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KPMG, a multinational professional services firm, has indicated that the handling of customer complaints continues to be the weakest aspect of the Nigerian banking sector.
This finding was disclosed in its 2024 Banking Industry Customer Experience Survey, recently published.
The report, which is the second edition of KPMG’s West Africa customer research publication, offers insights from over 33,000 retail customers, 5,000 SMEs, and 700 commercial/corporate organizations in Nigeria and Ghana.
According to the Nigerian segment of the report, “For the fourth consecutive time, resolution (transforming a poor experience into a positive one) remains the weakest experience pillar for retail customers. Ongoing technological issues, including recent upgrades to core banking systems and mobile applications, have impeded banks’ capacity to effectively resolve customer complaints.
“In contrast, fintech companies have consistently outperformed traditional banks in this regard, with customers commending the speed and quality of their resolution services as key differentiators,” the survey noted.
The survey indicated that in 2024, the banking sector saw modest enhancements in customer experience across key segments, with the corporate segment standing out by exceeding the 80-point threshold in overall customer experience ratings, while the SME segment achieved the highest growth, with its customer experience score rising by over two percentage points compared to the previous year.
“Conversely, the retail segment experienced only slight improvement, primarily due to increasing satisfaction with non-traditional players, as conventional banks witnessed a decline in their average customer experience performance.
Notably, the top-rated retail bank’s score this year was more than two percentage points lower than last year’s score. Among commercial banks, retail banking experiences remain largely similar, with only about a one percentage point difference between the top-ranked and eighth-ranked bank, suggesting a need for innovation and differentiation in service experience among traditional banks.
“For the second consecutive year, securing account information and transactions has been identified as the most critical measure of satisfaction across all customer segments. From the Six Pillars of Experience perspective, the Expectations pillar (managing, meeting, and exceeding customer expectations) has also emerged as the highest-rated area of customer experience. In both instances, a bank’s dependence on its digital services and capabilities to outpace competition is crucial. Fintech leaders like PalmPay, Opay, and Moniepoint have excelled in providing seamless digital experiences, instant payments, and superior transactions, surpassing traditional banks,” the report stated.
KPMG further noted that rising inflation and ongoing currency instability have heightened the demand for efficient and reliable digital banking solutions. “In light of last year’s cash shortages and ATM withdrawal limits, customers are increasingly turning to digital channels, leading to a corresponding rise in airtime and data spending.
“Banks must acknowledge that while customers are adapting, their expectations are also changing. Loyalty is no longer guaranteed but has become a tradable asset.
Therefore, understanding these evolving expectations particularly for business customers requires banks to actively listen and engage meaningfully to address their specific needs,” the statement accompanying the report concluded.
