According to a KPMG analysis, the Nigerian banking sector has improved customer experience in 2024 across several important areas, with particular advancements in corporate and SME banking.
Its recently issued 2024 Banking Industry Customer Experience Survey available to BrandSpur banking and finance news desk made this clear. However, it noted that despite the progress, there are still issues, especially in the retail banking industry, where traditional banks are finding it difficult to set themselves apart from the market due to fierce rivalry from fintech firms.
The survey partly reads: “The corporate banking segment emerged as the highest-rated for overall customer experience, GTBank reclaimed the top spot for the first time in seven years, thanks to faster resolution of account issues and improved client relationships.
“Zenith Bank and Access Bank tied for second place, receiving accolades for their proactive client support during economic challenges. UBA and Citibank rounded out the top five, showcasing their resilience in a competitive environment,” it added.
Continuing, the report, which is the second edition of KPMG’s West Africa customer research publication, includes information from 700 commercial/corporate companies, 5,000 SMEs, and more than 33,000 retail customers in Ghana and Nigeria. It further stated that the need for effective and dependable digital banking solutions has increased in Nigeria due to high inflation and ongoing currency volatility. Customers are increasingly using digital channels in response to last year’s cash shortages and ATM withdrawal limits, which have increased airtime and data costs.
According to the Multinational Bank survey, with a five percentage point gain over the previous year, the SME group saw the greatest growth in customer experience. Because Stanbic IBTC excels at personalization—a pillar where many banks struggle—it was able to maintain its leading position in this market. Wema Bank and UBA were tied for second place, with UBA achieving notable improvements in relationship management and the accessibility of digital platforms.
Despite these successes, the SME sector’s lowest-performing experience pillar is still customisation. Delivering value-added services that cater to the particular requirements of small businesses remains a challenge for banks. The emergence of fintech companies like PalmPay, Opay, and Moniepoint was the main driver of the slight advances in retail banking.
Furthering, it reads: “These digital-first players have consistently outperformed traditional banks in offering seamless digital experiences, instant payments, and superior transaction services. In contrast, traditional banks have struggled to innovate, with retail customer satisfaction falling more than two percentage points compared to last year.”
For the fourth consecutive year, Stanbic IBTC held the top rank in the retail sector because of improvements in mobile app functionality and robust security measures that spurred growth. A roughly 3-percentage-point drop in its customer experience score, however, indicates that there is room for growth, especially concerning in-app dependability.
UBA and FCMB came in second and third, respectively, with UBA receiving recognition for its successful chatbot and FCMB for its quick transaction processing. However, according to KPMG, protecting account data and transactions continued to be the most important factor influencing customer satisfaction across all segments, highlighting the growing significance of digital services.
The report went on to reveal: “Empathy emerged as the highest-rated pillar for retail and corporate customers, while personalisation continued to rank as the weakest. This so-called “personalisation paradox” highlights customers’ perception of generic services marketed as tailored.
“Resolution, a perennial weak spot, showed notable improvement across the industry. Retail customers experienced better call centre professionalism and faster social media responses, while SME clients benefited from enhanced POS-related support. However, these gains have raised customer expectations, intensifying pressure on banks to deliver even higher standards,” it added.
The macroeconomic climate in Ghana and Nigeria has not improved much in the last year, according to the research, and it still affects both individual and corporate consumers. The operating environment is characterised by struggling enterprises and declining purchasing power.
It reads: “In Ghana, the second year of the ongoing debt restructuring programme continues to influence economic stability and customer behaviours. In a continuing trend from last year, macroeconomic pressures have constrained real income and spending patterns, keeping the focus on savings and investments.
“Positively, the banking industry recorded an improvement in the Empathy pillar, demonstrating a better understanding of customer needs compared to last year,” it added.
