew their mobile wallet users by 30% annually. “To date, over 32 million payment cards, and more than 14 million mobile wallets have been issued in total across the nation. These figures indicate an increase in the number of people adopting digital payment solutions and a step forward for Egypt [in] becoming a digital society,” said MasterCard’s General Manager for Egypt and Pakistan, Magdy Hassan, to Egypt Independent in an interview published earlier this year. The head of marketing support and strategy at Masary Egypt (a leading Egyptian payment facilitator and aggregator), revealed to Mubasher that cashless payments increased by 15% to 20% during the past months in an article published in mid-August of 2020. The previously-mentioned article goes on to show how other countries in the MENA region, like Saudi Arabia and the UAE, have shown a lot of growth in cashless payments recently as well. Whether in Egypt or the MENA region, different cashless payment options will be in abundance. This will make it difficult for banks to retain their customers without competitive customer loyalty programs.
How Customer Loyalty Programs Can Help
More options for cashless payments will arise and more of the currently unbanked will open up account in the coming period. In order for a bank’s cashless payment options to be distinguishable, competitive customer loyalty programs will be more than needed, they’ll be almost essential. A unique customer loyalty program will allow your bank to enrich the value proposition you offer your customers beyond convenient financial products and services. Subsequently, it will help you retain existing customers and develop their spend while acquiring new customers that are attracted by those benefits. Coping with the rising demand for and push towards digital banking solutions and cashless payments, the customer loyalty programs of the banking sector will also need to utilize cutting-edge digital technology.