73.3% of Jordanian bank account holders have no credit facilities

The ground breaking survey revealed that 45.6% of bank account holders with no credit facilities (credit cards, personal, housing and auto loans) believe that they are not eligible for credit facilities, while 44.8% claim they can do without assistance of credit.

87.8% of Jordanian bank account holders deal with one bank only, with the remaining 12.2% who deal with more than one bank citing 'better customer service' as their primary reason for dealing with more than one bank.

A new major survey, "Jordan Retail Banking Use and Perceptions Survey" was released by the Arab Advisors Group on July 6, 2008.

The 124-slide power point report provides the results of a major comprehensive survey of the retail banking usage patterns and perceptions of the population across the Jordanian cities of Amman, Zarqa and Irbid. The survey fieldwork (consisting of a 111-question questionnaire) was conducted during April and May 2008. The survey results are provided alongside the full responses for all questions (a total of 221 top line and cross tabulation tables) availing the ability to ask the Arab Advisors Group for any needed extra cross tabulations and filters of the survey responses.

In addition to respondents demographics, the survey covered the following main topics: Credit facilities uptake, credit facilities and banks perceptions (in terms of value, reasons for choosing the respective bank(s), degree of satisfaction, factors affecting the decision for choosing a particular bank/service), as well as e-banking services uptake, usage, perception, etc.

"According to the survey results, the Jordanian banking sector holds great room for both growth and consolidation,"

noted Faisal Hakki, Financial Markets Research Manager at Arab Advisors Group.

"90% of the retail banking market is served by nine banks (the top two hold a 52.2% share) with the other fourteen banks serving the remaining 10% of the market," Mr. Hakki added. Based on these market shares, the Arab Advisors Group calculated the HHI (Herfindahl-Hirschman Index) for the Jordanian retail banking sector to be 1,622 suggesting a moderately concentrated market.

"Obviously, and apart from certain products across certain age groups, retail banking services' penetration in the Jordanian market remains quite low. Moreover, market share figures reveal a moderately concentrated market which indicates the possible advantages of consolidation amongst smaller banks," Mr. Issa Goussous, Arab Advisors Group research analyst noted.

On banking usage patterns and preferences, most bank account holders are content with their primary bank. Only a minority 4.1% of the respondents reported not being satisfied with primary banks, a contention asserted by the fact that only 5.4% of the respondents would consider changing their primary bank.

Arab Advisors Group's major analytical survey of Jordan's retal banking services was scientifically done. The survey involved face-to-face interviews with 688 respondents from different areas in Amman, Zarqa and Irbid selected randomly in a manner proportionate to the population distribution according to official figures with an over representation of both the male and youth population to reflect the predominantly male and young work force.

Respondents were 18 years old and older and all held bank accounts. This random survey is of Jordanian individuals and represents the urban population in Jordan.

This survey provides deep insights into the retail banking usage and perceptions in Jordan. The random survey has a 99% confidence level with a less than 5% margin of error. In surveying individuals for their retail banking usage and perception patterns, the Arab Advisors Group always relies on the personal face to face interviews as it guarantees optimal representation and accuracy.