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  • Banking

    Africa Banking Industry Customer

    Satisfaction Surveyapril 2013

    kpmg.com

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

    1. This is a perception study

    Thissurveyfocusesontheperceivedqualityofcustomerservicedeliverybythebanksfromtheretailbankingcustomersperspectiveacross14countriesinAfrica.

    ThissurveydoesnotrepresenttheopinionofKPMGontheskills,capabilitiesorperformanceofanyofthebankscoveredinthesurvey.

    KPMGconductsthesurvey,butfindingsrepresenttheopinionsofthecustomersofthebanks.

    KPMGisresponsiblefordefiningthesurveyquestionnaireadministeredtotherespondents.

    Thissurveydoesnotseektoestablishanythingasanabsolutefact,buttoreportonthefeelingsandbroaderperceptionsofcustomerswithrespecttoservicesprovidedbytheirbanks.Therankingsaresolelybasedonthecustomersfeedbackreceivedfromthesurvey.

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

    Perceptionsarebydefinitionsubjective;asaresult,theyareneitherbalancednorfair.Also,banksratedinthesurveyvarybysize,serviceofferingsandcustomerprofile.However,theminimumnumberofrespondentsrequiredforeachbankinthesurveyguaranteesthattheresultreflectstheopinionofarepresentativecustomergroup(seepage5forthemethodology).

    Convenience Customer Care

    Products &Services

    Pricing

    Transactions,Methods &Systems

    CSI Formula(S x I)

    I

    Customer Service Factors

    CSI = Customer Satisfaction Index; S = Satisfaction; I = Importance

    Measures accessibility and quality of service from delivery channels

    Convenience

    Measures interaction of bank staff with customers

    Customer Care

    Measures customer support processes/systems & turnaround time

    Transactions, Methods & Systems

    Measures customers perception on fees, charges and rates on products

    Pricing

    Measures product range and appropriateness to customers needs

    Products & Services

    BankingIndustryCustomerSatisfactionSurveyMethodologyTheCustomerSatisfactionIndex assignsimportanceratingsofservice theirbanks.Respondentsinthesurvey(CSI)wasusedinthissurveyto measures to the satisfaction ratings wereaskedtoratetheirbanksonthedeterminecustomersatisfaction. ofthosemeasuresasprovidedby followingcustomerservicefactorsCSIissimplyaweightedscorethat customersontheservicedeliveryof discussed in more details below:

    Customer Satisfaction Index (CSI)

    2013 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.

  • Contents

    Foreword 2Executivesummary 4

    Top5mostcustomer-focusedbanks 6Relationshipissues 10

    Customercare 12Productsandservices 16

    Channels 20Loyalty 26

    Serviceexpectations 28Pricing 30

    Countryhighlights 31Demographics 90

    Acknowledgements 91 2013 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.

  • Amidsttheglobaleconomiccrisis,severalAfricaneconomieshavecontinuedtorecordsignificanteconomicgrowthdrivenbyrisingcommoditypricesandstrongdomesticdemand.Inthesamevein,thefinancialservicesindustryiscontinuingtoexperiencehugegrowthasgovernmentsandregulatorsstrivetomeetfinancialinclusiontargets.ThebankingsectorinparticularhasbenefitedfromtherapidpenetrationofmobiletechnologyinrecentyearsacrossthecontinentaverygoodexamplebeingthesuccessofmobilepaymentsinKenya.Suchtechnologicaladvancementsarenotjustshapinghowpeopleinteractwithoneanother;theyarealsochangingthebehaviourandexpectationofbankcustomerswhoareincreasinglybecomingusedtotheimmediacyofferedbytechnology.

    Wehavealsoseentheinfluxofinternationalplayersandpan-AfricanexpansionofAfricanbanksindifferentmarkets,asignoftheongoingliberalizationofmanyeconomiesaroundthecontinent.Assuch,thebankingindustryisbecomingevenmorecompetitiveandthiscanonlybenefitthecustomerasbanksstrivetomeettheirdemandsthroughthedevelopmentofvariousserviceinitiativestowintheirloyalty.However,intheracetomaximizemarketshare,andultimatelyshareholdervalue,itbecomesimperativeforbankstokeepthevoiceofthecustomerattheforefrontoftheirstrategies.Thus,theroleofsatisfiedandloyalcustomersinattainingprofitabilitycannotbeoveremphasized.

    Withthisinmind,theKPMGProjectAfricaBankingteamchallengeditselfonprovidingaplatformtounderstandcustomerpreferences,levelsofsatisfactionandexpectationsfromtheirbanksaswellashowbankscanrethinktheirbusinessandoperatingmodels,wherenecessary,inordertoremaincompetitive.

    Thus,IamverypleasedtointroducetheinauguraleditionoftheKPMGAfrica-wideBankingIndustryCustomerSatisfactionSurveyinwhichweprovideinsightsandresultsfromoursurveyofover25,000retailbankingcustomersfrom14countriesacrossAfricaincludingAngola,Botswana,Cameroon,Chad,CtedIvoire,Ghana,Kenya,Nigeria,Senegal,SierraLeone,Tanzania,Uganda,ZambiaandZimbabwe.

    ThesurveyresultsrevealthedominanceofbranchesandtheAutomatedTellerMachine(ATM)overotherchannelsinAfrica.However,wealsoseeexcitingtrendsfor adoption of alternate payment channels, such as in Botswana where nearly half ofrespondentsusethePointofSale(POS)atleastonaweeklybasis,whichmaybepartlyattributabletothelevelofdevelopmentofthecountrysbankingsector.

    MorethanoneintwoinstitutionalinvestorsseeAfricaasthemostattractiveregiontoinvestinthenextdecade,withoneinthreeexpectingtoputatleast5percentoftheirportfoliosintothecontinentby2016.1

    Foreword

    Bisi LamikanraPartner,KPMGNigeria,TeamLead, ProjectAfricaBanking

    1 Reuters,basedonapollofinstitutionalinvestorsbyEIU.

    Over25,000retailbankingcustomersfrom14countriesacross africa including angola, Botswana,Cameroon,Chad,CtedIvoire,Ghana,Kenya,Nigeria,Senegal,SierraLeone,Tanzania,Uganda,ZambiaandZimbabwe.

    2 |AfricaBankingIndustryCustomerSatisfactionSurvey

    2013 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.

  • Whilstinfrastructuralchallengesremain,manycustomersexpresswillingnesstocarryouttransactions,suchaswithdrawals,viatheATM.

    Perhapsunsurprisingly,financialstabilitywastheleadingreasonformaintainingbankingrelationshipsin11ofthe14countriessurveyed.Thisisareflectionoftherecentwaveofregulatoryinterventionsacrossthecontinentfocusedonthereviewofthenewminimumcapitalforbanks,therebyincreasingthecustomersawarenessofthestateoftheindustry.Respondentsinmanycountriesalsoexpressedchallengeswithtransactionturnaroundtimes.

    However,thefeedbackisclearthatAfricanbankshavecomealongway,butthere isstillmuchfurthertogotomeettheexpectationsofcustomers.

    Ihopetheinsightsinthisreportmakeacompellingreadand,onbehalfoftheteam,Iwouldliketoseizethisopportunitytothankallthosethatofferedtheirvaluabletimetocompletethesurvey.

    AfricaBankingIndustryCustomerSatisfactionSurvey | 3

    2013 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.

  • Executive summary

    4 |AfricaBankingIndustryCustomerSatisfactionSurvey

    Africanbankingcustomershavebeenfairlyclearaboutwhattheyexpectfromtheirbanks.Andtheyhavebeenequallyclearaboutwhattheyarenotyetgetting.

    Being strong yet approachable

    Accordingtooursurvey,banksinAfricawillneedtofocusonmaintainingtheirfinancialstabilitywhilesimultaneouslysharpeningtheircustomerservicecapabilitiesiftheyhopetocaptureandgrowtheirmarkets.

    Indeed,whilemorethanoneinfiverespondentssaidthattheirtopcriteriaforselectingabankwastheirabilitytoremainstableanunderstandablerequirementgiventherashofbankingcollapsesaroundtheworldrecentlyitwasattentiontocustomerservicethatseemedtoseparatetheleadersfromtherestofthepack.

    Customercarefactorswereseenasbeingamongthemostimportantindicatorsformanyrespondents,leadingalmosthalf(43percent)tosaythattheywouldchangetheirbanksasaresultofpoorservicequality.Notsurprisingly,therefore,customerswerealsoquicktocallforimprovementsinthisarea;around16percentsaidtheywantedtoseefriendlierstaffwhile14percentsaidtheywouldlikefasterandmoreeffectivecomplaintsresolutionfromtheirbanks.

    Improve it or lose itThesurveyalsohighlightsanumberofotherkeyareaswhereAfricanbankscouldmakeimprovementsinordertogainmarketadvantage.Oneinfiverespondentsprioritizedareductioninwaittimesfortransactionprocessingandrequestsastheirtopareaforimprovementwhile17percentsaidtheywantedtoseeimprovementsinthewayservicesaredeliveredthroughchannels.

    Asouranalysisinthisreportsuggests,alternatebankingchannelsarenowstartingtogainafootholdinmanymarkets,creatinganotheropportunityforbankstodifferentiatethemselvesandbuildloyaltyamongcustomers.Already,morethansixpercentofrespondentssaidtheywouldswitchbanksiftheyofferedmoreinnovativeproductsandservicesversuseightpercentwhosaidtheywouldswitchbecauseoftheproximityofbranches.

    Ranking the banks

    TogainaclearpictureofcustomersatisfactionwithAfricasbanks,weaskedrespondentstojudgetheirbanksacrossfivekeyareasthatinourexperienceholdthegreatestinfluenceovercustomersatisfaction:

    Customer care: Africanbankingcustomersoverwhelmingly(94percent)votedstafffriendlinessasthemostimportantfactorinfluencingtheirsatisfactionwiththeirbank.Yetwhileeightintenexpressedsatisfactionwiththiselement,resultsforothercustomercareelementswereratherweakacrossthecontinent:justthreeintencustomerssaidtheywereverysatisfiedwiththeirbankstaffsknowledgeofbankingproductsandonlytenpercentindica

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