GTBank, Zenith, Access, UBA Top Nigerian Banking Customer Experience Charts: KPMG’s Report
By Prosper Mene
The Nigerian banking sector has shown significant progress in customer experience in 2024, particularly in corporate and SME banking, according to a recent KPMG report.
The 2024 Banking Industry Customer Experience Survey from KPMG highlights that while there have been advancements, the retail sector continues to face challenges, with traditional banks finding it tough to stand out amidst competition from fintech companies.
The report notes, “Corporate banking has been rated highest for overall customer experience. GTBank has regained its leading position after seven years, thanks to quicker resolution of account issues and better client relationships.
“Zenith Bank and Access Bank shared the second position, noted for their proactive engagement with clients during economic downturns. UBA and Citibank completed the top five, demonstrating their robustness in a competitive landscape,” the survey detailed.
This second edition of KPMG’s West Africa customer research drew insights from over 33,000 retail customers, 5,000 SMEs, and 700 commercial/corporate entities in Nigeria and Ghana.
In Nigeria, the report pointed out that with rising inflation and currency volatility, the need for effective digital banking has increased. Post the cash crunch and ATM withdrawal limits of the previous year, there’s been a noticeable shift towards digital banking, accompanied by higher spending on airtime and data.
The report further stated that the SME segment saw the most significant improvement in customer experience, up by five percentage points from the last year. Stanbic IBTC led this segment, excelling in personalization, an area where many banks falter. UBA and Wema Bank were next, with UBA improving in digital platform usability and client relations.
However, personalization remains a weak spot in the SME sector, with banks struggling to offer services tailored to the specific needs of small businesses.
In the retail banking area, growth has been modest, largely influenced by the dynamic entry of fintech entities like PalmPay, Opay, and Moniepoint. “These digital-first companies have set a high bar with seamless digital experiences and quick transaction services, while traditional banks lag in innovation, leading to a drop in customer satisfaction by over two percentage points from last year,” the report noted.
Stanbic IBTC held its lead in retail banking for the fourth consecutive year, with improvements in mobile app features and security, though there was a slight decline in customer experience scores, suggesting areas like app reliability need attention. FCMB and UBA followed, with FCMB noted for its transaction efficiency and UBA for its chatbot capabilities.
Empathy was rated highest among experience pillars for both retail and corporate customers, while personalization was the lowest, pointing to a “personalization paradox” where services are perceived as generic despite being marketed as customized.
The report also observed improvements in issue resolution across the board, with better call center service and social media responses for retail customers, and enhanced POS support for SMEs. However, these enhancements have only increased customer expectations, putting more pressure on banks to elevate their service levels.
Conclusively, the economic conditions in Ghana and Nigeria have remained challenging, affecting both individual and business customers, with declining purchasing power and struggling enterprises marking the business environment.