There are nearly 50 local and foreign banks currently operating in Lebanon, each offering products that can satisfy the financial needs of every segment of the market from large-scale corporate and SME lending to consumer loans. While banks are more than willing to discuss their offerings to potential customers, this can often only be done by visiting a branch in person or contacting a bank representative through a customer service hotline. Elie Boujaoude, founder and CEO of Bnooki.com, said today's Internet-savvy consumers look for convenient means to learn more about specific products, as well as the competitive rates banks are willing to give them before they make an informed decision. Bnooki (Arabic for 'bank') was conceptualized in 2011 and launched in early 2013. It aims to plug the information gap in the Lebanese market - and later the wider Middle East region - by providing a user-friendly online platform where consumers can access and compare data on products and services offered by banks. Coming up with the concept of Bnooki, Boujaoude said, was a result of his decade of experience in the financial services industry, where he had been exposed to the banking needs facing the local Lebanese market. Prior to establishing Bnooki, Boujaoude occupied a senior executive position Kafalat s.a.l., an SME financing institution in Lebanon. He also served as a consultant for several European Union projects that sought to create financing facilities for start-up companies. In addition to his role at Bnooki, he is also currently investment manager at Berytech Fund, an investment fund specializing in information technology field. Below is Boujaoude's interview with Zawya.
What influenced you to come up with the concept of Bnooki.com?
As a professional in the banking and finance field, I was constantly solicited by friends for financial advice even regarding basic issues related to everyday retail banking i.e. credit cards, housing loans, etc. Having been exposed to banking advisory and comparison websites in the West, I was able to identify market trends that I believe can also respond to the needs of consumers in Lebanon and the rest of the Middle East. Following extensive market research and thorough analysis of online behavior, I was able to confirm the gaps on the consumer side. A series of meetings with senior bankers then took place in order to evaluate their readiness to launch such a service in Lebanon. Once confirmed, the process of establishing the company was put on track.
How did you manage to finance the project?
Financing for Bnooki came from three different sources: personal funds, subsidized and guarantee lending that would lower the cost of the company's fund without weighing on credit risk, and finally the partner company's kind contribution of development work.
Who's your role model?
Our role model is not a specific person since a person cannot be separated from her or his surrounding environment. For some people, conditions may be favorable while not for others. We have the utmost respect for every young person who dares taking the risk of walking the entrepreneurship path starting from nothing, notably in such a risky environment.
What is your view about the possibility of failure and how can start-ups aim to conquer it?
Failure is part of the process. It is the necessary evil than one has to go through and continuously attempt to beat as one goes forward. It is your ultimate teacher. In our business, we encounter failures every day, whether by losing a prospective client or by choosing the wrong supplier, but in the end we learn, adapt, and keep moving forward.
What kind of skills do you think should your business partners possess?
The ideal business partners are those who think positively and have acute business sense. They must understand the potential of the business as well as the challenges and be flexible enough to adapt to the many changes a start-up goes through.
What are your expansion plans?
Our expansion plan has two components: The first consists of developing the product itself by adding value-added features and further strengthening its position in the markets where it is already present. The second move consists of exporting the concept step by step throughout the region as it is impossible to gain scale considering the limited size of the local market. We are aware of indirect competitors, but believe in our product and are convinced of the edge we have over them.
What are the challenges you face as you grow your business?
Our biggest challenge was to convince banks to allow their products and services to be compared in such a direct manner both vertically and horizontally. The Central Bank had previously issued circulars in order to encourage such levels of transparent competition but banks were a bit hesitant to adopt a new scheme. Getting them all on board and gathering all information about their products was our most challenging task.
What books do you think every entrepreneur should read and why?
An entrepreneur has to be polyvalent and flexible by nature. There is no specific book that I can recommend. I believe that reading as many varied fields as possible helps build an open and flexible mind.
