2013 kpmg nigeria banking industry customer satisfaction survey final

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  • ISSUE SEVEN

    2013 Banking Industry Customer Satisfaction

    Survey

    NIGERIA

    June 2013

    kpmg.com/ng

  • About this surveyIn reading this report, you should bear the following factors in mind:

    1. This is a perception study

    This survey focuses on the perceived quality of customer service delivery by the banks from the customers per-spective across the Retail, Corporate/Commercial and Small & Medium Sized Enterprises (SME) segments.

    This survey does not represent the opinion of KPMG on the skills, capabilities or performance of any of the banks covered.

    KPMG is responsible for defining the survey questionnaire administered to the respondents. KPMG conducts the survey, but findings represent the opinions of the customers of the banks.

    This survey does not seek to establish anything as an absolute fact, but to report on the feelings and broader perceptions of customers with respect to services provided by their banks. The rankings are solely based on the customers feedback received from the survey.

    2. Perception is neither balanced nor fair, butthe study always has a representative sample size

    Perceptions are by definition subjective; as a result, they are neither balanced nor fair. Also, banks rated in the survey vary by size, service offerings and customer profile. However, the minimum number of respondents required for each bank in the survey guarantees that the result reflects the opinion of a representative customer group in each segment.

    2 | Banking Industry Customer Satisfaction Survey 2013

    Customer Satisfaction Index (CSI)

    Customer Service Factors

    Convenience

    Convenience Customer Care

    Transactions, Methods &Systems

    Products &Services

    Pricing

    Measures accessibility and quality of service from delivery channels

    Measures interaction of bank staff with customers

    Measures customer support processes/ systems & turnaround time

    Measures customers perception on fees, charges and rates on products

    Measures product range and appropriateness to customers needs

    Customer Care

    Transactions, Methods & Systems

    Pricing

    Products & Services

    2013 KPMG Advisory Services, a Nigerian partnership, member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

    Banking Industry Customer Satisfaction Survey Methodology

    The Customer Satisfaction Index (CSI) was used in this survey to determine customer satisfaction. CSI is simply a weighted score that assigns

    importance ratings of service measures to the satisfaction ratings of those measures as provided by customers on the service delivery of their banks.

    Respondents in the survey were asked to rate their banks on the following customer service factors discussed in more detail below:

    CSI Formula(S x I)

    SI

  • Contents

    2013 KPMG Advisory Services, a Nigerian partnership, member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

    Foreword 4 Detailed findings 6

    Outsourcing the frontline 12

    Eating the data elephant 14

    The future of banking 20

    Testing the waters of crowdsourcing 28

    Demographics 34

  • 4 | Banking Industry Customer Satisfaction Survey 2013

    Foreword

    These are exciting and challenging times in the Nigerian banking industry. After a very profitable year for the industry, banks are already having to contend with a lower yield environment and pressures on fee income. Inevitably, the attention will return to the customer as banks look to grow earnings. Already, customers are redefining the agenda for the first time in five years, excellent customer service has replaced financial stability as the primary reason for maintaining banking relationships in the retail and corporate segments.

    In the face of evolving customer behaviour and expectations, it has become impera-tive for banks to listen and understand the voice of the customer as input in shaping their strategies. In this, KPMGs seventh annual Banking Industry Customer Satisfac-tion Survey, we share our findings from more than 14,000 retail, over 3,000 SME and 400 corporate/commercial banking customers. We have again expanded the scope of the survey to cover more customers and increased locations from 10 to 18 (the ad-ditional locations: Akure, Asaba, Calabar, Enugu, Makurdi, Minna, Nnewi and Yola). We also introduced a survey to understand the perceptions of young professionals a distinct and important demographic group on how they intend to interact with their banks in the future. I am sure you will find the results very interesting and insightful.

    In the broader survey, our findings reveal that efforts at promoting alternate chan-nels are yielding positive results. We have seen a two-fold increase in adoption of almost all the alternate channels and a further increase in ATM usage. After a slow start, mobile payments appears to be gaining some momentum and should ultimately transform the payments landscape in the country. However, amidst the proliferation of channel options, customers want banks to remember that convenience should remain a key focus - cash availability at ATMs was the most important issue for retail customers in 14 of the 18 locations covered.

    Over the last year, we have also seen an increase in the number of retail banking customers that are either planning to or have recently switched banks as well as the prevalence of customers with multi-bank relationships. In the corporate segment, the feedback for banks is consistent with what we have heard over the last few years knowledge of their business is extremely important and a key driver of satisfaction. With a proper understanding of the clients business, banks can achieve the level of product offering/suitability that most businesses desire.

    I would like to thank all the survey respondents for their invaluable time and insights. I hope the findings and additional commentary are valuable and constructive. For us at KPMG, we again hope this annual publication puts the customer at the heart of the agenda for all banks.

    Bisi LamikanraPartner & HeadManagement Consulting

    2013 KPMG Advisory Services, a Nigerian partnership, member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

  • Banking Industry Customer Satisfaction Survey 2013 | 5Banking Industry Customer Satisfaction Survey 2013 | 5

    2013 KPMG Advisory Services, a Nigerian partnership, member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

  • 6 | Banking Industry Customer Satisfaction Survey 2013

    Detailed findings

    Customer expectations continue to increase in the retail seg-ment

    This year, there was a marginal decline in overall CSI within this segment as cus-tomers expectations continue to increase especially in the area of convenience. 93% of retail customers rated qual-ity of service at the ATM as their most important service measure. Also, the gap between satisfaction and expectation on

    this element increased from 16 to 18 per-centage points. Staff attitude and queues in the banking halls were also key areas of concern.

    Zenith Bank emerged as the most cus-tomer focused bank this year, with last years leader, GTBank coming second. Stanbic IBTC maintained the third posi-tion for the third consecutive year.

    2013 KPMG Advisory Services, a Nigerian partnership, member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

  • Banking Industry Customer Satisfaction Survey 2013 | 7

    Top 10 Most Customer Focused Banks

    SME issues remain the same...

    While overall satisfaction levels among SME banking customers remained unchanged from last year, traditional issues such as limited access to loans remained. Fewer SMEs (53% compared to 63% in 2012) expressed satisfaction with the ease of getting credit from their banks.

    GTBank and Zenith retained their posi-tions as the most customer focused banks for the SME segment, albeit with lower overall customer satisfaction rat-ings from last year. This year, Stanbic IBTC moved up a spot to third place.

    Slight increase in Corporate satisfaction...

    Overall, the CSI for Corporates im-proved by two percentage points from last year, driven largely by customers

    increased satisfaction with pricing of bank products. However, with an overall satisfaction rating of 69.1 against cus-tomer expectation of 92.1, it is clear that customers expect banks to do a lot more to bridge this gap.

    This year, 93% of organisations ranked ability of banks to provide a full range of financial services as important in com-parison with 83% last year. Increasingly important to customers however, is the need for bespoke products and services tailor-made to meet specific require-ments.

    Zenith and First Bank, each moved up one spot, attaining the first and second positions respectively, while Citibank emerged in third place.

    Zenith

    GTBank

    77.4 78.0 74.1

    76.6 77.1 73.0

    75.0 76.3 72.9

    74.8 75.8 72.3

    72.9 74.6 72.1

    72.7 74.3 70.9

    72.0 74.1 69.9

    71.4 73.9 69.8

    70.8 73.7 69.7

    70.5 72.6 69.5

    Stanbic IBTC

    Diamond

    Standard Chartered

    FCMB

    First Bank

    Fidelity

    S