About this surveyin reading this report, you should bear the following factors in mind:
1. This is a perception study
• Thissurveyfocusesontheperceivedqualityofcustomerservicedeliverybythebanksfromtheretailbankingcustomers’perspectiveacross14countriesinAfrica.
• ThissurveydoesnotrepresenttheopinionofKPMGontheskills,capabilitiesorperformanceofanyofthebankscoveredinthesurvey.
• KPMGconductsthesurvey,butfindingsrepresenttheopinionsofthecustomersofthebanks.
• KPMGisresponsiblefordefiningthesurveyquestionnaireadministeredtotherespondents.
Thissurveydoesnotseektoestablishanythingasanabsolutefact,buttoreportonthefeelingsandbroaderperceptionsofcustomerswithrespecttoservicesprovidedbytheirbanks.Therankingsaresolelybasedonthecustomers’feedbackreceivedfromthesurvey.
2. Perception is neither balanced nor fair, but the 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.Thebankingsectorinparticularhasbenefitedfromtherapidpenetrationofmobiletechnologyinrecentyearsacrossthecontinent–averygoodexamplebeingthesuccessofmobilepaymentsinKenya.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,Côted’Ivoire,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,whichmaybepartlyattributabletothelevelofdevelopmentofthecountry’sbankingsector.
“MorethanoneintwoinstitutionalinvestorsseeAfricaasthemostattractiveregiontoinvestinthenextdecade,withoneinthreeexpectingtoputatleast5percentoftheirportfoliosintothecontinentby2016”.1
Foreword
Bisi LamikanraPartner,KPMGNigeria,TeamLead, ProjectAfricaBanking
1 Reuters,basedonapollofinstitutionalinvestorsbyEIU.
Over25,000retailbankingcustomersfrom14countriesacross africa including angola, Botswana,Cameroon,Chad,Côted’Ivoire,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,therebyincreasingthecustomer’sawarenessofthestateoftheindustry.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,whilemorethanoneinfiverespondentssaidthattheirtopcriteriaforselectingabankwastheirabilitytoremainstable–anunderstandablerequirementgiventherashofbankingcollapsesaroundtheworldrecently–itwasattentiontocustomerservicethatseemedtoseparatetheleadersfromtherestofthepack.
Customercarefactorswereseenasbeingamongthemostimportantindicatorsformanyrespondents,leadingalmosthalf(43percent)tosaythattheywouldchangetheirbanksasaresultofpoorservicequality.Notsurprisingly,therefore,customerswerealsoquicktocallforimprovementsinthisarea;around16percentsaidtheywantedtoseefriendlierstaffwhile14percentsaidtheywouldlikefasterandmoreeffectivecomplaintsresolutionfromtheirbanks.
Improve it or lose itThesurveyalsohighlightsanumberofotherkeyareaswhereAfricanbankscouldmakeimprovementsinordertogainmarketadvantage.Oneinfiverespondentsprioritizedareductioninwaittimesfortransactionprocessingandrequestsastheirtopareaforimprovementwhile17percentsaidtheywantedtoseeimprovementsinthewayservicesaredeliveredthroughchannels.
Asouranalysisinthisreportsuggests,alternatebankingchannelsarenowstartingtogainafootholdinmanymarkets,creatinganotheropportunityforbankstodifferentiatethemselvesandbuildloyaltyamongcustomers.Already,morethansix percentofrespondentssaidtheywouldswitchbanksiftheyofferedmoreinnovativeproductsandservicesversuseightpercentwhosaidtheywouldswitchbecauseoftheproximityofbranches.
Ranking the banks
TogainaclearpictureofcustomersatisfactionwithAfrica’sbanks,weaskedrespondentstojudgetheirbanksacrossfivekeyareasthat–inourexperience–holdthegreatestinfluenceovercustomersatisfaction:
Customer care: Africanbankingcustomersoverwhelmingly(94percent)voted‘stafffriendliness’asthemostimportantfactorinfluencingtheirsatisfactionwiththeirbank.Yetwhileeightintenexpressedsatisfactionwiththiselement,resultsforothercustomercareelementswereratherweakacrossthecontinent:justthreeintencustomerssaidtheywereverysatisfiedwiththeirbankstaff’sknowledgeofbankingproductsandonlytenpercentindicatedthattheywereextremelysatisfiedthattheircomplaintswerebeingpromptlyaddressed.
© 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.
Transaction methods & systems (TMS): When asked whatpartoftransactionmethodsandsystemswereimportanttocustomers, interestingly turnaround time for transactions processing and accuracy ofinformationprovidedbybankswereofequalimportance.However,theresultsrevealedhighersatisfactionwithtransactionturnaroundtime(81percent)comparedto71percentwhoweresatisfiedwiththeaccuracyofinformationprovidedbytheirbanksinaccountstatements,adviceslipsandbasisofbankcharges.
Pricing:Whenitcomestovalueformoney,almostoneinfiveofAfrica’sbankingcustomersexpresseddissatisfactionwiththecostofmaintainingtheiraccountswhile15percentsaidtheywereindifferent.Respondentsalsosaidtheywouldliketheirbankstobemoreproactiveinnotifyingthemofchangesininterestrates,tariffsandtermsandconditions.However,interestrates seemed to be the biggest pricing frustration for respondents in 12 of the 14countriessurveyedwhosaidtheywereleastsatisfiedwiththeratestheywereofferedfordepositsandinvestments.
Products and services: RespondentsacrossAfricawerekeentoseetheirbanksimprovetheirproductandsupportofferingswiththesuitabilityof product offerings being cited as the top factor in this category in nine of the 14countriessurveyed.Seventypercentsaidthattheydidnotfeelthattheyreceivedtheassistancetheyneededtounderstandtheirbank’sproductsandhowtoaccessthem;lessthan10percentadmittedbeingverysatisfiedwiththewaytheirbanksdeliveredtheirproducts.
Convenience: Itshouldcomeasnosurprisethat99percentofrespondentssaidthattheystillusebranches.However,itisclearthatATMsarebecomingavitalpartofAfrica’sbankingsystem;85percentofrespondentssaidtheyuseATMs,withhalfsayingtheyusethemonaweeklybasis.AndwhileotheralternatechannelshaveclearlydemonstratedvalueinAfrica(POSinBotswanaenjoys69percentusagewhilemobilebankinginKenyahastopped50percentusage),thisreportshowsthatadoptionhasbeenslowinmostmarkets.
Analyzing the data
Inthefollowinganalysis,ourAfricanbankingprofessionalshavedeconstructedtheresultsandemergingtrendstodeliverinsightsonmanyoftheotherkeytopicsraisedinthissurvey.ImranMoten,aprofessionalwithKPMGinSouthAfrica,offerslessonsfromhiscountry’sbanks;GoncaloTraquinawithKPMGinAngolaexaminesleadinginnovationsandcustomerfocusedstrategies;JimmyMasindeexplorestheexplodingsuccessofmobilebankinginhisnativeKenya.
Ourreportconcludeswithanin-depthmarket-by-marketanalysisofthedatathatlaysoutthekeychallengesandopportunitiesforbanksoperatingineachofthe14marketssurveyedandidentifiestheleadingbanksineachcategoryofcustomersatisfaction.
AfricaBankingIndustryCustomerSatisfactionSurvey | 5
© 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.
Top 5most
customer-focusedbanks
ThissurveywasconductedbetweenJuneandDecemberof2012withtheexceptionofNigeriaandZambiawhereitwasconductedearlierin2012.Over25,000respondentsweresurveyedinpersonacross
14 countriesinAfrica.Akeyconsiderationinselectingthesamplesizewasthebankingpopulationofeachcountry.Thesurveylocations in
eachcountrywereselectedbasedonthelevelofcommercialactivity anddensityofbankbranches.
Aquickglanceattheresultsrevealsthedominanceofbankswithmulti-countrypresenceacrossthecontinent.Someofthesebankshavesucceededinreplicatingthehighservicedeliveryperformanceestablishedintheirhomecountriesinothermarketstheyplayin.
Theirsuccesscanbepartlyattributedtostrongknowledgeofthelocalmarketandleverageontechnology.GTBank,ZenithandUnitedBank
forAfrica(UBA)appearintoppositionsandseemtodominatetheWestAfricancoastwhileStanbic,DiamondTrust,KenyaCommercialand
EquityBankshowastrongpresenceinEastAfrica.
6 |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.
67.2 Banco Privado AtlanticoBanco de Negocios ANGBanco Caixa ANGBanco BAI MF ANGBanco Espirito ANG
67.166.766.165.7
73.3 Bank GaboroneFirst National BOTStanbic BOT
Barclays BOTStandard Chartered Bank BOT
73.372.271.370.4
73.8 GTBankZenithUT BankCal Bank
Bank of Africa Ltd
71.170.970.669.0
68.3 Banque l’Agriculture (BFA) UBA – Cote d’Ivoire
Banque l’AfriqueEcobank CIVSGBCI CIV
66.565.665.465.4
BotswanaBankGaboroneandFirstNationalBankweretiedatthetopasthemostcustomer-focusedbank,withStanbiccomingthird.BankGaboroneisarelativelynewentrantintothemarketwithonlysixyearsinoperationwhilemostoftheothertopbanksaremoreestablishedplayersintheindustry.
CameroonBanqueInternationaleduCamerounisthemostcustomer-focusedbank,followedbyUBAandAfrilandFirstBankinsecondandthirdposition,respectively.
ChadCommercialBankTchademergedinthetopposition,followedbyBanqueSaheloandSociétéGénéraleinsecondandthirdposition,respectively.
Côte d’IvoireBanquepourleFinancementdel’Agricultureemergedinfirstpositionasthemostcustomer-focusedbank,withUBAandBanqueinternationaledel’Afriquedel’Ouest-Côted’Ivoirecominginsecondandthird,respectively.TheappearanceofBanquepourleFinancementdel’Agriculture(aspecializedbank)inthetoppositionshowsitscapabilityasastrongplayerinthecommercialbankingspace.
GhanaGTBankemergedinfirstplace,followedbyZenithBankandUTBank,respectively.Incontrasttothetoptwobanks,UTBankisanindigenousbankthatwaspreviouslyanon-bankfinancialservicesprovideruntil2008whenitacquiredamajoritystakeinanotherlocalplayer–BPIBank.Thetopthreebanksareallrelativelynewtothemarketandthushavebeenworkinghardtowinovercustomersfromtheolderbankswhilstalsotargetingtheunbankedpopulation.
AngolaRespondentsinAngolaselectedBancoPrivadoAtlanticoasthemostcustomer-focusedbankcloselyfollowedbyBancodeNegócios.BancoCaixaemergedinthethirdposition.
68.0 Banque Internationale
Afriland CAMUBA CAM
Société CommércialeSociété Générale
64.663.8
62.161.2
67.9 Commercial BankBanque Salelo
Société GénéraleEcobank
UBA (Chad)
65.561.360.4
53.0
AfricaBankingIndustryCustomerSatisfactionSurvey | 7
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68.8 GTBankUBAZenithFirst InternationalUnion Trust
68.367.667.467.3
75.3 StanbicAccessAkibaEximCRDB
74.674.574.174.1
82.5 Stanchart BankDFCU BankHousing FinanceCentenaryDiamond Trust
78.678.577.977.2
77.9 GTBankZenith
StanbicDiamondFidelity
77.776.175.775.0
SenegalBanqueIslamique,anichebank,emergedinfirstpositionwhileCBAOGroupeandBanqueInternationaleoccupysecondandthirdpositions,respectively.
NigeriaGTBankemergedasthemostcustomer-focusedbank,followedbyZenithandStanbicIBTCinthesecondandthirdposition,respectively.
Sierra LeoneTheresultshighlightvastchangesexperiencedinthebankingsectorwiththeinfluxofsub-regionalfinancialinstitutionsduetoliberalisationoftheeconomyinthepost-warera.SurveyrespondentschoseGTBankasthemostcustomer-focusedbankwhileUBAandZenithBankoccupythesecondandthirdpositions,respectively.
TanzaniaAccordingtorespondentsinTanzania,Stanbicisthemostcustomer-focusedbankfollowedbyAccessandAkibawhoseCSIwereveryclosewithapercentagepointdifferenceof0.1 percent.
UgandaStandardCharteredemergedinthetoppositionbyawidemarginaheadofDFCUandHousingFinance.
KenyaRespondentschoseCFCStanbicasthemostcustomer-focusedbankfollowedbyKenyaCommercialBankandEcobank,respectively.
76.1 CFC StanbicKenya CommercialEcobank KENCooperative KENPost Bank
74.474.474.174.0
63.8 Banque IslamiqueCBAO Groupe SenegalBanque InternationaleUBA SENSGBN SEN
62.362.061.160.9
8 |AfricaBankingIndustryCustomerSatisfactionSurvey
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67.2 BancABCTN Bank Ltd. FBC BankKingdom BankBarclays ZIM
66.166.065.264.8
ZimbabweBancABCisthemostcustomer-focusedbankwithTNBankandFBCBankcominginsecondandthirdposition,respectively.
AfricaBankingIndustryCustomerSatisfactionSurvey | 9
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Relationship issuesFinancial stability – Still the top reason for maintaining banking relationshipsTheemergenceoffinancialstabilityas the topmost reason for maintaining bankingrelationshipsisnosurprisecomingontheheelsofthefinancialcrisis that hit the world economy in 2008.Althoughtheimpactofthecrisiswas not as profound in africa as in EuropeandtheUS,therippleeffectswereenoughtoshakecustomers’confidenceintheirbanks.Despitetheinterventionofregulators,thesurveyresultssuggestthatmoreneeds to be done to restore customer confidenceintheindustry.Continuouscollaborationbetweenbanksandregulators is essential in ensuring that customers are correctly informed about
newregulatoryprovisions,aswellassignificantindustryevents.
Analysisofsurveyresultsrevealedthat21.4 percentofrespondentsrankedFinancial Stability as the most important reason for maintaining bankingrelationships,followedcloselyby Excellent Customer Service that had19.7 percent.Adifferenceof1.7 percentpointsbetweenthetoptworationalesformaintainingabankingrelationshipfromthecustomer’sperspectiveindicatesthevalueplacedonthesechoices.Thispresentsanopportunityforbankstodifferentiatethemselvesinbothareastoenablethemtostrengthentheircustomerbase.
Despite the intervention of regulators, the survey results suggest that more needs to be done to restore customer confidence in the industry.
Africa-wide rationale for maintaining banking relationships
Financial stability
Excellent customer service
Image and reputation
Proximity and accessibility of branchnetwork
Employer requirements
Proximity of alternative delivery channels
Pricing/cost of products and services
21.4%
16.0%
13.0%
10.0%
9.0%
19.7%
10.5%
10 |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.
Atthecountrylevel,customersfrom11outof14countriessurveyedchose‘financialstability’astheirtopreasonformaintainingbankingrelationships,whilerespondentsfromGhana,ZambiaandSenegalchose‘excellentcustomerservice.’Thebankingindustriesinthesecountrieshavebeenrelativelystable;asaresult,asignificantnumberofcustomersappeartobesatisfiedwith the security of their funds with
theirbanks.Ofthecountrieswithfinancialstabilityasthekeyreasonformaintainingbankingrelationships,Kenya,Côted’IvoireandNigeriahad the highest percentage of total respondents.Theresultshighlightcustomers’apprehensiontowardsbanksinKenya,especiallythesecondtierbanksthataremostlyfamily-owned,coupledwiththefactthatamajorbankrecentlywentunderreceivership.
Excellent customer service
Financial stability
Reasons for maintaining banking relationships across Africa
Senegal20%
Ghana17%
Sierra Leone17%
Côte d’Ivoire
28%
Nigeria27%
Chad18%
Cameroon17%
Uganda21%
Kenya28%
Tanzania20%
Zimbabwe18%
Botswana16%
Angola26%
Maintaining banking relationships: 11 out of 14 countries choose financial stability.
Top reason for –
AfricaBankingIndustryCustomerSatisfactionSurvey | 11
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Customercareisaveryimportantfactorinanyserviceindustry,moresoinbankingwherecustomersconstantlyrelatewithstaff.In8ofthe14countriesrespondentsselected‘friendlinessofstaffandtheirwillingnesstoassist’as the most important measure ofcustomercare.Thisshowsthatbeyondhavingpleasantandseamlessexperienceviatechnologicalchannels,customersalsodesiretohavethesameexperiencewhileinteractingwithbankstaff.Theresultalsofollowsfromthereasonsformaintainingbankingrelationship,where‘excellentcustomerservice’waschosenasthesecondmostimportantreason.Ofallthecustomercareelementsmeasuredinthissurvey,94 percentofrespondentsselected‘friendlinessandpolitenessofstaffandtheirwillingnesstoassist’asthemostimportantelementtothem;8in10respondentsexpressedsatisfactionwiththiselement.Staffknowledgeofthebank’sproductswasratedasverysatisfactory by 3 in 10 customers, while
Customer care“Don’topenashopunlessyouliketosmile” Chinese proverb
Only1in10areextremelysatisfiedwithpromptattentiontocomplaints.
Convenience Customer Care
Products &Services
Pricing
Transactions,Methods &Systems
only1in10areextremelysatisfiedwithpromptattentiontocomplaints.
Providingexcellentcustomerservicefrom the time a customer steps onto thebank’spremisesuntilhe/sheleaveswouldgoalongwayinwinningcustomers.Thebranchiscurrentlythemost widely used channel in africa and also, the channel with most human contact.Banksneedtoensuretheircustomer-facingstaffunderstandthebankscustomercarevalues.Customer-facingstaffneedtopositivelyprojectthe brand and act as ambassadors by deliveringservicewithcourtesyandrespecttocustomers.
Excellentcustomerserviceshouldnotbelimitedtobranchvisitsalone,but must be carried out through to all otherdeliverychannelssuchascallcentresandinternetbanking.Ninety-one percent of respondents indicated thatabank’sunderstandingoftheirneedsandbeingproactiveinpresentingalternativesisimportanttothem,whichhighlightsthefactthatbanksneed to constantly be steps ahead of thecustomerbydevelopingvariouswaysofresolvingcustomerissuesandproblemsefficientlyandeffectively.
DevelopedeconomiessuchasAustraliaandtheUnitedKingdomhaveestablishedfinancialombudsmanservicesthatindependentlysettlecomplaintsaboutindividualsandbusinessesthatprovidefinancialservicestocustomers.WearewitnessingthesametrajectoryintheAfricanbankinglandscape,withthemostsophisticatedbankingsectorinthecontinent–SouthAfrica–alreadywithafinancialombudsman.Ontheotherhand, nigeria has made progress by putting forward a bill in parliament for the establishmentofafinancialombudsmanbytheCentralBank.Althoughthemajorityoftheothercountriescoveredinthissurveyhaveactiveombudsmanbodies,theyhaveyettoestablishonethatissolelymeantforthefinancialindustries.Thishighlightsthatontheregulatory end, more needs to be done withcustomercare.
Customer care: 8 of the 14 countries choose friendliness of staff.
Top reason for –
12 |AfricaBankingIndustryCustomerSatisfactionSurvey
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90.6%59.1
Angola
90.8%76.4
87.6%65.3Côte d’Ivoire
Kenya
84.2%64.1Senegal
86.3%68.8Ghana
89.4%74.4 Uganda
72.9%73.2 Tanzania
84.4%63.3 Chad
85.8%65.0 Zimbabwe
81.3%69.5Sierra Leone
94.8%75.5
Botswana
74.5%89.2
Nigeria
81.9%62.8
Cameroon
Importance
CSI
Customer satisfaction index and importance rating for customer care across Africa
AfricaBankingIndustryCustomerSatisfactionSurvey | 13
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Customer ‘moments of truth’
Asillustratedinfigure1,estimatesoftherevenuedifference between promoters and detractors in commercial bankingareintherangeof35percentto37percent.TheestimatedrangefortheSMEandmassaffluentsegmentsis13 to15 percentand12 to14percentrespectively.
ThebankingenvironmentinSouthAfricaremainsextremelychallenging.Competitive,economicandregulatorypressureshaveallcombinedtopreventbanksfromachievingthelevelsofrevenuegrowththatwasexperiencedbefore2008.TherelationshipsofsomeestablishedbankswiththeircustomershavebeenadverselyaffectedinSouthafrica, as in most parts of the world, due to product commoditisation and ‘productpush’strategies,inconsistentchannelaccessandservicelevels,together with successful new entrants withfreshcustomervaluepropositions.
Connectingwithcustomersinnew,meaningful and consistent ways has remainedelusive.Duetothehighvolumeofcustomerchoice,somebanksarefindingitincreasinglydifficultto engage with customers at an early stage of the buying process, in order toinfluencepurchasebehaviour.Also,customers are able to compare their bank’sofferingastheybecomemuchmorefinanciallyastute,asthroughtheuseofonlinetools/comparators.
Winningbanksmustcontinuallyfocus on transforming the customer experiencetogrowthetopline.Toachievethis,theymustconnectemotionally with target customer groupsatkeyinteractions–whatwecall‘customermomentsoftruth’.
Theresultofthisimpressiondirectlyinfluencesthenatureofthecustomer’ssubsequentrelationshipwiththebank.Thisrelationshipcaninfluencethecustomer’sdecisiontomaintaintheirbankingrelationship(ortaketherelationshipelsewhere)−letalonetheirwillingnesstogrowtheirproduct/serviceportfolio.
Forexample,throughdetailedinvestigation,aleadingSouthAfricanbankfoundpricingtobeasensitivetopicfortheaffluentsegmentontwofronts.Firstly,whenshoppingforabond,aspecificmomentoftruththatirritatedcustomerswasthebank’sinabilitytotakeintoaccounttheamountofexistingbusinessindeterminingwhatfeesandinteresttochargecustomers.Thecustomers’secondmomentoftruthcamewhenthebankofferedthemthe‘bestdeal’onlyaftermultipleroundsofnegotiation.Customersconsideredbothmomentstime-consumingandinconvenient.Thisrealisationhappeneddespitethebank’spreviousunderstandingthattheaffluentsegmenttypicallyhadlimitedtimeavailable.
Globally,leadingbankshaveidentifiedadirectlinkbetweencustomermomentsoftruthandservicedelivery,netpromoterscores(NPSs)andrevenueimpact.
ThesefiguressuggestabusinesscasetousemomentsoftruthtoenhanceNPSstodeliverasustainablenetrevenueuplift.Therevenueupliftisachieved
through higher balances and longer balanceduration,newcustomerrevenuestreams,reducedcosttoserve,andreducedcustomeracquisitioncosts.
35-37%
Commercial
13-15%
SME
13-14%
Mass affluent
Figure 1: Revenue difference (%) between promotersrelative to detractors
View point
Imran Motenassociate DirectorManagementConsulting,FinancialServicesE: [email protected]
14 |AfricaBankingIndustryCustomerSatisfactionSurvey
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Simplyput,amomentoftruthis an interaction between a customerandtheirbank,thatcanleavealastingpositiveornegativeimpressiononthecustomer.
Thekeytodefiningandaddressingspecificmomentsoftruthistoclearlylinkthebank’ssalesprocesswiththecustomer’sbuyingbehaviour(figure2).
Ouranalysisallowsforcustomermomentsoftruthtobeidentifiedacrossthreebroadcategories.Thecategoriesincludepurchaseexperience,fulfilmentexperienceandsalesexperienceservice.Deeperassessmentofthese‘painpoints’willexposetheleversthat need to be addressed to enhance customerexperience.Suchleversencompassfront-linestaffempoweredtoreversedisputedcharges,ortechnologyimprovementstobetterunderstandthecustomer’sbankingportfolio/history.
A‘BigFour’Australianbank,forexample,estimatedthat12percentofbondapplicantsoverathree-monthperiod became frustrated with the timeandefforttakentoapproveandfulfilabondfacility,andwithdrewtheirapplicationinfavourofanotherfinancialinstitution.Thebankidentifiedthe underlying business issues as convolutedapplicationandfulfilmentprocesses,andanineffectiveprocessownershipmodel.Theseissuesallowed
stafftorelinquishresponsibilityforactivitiesinthebondprocesschain.Havingunderstoodtherootcauseoftheproblem,thebankoverhauleditsprocessestobecomecustomer-friendly, reducing application processing timesfromanaverageof10.3to2.1workingdays.Furthermore,thebankintroducedinitiativessuchassendingSMSprogressupdatestocustomers,toimprovethecustomerexperience.
Forbankstoachievestep-changesuccessintheircustomers’bankingexperience,theymustembarkonatransformationjourneyultimatelyleadingtoaheightenedcustomer-centricmindset across the entire business – fromcustomer-facingteamstoback-officeoperations.Thosebanksthathavebegunthisjourneywilltestifytotheneedtorapidly‘stopthebleeding’.Thiscanbeachievedbyinitiallyfocusingonhighimpact/low-investmentinitiatives,whilesimultaneouslybuildingalong-term/strategic solution to address deeper issues.Doingsoiscriticalinwinningover
the hearts and minds of staff across the organisation,andaligningstakeholderstodeliverthebusinesscase.
Insummary,achievingastep-changeinthecustomerexperienceisamatterofidentifyingandaddressingkeycustomermomentsoftruththroughhigh-impactinitiatives.Thosebanksintheleadinthisspace can consolidate their customer baseandsubstantiallyuplifttop-linegrowththroughrevenuefromagreatersourceofpromoters.
Customerbuyingbehaviour
Momentsof Truth
Bank salesprocess
Initial Contact OriginationUnderwritingand fulfilment Ongoing servicing
Customer Care
Needs Identification
Purchaseexperience
Fulfilmentexperience
After Salesexperience
Search& evaluate Select Document Set-up Drawdown Repay/fees/
interest Maintenance Terminate
Figure 2
AfricaBankingIndustryCustomerSatisfactionSurvey | 15
© 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.
Customerswantlessgenericproductsanddesiremorebespokeproductsthatmeettheirneeds.Anessentialdeductionfromthisisthatbanksneedtoproperlyidentifytheircustomers’needsbasedontheirbehavioursandthuscreateproductsthatareflexibleenoughtomeettheirneeds.Effectiveproductinnovationandmanagementcouldbemadepossiblewitheffectivecustomersegmentation.Withcustomersegmentation,banksdividetheircustomer base into clusters with similar characteristicsinordertoprovidevalueandsalespropositionswhichareeffectiveanduniquetoeachsegment.
Customersegmentationcouldtakeintoconsiderationgeo-demographicparameters such as age, profession, income,etc.Personalpreferencessuchas access to channel, preferred payment
Productsand services
Tailoring products to customer preferences…
Effectiveproductinnovationand management could be madepossiblewitheffectivecustomersegmentation.
Convenience Customer Care
Products &Services
Pricing
Transactions,Methods &Systems
How flexible are the banks’ products and services? Do they add value to the customer? Do the banks communicate in clear terms what the customer stands to gain from such products and services?
method and channel preference could alsohelpincustomersegmentation.Anotherkeyinsightisidentifyingfinancialpotentialofcustomersbasedontheirtransactionswiththebankanddevelopingproductsaimedatincreasingbusinesswithsuchcustomers.Thishelps the customer feel special and createstheimpressionthatthebankisforwardthinkingandalsowantsgrowthinhis/herbusiness.
Forbanks,itisnolongersimplytherange of products offered to customers butalsoaquestionofthesuitabilityoftheproducts.Only1in10respondentssurveyedwasverysatisfiedwiththeirbank’sdeliveryofproductsandserviceshighlighting the need for better product delivery.Oftheserespondents,7in10 indicated that they do not get the requiredassistancewithunderstandingtheproductsandhowtoaccessthem.also, 2 in 10 of these respondents indicatethattheproductsarenot‘easy-to-understand’highlightingcustomers’needsforsimpleanduser-friendlyproducts.Thisshowsthat,beyondofferingtailoredproducts,banksneedtoprovidesufficientsupporttomakeproductdeliverysuccessful.
Onthecountrylevel,customersfrom9ofthe14countriessurveyedidentifiedsuitabilityofproductsandservicesasthe most important measure under this customerservicefactorcomparedtothose from angola, Botswana and
Côted’Ivoirewhoindicatedeasyaccessto credit facilities as most important to them.Ontheotherhand,customersfrom ghana were most particular with the assistance they get from their banksinunderstandingtheproductandserviceofferings.Theseresultsrevealthatbeyondcreatingagreatproduct that suits customer needs, banksalsoneedtoprovidesupportwithawareness, easy access and assistance tocustomerstoensurethattheyderivesatisfactionfromusingtheproducts.
Customer service factor: 9 of the 14 countries choose suitability of products and services.
Top reason for –
16 |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.
Angola
Côte d’Ivoire
Uganda
Senegal
Ghana
Tanzania
Kenya
Chad
Zimbabwe
Botswana
Sierra Leone
Nigeria
Cameroon
Importance
CSI
Customer satisfaction index and importance rating for products and services across Africa
91.4%67.3
91.3%69.8
88.3%
55.1
89.2%
50.5
85.9%59.6
79.4%
69.1
91.3%
69.2
88.1%56.6
86.7%49.6
94.4%66.1
80.6%
59.0
87.3%63.6
85.7%54.0
AfricaBankingIndustryCustomerSatisfactionSurvey | 17
© 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.
Innovative, customer-focused channel strategies
Overthelastfewyears,financialinstitutionshaveadoptedsegmentedcustomermodels,toimprovethecustomerexperience,attractnewclientsandincreaseloyalty.
However,inordertoachieve‘segmentedandcustomer-focused’performance,onemustdefinetherelationship model in terms of two fundamentalrequirements:
1.Anexternalvisionoftherelationshipwith customers, aligned with their preferencesandneeds;
2.Aninternalvisionforthesupportinginfrastructure,linkingtheinstitutiontothesegmentation.
Whileitisimportanttodevelopaclearexternalvision,priorityshouldbeplacedonestablishingtheinternalvision,particularly in three main areas:
1. Value proposition
Tooptimizethevalueproposition,onemustdesignproductandserviceoffersbasedonthevalueoftheclientrelationship.Forexample,whendevelopingindividualizedproductsforspecificsegments,insupportofaspecificcommercialstrategy,itiscriticaltosatisfyaclearclientneed(e.g.savings,consumption,investing)attherightpointintheclientlifecycle.
Itisalsovitaltoadequatelyrepositionthefunctionofeachchannel(e.g.transactional,relationship-building),as well as complementary customer communications, including publicity, advertising,correspondence,etc.
2. Distribution strategy
Adistributionstrategyisrequiredthatclearlyreflectsthevaluepropositionestablishedforeachsegment.Itmust also include tactics designed tomaximizerevenues,marginsandefficiency.
Inthepresentmulti-channelcontext,andwiththeadventofnewtechnologies,customershavebecomemoresophisticatedanddemanding.Thishasforcedinstitutionstoreflectontheirinteractionstrategies,andquestiontheirown business and supporting models intermsofefficiencyanddeliveringtheoptimalcustomerexperience.
Consequently,thechannelstrategymust induce the desired customer behavioursforeachsegment.Todoso,itmaybenecessarytorefineorreorganizeexistingcustomercontactfunctions, or design new channels that arecustomizedtoeachsegment.
3. Commercial dynamics
Tooptimizesalesforceperformanceinacustomer-focusedstrategy,itis necessary to plan and monitor commercialactivity,periodicallyevaluateresults,andadapttheinitialplanasrequired.Toachievecommercialefficiency,onemust:
1.Standardizethesalesprocess,withone that is centred on the customer andguidedbysegmentation;
2.Increasethetimededicatedtosales,byplanningmanagers’timeand freeing them for sales and relationship-buildingactivities;
3.Ensurequalityinplanning,executionandevaluationofthecommercialcycles;
4.Materializebusinessopportunitiesthathavebeenidentified,and
5.MonitortheKPIsanddevelopawarningsystemtomaximizeperformance.
View point
Goncalo TraquinaSeniorManagerManagementConsultingFinancialServicesE:[email protected]
Goncalo Traquina is a Senior Manager, Management Consulting in Financial Services from KPMG in Angola
18 |AfricaBankingIndustryCustomerSatisfactionSurvey
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Goncalo TraquinaSeniorManagerManagementConsultingFinancialServicesE:[email protected]
AfricaBankingIndustryCustomerSatisfactionSurvey | 19
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Technologyischangingthewayandmannerweconductourbusiness.Therehasneverbeensuchatimeinhistory,likenow,whentechnologyhastransformedthefinanceworld,especiallybanking,leavingcustomersyearningformoreinnovativeproductsandservicesfromtheirbanks.Forexample,duetosignificantinvestmentsinATMsandPOSbybanksoperatinginangola, the country witnessed a sharp riseintransactionvolumeusingtheMulticaixanetwork–from3.6millionin2006to5.5millionin2010,monthly.2 Similarly,inKenya,mobiletechnologyhelpedincreaseaccesstofinancialserviceswiththe‘invisiblebank’,M-Pesa,having40,000servicelocationsvialocalagentsacrossthecountry3 in2010comparedtoonly840bankbranches.4TheincreaseintechnologicalsolutionsavailablehasbroughtaboutincreaseinpaymentsviatheInternetandmobilechannels.RecentlyinChina,which is fast becoming the epicenter of thepaymentsindustry,thegovernmenthas granted almost 200 licenses todomesticnon-bankthirdpartypaymentserviceproviderstoeffectivelyexpandthepaymentsecosystem.Thisrepresentsnewcompetitionforbanksasthesecompanieswoulddeveloppaymentsolutionsthatcouldtakeoutasizeablechunkofthebanks’margins.Thereis,therefore,aseriousneedforbankstoinnovate,intermsofproductsandservices,toenablethemtoplayinthisdynamicandchallengingmarket.
Globally,bankinghaschangedradicallywiththeadventoftheInternetand
smartphones.Bankshavekeptpacebydeliveringvariousalternatechannels.Customersareempoweredtoservethemselvesanytime,anywhereusingthesechannelsandconvenienceisattheheartofmakingthechannelsavailabletothem.TheAutomatedTellerMachine(ATM),inparticular,hasgainedtraction by establishing itself as the fastest growing channel in africa while other channels lag behind in terms of usagebycustomers.RetailBankingResearchpredictsthenumberofATMsinAfricawillhavegrownatarateabove90 percentby2015comparedtoonly12 percentinWesternEuropeand4 percentinNorthAmerica.
ThissurveyhighlightsthedominanceofATMsandbranchesoverotherchannelsinAfrica.Notsurprisingly,branchesremain the most used channel in africa at99 percent,followedbyATMsat85 percentwhileallotherchannelslagbehindwithratesbelow30 percent.ATMisthemostfrequentlyusedchannelwith5in10customersusingitonaweeklybasiscomparedtoonly2in10customersforbranches.Every5in10customersthatuseanATMonaweeklybasisareundertheageof30andevery3in10areprivatesectoremployeeswhichsuggeststhatthefrequentATMusersareyoungprofessionals.Ontheotherhand,frequentbranchuserscomefrom the more mature population with every5in10customersthatusethebranch on a monthly basis belonging to the31-55agegroup.
2 KPMG:AngolaBankingSurvey(2011)3 Safaricom(2012)4 Economist(2012)
ChannelsConnecting with customers anytime, anywhere…
Branches remain the most used channel in Africa at 99 percent, followed by ATMs at 85 percent while all other channels lag behind with rates below 30 percent.
Convenience Customer Care
Products &Services
Pricing
Transactions,Methods &Systems
20 |AfricaBankingIndustryCustomerSatisfactionSurvey
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ApartfromtheATM,adoptionofotheralternate channels in africa remains relativelylow,reflectingtheirrecentintroduction or total absence in some ofthesurveyedmarkets.Forexample,ATMsoftenlackbillpaymentsorfundstransfercapabilitieswiththeexceptionofcountrieslikeNigeriaandBotswana;inSierraLeone,Internetbankingiscurrentlylimitedtobalanceenquiry.EventhoughATMsenjoythehighestadoption for alternate channels in Africa,theystillhavetheirchallenges–customersspecificallyexpressedtheirdissatisfactionwithcashavailabilityatthemachines,frequentdowntimesandsecurityofATMlocations.However,withsuccessstoriessuch
asthestrongadoptionofATMsinNigeria(82 percent),POSinBotswana(69 percent)andmobilebankinginKenya(52 percent),itisclearthatthesealternate channels hold a lot of potential forAfricanbanks.Asmobilepenetrationand access to technology continue to grow rapidly, the opportunity to provideservicesacrossthesechannelsbecomesevengreaternecessitatingtheneedforbankstomakecustomermigration to alternate channels a strategicpriority.Manyfactorsplaya role in successful migration of customers – literacy rates, physical and online security, resistance to change andenablinginfrastructure.
Mobile payments
Call centre
Mobile banking
Internet banking
POS
ATM
Branch
Weekly Fortnightly Monthly Rarely Never
Africa-wide frequency of channel usage
3% 3%
3%
3%
4%
4% 11%
4%
5%
5%
3% 9% 86%
68%
86%
75%12%
13%
41%
18% 16% 47% 19%
16% 13% 7% 24%
91%
1% 2%
2%
1%
1%
1% 1%
AfricaBankingIndustryCustomerSatisfactionSurvey | 21
© 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.
MobilepenetrationinAfricatodayishigher than that of the internet and is expectedtocontinuetorisefortheforeseeablefuture.Thecosttoserveisunquestionablylowerviamobilethananyotherchannel.Africahasayoungandvibrantpopulationthattendstobethe early embracers of new products andservicesandfinancialinclusionisatopagendaforAfricanpolicymakers.Giventhatalltherightmarketvariablesexist,banksneedtoconsiderhowtheyshouldoptimizetheopportunitiesthatthemobilechannelpresents.ArecentstudyofbankingchannelsintheUSrevealsthatthecosttoservecustomersviamobilechannelischeaperthanthedominantchannelsinAfrica(branchandATM)bywidemargins.5Itis45times
moreexpensivetoservecustomersviabranch than mobile and 10 times more expensivetoservecustomersviatheATM.Giventhesefacts,banksneedtorethinktheirstrategy,surgeforwardbytakingaboldstep(notwaitingforcriticalmass)toestablishleadingpositionsinthemobilebankingandmobilepaymentsspace.Althoughhighrisks/uncertaintiesexistforservicesthatcould be offered through mobile channel (especiallywithtechnology),therewardsurpassessuchrisks.Mobilebankingisessentialforbanksthatwanttobeidentifiedasinnovatorsandcustomer-focused.Mobilepayment,ontheotherhand, is a sure way of entering untapped areastogainmarketshareandestablishnewrevenuestreams.
5 TowerGroup,Fiserve/M-comData(2009)
Mobile channelMobile channel in Africa
Convenience Customer Care
Products &Services
Pricing
Transactions,Methods &Systems
Branch Call centre IVR ATM Online Mobile
$4.0 $1.3 $0.9 $0.2 $0.1$3.8
Source: Tower Group, Fiserve/M-Com Data (2009)
Transaction costs by service delivery channel
Kenya is a clear leader in mobile payments.
22 |AfricaBankingIndustryCustomerSatisfactionSurvey
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Different countries are using different models for mobile payments that are bank-ledorTelco-led.KenyaisacountrythatusestheTelco-ledmodelwhilenigeria, on the other hand, recently adoptedthebank-ledaspioneeredbythecountry’sCentralBank.Withthebetter of the two models still unclear, thebestwillbeevidentastimegoeson.Currently,Kenyaisaclearleaderinmobilepayments.AlthoughcloselytiedwithBotswana(whichhasoneofthehighest mobile penetration rates in africa at78 percent)onmobilebanking,Kenyasurpasses the rest of africa by wide marginsonmobilepayments.Thisresultbacksthecountry’ssuccessstorieswithmobilepayments,particularlyM-Pesa,thatpresentanopportunityforbankstostudyandextrapolatekeylearningsfor promoting the mobile channel in marketsinwhichtheyoperatearoundthecontinent.
About33 percentofrespondentsinkenya indicated that they use mobile
paymentsand40 percentoftheserespondents,usethisserviceonceineverytwoweeksandthemajorityoftheseusersarehigh-incomeearners,withevery3in10respondentsinthiscategoryusingthischannelseveraltimesaweek.Surprisingly,47 percentofrespondentswithinthe21-30agegrouponly use mobile payments once a month comparedto37 percentofthosewithinthe41-55agegroupthatusethisserviceonceeverytwoweeks.Othercountries,includingSierraLeoneandChad,havenot yet introduced the mobile channel intotheirbanking sectors.
MobilebankinginAfricalackspopularityforsomebasictransactions.Forexample,only4 percentofrespondentsusemobilebankingforbalanceenquiryasopposedto60 percentthatdothisserviceviathebranch.Also,only5 percentofrespondentsprefertotransferfundsviathemobilechannelasopposedto86 percentthatwanttodosoatthebranch.Perplexingly,evenKenya
that leads on the mobile channel in africa enjoysadecentrateof16 percentforbalanceenquirycomparedto50 percentthatpreferdoingsoviatheATM.WithAfrica’slargeunbankedpopulationandthesignificantpenetrationofmobilephones, mobile technology, combined with other channels, presents a huge opportunitytobanktheunbanked.
Kenya Botswana Zimbabwe Uganda Senegal Ghana Tanzania Angola Côte d’IvoireNigeria
Mobile payments and mobile banking adoption rates
0%
10%
20%
30%
40%
50%
60%
33%
25%
15%
27%
13%10%
6% 6%6%
0.5% 0.2%1%
52%50%
37%
20%
14%
6%2%
12%
mobile bankingmobile payments
Only 4 percent of respondents use mobile banking for balance enquiry as opposed to 60 percent that do this service via the branch.
AfricaBankingIndustryCustomerSatisfactionSurvey | 23
© 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.
Mobile payments in Kenya
a large percentage of households in developingcountrieslackaccesstofinancialservices,whichimpedeseconomicgrowthanddevelopment.Ahugeamountofevidenceshowsthataccesstofinancialservices,andindeedoverallfinancialdevelopment,iscrucialtoeconomicgrowthandpovertyreduction.Inspiteofalltheevidence,insub-SaharanAfrica,onlyafifthofhouseholdshaveaccesstofinancialservices.In2007,overtwo-thirds(70 percent)ofKenyanhouseholdsdidnothavebankaccountsorreliedoninformalsourcesoffinance.as a way to get around this hurdle, africa hasturnedtotechnology,howeverrudimentary,toovercomethechallengeofaccesstofinancialservices.
Technologicalinnovationhasnowmadeitpossibletoextendfinancialservicestomillionsofpoorpeopleatarelativelylowcost.Aclassicalexampleisthemobiletelephonemoneytransferservicesthatallowmobilephoneuserstomakefinancialtransactionsortransfersacrossthecountryconvenientlyandatlowcost.Kenya’smobilepaymentservice,knownasM-PESA,aningeniouspaymentservicetargetingmainlytheunbanked,providedbythemainmobilephonecompany,SafaricominconjunctionwithVodafone,representsagoodexampleofhowlow-costapproaches that use modern technology
caneffectivelyexpandthefinancialservicesfrontier.Theword‘pesa’istheSwahiliwordforcash,whilethe‘M’isformobile.Shortlyafteritslaunch,Safaricomhadregisteredover20,000M-PESAcustomers,waybeyonditsinitialtargets.Thespeedytake-upwasaclearsignthatM-PESAfilledagapthathadexistedinthemarket.HereisasnapshotofM-PESA’scustomergrowth:
Currently,millionsofKenyansuseM-PESAtomakepayments,sendremittances and store funds for short periods.Manyofthosewithoutbankaccountsareabletousetheservice,atlowriskandminimalcost.Evidently,Kenya’sM-PESAisprobablythemostcelebrated success story of mobile bankinginadevelopingcountry,followingAfrica’s’mobiledecade.’
ThewholeconceptbehindtheM-PESAproductisverystraightforward:acustomercanusehis/hermobilephonetomovemoneyefficiently,thatis,quickly,securely and across great distances, directlytoanothermobilephoneuser.Thecustomerdoesnotnecessarilyneedtohaveabankaccount,butregisterswithSafaricom–astheserviceproviderforanM-PESAaccount.Customersturncashintoelectronicmoney(e-money)atSafaricomdealers,andthenfollowsimple instructions on their phones to
makepaymentsthroughtheirM-PESAaccounts;thesystemprovidesmoneytransfersasbanksdointhedevelopedworld.Theaccountisverysecure,PIN-protectedandsupportedwitha24/7customer-careserviceprovidedby Safaricom.
TheM-PESAconcepthasevolvedandhasbeenadoptedbyamajorityofthebanksinKenyaasonewaythroughwhich customers can access their funds and pay bills, as well as transfer funds directlyfromtheirbankaccounts.Inthelastquarterof2012,Safaricom,incollaborationwithCommercialBankofAfrica(CBA),adoptedabankingplatform where customers can borrow funds as well as deposit funds and earn interest on their funds through the mobileplatform.Initsshortexistence,M-PESAhaswonseveralaccolades,bothlocalandinternational.KeyamongtheseincludeBestMobileTransferServiceAward–GlobalMobileAwards,africacom awards, and World Business andDevelopmentAwards.
TheM-PESAconcepthasdramaticallychangedtheKenyanfinanciallandscapeinthelastfiveyears.First,thestiffcompetition in funds transfer from M-PESAledcommercialbankstorecognizethatloweringbarrierstoentry(norequirementsofminimumbalances
View point
Jimmy MasindeSeniorManagerManagementConsultingFinancialServicesE:[email protected]
Jimmy Masinde is a Senior Manager and the Financial Services (FS) Lead in Management Consulting in Kenya.
24 |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.
The total number of bank accounts in Kenya has increased from 2.3 million in 2006 to well over 12 million in 2012.
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
Oct-06 Feb-08 Jul-09 Nov-10 Apr-12 Aug-13
Month – Year
Cu
sto
mer
nu
mb
ers
Customer growth numbers
inopeningbankaccounts)canincreaseretailaccounts.Banksalsorealizedthatlowering costs of transacting across otherbankaccountsattractsmorecustomerstoopenaccounts.Duetothesechanges,thetotalnumberofbankaccountshasincreasedfrom2.3 millionin2006towellover12millionasofDecember2012.Thishasalsoledtothefastgrowthinagencybankinginkenya, mainly supported by the mobile platform.
M-PESAiswidelypopularamongthelowmiddle-andlow-incomepopulation.Itisprojectedtocontinueits phenomenal growth as it powers Kenya’sgrowthastheleadingeconomyinEastandCentralAfrica.Currently,itisestimatedthat25percentofKenya’sGDPflowsthroughtheserviceandthisfigureisexpectedtogrowmoving forward.
AfricaBankingIndustryCustomerSatisfactionSurvey | 25
© 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.
6 Customercharged:TheKPMGApproachtoCustomerExperience7 Nielson,Alterian(2011)
Banksareincreasinglyrealizingthatitiseasiertoretainthanacquirecustomers.in a bid to retain customers, some banksnowsubstantiallyinvestincustomer relationship management and complaints resolution management tools asopposedtomoreexpensivemarketingdrivestoacquirenewones.Existingcustomers promote business growth, presentcross-sellingopportunitiesandalsocostlesstoserve.Customerloyaltynow goes beyond retaining customers to makingthemadvocatesforthebank.
ArecentstudyintheUKreveals‘hugedisparitybetweenbank’sadvertisingexpenditureandsourcesofinformationthatpeopletrust’.6Only4 percentoftheUKpopulationsaysthattheytrust
advertisingasopposedtoawhopping90 percentofpeoplethattrustrecommendationsfromtheirfriends.7 a clear demonstration of this has been witnessedintheevolutionofsocialmediawhichprovidesaplatformforpeople to connect in real time, air their viewsandregistertheirdispleasureonanyissuewithavastaudience.Thisposesachallengetobanksbecauseanunsatisfiedcustomercouldcauseuntolddamagetotheimageofthebank,leadingtocustomerattrition.Lowswitchingcostsisanotherkeydriverforcustomerattritioninthebankingindustry.
Theresultsofthissurveyshowrelativelyhigh loyalty among customers on an Africa-widebasiswith6outofevery
10 respondentswillingtorepeatbusinesswiththeirbanks.Ninepercentreported that they absolutely will not repeatbusinesswiththebanksand31 percentoftherespondentssaidthey‘sometimeswill’.Theresultsforcustomeradvocacyarealsosimilartothisas60 percentsaidtheywouldrecommendtheirbanktootherswhile10 percentwillabsolutelynotdothesame.Banksshouldcontinuallystrivetomovecustomersuptheloyaltypyramid, thereby transforming them frommereclientsintoavidsupportersandpartners.Thiscouldbeachievedbyincreasingthebank’sresponsivenesstocustomer needs.
Loyalty“Merelysatisfyingcustomerswillnotbeenoughtoearntheirloyalty.Instead,theymustexperienceexceptionalserviceworthyoftheirrepeatbusinessandreferral.Understandthefactorsthatdrivethiscustomerrevolution.” — Rick Tate
30%Regular customers
10%Aggrieved customers
60%Avid customers
Loya
lty in
tens
ity
Would you recommend the bank to others?
26 |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.
Whencustomerswereaskedtoprovidereasonsforswitchingbanks,theycitedservicequalityastheirprimaryreason, followed by turnaround time for transaction processing and interest rates,respectively.Respondentsin12outofallthe14countriessurveyedselectedservicequalityastheirmain
reasonforchangingbankswithSenegalastheexceptionwithrespondentscitinginterestratesandfees.TheresultsrevealthatAfricanbankshavetomakequalityserviceatopstrategicfocalpointinorder to sustain and increase the current loyaltylevelstheyenjoyfromtheircustomers.
Turnaround times forrequests and enquiries
Interest rates and fees
Service quality
Innovative productsand services
Access to credit
Proximity of branchesFinancial stability
19.6% 17.2% 8.1% 6.5% 5.8%0.3%
42.6%
Customer switching: What is the primary reason for changing or planning to change your bank?
AfricaBankingIndustryCustomerSatisfactionSurvey | 27
© 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.
Banksneedtosolicitfeedbackfromcustomerstodiscoverserviceimprovementareas.Listeningtocustomers and responding with rigour totheirneedswillbeakeydifferentiatorforbanksinservicedeliveryexcellence.Whenaskedtorankthemostimportantareainwhichtheirbankscanimproveservicedeliverytothem,respondentsranked‘reductioninwaittimesfor
transactionprocessingandrequests’atthetop.GiventhedominanceofbranchesandATMsoverotherchannels,thisresultcomesasnosurprise.Longwaittimehasbeenapervasiveproblem in africa, especially with the largebanksthathaveahugecustomerbase.Bankinghallsareoftencrowdedwithlongqueues,andATMSarenowfollowingsuit.Diagnosingtheservice
deliverybottlenecksthatcauselongqueuesatbranchesisvitaltoensuringoptimal turnaround time for transaction processing.Alternativechannelsaregenerally seen as a solution that is both long-termandsustainable.ThiscallsforAfricanbankstoexertmoreeffortstoencourage customers to migrate and embracealternatechannels.
Tenoutofthe14countriessurveyedchose reduction in wait times as their mostdesiredserviceimprovementareawithUganda,Chad,ZambiaandCameroonemergingastheexceptions.RespondentsinUgandachosepricing
in the form of lower interest rates, feesandchargesastheirtopserviceimprovementarea.Thishasbeenatopicalissueinthecountry’sbankingindustryduetothehikeininterestrateswhileChadchosefriendly,politeand
proactivestaff.Whilenotatopreasonin any particular country, it is worthy of note that the second most important Africa-widereason–improveddeliveryofservicesthroughchannels–pullsgeneralconsensusaroundthecontinent.
Serviceexpectations“Thefirststepinexceedingyourcustomer’sexpectationsistoknowthoseexpectations.” — Roy H. Williams
20.0%
13.6%
Reduction in wait times for transactionprocessing and requests
Improved delivery of services through channels
Friendly, polite and proactive staff 15.8%
15.3%
16.8%
10.6%
7.9%
Competitiveness of interest rates, feesand charges
Fast and effective complaintsresolution
Availability of alternate channels
Seamless points of contact in the bank
Africa-wide top service improvement area
28 |AfricaBankingIndustryCustomerSatisfactionSurvey
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systemCrowd free branches
competitive interest ratestransaction
imageatm
eliminate queries
improve cash availability
reliable delivery channelsempower
uptimeassurance listen increased
simplicity
proactiveness
financial stabilityempathy branch network
excellent customer serviceaccuracy efficiency processing transparency
innovation
friendly polite staffcustomer centricity
reduced chargesspeed
product
access to loans
stable financial position
reputationreduced wait time
What do customers want?
AfricaBankingIndustryCustomerSatisfactionSurvey | 29
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Whenaskedthelevelofsatisfactiononthecostofmaintainingbankaccounts,19 percentofthosewhorespondedtothisquestionexpressedtheirdissatisfactionwhile15 percentindicatedtheirindifference.Notsurprisingly,70 percentofcustomersthatexpresseddissatisfaction with the cost of maintainingbankaccountsalsoindicatedthe same with interest rates on deposits andinvestmentsproducts.Whilebanksmay be constrained by pressures to delivershareholderresultsandmarketelements in their determination of rates offered to customers, they can help customersmakesmartchoicesintheformofadvisorysupportandimprovetheoverallcustomerexperience.Transparencyalsoemergedasacommon theme in the results in the area
ofpricing.Respondentswouldlikebankstobemoreproactiveinnotifyingthemofchange in interest rates, tariffs and terms andconditions.
Indeed,transparencyinthebankingsector has come to the forefront in recenttimes.Forexample,theindustryregulator in nigeria has established a consumerprotectiondivisiontoprovideaplatformthroughwhichbankcustomerscanseekredress.Similarly,theUgandanregulatornowpublishescommercialbankcharges to promote transparency and enhancecompetitionintheindustry.Inthesamevein,theregulatorinBotswanaundertakesawiderangeofpubliceducationactivitiesaimedatimprovingthe understanding of customers on moneyandbankingactivities.
Atthecountrylevel,respondentsfrom12outofthe14countriessurveyedsaidtheyareleastsatisfiedwiththeinterestratesondepositsandinvestments,whilerespondents from Botswana and nigeria expressedahighlevelofdissatisfactionwith the charges and fees from their banks.Basedonacross-boardanalysisofallareassurveyed,Ugandaappearstobethemostprice-sensitivecountry.CompetitiveinterestratesandchargesemergedasthetopserviceimprovementareaforUgandanrespondentswhileproduct pricing emerged as the third most important reason for maintaining bankingrelationship.Also,respondentschose interest rates and fees after servicequalityastheirsecondprimaryreasonforchangingbanks.
PricingCustomers want the best value for their money…
66.6 94.6%
Botswana
68.2 90.8%
Angola
70.0 90.6%
Uganda
52.0 89.1%
Senegal
55.0 88.3%
Côte d’Ivoire
63.6 87.3%
Nigeria
55.7 87.2%
Chad
51.7 86.8%
Zimbabwe
60.1 86.4%
Ghana
56.9 84.1%
Cameroon
59.3 81.3%
Sierra Leone
69.2 78.5%
Tanzania
Customer Satisfaction Index
70.5 91.3%
Kenya
Importance
Customer satisfaction index and importance rating for pricing across Africa
Convenience Customer Care
Products &Services
Pricing
Transactions,Methods &Systems
30 |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.
ContentsCountryhighlights
angola 32Botswana 38Cameroon 42
Chad 46Côted’Ivoire 50
ghana 54kenya 58
nigeria 62Senegal 66
SierraLeone 70Tanzania 74Uganda 78Zambia 82
Zimbabwe 86© 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.
WebelievethatAngola’seconomyshouldcontinuetopresenthighlyfavorablegrowthratesinthecomingyears.Thecountryhasbenefitedfromtheongoing
diversificationandtradeinvestment.Futureinvestmentswillalsobenefitthefinancialservicessectoringeneralandthebankingindustryinparticular.Thiscontinuedevolutionhascreatednewopportunitiesandbetterconditionsforthebankingsector,resultinginanincreaseinthenumberoffinancialinstitutionsoperatinginthemarket,from13banksin2005to23in2011.The sectorischaracterizedhoweverbyahighconcentration,inwhichfiveinstitutionsrepresent79 percentoftotalassets.
Regardingtheprofitabilityofthesector,thereturnonequityinaggregate terms, although high, decreased in comparison to 2010,standingat23.2 percentin2011.Followingthesametrend,the returnonassetsinaggregatetermsalsoshowedaslightdeclinecomparedto2010(2.5 percentin2011)dueinparttoadecreaseinthegrowthofbankrevenuedespitetheimprovementinthecost-to-income(49.7 percentin2011)ratio.
Overthelastfewyears,thenumberofbrancheshasincreasedwith their geographical dispersion throughout the angolan provincesincreasingsignificantly.Additionally,theavailabilityofnewelectronicchannels(e.g.ATMs,POS,mobilebanking)forthedistributionofproductsandserviceshasincreasedthecontactbetweencustomersandbankinginstitutions,offeringeasier,quickerandmorecomfortableaccesstothebank.
Forallthesereasons,theAngolanbankingpenetrationratecontinuestoevolvepositivelyhaving,accordingtotheAngolanCentralBank,evolvedfrom11 percentofthetotalpopulationattheendof2010to22 percentin2012.
AngolaSPOTLIGHT ON
32 |Countryhighlights
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Major trends in the Angolan banking sector
Theevolutionofthesector,visibleattheregulatoryandsupervisorylevels,in alignment with international best practices, will continue to demand from thefinancialinstitutionsadynamicandarticulatedorganizationalmodel,guaranteeingtimelyandpracticableresponsesintermsofriskmanagement,internalcontrol,thepreventionofmoneylaunderingandthecombatagainstterrorismfinancing.Ontheotherhand,theinstitutionswilllikelycontinuetofocusontheinnovationandonthecustomerservicequality,aswellasthedevelopmentofbusinessopportunitiesresultingfromthenewlegislationrecentlypublished.
Inthiscontext,andgiventhecontinuingevolutionofthesector,therearesomechallengesthatKPMGAngolahasbeensharingitsunderstandingofwiththeAngolanfinancialservicessector,amongstwhichthefollowingstandout:
• StrengtheningoftheCorporateGovernanceandOperationalRiskManagementmodels;
• Improvementoftheoperationalefficiencythroughtheoptimizationofthedistributionchannelsandthereinforcementoftheefficiencyoftheback-andmiddle-offices;
• Reinforcementofthecreditriskmanagementthroughtheimplementationofcustomerriskmanagementproceduresingeneral,andcreditportfolioriskinparticular,proportionaltothecomplexityoftheissueandtotheforeseeableevolutionofthemarket;
• Implementationofacultureofinnovationandcustomerorientationthroughsegmentedstrategiesonproductsandservices,distributionchannelsandsupportinginfrastructure.
Customer orientation in the Angolan banks
ThechallengeofmarketsharelossbythelargestfinancialinstitutionsinAngola,asaresultofincreasedinternalcompetition,requirescontinuedinvestmentinthecustomersupportandservicesarea,thussecuringthecustomers’satisfactionandtherebyincreasingloyaltylevels.
Theseinstitutionshavebeengraduallyimplementingamorecustomer-orientedbankingapproachliketheonesfoundincountrieswithgreaterbankingmaturity,whereaneffortismadetosegmentcustomersallowinganindividualizedandpersonalizedmanagementpracticewhichtakesintoconsiderationtheirrequirements,preferencesandbehaviours.Therefore,inordertoimproveloyaltylevels,bankshavemadeasignificantefforttoimprovecustomerservice/experience,todelivercustomizedproductsandservicesforeachsegment,toadaptprocessesandsystemsforamoreeffectivecustomerexperience,toallowgreateraccesstotheinteractionchannels,andtoprovidemoretransparentandcompetitivepricingmodels.
AccordingtotheanalysisoftheCustomerSatisfactionIndex(CSI)fortheAngolanbankingsector,itcanbeconcludedthattheeffortstoimprovecustomerservicecarriedoutbythefinancialinstitutionshavegainedvisibilityandhavehadanimpactonthecustomersperceptionofthequalityoftheservicesrendered,butitisclearthatthereisstillalongwaytogoinordertoachievealevelthatsimultaneouslyoptimizestheinterestsofthefinancialinstitutionsandofthecustomers.
Banking institutions in Angola are beginning to implement a more customer-oriented banking approach like the ones found in countries with greater banking maturity.
angola | 33
© 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.
BancoPrivadoAtlântico,Bancodenegócios internacional and Banco CaixaGeralTottaareperceivedtobe the institutions with the highest ’Orientationtothecustomer‘,thus presenting the highest customersatisfactionrates(Figure1–CustomerSatisfactionIndex–Top 10).
Duetothelowbankingpenetrationlevelsandmoderatefinancialsophistication of the angolan customer, there is little difference between the importance of factors that contribute to customer satisfaction.Consequently,allthe customer satisfaction factors areperceivedbythecustomersasequallyimportant.Thesurveyidentifiedsomeareasofimprovementinthe‘Customercare’,‘Processandsystems’,‘Convenience’and‘Productsandservices’areas.
Banco Privado Atlantico
Banco Caixa Geral Totta
Banco de Negocios Internacional
Banco Espirito Santo Angola
Banco Regional do Keve
Banco Angolano
Standard Bank
Banco Comercial
Banco Sol
Banco Angolano de Investimento
67.267.166.766.165.764.764.463.263.262.9
Customer Satisfaction Index – Top 10
Customer care.Themaindriverscontributing to the customer caredamageincludethedeficitinthetechnicalandbehaviouralcompetencies of the employees of the institutions, both at the commercialattendancelevel(e.g.understandingthefinancialneedsof the customer and presenting the appropriatesolutions)aswellasincustomerservice(e.g.managementandtreatmentofclaims).Inthisrespect,StandardBank,Bancodenegócios internacional and Banco PrivadoAtlânticopresentthehighestsatisfactionratesamongtheanalyzedinstitutions.
Despitetheimportantinvestmentsmadeoverthelastfewyearsinreinforcing‘Supportingprocessesandsystems’tocaterforthestronggrowth in the sector, there are stillrelevantinefficienciesareaswithsignificantimpactatthecustomersatisfactionlevel.Atthe
63.2
‘Supportingprocessesandsystems’level,respondentsevidenceddissatisfaction, in particular, with theexcessivetimetakentoexecutetransactions/orders,duetotheexistenceofoperationalinefficienciesevidencedintheback-officesoftheinstitutionsanalyzed.Inthisrespect,BancoPrivadoAtlântico,BancodeNegóciosInternacionalandBESAngolapresentthehighestlevelsofsatisfaction.
Convenience.Themaindissatisfactiondriversstated(Figure 2–Conveniencesatisfactionfactoranalysis)arethehigh waiting time of attendance at thebranches(e.g.longqueues)andthedistancetothebranchlocations.Overthelastfewyears,therehasbeen an increase in the number of branches,withasignificantincreasein the geographical dispersion of the branches.Despitetheimprovementareasidentified,BancoPrivadoAtlântico,BancoCaixaGeralTottaandBancoAngolanodeInvestimentospresentthehighestlevelsofsatisfactionamongtheanalyzedbanks.
(Numberofrespondents=440)
34 |Countryhighlights
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Convenience satisfaction factor analysis
Products and services satisfaction factor analysis
Call centre/Telephone banking – Absence of long hold/handle time
Call centre/Telephone banking –Politeness of call centre agents
Mobile banking – Balance enquiry
Branch – Absense of long queues at branches
Branch – Proximity of branches Call centre/Telephone banking – Issue resolution process
68.7% 66.9%94.8% 94.8% 67.8%94.2%
54.3% 57.9%93.9% 93.7% 70.8%93.3%
Importance Satisfaction
Easy of getting credit facilities: Loans Easy of getting credit facilities: Salary advance
Assistance with understanding the product/service and how to access...
Products and services that meet yourrequirement/needs
Funds transfer
Easy-to-understand products (e.g. account types)
Importance Satisfaction
56.9% 67.9%94.0% 92.9% 63.1%91.4%
64.2% 59.8%90.2% 89.2%
68.8%88.3% 57.1%85.4%
Easy of getting credit facilities: Overdraft
Easy of getting credit facilities: Mortage
64.9%90.8%
Easy of getting credit facilities: Other facilities
63.2%74.6%
Products and servicesTheeconomicgrowthofthecountryhasencouragedfinancialinstitutionstodevelopanddeliverproductsandservicesthatmeetthesavings,investmentandconsumptionneedsofthefamiliesandcompanies.
Accordingtotherespondents(Figure3–Productsandservicessatisfactionfactoranalysis),despitethe
evidenceofastrongevolutionoverthelastfewyearsatthefinancialproductandservicesmanagementlevel,the main challenges presented are the access to credit (e.g.consumptionandhousing)andeaseinexecutingthetransferoffunds.
angola | 35
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The branch is among the most preferred channel of the Angolan customers
Themajorityoftheinstitutionsoperating in angola offer their customersseveralchannelssimilarto those offered in more mature Africanmarkets.Accordingtotherespondents(Figure4–Channelpreferencebycustomers),branchis the most widely used channel followedbyATMandlittleuseofnewer channels such as mobile or the Internet.
Despitetheevolutionintelecommunication infrastructure andthesignificantgrowthintheuse/availabilityoftheInternetinAngola,theuseofthischannelforbankingcustomersisstilllow.However,itisforeseenthat,likeinotherAfricancountries, this channel will gradually become one with the highest frequencyofuse,especiallybytheyouthsegmentofthepopulation.
With the increase in the number of Multicaixa(ATM)cards,boththe
numberofATMwithdrawalsandthenumberofPOSpaymentshaveincreased.Thisgrowthtrendhasbeennotoriousoverthelastfewyears,withPOSusagebeingevermoresignificant,reducingtheuseofcash.
AstheusageofPOSbytheretailersincreases,thecitizen’slevelofconfidencewithregardtheretoincreases, leading to a change in the profilebothofthetransactionsaswellasofthebankingcustomersthemselves.Thisbehaviourisconfirmedthroughapproximately80 percentoftherespondentsidentifyingPOSusage.
ThebranchandtheATMarethe channels most used by the customers.Thebranchcontinuestobe the channel that customers use mostfrequentlyandpreferformostfinancialservices,exceptfor‘Cashwithdrawal’and‘Balanceenquiry’forwhichMulticaixa(ATM)ispreferred.
ATM
Branch
Internet
Mobile
POS
3%
Buyingfinancialproducts
97%
Cashwithdrawal
67%
33%
2%
Billpayments
69%
18%
11%
1%
Makingcomplaints
94%5%
3%
Gettingfinancialadvice
97%
2% 1%
Balanceenquiry
65%
25%
7%
3%
Fundstransfer
84%12%
Channel preference by customers
36 |Countryhighlights
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Customer loyalty: Future challenges
Despitethelevelofcompetitioninthemarketandthestageofevolutionof the sector, there is strong evidenceforcustomerloyaltyinthesector.Themajorityofthesampleanalyzedpresentsahighlevelofloyalty,withapproximately75 percentof the respondents planning to remainwiththeirbankandwouldrecommendittoothers.
‘Financialstabilityandsolvability’and‘Imageandreputation’areidentifiedas the main reasons for maintaining therelationshipwithafinancialinstitution(Figure5–Topreasonsformaintainingbankingrelationship).However,anumberofreasonsare presented by the respondents as‘churn’drivers,namely‘Qualityofservice’and‘Timetoexecuterequests’.
Therespondentsindicatedaset of measures they consider criticalfortheimprovementofcustomerservicesintheAngolan
bankingsector.Themainareasforimprovementare‘Reductionofwaitingtime’,‘Claimresolution’andthedeficitin‘Humancapitalcompetencies’onthecommercialandback-officefunctions.
26.0%
21.0%14.0%
14.0%
11.0%
8.0%5.0%
Excellent customer service
Image and reputation
Employer requirements
Financial stability
Proximity and accessibility of branch network
Proximity of alternative delivery channels
Pricing/cost of products and services
Top reasons for maintaining banking relationship
Areas for future action to optimize customer satisfaction in Angola
Despite the continued economic growth in angola, the future sustainabilityofthefinancialinstitutionswillinevitablyrequireacustomer-orientedapproachthatoptimizesthevalueofthecustomerfortheinstitutionandviceversa.Tothisend,webelievethatgiventheevidencepresentedatthelevelofsatisfactionoftheAngolanbankingcustomer, institutions should act in three fundamental areas:
• Customer-orienteddistributionstrategy:understandthevalueleversofeachsegment(offer,channel,price)andreflectthoseontheinteractionsexperiencesmadeavailablethroughthevariouschannelsandquestiontheirownbusiness and supporting processes, soastostrengthenefficiencyandcustomerexperience.
• Efficiencyoftheoperatingmodel:implementa‘segmentedandcustomer-oriented’commercialstrategy,supportedbyaback-officemodelthatguaranteeslevelsofservicethatoptimizethecustomer’sexperienceandtheprofitabilityandefficiencyoftheinstitution.
• Strengtheningofhumancapital:implementanintegratedHumanCapitalManagementModel,capableofattracting,motivating,developingandretainingemployees,equippingthemtechnicallyandbehaviourallytocarry out their functions with themainobjectiveofprovidingexcellentcustomerservice.
angola | 37
© 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.
1 EIU:BankinginSub-SaharanAfrica2020
73.373.372.271.370.468.767.567.367.2
65.7
Bank Gaborone
StanbicFirst National
Standard CharteredCapitalAfrican BankingSavingsBaroda
Building Society
Barclays
Top 10 most customer-focused banks
69.7
Botswana
Similar to other african countries, Botswana has shown notable resilience totheglobalfinancialcrisiswithallbankssurvivingthechallengesthatcamewithit.Althoughtherelativepositionofthebankingsectorwithin
Botswana’sbroaderfinancialsectorhasnotchangedmuchoverthepastdecade,bankshaveneverthelessbeengrowingrapidly,supportedbytheliberalizationmeasuresundertakenduringthe1990s.Overthedecadefrom1997to2007,thetotalassetsofthebankingsystemgrewatanaverageannualrateof21 percent,while(nominal)GDPgrewby14percentperyear(onaverage)overthesameperiod.Thesectorisexpectedtonearlydoubleoverthenextdecade,withgrowthfromeconomicexpansionaloneexpectedtoliftthesectortoaboutUS$6.7billioninnominaltermsby20201.
Afteraperiodofrapidexpansionandconsolidation,Botswana’sbankingindustryconsistsof11commercialbanksandthreestatutorybanksasof2012.Thereare96commercialbankbranchesspreadacrossthecountry,withmostconcentratedinthecapital,Gaborone.Oftheapproximatelytwomillionpeoplecountedinthe2011nationalcensus,38percentarebankable,24percentarebankedand14percentareavailableasanentirelyuntappedmarket.
Botswana’sbankingsectorsuffersfromafewchallengesincludinghighbankchargesandtheoveralllackofacreditreferencesystemthatallowsbankstoverifytheamountofcreditthatindividualsholdineachbank.Therearealsoperceptionsofalackofcompetition,poorserviceandalackofinnovation.Whilesomeoftheseconcernsarereal,othersmaybemisplaced.Indeed,therehavebeenimportantpositivedevelopmentsinthebankingsectorinrecentyears,withenhancedcompetition,innovationsinproductandservicedelivery,andgreaterchoicesforcustomers(especiallysavers)bothwithinandoutsidethecountry.
Fiveofthetop10banksrankedabovethe country’sindustryaverageCSIscoreof69.7.
38 |Countryhighlights
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Surveyhighlights– Botswana
Customer Care
>90% cite high
importance on all the customer care servicemeasures.
52%of customers werevery
satisfiedwiththestaff’sfriendlinessandpoliteness.
Convenience TransMethSyste
97% rate cash
availabilityatthe custome50
ATMasimportant. verysati
Manyrespondents the accu
expressedthe informati
need for lower denominations of
action ods & ms
Products and Services
Pricing
currencyinATMs.
% of
rs were sfiedwithracy of on.
40%were verysatisfied
with the turnaround time.
97%of custom-ers said
funds transfer was the most important product.
36%verysatisfiedwith
funds transfer service.
of those planning to change banks
saidtheywereverydissatisfiedwiththeinterest rates and fees offeredbytheirbank.
1
3
Bank Gaborone
(80.3) First National
(72.6)First National
(77.3)First National
(74.3)Savings
(76.7)
2 Savings
(79.7)Bank Gaborone
(71.0)Bank Gaborone
(75.7)Stanbic
(73.5) BancABC
(73.2)
Capital
(77.6) Barclays
(70.9) Stanbic
(75.3)Bank Gaborone
(73.1)Capital
(69.6)
Customer service factors
Rank
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
36%
(Numberofrespondents=1,960)
Botswana | 39
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Weekly channel usage in Botswana
Surveyhighlights– Botswana
Channel usage and preference
Botswana had the highest alternate channel usage of all thecountriessurveyed.Oftherespondentswhousetheirbankweekly,32percentusePOSversusonlyaround12percentthatusethebranch.Atthesametime,useoftelephonebankingisverylowwithalmost80percentofcustomers indicating that they do not use call centers for anytransaction.
Ofthepreferredchannelsforperformingvarioustransactions,69percentofcustomerssaidthattheypreferpayingbillsviaPOS,while14percentnotedapreferenceforusingthebranch.Forbalanceenquiry,37percentpreferusingtheATMand27percentpreferusingmobilebanking.although 66 percent of customers prefer transferring funds atthebranch,amodest24percentusemobilebankingwhichisoneofthehighestfiguresamongstthecountriessurveyed.
POS32% Mobilebanking26% ATM17%
Branch12% Mobile payments7% Internet
banking6%
Forcustomercare,BankGaboroneachievedthehighestrating,followedbySavingsBankandCapitalBank.However,itshouldbenotedthatthesebanksarerelativelysmallin terms of customer base and providemorepersonalizedservicescomparedtothebiggerbanks.
Onconvenience,customersplacedFirstNationalBankBotswana(FNBB)atthetop,closelyfollowedbyBankGaborone,whileBarclaysandStanbictiedinthirdplace.
It’snotsurprisingthatFNBBscoredthe highest in the categories of convenienceandtransactionmethodsandsystems.TheyarewidelyviewedasthemostinnovativebankinBotswana, with ingenuity that has been instrumental in attracting and retainingcustomersbyprovidingawidearrayofconvenientproductsandservices,andtransactionmethodsandsystems.Disappointingly,however,theircustomersfeelthatthey do not measure up when it comestopricing.FNBBreceived
aratingof65.5percentversusSavingsBank’s76.8 percentratingforpricing.Thatbeingsaid,itisworthnotingthatSavingsBanksregularlyachieveshighratingsinthis regard due to the nature of theirbusinessandoperation.Theywere established to meet particular nationalneedsandarespecializedintheir operations with the purpose of providingavenuesforsavingbythesmallsaversegmentandtoprovidefinancialservicesforallthepeopleofBotswana.
40 |Countryhighlights
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Service improvement area
InBotswana,customerswantserviceimprovementintwomainareas:waittimes for transaction processing and requests,andmorefriendly,politeandproactivestaff.
Seamless points of contact in the bank
Improved deliveryof servicesthrough channels
Friendly, polite andproactive staff
Reduction in wait times for transactionprocessing and requests
Fast and effectivecomplaints resolution
Competitivenessof interest rates,fees and charges
18.6% 12.9%15.2%
Customers’ top service improvement area
18.3% 13.5% 12.8%8.7%
Availability of alternatechannels
Proximity of branches
Financial stability
25.3%
10.0%
8.0%
8.0%
5.6%
Turnaround time for requests and enquiries
Interest rates and fees
Service quality
Innovative products & services
Top customer reasons for changing banks
43.0%
Customer loyalty
CustomerloyaltyandadvocacyinBotswanaissimilartotheaverageofallcountriessurveyed(about60 percent).Sixtypercentofcustomers said they would absolutely repeatbusinesswiththeirbank,while the same number said they wouldrecommendtheirbanktoothers.Customerattritionisalsolowwithonlyoneinevery10customersindicatingtheymightchangebanks,citing‘servicequality’asthetopmostreasonforthechange.
Botswana | 41
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Cameroon’sfinancialindustryischaracterizedbyhighlevelsofexcessliquidityandheavyconcentrationsofloansanddepositswithinprivatecompanies
(accountingforsome65percentofalllending1).With15 bankscurrentlyactiveinthecountry,thesector’stotalassetsareexpectedtogrowataCAGRof13percent(fromaboutUS$3.5billionin2011toover$5.8 billionin20152)
Itisworthnotingthatrecentbankinginitiatives,suchasthecompulsorypaymentofcivilservants’salariesthroughbankaccounts,haveencouragedmoreCameroonianstoopenaccountswhiletherecentlaunch of a Deposit insurance Fund should also improveconfidenceinthesector.Microfinanceinstitutions are seen as a strong complement to thetraditionalbankingsectorandthegovernmentintends to strengthen them through consolidation, greatertransparencyandmonetization.Asisthecase in most african countries, some analysts believethatmobilebankingholdsthekeytobankingCameroon’sunbanked.
1 AfricaEconomicOutlook20122 EIU:BankinginSub-SaharanAfrica2020
68.064.663.862.161.2
57.7
Banque InternationaleUBAAfriland
Societe GeneraleSociete Commerciale
Ecobank
Top 6 most customer-focused banks
62.9
Threeofthetop6banksrankedabovethe country’sindustryaverageCSIscoreof62.9.
Cameroon
42 |Countryhighlights
© 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.
Surveyhighlights– Cameroon
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
83% cite high importance to prompt
attentiontocustomers’enquiriesand complaints.
89%cite high importance
to accessibility of branches.
69%were satisfiedwith
proximityofbranches.
45% satisfiedwith the
overalltimelinessand turnaround time in processing transactions.
50%satisfiedwith the accuracy
and completeness of information providedbytheirbank.
60%satisfiedwith the ease
of understanding currentproducts.
65%satisfiedwith their bank’s
abilitytodeliverproducts that meet theirneeds.
Only
34%satisfiedwith the cost of
maintaining accounts withtheirbanks.
25%satisfiedwith the interest
rates offered on deposits and investmentproducts.
1
3
Afriland
(65.3)UBA
(70.2)UBA
(66.5)UBA
(65.5)UBA
(59.2)
2Société
Commerciale
(64.0)BICEC
(68.5)Afriland
(63.1)SGBCI
(65.1)Afriland
(56.8)
BICEC
(63.7)SGBCI
(67.2)
Société Commerciale
(62.8)Afriland
(64.9)Ecobank
(53.8)
Customer service factors
Rank
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
(Numberofrespondents=276)
Only
44% satisfiedwith the promptness of attention and response to enquiriesandcomplaints.
Cameroon | 43
© 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.
Weekly channel usage in Cameroon
Surveyhighlights– Cameroon
Top customer reasons for changing banks
20.0%
5.7%17.1%
17.1%
17.1%22.9%
Turnaround time for requestsand enquiries
Interest rates and fees
Financial stability
Service quality
Innovative products & services
Proximity of branches
Channel usage and preference
Withlessthanonein10Camerooniansreportingtheuseofmobilebanking,internetbanking,POSorcallcenters,alternatechanneladoptionisclearlyverylow.Asurveyofcustomerswhoconducttransactionsweeklyrevealedthat64percenttendtousetheATM,20percentusethebranch,andfarfewerusemobilebanking(7percent),internetbanking(5percent),POS(2percent),ormobilepaymentsandcallcenters(1percenteach).
Thebranchlargelydominatesasthepreferredchannelforperformingtransactions,exceptforbalanceenquiry,wheremorepeopleusetheATM.DespitetheATMbeingthemostwidelyusedchannelinCameroon,morecustomerspreferwithdrawingcashfromthebranch(59percent)comparedwiththeATM(41percent).
Customer loyalty
CustomerloyaltyandadvocacyappearslowinCameroon.Whilea large number of respondents indicated they were willing to repeatbusinesswiththeirbankandrecommend it to others, only about 30percentexpressedthisinabsoluteterms.Elevenpercentofrespondentsindicated that they would change theirbank,citing’servicequality’asthetopreasonforchanging.
ATM64% Branch20% Mobilebanking7%
Internetbanking5% POS2% Call
centre1% MobilePayment1%
44 |Countryhighlights
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Customers’ top service improvement area
Service improvement area
Whenaskedwhichareabanksneededtoimprovemost,Cameroonianrespondentssaidtheywantedtoseeimprovementsinwaittimes for transaction processing and requestsandmorecompetitivenessininterestratesandfees.
Seamless points of contact in the bank
Availability of alternate channels
Improved deliveryof services through
channels
Friendly, polite andproactive staff
Reduction in wait timesfor transaction processing and requests
Fast and effectivecomplaints resolution
Competitiveness of interest rates,
fees and charges
21.0%17.0% 16.0%
16.0%
9.0%10.0%
10.0%
Cameroon | 45
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asamemberoftheEconomicandMonetaryCommunityofCentralAfrica(CEMAC)monetaryunion,Chad’scurrencyispeggedagainsttheEuro.Thebanking
systeminChadismadeupofninebanks(mostofwhichareforeign)andischaracterizedbybothahighconcentrationofriskandanunder-capitalizationofbanks.Thesector’stotalbalancesheetwasestimatedatUS$1billionattheend of 20111.Interestingly,thecountryboastsmorethan200microfinanceinstitutionsandonly27 bankbranches, highlighting the low branch spread of commercialbankswithinthecountry.Asaresult,significantopportunitiesexistinSME,housing,ruralandmicrofinancingwithinthebankingsector.
1 AfricaEconomicOutlook2012
67.965.5
61.360.4
53.051.8
47.1
Commercial
Societe Generale Banque Sahelo
UBAOrabank
Banque Commerciale
Ecobank
Top 7 most customer-focused banks
58.1
Fourofthetop7banksrankedabovethe country’sindustryaverageCSIscoreof58.1.
Chad
46 |Countryhighlights
© 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.
Surveyhighlights– Chad
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
89%consider staff attitude
as most important customer care measure.
56% of customers indicated that they were satisfiedwiththeirbank’sstaffattitude.
88% cite
high importance to accessibility of ATMs.
43%satisfiedwith ATM
availabilityuptime.
80%of customers consider
accuracy and completeness of informationprovided bybanks.
37%satisfiedwith the accuracy
and completeness of information providedby theirbank.
44% satisfiedwith
assistancereceivedaround learning of bank’sproductsandservices.
22%satisfiedwith the access
tooverdraftfacilities.
21%were satisfiedwith
the interest rates offered on deposits andinvestmentproducts.
39%satisfiedwith the cost of
maintainingbankaccounts.
1
3
BSSIC
(71.7)Commercial
Bank of Tchad
(67.5)
Commercial Bank of Tchad
(73.3)
Commercial Bank of Tchad
(70.5) Ecobank
(65.9)
2 Ecobank
(67.6)BSSIC
(63.2)BSSIC
(68.6)BSSIC
(64.2)BSSIC
(58.3)
Commercial Bank of Tchad
(65.9) SGBCI
(60.8)SGBCI
(67.3)SGBCI
(61.2)Commercial
Bank of Tchad
(54.8)
Customer service factors
Rank
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
(Numberofrespondents=147)
Chad | 47
© 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.
Weekly channel usage in Chad
Surveyhighlights– Chad
Service quality
Interest rates and fees31.8%
31.8%
22.7%
9.1%
4.5%
Turnaround time for requests and enquiries
Innovative products & services
Proximity of branches
Top customer reasons for changing banks
Channel usage and preference
TheATMemergedasthemostfrequentlyusedchannelonaweeklybasis,followedbythebranch.ApartfromtheATM,alternatechanneladoptionisquitelow(fully98percentofcustomersindicatedthattheyhaveneverusedPOS,mobilebankingormobilepayments).Over90 percentofcustomerssaidtheypreferthebranchforalltheir transactions, which reinforces the fact that alternate channelshavesufferedfromfairlylowadoptionratesinChad.
Customer loyalty
CustomersinChadreportedlowcustomerloyaltyandadvocacylevels.Onlyabout15percentof respondents were absolutely willing to repeat business with their bankandrecommendittoothers.14 percentsaidthattheyareplanningtochangetheirbank,citing‘interestratesandfees’aswellas‘innovativeproductsandservices’asthetopreasonsforchange.
53% 36% 9%Branch
1% Callcentre1%POS
ATMInternetbanking
48 |Countryhighlights
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Service improvement area
Thesurveyfindsthatthecompetitivenessofinterestrates,fees and charges is where customers wantthemostimprovement,followed by seamless points of contactandareductioninwaittimes.
Seamless points of contact in the bank
Availability of alternate channels
Improved deliveryof servicesthrough channels
Friendly, polite andproactive staff
Reduction in wait times for transactionprocessing and requests
Fast and effectivecomplaints resolution
Competitivenessof interest rates,fees and charges
17.0%15.0%
13.0%
Customers’ top service improvement area
8.0%9.0%18.0%
21.0%
Chad | 49
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inthewakeofapost-electioncrisisin2010,allbanksinCôted’Ivoirereporteddeclinesinyear-over-yearresultsand–tovaryingdegrees(dependingontheircashlevels)–revenuesandmarketshare.
Nevertheless,anoverallreturntonormalcyacrossthecountryhasresultedinanimprovedoutlookforthefuture.Despitetheharmfulimpactofthecrisis,IvorianbanksheldaroundCFAF4,000billion (US$8billion)incustomerliabilitiesin2011comparedtoapproximatelyCFAF3,000 billionin20101.
AsaformerFrenchcolony,Côted’IvoireenjoysstrongparticipationfromFrenchbanks.Thereare23banksinCôted’Ivoire,includinginternationalbanks,regionalbanksandprivatebanks.Moreover,giventhatbankingservicespenetrationratesinCôted’IvoireandtheWestAfricanEconomicandMonetaryUnion(UEMOA)isonly8percent,weseesignificantopportunityintheIvorianmarket.Andwhilethemarketisstilllargelydominatedbycashtransactions, the future trend is clearly leaning towards the adoptionofelectronicservices.
notwithstanding these challenges, the country has enjoyedasignificantincreaseinthenumberofaccountsfrom879,478in2008to1,847,837in2011(anincreaseof110percent).Forthemostpart,thisperformancecanbeattributedtothepositivegrowthoutlookfor2012and,likely,for2013.
1 NationalBankingAssociation
68.366.565.665.465.465.364.864.564.063.3
BFA
BIAOUBA
SGBCIBNIBank of AfricaBanque AtlantiqueSIBBHCI
Ecobank
Top 10 most customer-focused banks
64.6
Côte d’Ivoire
Sevenofthetop10banksrankedabovethe country’sindustryaverageCSIscoreof64.6.
50 |Countryhighlights
© 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.
Surveyhighlights– Côte d’Ivoire
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
56% satisfiedwith the prompt
attentiongiventoenquiriesandcomplaints.
79%satisfiedwith the staff’s
knowledgeandtheir understanding ofthebank’sproducts.
92%
importance score forcashavailabilityatATMsbycustomers.
23%very satisfiedwith
cashavailabilityatATMsdespiteits importance to customers.
90%
of respondents rankturnaroundtime for transaction processing as the most important measure,however.
68%were satisfiedwith
turnaround time for transaction processing.
51%satisfiedwith the ease of
gettingloans.
73%satisfiedwith the bank’s
abilitytoprovidesimple products that are easy to understand.
37%satisfiedwith the interest
rates offered on deposits andinvestmentproducts.
43%satisfiedwith the bank’s
charges on maintaining accounts.
1
3
BFA
(68.8) SGBCI
(68.2)BFA
(73.3)BIAO
(66.6)BFA
(65.3)
2 UBA
(68.2) UBA
(67.6)UBA
(68.1)BFA
(66.2)UBA
(60.7)
BNI
(67.3)BFA
(67.5) Bank of Africa
(67.1)SGBCI
(65.4) Bank of Africa
(59.5)
Customer service factors
Rank
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
(Numberofrespondents=1,253)
Côted’Ivoire | 51
© 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.
Weekly channel usage in Côte d’Ivoire
Surveyhighlights– Côte d’Ivoire
34.6%
31.3%
22.1%
4.3%3.4%2.4%1.9%
Turnaround time for requests and enquiries
Interest rates and fees
Financial stability
Service quality
Innovative products & services
Access to credit
Proximity of branches
Top customer reasons for changing banks
Channel usage and preference
Alternatechannelusageisalmostnon-existentinCôted’Ivoire.Indeed,around90percentofrespondentsindicatedthattheyhaveneverusedanalternatechannel(suchasPOS,Internetbanking,callcenters,mobilebankingandmobilepayments)exceptforATMs.Asaresult,aboutfiftypercentofcustomerssaytheyusethebranchonceamonth,and28percentuseiteverytwoweeks.
Highuseofbranchesandlowonlinebankingservicesmaybeexplained,inpart,bythefactthatfewhouseholdsownapersonalcomputer.However,safetyandtrustissuesstillremain.Simplyput,manyIvoiriansdon’tfeelcomfortableusingacomputerforbankingoperationsforfearofcompromisingtheirsecurityandprivacy.
Thatbeingsaid,mobilebankingisenteringtheIvorianmarketatapromisingrate.Highmobilephoneadoptionrates(particularlyamongyoungadults)inCôted’Ivoireseems to support the rise of this new distribution channel andmayeventuallychangetransactionsmethodsformanyconsumers.Already,billpaymentandmoneywiresareeasilydonethroughamobilephone.Threemajorbanks,operatingonaregionallevel,competewithinthisnewsegment.BIAOandBICICIhaveestablishedapartnershipwithOrange,oneoftheleadingmobileoperatorsontheIvorianmarket,whichhelpedlaunch‘OrangeMoney’.SociétéGénéralefollowedsuitbypartneringwithMTNtooffer‘MTNMobileMoney’.
Customer loyalty
CustomersdemonstratedvariousdegreesofloyaltyandadvocacyinCôted’Ivoire,thoughratesstillfallbelowtheoverallaverageofallcountriessurveyed(60percent).Forty-fivepercentwillabsolutelyrepeatbusinesswiththeirbank,while46percentsaidtheywouldabsolutelyrecommendtheirbanktoothers.Fifteenpercentofcustomersplantochangetheirbank,withservicequalitybeingthetopreasonforchange.
Branch43% ATM40% Mobilebanking12%
Callcenter3% 2% Internet
banking
52 |Countryhighlights
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Service improvement area
Respondentsselected‘reductioninwaittimesfortransactionprocessing’astheirtopserviceimprovementareaforIvorianbanks.
Seamless points of contact in the bank
Availability of alternate channels
Friendly, polite andproactive staff
Reduction in wait times for transactionprocessing and requests
Fast and effectivecomplaints resolution
Competitivenessof interest rates,fees and charges
16.5%16.3%
Improved deliveryof servicesthrough channels
14.4%
Customers’ top service improvement area
5.6%8.0%17.1%
22.2%
Côted’Ivoire | 53
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ghana’sbankingsectoremergedfromtheuncertaintygeneratedduringtheglobalfinancialcrisisinarelativelystrongposition.However,someuncertaintyarosefromthefactthatexternalborrowingbylocalbanks
hadbecomelowwithheavyrelianceondomesticdeposits.TheGhanaianbankingsectorhasatotalassetbaseofaboutGHC25billion(US$13billion)as of 20121.Thesectoralsoenjoysapositiveoutlookwithitsbankingassetsexpectedtogrowataround18percent(CAGR)fromapproximatelyUS$9.2 billionin2011toalmostUS$18billionby20152.
Followingthefinancialstructuraladjustmentprogram(launchedaspartoftheeconomicrecovery),competitionwithintheGhanaianbankingindustryhassurgedthroughoutthepastdecade.Theindustryhaswitnessedtheentryofnewbanks–localandforeign–whichhastranslatedintoenhancedproductdevelopmentbymostplayers.Indeed,bytheendof2012,Ghanaboasted26registeredcommercialbanksand889bankbranches.Bankingpenetrationcurrentlysitsatabout30percentoftheGhanaianpopulationofabout25million.Therelativelylowpenetration is attributable to a myriad of reasons including the multiplicityofbankchargesoncustomeraccountsandthelackofproductsthatdirectlymeettheneedsofthebulkofthepopulation.
Withrisingdemandsinbanking(duetotheemergentupstreamoilandgasindustry)andthesomewhatinadequatebalancesheetsofbanks,webelievethattheindustrywillsoonseearecapitalizationwithanincreaseintheminimumcapitalheld.Itisalsoexpectedthatgrowingcompetitionamongbankswillgraduallycreateabankingsystemthatputstheneedsofthepopulationattheheartofproductdevelopment.Superiorcustomerexperiencewillthereforebekeytodifferentiatingofferingsinthemarketplace.
1 BankofGhana:MonetaryPolicyCommitteeReport(Q2,2012)2 EIU:BankinginSub-SaharanAfrica2020
73.871.170.970.669.068.768.368.368.368.2
GTB
UT BankZenith
Bank of AfricaFidelitySG-SSB BankUBAPrudentialStandard Chartered
Cal Bank
Top 10 most customer-focused banks
57.8
Allofthetop10banksrankedabovethe country’sindustryaverageCSIscoreof57.8.
Ghana
54 |Countryhighlights
© 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.
Surveyhighlights– Ghana
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
76% satisfiedwith the attitude
ofstaffatGhana’sbanks.
69% satisfiedwith the ability
ofthebank’sstafftoprovideusefulfinancialadvice.
90% attached high
importance to cash availability,securityand uptime of the ATMs.
75%said they were
satisfiedwiththeavailabilityofcashand the security of ATMs.
64% satisfiedwith
the timeliness in transaction processing.
71%satisfiedwith the accuracy
and completeness of information (suchasbankstatements and adviceslips).
70%indicated that they were
satisfiedwiththecurrent products and servicesofferedbytheirbank.
73%found banks’products to
beeasytounderstand.
57%said they were satisfied
with the cost of maintainingbankaccounts.
30%of customers that plan
tochangebanksindicated that they wereverydissatisfiedwithbankchargesontheiraccounts.
1
3
GTBank
(77.8)GTBank
(74.1)GTBank
(78.5) GTBank
(78.5) GTBank
(68.5)
2 UT Bank
(77.3)UT Bank
(71.0)UT Bank
(76.8)Zenith
(71.4)Zenith
(64.2)
Zenith
(76.0)Zenith
(70.8) Bank of Africa
(74.9)Cal Bank
(70.9)Bank of Africa
(64.0)
Customer service factors
Rank
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
(Numberofrespondents=1,020)
ghana | 55
© 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.
Weekly channel usage in Ghana
Surveyhighlights– Ghana
36.0%
22.9%
12.0%
16.3%
11.6%
1.2%
Turnaround time for requests and enquiries
Interest rates and fees
Financial stability
Service quality
Innovative products & services
Proximity of branches
Top customer reasons for changing banks
Channel usage and preference
AdoptionofalternatechannelsisquitelowinGhana,althoughhigherthansomeotherAfricancountriescoveredinthissurvey.Fifty-sixpercentofrespondentssaidthattheyusetheATMweekly,makingitthemostwidelyusedchannel.Tenpercentuseinternetbankingweeklyand8percentusePOSterminals.Eightoutof10customerssaidtheyneverusemobilebanking,while74percentadmittedthattheyneverusetheInternetforanyformoftransaction.
Notsurprisinglytherefore,85percentofcustomerssaidthat they conduct fund transfers through the branch, comparedtoonly8percentthatusetheinternetforthesamepurpose.Fifty-sixpercentofrespondentschecktheirbalancesatthebranch,38percentusetheATMandonly3percentusethemobilebankingplatform.Branchuseremainshighwithsixoutof10respondentssayingthattheywithdrawcashusingthebranch,and83percentsayingthattheyalsopaybillsatthebranch.
Customer loyalty
CustomerloyaltyandadvocacyforGhanaianbanksisbelowtheoverallaverageofallcountriessurveyed.Forty-fourpercentofrespondentsagreed that they would absolutely repeatbusinesswiththeirbank,while a similar number said they wouldrecommendtheirbanktoothers.Fifteenpercentofthecustomerssurveyedexpressedthelikelihoodofchangingtheirbank,citingservicequalityasthetopreasonforchanging.
56% 27%ATM 8%Branch
6% Callcentre
Mobile Banking 2% POS
Internetbanking
1%
56 |Countryhighlights
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Service improvement area
Ghanaiansurveyrespondentsreported that the area where they mostwantedtoseeimprovementwas the reduction in wait times for transactionprocessingandrequests.
Seamless points of contact in the bank
Availability of alternatechannels
Improved deliveryof servicesthrough channels
Friendly, polite andproactive staff
Reduction in wait times for transactionprocessing and requests
Fast and effectivecomplaints resolution
Competitivenessof interest rates,fees and charges
20.0%18.0%
15.0%
15.0%15.0%
11.0%5.0%
Customers’ top service improvement area
ghana | 57
© 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.
LocalbanksinKenyaemergedrelativelyunscathedfromtheglobalfinancialcrisis,andgrewstronglyastheeconomyrebounded.Sectorpre-taxprofitsincreasedby16.9percent,fromUS$400millionin
2010toUS$462millionin2011.
Thesectorisexpectedtodoubleitsassetsinthenextdecade,largelyfromeconomicexpansiondrivenbyseveralinterrelatedforcesincludingbriskgrowthinthewidereconomy,ariseinhouseholdincomeandconsumersophistication,andthespreadofbankingtoalargeproportionofthepopulation(bankingpenetrationroseto35 percentin2012).Economicexpansionalonewillliftthesectorto aboutUS$33billion(innominalterms)by20201.
Anemergingcontributortobanks’profitsistheincreaseduseofthemobileplatformtodeliverfinancialservicesthroughpartnershipswithmobileserviceproviders.FollowingtherecentsuccessfullaunchofM-Shwari–amobilebankingproductofferedthroughastrategicco-operationbetweenVodafone,SafaricomandtheCommercialBankofAfrica(CBA)–morebankswillhavetorethinktheirmobilebankingstrategies.M-Shwariprovidesaccesstointerest-bearingsavingsaccountsaswellastheabilitytoborrow.
1 EIU:BankinginSub-SaharanAfrica2020
76.174.474.474.174.073.873.573.172.872.4
CFC Stanbic
EcobankKenya Commercial
PostEquityBarclaysFamilyNationalStandard Chartered
Cooperative
Top 10 most customer-focused banks
Twopan-Africanbanks(CFCStanbicandEcobank)emergedamongthetopthreebanks.CFCStanbicwasrankedasthemostcustomer-focusedbank,followedbyKenyaCommercialBankandEcobankinsecondandthirdpositions,respectively. FivebanksrankedabovetheKenyanindustry averageCSIscoreof73.9.
73.9
Kenya
58 |Countryhighlights
© 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.
Surveyhighlights– Kenya
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
88% satisfiedwith the staff’s
knowledgeofbankproducts.
75%satisfiedwith how
quicklythebankresponded to their complaints and enquiries.
77%satisfiedwith ATM
availabilityand84%said they were satisfiedwithcashavailabilityattheATM.
83%satisfiedwith the ease
ofbalanceenquiryusing mobile payments.
85% of
respondents reported beingsatisfiedwiththe accuracy of informationprovidedbybanks.
77%satisfiedwith the overall
timeliness in processing transactions.
87%are satisfiedwith
the suitability of products and servicestotheirneeds.
84% satisfiedwith the
assistanceprovidedon how to access andusetheirbank’sproducts.
62%were satisfiedwith
interest rates and deposits.
71%were satisfiedwith cost of
maintaining accounts withtheirbanks.
1
3
CFC Stanbic
(79.7)Ecobank
(75.9)CFC Stanbic
(81.3)Post Bank
(75.0)National Bank
(72.1)
2 Post Bank
(77.8) CFC Stanbic
(75.7)Standard Chartered
(78.0)Family Bank
(73.7)Post Bank
(71.9)
Ecobank
(77.5)Kenya Comm.
Bank
(75.3)Barclays
(77.6)Kenya Comm.
Bank
(73.1)Equity Bank
(70.7)
Customer service factors
Rank
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
(Numberofrespondents=1,190)
kenya | 59
© 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.
Weekly channel usage in Kenya
Surveyhighlights– Kenya
Financial stability
36.7%
23.2%
10.6%
7.7%
17.4%
4.3%
Turnaround time for requests and enquiries
Interest rates and fees
Service quality
Innovative products & services
Proximity of branches
Top customer reasons for changing banks
Channel usage and preference
Apartfromcashwithdrawalandbalanceenquiry(wheretheATMhasbecomethemostpreferredchannel),Kenyanrespondents indicated a high preference for using the branch.Sowhile75percentofcustomerssaidtheyprefertheATMforcashwithdrawals,and50percentsayingtheyalsoprefertheATMforbalanceenquiry,morethaneightintensaidtheyprefertoperformfundtransfers,makecomplaintsandpaytheirbillsviathebranch.
Bankshavealsorolledout‘agencybanking’followingtheenactmentofagencyguidelinesbytheCentralBankofKenya(CBK).Agencybanking,whichisconsideredabranchchannel,sawhugeexpansionin2011,andisprojectedtoleadtoincreasedcustomerbaseandtransactions.Coupledwiththeincreasedadoptionofbancassurance(aservicethatintegratesbankingandinsurance),thesefactorsseemto foreshadow strong branch usage in the foreseeable future.
TheATMalsoappearedasthemostfrequentlyusedchannelwithover47percentofKenyanrespondentsindicatingusageonaweeklybasis.Interestingly,mobilebankingisthethirdmostfrequentlyusedchannelafterthebranch.Fortypercentofcustomersthatusemobilebankingonaweeklybasisarebetweentheagesof 31-40.However,morethan70percentofcustomersalsoadmittedthattheyhadneverusedinternetbankingorcallcentersforanytransaction.
Customer loyalty
CustomerloyaltyandadvocacyinKenyaissimilartotheaveragefromallthecountriessurveyed.Fifty-fivepercent of customers said they would absolutely repeat business with theirbank,while56percentwouldabsolutelyrecommendtheirbanktoothers.Elevenpercentofcustomerssurveyedindicatedtheymightchangetheirbankwithservicequalitybeingthetopreasonforchange.
47% 23%ATM 11%Branch
7% Callcentre
Mobile banking
6% POSInternetbanking3% 3%Mobile
payments
60 |Countryhighlights
© 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.
Service improvement area
Kenyancustomerswantbankstoimproveserviceintwomainareas: wait times for processing transactions, and offering more competitiveinterestrates,feesandcharges.
Availability of alternate channels
Friendly, polite andproactive staff
Reduction in wait times for transactionprocessing and requests
Competitivenessof interest rates,fees and charges
15.9%15.0%
Seamless points of contact in the bank
Improved deliveryof servicesthrough channels
14.8%
Customers’ top service improvement area
8.8%9.3%18.0%
Fast and effectivecomplaints resolution
18.2%
kenya | 61
© 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.
WhileNigeriamaybeAfrica’smostpopulouscountry,onlyabout20percentofthepopulationisbankedandtwo-thirdshaveneverbanked1atallbefore.
Thebankingindustryismadeupof20bankswithnearly6,000 branches, most of which are concentrated in the urbanareas(afactthatcontributestothelowlevelsofbankingpenetration).Nigeria’sbankingsectorisexpectedtogrowfromaboutUS$117billionin2011tomorethanUS$168 billionin20152(aCAGRofaround10percent).
Thesectorhasrecentlyexperiencedanumberofregulatorychangesincludingarepealofuniversalbankinglicensesand the promulgation of more stringent regulations by thecountry’sCentralBankwhichisaimingtoreducesoaringbooksofnon-performingloansandstampoutseverebreachesofcorporategovernance.However,withtheestablishmentoftheAssetManagementCompanyofNigeria(AMCON)topurchasetoxicassetsofbanksandrecapitalizetroubledbanks,some stability has returned to the sector leading ratingagencyStandard&Poor’s(S&P)toupgradethesectorin2012toapositiveoutlookduetothecountry’simprovedassetquality,capitalizationandcorporategovernance.
Nigeria
1 Efina20102 EIU:BankinginSub-SaharanAfricato2020
77.977.7
76.175.7
75.074.8
74.473.9
73.473.1
GTBank
StanbicZenith
FidelityStandard Chartered
FCMBFirst bank
SterlingAccess
Diamond
Top 10 most customer-focused banks
Allofthetop10banksrankedabovethe country’sindustryaverageCSIscoreof72.1.
72.1
62 |Countryhighlights
© 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.
Surveyhighlights– Nigeria
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
85% satisfiedwith the staff’s
friendliness, politeness and willingness to assist customers.
79%satisfiedwith the prompt
attentiongivento customer complaints and enquiries.
87% were satisfied
withcashavailabilityattheATMs. Satisfactionlevelswith mobile banking,Internetbankingandcallcenterserviceswere rated comparativelylow–inthehigh50sandlow60s.
87%satisfiedwith the accuracy
and completeness ofbankstatements,adviceslips,etc.
80% satisfiedwith the overall
timeliness and turnaround time in processing transactions.
85% were
satisfiedwithsuitabilityofbanks’productsandservicestotheirneeds.
85% were satisfied
with funds transfer services.
67%satisfiedwith the cost
of maintaining accounts with theirbank.
54%satisfiedwith the interest
rates offered on deposits andinvestmentproducts.
1
3
GTBank
(80.6) Zenith
(79.0)Zenith
(79.5)GTBank
(78.3)GTBank
(71.2)
2Standard Chartered
(80.5) GTBank
(77.5) GTBank
(79.4) Zenith
(77.0)Stanbic IBTC
(67.5)
Zenith
(79.6)Diamond
(76.3) Stanbic IBTC
(79.2) Fidelity
(75.3) FCMB
(67.3)
Customer service factors
Rank
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
(Numberofrespondents=10,577)
nigeria | 63
© 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.
Weekly channel usage in Nigeria
Surveyhighlights– Nigeria
53.2%
12.0%
9.4%
10.8%
8.4%
5.9% 0.3%
Turnaround time for requestsand enquiries
Interest rates and fees
Financial stability
Service quality
Innovative products & services
Access to credit
Proximity of branches
Top customer reasons for changing banks
Channel usage and preference
WithATMsbecomingalmostubiquitousinNigeriancities, it is not surprising that it has been the fastest growingchannelinrecentyears.Almosteightin10customerssurveyedusetheATMandnearlytwothirdsofthesepeoplevisitanATMonaweeklybasiswithcashwithdrawalandbalanceenquiryamongstthemostcommontransactionscustomersperformviatheATM.
However,despitetheproliferationofnewchannelsinrecentyears,ourfindingsshowthatadoptionofotheralternatechannelsisstillcomparativelylowwithveryfewrespondentssayingtheyuseinternetbanking(7percent),POS(6percent),telephonebanking(5percent)andmobilepayments(2percent).Indeed,oftherespondentsthathadusedinternetbanking,athirdwereprivatesectoremployeesand15percentwerestudents.However,whilecustomerssaytheywouldliketousesomeofthesealternate channels for transactions such as bill payments andgettingfinancialadvice,uptakeisstilllowwithmanyconsumersoblivioustothevaluepropositionthatthesechannelsprovide.
Thatbeingsaid,thesignificantandrapidadoptionoftheATMsuggeststhat–onceinternetbankingandmobilepaymentstakeroot–greatpotentialcouldberealized.
Customer loyalty
Nigeria’sbankingindustryhasexperiencedanextensiveandongoingshiftinconfidencewhich,inturn,hasimpactedloyalty.Customerawareness has increased, leading customers todemandhigherlevelsofpersonalizedservices.Interestingly,whilemostcustomersexpressedawillingnesstocontinuewiththeirbank,abouthalfofthosewhowouldliketochangetheirbanksaidtheywereremainingprimarily because of their perception of the bank’sstability.Thismeansthat,ascustomerconfidenceinthebankingindustrybeginstorise,thereislikelytobeanincreaseincustomer switching rates and the associated costsofacquiringandretainingcustomers.
Morethan70percentofNigerianrespondents indicated that they would repeatbusinesswiththeirbankandrecommendittoothersatdifferentlevelsbutonlyhalfexpressedloyaltyandadvocacyinstrongterms.
ATM65% Branch29% Internetbanking3%
Mobilebanking2% POS1%
64 |Countryhighlights
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Service improvement area
Whenaskedhowtheirbankcouldimproveitsservices,manyNigerianrespondentsidentifiedadesiretosee a reduction in wait times for transactionprocessingandrequestsasaprimaryareaofimprovement.
Customerswouldalsoliketoseemorefriendly,politeandproactivestaffwithintheirbanks.
Seamless points of contact in the bank
Availability of alternatechannels
Improved deliveryof servicesthrough channels
Friendly, polite andproactive staff
Reduction in wait times for transactionprocessing and requests
Fast and effectivecomplaints resolution
Competitivenessof interest rates,fees and charges
19.7%17.7%
15.1%
13.9%13.6%
12.1%7.8%
Customers’ top service improvement area
nigeria | 65
© 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.
Senegalesebankswerebarelyaffectedbytheglobalfinancialcrisisand,asaresult,bankingsectorassetsareexpectedtogrowataCAGRof14 percentfromUS$4.6billionin2011toapproximatelyUS$7.8billion
in20151.Withthisgrowthisexpectedtocomegreaterdiffusionofincomeand,thus,increaseddemandforbothconsumerandSMEbankingservices.
Asofthetimeofwriting,theSenegalesebankingsectorhad19banksinoperation, broadly falling into two categories: historical players and new entrants.ButwhilehistoricalplayerssuchasSociétéGénérale,CBAOGroupeAttijariwafaBank,Ecobank,Banquedel’habitatandBICISrepresentaroundthreequartersofthemarket,newplayersarebeingattractedtothemarketbygoodprospectsofeconomicgrowth,politicalstability,ahousingboomandlowerpenetrationofbankingservices.
Whilesomeconsiderthatthemarketisnowsaturated,andsuggestthataconsolidationprocessisinevitableinthefuture,itmustbenotedthatthebankingpenetrationratesitsataround20percent(includingmicrofinanceinstitutions),providingmuchroomforgrowth.OtherencouragingsignsalsoexistsuchastheapprovalofanewlawrequiringpaymentofsalariesofmorethanXOF100,000(US$202)bybanktransfer.
TheoutlookfortheSenegalesebankingsectorseemsstrong,buoyedbyananticipatedincreaseinbankingpenetrationrates,betteradoptionofbankingproductsbycustomers,improvedwealthmanagementservices,andsoon.
1 EIU:BankinginSub-SaharanAfrica2020
Top 10 most customer-focused banks
RespondentsinSenegalrankedBanqueIslamiqueasthemostcustomer-focusedbank,withCBAOGroupeandBanqueInternationalealsoachievinghonorablementions.Sixoutofthetop10banksrankedabovetheaverageindustryCSIscoreforSenegalof60.3.
60.3
63.862.362.0
61.160.9
60.860.259.158.8
53.8
Banque Islamique
Banque InternationaleCBAO Groupe
SGBNEcobank
Banque AtlantiqueBank of Africa
Credit du SenegalCaise Nationale
UBA
Senegal
66 |Countryhighlights
© 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.
Surveyhighlights– Senegal
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
63% satisfiedwith the prompt
responsegiventocustomers’enquiries/complaints.
78% satisfiedwith
staff’sattitude.
39% satisfiedwith
absenceofqueuesatbranches.
76% satisfiedwith
cashavailabilityattheATM.
68%satisfiedwith the accuracy
of information providedbytheirbank.
54% satisfiedwith the turnaround time for transactions processing.
Only
13%verysatisfiedthat
products and servicesmettheirneeds.
10% verysatisfied
with the assistance providedinunderstanding the bank’sproducts.
26%of customers satisfied
with the interest rates offered on deposits andinvestmentproducts.
61%of customers who plan
tochangetheirbankwereverydissatisfiedwith the cost of maintaining an account withtheirbank.
1
3
Banque Islamique
(67.7)
CBAO
(63.6)Banque
Islamique
(64.7)
Banque Islamique
(66.5)
2 BICIS
(66.0)
Crédit du Sénégal
(62.1)
BICIS
(64.6)BICIS
(62.8)
Banque Islamique
(58.0)&
UBA
(58.0)
SGBN
(65.4)
Banque Islamique
(62.0)
Crédit du Sénégal
(64.5)UBA
(61.4)Ecobank
(53.4)
Customer service factors
Rank
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
(Numberofrespondents=1,174)
Senegal|67
© 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.
Weekly channel usage in Senegal
Surveyhighlights– Senegal
Financial stability
Turnaround time for requests and enquiries
Interest rates and fees
Service quality
Innovative products & services
Proximity of branches
Top customer reasons for changing banks
35.8%
24.1%
23.5%
6.2%5.6%
5.0%
Channel usage and preference
AlternatechannelusageinSenegalwasreflectiveoftheaverageresultsfromallthecountriessurveyed.Onaweeklybasis,52percentofcustomerssaidtheyusetheATM,27percentusethebranchand10percentusetheinternet.Ninein10respondentsindicatedthattheyhaveusedneithercallcentersnormobilepayments.
For channel preference in conducting transactions, 52 percentindicatedthattheyprefercashwithdrawalthroughtheATM,while89percentsaidtheyprefertousethe branch for funds transfer and 62 percent prefer to use thebranchforbalanceenquiry.
Customer loyalty
CustomerloyaltyandadvocacyinSenegalwasbelowtheaverageofallcountriessurveyedwithjust46 percentsayingthattheywouldbeabsolutely willing to repeat business withtheirbank.Fortypercentsaidthey would absolutely recommend theirbanktoothers,whileonein10 respondentsreportedtheymightchangetheirbank,withthetopreason for changing being interest ratesandfees.
ATM52% Branch27% Internetbanking10%
Mobilebanking8% POS2% Call
centre1%
68 |Countryhighlights
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Service improvement area
RespondentsfromSenegalweresplitontheirtopneedsforserviceimprovementwithreductionsinwaittimesandmorecompetitiveinterestratesbothgarneringvotesfromaroundonefifthofcustomers.
Seamless points of contact in the bank
Availability of alternatechannelsImproved delivery
of servicesthrough channels
Friendly, polite andproactive staff
Reduction in wait times for transactionprocessing and requests
Fast and effectivecomplaints resolution
Competitivenessof interest rates,fees and charges
19.1%
19.1%
17.3%
15.6%11.6%
10.4%6.9%
Customers’ top service improvement area
Senegal|69
© 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.
TheSierraLeoneanbankingsectorhasevolvedquicklywithinthelastdecade,markedbyapost-warinfluxofsub-regionalfinancialinstitutions.Priortothestartofthecivilwarintheearly1990s,SierraLeonedepended
heavilyonthreemajorcommercialbanks:thestate-ownedSierraLeoneCommercialBank;BarclaysBank(whichwasreplacedbyRokelCommercialBankafteritceasedoperations);andStandardCharteredBank.However,withtheendofcivilwarcamealiberalizationofthenationaleconomycharacterizedby‘friendly’investmentpolicieswhichattractedverycrediblesub-regionalbankingandfinancialinstitutionsintothecountry’sfinancialmarket.
Thepresenceofthesebanksinthebankingindustryhasincreasedcapitalizationandcreatedstiffcompetitionformarketshare.Asaresult,bankingproductshavebecomeveryaccessibleandaffordablewhileaccesstopersonalloanproductshasincreaseddramatically.Indeed,SierraLeoneanconsumersarebeingbombardedonadailybasiswithcommercialadvertisementsencouragingthemtosaveandtotapintothevariousloanproductsonthemarket.
Thatbeingsaid,theSierraLeoneanbankingsectorcontinuestofaceanumberofchallenges.Thepaymentsystemisstillinitsinfancyandlargelyunder-developed;transactionswithinthecountryaremainlycash-basedwithlimiteduseofalternatechannels;andthecountrylacksanelectronicpaymentsystemforlarge-valuetransactions.Despitethesechallenges,thecapital-assetratioofthebanksis17percent,furtherreinforcingthepotentialforgrowthinthefinancialsector.
68.868.367.667.467.3
66.866.666.466.165.9
GIB
ZenithUBA
Union TrustSkyeRokelStandard CharteredSL CommercialAccess
First
Top 10 most customer-focused banks
66.2
GTBankemergedasthemostcustomer-focusedbankfollowedbyUBAandZenithBank,highlightingtherisinginfluenceoftheregionalbanksinthetop10rankings.Eightoutofthetop10banksrankedabovetheindustryaverageCSIscoreforSierraLeoneof66.2.
Sier ra Leone
70 |Countryhighlights
© 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.
Surveyhighlights– Sierra Leone
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
80% satisfiedwith staff
friendliness and politeness.
67% satisfiedwith the prompt
attentiongiventotheircomplaints.
87% consider
accessibility of branchesasveryimportant.
47% satisfiedwith the absence
oflongqueuesatbranches.
82% cite high importance
to transactions turnaroundtime.
58%satisfiedwith the overall
timeliness and turnaround time in processing transactions.
80%satisfiedthat current products
andservicesmeettheir needs with the currentproducts.
73%satisfiedwith the assistance
providedwithunderstanding the bank’sproducts.
82%rankedinterest rates
on deposits and investmentsasveryimportant.
40%of customers were
satisfiedwiththismeasure.
1
3
Standard Chartered
(74.2)GTBank
(70.6)GTBank
(70.7)
Standard Chartered
(68.6)GTBank
(61.9)
2 GTBank
(72.2)Zenith
(68.7)First
(68.4)Zenith
(68.1)Standard Chartered
(61.4)
UBA
(71.2)First
(68.6)Skye
(68.3)UBA
(67.5)Zenith
(61.3)
Customer service factors
Rank
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
(Numberofrespondents=5,780)
SierraLeone | 71
© 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.
Weekly channel usage in Sierra Leone
Surveyhighlights– Sierra Leone
44.8%
12%
27.0%
12.0%
8.3%
4.5% 3.4%
Turnaround time for requests and enquiries
Interest rates and fees
Financial stability
Service quality
Innovative products & services
Proximity of branches
Top customer reasons for changing banks
Channel usage and preference
UseofalternatechannelsinSierraLeoneappearstobenon-existentascustomersindicatedthattheyneverusePOS,mobilepayments,internet,mobilebankingorcallcentersforanyoftheirtransactions.Notsurprisingly,therefore, the branch emerged as the most widely and frequentlyusedchannel,with58percentofcustomersindicatingthattheyuseitonceamonth.
ATMusagewasalsocomparativelylowatjust7percentweekly,althoughthismustlargelybeattributedtothefactthatATMswereonlyrecentlyintroducedinthecountryandareoftenunavailableduetodowntimes.
Ninein10SierraLeoneansalsoreportedabranchchannelpreference for performing transactions such as balance enquiriestobillpayments,reflectingthelowadoptionofalternatechannels.Again,availabilityimpactstheresults:inSierraLeone,billscanonlybepaidthroughbankbranchesandtheuseofPOS,mobileandcallcentershasyettobeincorporatedintothebankingsystem.
Customer loyalty
Despite the challenges faced in terms ofservicedeliveryandalternatechannel usage, customer loyalty in SierraLeoneisquitehigh.Sixty-fivepercent of customers said they would absolutely repeat business with their bank,while64percentindicatedthatthey would absolutely recommend theirbanktoothers.Tenpercentofcustomers indicated that they might changeorhaverecentlychangedtheirbank,citing‘servicequality’asthetopreasonforchange.
ATM79% Branch 18% Internetbanking1%
Mobilepayments1% POS1%
72 |Countryhighlights
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Service improvement area
CustomersinSierraLeonearekeentoseeimprovementsinthewaytheirbanksdeliverservicesthroughchannels(notasurprisingresultconsidering the fact that almost all transactions are performed at the
branchinSierraLeone).Banksthatareabletoeffectivelyandefficientlydeploy alternate channels could achieveasignificantdifferenceincustomersatisfaction.
Seamless points of contact in the bank
Availability of alternate channels
Improved deliveryof servicesthrough channels
Friendly, polite andproactive staff
Reduction in wait times fortransaction processing
and requests
Fast and effectivecomplaints resolution
Competitiveness of interest rates,
fees and charges
20.0% 14.0%12.0%23.0%
9.0% 5.0%
Customers’ top service improvement area
16.0%
SierraLeone | 73
© 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.
75.374.6
74.574.174.1
72.972.971.871.5
68.8
Stanbic
AkibaAccess
CRDBDiamond TrustBarclaysNMBNationalPost
Exim
LikemanyotherAfricancountries,theoverallperformanceofthebankingsub-sectorinTanzaniahasbeenpositive,asthesectoreffectivelyweatheredtheglobalfinancialcrisisbyshowingstrongpositiveyear-on-yeargrowth.The
sector’sbalancesheetisexpectedtocontinueonthisupwardtrajectorywithtotalassetssettoincreaseataCAGRof18percent(fromaboutUS$6.3billionin2011tooverUS$12billionin20151).
Thereare32banksoperatinginTanzaniawithCRDBBankstandingasthecountry’slargestbank.Threebanks(CRDBBank,NationalMicrofinanceBankPlc(NMB)andNBCBankLimited)commandthemajorityofbankingbusinessinTanzaniaand,together,controlnearlyhalfofthesector’stotalassets,grossloansanddepositsaswellas41percentofthesector’stotalcapital.
NotwithstandingasinglebankcollapsethatwassupervisedbytheBankofTanzania(BOT)someyearsback,theTanzanianbankingsectorhasbeenrelativelystableandhasenjoyednormalgrowthamidstsomechallenges.Thatbeingsaid,thesectorisfacingincreasedpressurefromnewmobilebankingservices(suchasTigoandM-PESA)beingintroducedbythemajortelecomsserviceproviders.SimilartoitsEastAfricanpeers,ithasalsosufferedfromexchangeratefluctuationsforservicessuchascashdeliverywhichhasresultedininstancesofliquidityproblems.
Tanzania’sbanksmayfindmajoropportunitiesemergingfromamuch-expectedbankingsectorconsolidation,theexpansionofservicestounderservedsectionsofthemarketthroughmobilebanking(especiallythoseinruralareas),andthewiderparticipationofbanksinthedevelopmentoftheenergyandagriculturesectors.
1 EIU:BankinginSub-SaharanAfricato2020
Top 10 most customer-focused banks
RespondentsinTanzaniarankedStanbicasthemostcustomer-focusedbank,followedbyAccessandAkibainsecondandthirdpositions,respectively.FivebanksrankedabovetheindustryaverageCSIscoreforTanzaniaof73.
73
Tanzania
74 |Countryhighlights
© 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.
Surveyhighlights– Tanzania
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
77% satisfiedwith the
friendliness and politeness of the bank’sstaff.
55%satisfiedwith the time
takentorespondtotheirrequestsandenquiries.
81% satisfiedwith the
accessibility of their bank’sbranches.
80% satisfiedwith the
availabilityofcashatATMs.
73%satisfiedwith the bank’s
precisionatkeepinginformation.
77% verysatisfiedwith the turnaround time in processing transactions.
78% satisfiedthat
products meet customers’needs.
88% rank
suitabilityofbanks’products and servicesasveryimportant.
17% dissatisfiedwithbank
chargessuchasCOTand other related charges.
20% dissatisfiedwith
the interest rate on deposits and investmentproducts.
1
3
Exim
(75.2)Access
(76.0)Stanbic
(80.9)Stanbic
(78.8)Akiba
(74.9)
2 Barclays
(75.0)CRDB
(75.6)Diamond Trust
(79.2)Diamond Trust
(76.3)Access
(74.8)
Akiba
(74.9)Akiba
(74.6)Exim
(77.6)Exim
(75.5)Stanbic
(72.5)
Customer service factors
Rank
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
Tanzania|75
(Numberofrespondents=557)
© 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.
Weekly channel usage in Tanzania
Surveyhighlights– Tanzania
Innovative products & services
Interest rates and fees
38.6%
24.3%
12.9%
11.4%
7.1%
4.3% 1.4%
Turnaround time for requests and enquiries
Service quality
Financial stability
Proximity of branches
Top customer reasons for changing banks
Access to credit
Channel usage and preference
InTanzania,branchandATMchannelsdominatewith62 percentofrespondentsindicatingthattheyuseATMsonaweeklybasisand33percentsayingtheyusethebranch.However,apartfromtheATM,Tanzaniahasoneof the lowest alternate channel usages of the countries surveyedwith9in10customersindicatingthattheyhaveneverusedotheralternatechannels(includingmobilebanking,mobilepayments,internetandPOS).
Forperformingtransactions,47percentofTanzaniancustomerssaytheychecktheirbalancesusingtheATM,whileonly7percentsaytheyprefermobilebankingforthistask.Fundstransferislargelycarriedoutinthebranch,with92percentofcustomersreportingthattheypreferitaboveotherchannels.
Customer loyalty
While a large percentage of customersexpressedvaryinglevelsofwillingnesstoeitherincreasebusinesswiththeirbankor recommend it to others, only 55 percentsaidtheywouldabsolutelydoboth.Atthesametime,twelvepercent of customers indicated that theywouldchangetheirbank,citing‘servicequality’asthetopmostreasonforchanging.
ATM62% Branch33% 3% Mobilebanking
Mobilepayments1% POS 1%
76 |Countryhighlights
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Service improvement area
RespondentsinTanzaniawouldliketoseeimprovementsintheattitudeof staff, a reduction in wait times and morecompetitiveinterestratesfromtheirbanks.
Seamless points of contact in the bank
Availability of alternatechannels
Improved deliveryof servicesthrough channels
Friendly, polite andproactive staff
Reduction in wait times for transactionprocessing and requests
Fast and effectivecomplaints resolution
Competitivenessof interest rates,fees and charges
20.1%
17.7%
15.7%
13.9%12.5%
10.5%9.6%
Customers’ top service improvement area
Tanzania | 77
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82.578.678.577.977.2
74.974.5
71.471.371.3
Stanchart Bank
Housing FinanceDECU Bank
Diamond TrustBarclays BankEquity Ltd
CraneStanbicKenya Comm
Centenary
Uganda’sbankingindustryhasexperiencedanumberofchallengesoverthepastfewyears,largelycausedbythewithdrawalofdonorfunds and the increasing potential for political instability which, in
turn,wouldhaveasignificantimpactonForeignDirectInvestment(FDI).
Facingachangingregulatoryenvironmentandadepreciatinglocalcurrency(whichhitanall-timelowinSeptember2011),theBankofUgandasteppedintoplayakeyroleinstabilizingthesectorbyputtinginplacemeasurestobothmitigaterisksaswellasimproveservicedelivery.Interestingly,whiletheCentralBank’sattempttocurbinflationthroughtightermonetarypolicyledtoarisingcostofcapitalforthebusinesscommunity,manycommercialbanksstillreportedprofits.
Morethan70percentofUganda’spopulationisunbankedwiththecountry’s25banks(asof2012)offeringservicesthrough381bankbranches(asof2010).UgandahasmovedtoimplementtheCreditReferenceBureau(CRB)aswellasraisetheminimumcorecapitalforbankstoUS$4.34million.
Andwhilethecountryisstillrecoveringfromthehighinflationratesthattopped38percentlastyear,thesector’stotalassetsarenonethelessexpectedtogrowataCAGRof19percentfromUS$3.9billionin2011toalmostUS$7.9billionin20151.
1 EIU:BankinginSub-SaharanAfricato2020
Top 10 most customer-focused banks
Sevenofthetop10banksrankedabovethe country’sindustryaverageCSIscoreof73.9.
73.9
Uganda
78 |Countryhighlights
© 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.
Surveyhighlights– Uganda
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
79% satisfiedwith the
friendliness of their bank’sstaff.
73%satisfiedwith the prompt
attentiongiventocustomerenquiriesandcomplaints.
58% very
satisfiedwithcashavailabilityatATMs.
59% satisfiedwith
absence of long queuesatbranches.
57%verysatisfiedwith
the accuracy and completeness of informationprovidedbytheirbank.
44% verysatisfiedwith the turnaround time for transaction processing.
79% satisfiedwith
products and servicesmeetingtheirneeds.
83% satisfiedwith
the ease of understanding their bank’sproducts.
53% verysatisfied
with the cost of maintaining accounts andothercharges.
44% of customers
who want to changebanksweredissatisfiedwiththebankchargesonmaintainingaccounts.
1
3
Standard Chartered
(84.5)
Standard Chartered
(83.4)Diamond Trust
(84.1)Standard Chartered
(82.4)Diamond Trust
(78.5)
2 DFCU
(81.0)Housing Finance
(79.1)Standard Chartered
(82.8)Housing Finance
(77.8)DFCU
(78.3)
Housing Finance
(79.1)Centenary
(78.8)Kenya Comm.
Bank
(81.1)Centenary
(77.4)Centenary
(77.4)
Customer service factors
Rank
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
(Numberofrespondents=541)
Uganda | 79
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Weekly channel usage in Uganda
Surveyhighlights– Uganda
Proximity of branches
46.0%
31.0%
8.0%
8.0%
3.0%3.0%
Turnaround time for requests and enquiries
Interest rates and fees
Financial stability
Service quality
Innovative products & services
Channel usage and preference
Likemostofthecountriessurveyed,usageofalternatechannelsinUgandawaslow,inpartbecausealargeportion of the population seems to distrust the internet forbanking.NinetypercentofcustomersindicatedtheyhadneverusedPOS,internetbanking,mobilebanking,callcentersormobilepaymentsforanytransaction.Onaweeklybasis,58percentsaytheyusetheATM,while36 percentreportusingthebranch.
Apartfromcashwithdrawal(forwhich76percentofcustomerssaytheyusetheATM),thebranchappearsto be the most preferred channel for performing all other transactions,furtherreinforcingthelowrateofe-channeladoptionbyUgandancustomers.
Customer loyalty
CustomerloyaltyandadvocacyamongstUgandanrespondentssitsalittleaboveaveragewithalarge percentage of customers demonstratingvariousdegreesofloyalty:64percentofcustomerssaid they would absolutely repeat businesswiththeirbank,while66percent said they would absolutely recommendtheirbanktoothers.Tenpercentofcustomerssurveyedindicated they want to change their bank.
ATM58% Branch36%Callcentre
2%Mobilepayments
Mobilebanking2%POS
1% 1%
Top customer reasons for changing banks
80 |Countryhighlights
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Service improvement area
Ugandancustomerswouldliketoseebanksimproveonthecompetitivenessoftheirinterestrates,feesandcharges.Thisresultisnot surprising as the interest rate was also the element of pricing they were leastsatisfiedwith.
Seamless points of contact in the bank
Availability of alternatechannels
Improved deliveryof servicesthrough channels
Friendly, polite andproactive staff
Reduction in wait times for transactionprocessing and requests
Fast and effectivecomplaints resolution
Competitivenessof interest rates,fees and charges
22.8%
17.2%
14.5%
14.2%13.8%
9.6%7.8%
Customers’ top service improvement area
Uganda | 81
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Upuntiltheearly1990s,Zambia’sgovernmentmaintainedextensiveownershipandadministrativecontrolsovermostmarkets,includingfinancialandbankingmarkets.However,followingamajorprogram
ofmarket-orientedeconomicandfinancialsectorreforms,Zambiaevolvedtowardsamarket-ledbankingsectorunderthestrictsupervisionofthecentralbank,theBankofZambia.Andwhileliberalizationinitiallyledtotheproliferationoffinancialinstitutionsinthefinancialsector,competitioneventuallybroughtaboutanumberofbankfailures,resultingintheclosureofninecommercialbankssince1995.
WhileZambiapresentlyhas18registeredcommercialbanks,themajorityoperatemainlyinthecommercialdistricts,whicheffectivelylimitsaccesstotheformallyemployed.Asaresult,financialsectorpenetrationisstillverylowwithonlyabout15percentofadultshavingabankaccount1.
Ingeneral,Zambianbankstendtoquicklymatchtheircompetitors’innovationsandservicesmakingitincreasinglydifficulttosustainproduct,costanddistributionadvantages.Withthisinmind,mostbankshaverealizedtheimportanceofconcentratingonservicequalityasawaytoincreasecustomersatisfactionandloyalty.
1 TowardsastrategyformicroinsurancedevelopmentinZambia-AMarket andRegulatoryAnalysis:2009
Zambia
82 |Countryhighlights
© 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.
Surveyhighlights– Zambia
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
84% satisfiedwith
staff’sfriendliness,politeness and willingness to assist customers.
63%satisfiedwith the quick
response to complaints and enquiries.
67% satisfiedwith
theproximityofbranches.
65% satisfiedwith
cashavailabilityatATMs.
54%satisfiedwith the overall
timeliness and turnaround time in processing transactions.
68% satisfiedwith the accuracy
and completeness oftheirbank’sinformation.
79%satisfiedwith how products
andservicesmeettheirneeds.
73% satisfiedwith
funds transfer services.
74% satisfiedwithCOT
and other related charges.
51% satisfiedwith the
interest rates offered on deposits and investmentproducts.
Service improvement area
Notsurprisingly,themostimportantimprovementareaforZambiancustomersisthereductioninwaittimesfortransactionprocessingandrequests.
Customer loyalty
Despite the challenges faced by customers with long queuesatbranchesandextendedturnaroundtimesintransaction processing, a large percentage of customers stillexpressedawillingnesstorepeatbusinesswiththeirbankandrecommendittoothersatvariousdegrees.However,onlyabouthalfofrespondentsexpressedloyaltyandadvocacyinstrongterms.
(Numberofrespondents=220)
Zambia | 83
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Preferred methods of conducting banking activities.
Surveyhighlights– Zambia
Channel usage and preference
Despite the recent gains made in theadoptionofbankingservices,Zambiastillfallsbehindintermsoffinancialservicesaccess,especiallyinmoreremoteareas.LimitedATMinfrastructure means that most bankingservicesareaccessedatbankinghallsthroughpersonalcounterserviceswitheitherabanktellerorapersonalbanker.
ATMpenetrationisalsolow.InDecember2011,Zambiahadatotalof537ATMsacrossthecountryversusapproximately1.3millioncustomerswithbankcards,meaningeachATMfacilitywasexpectedtoserviceanaverageof2,530customers.
Regardless,Zambiancustomersreported that their most preferred
methodofmakingcashwithdrawalswasthroughtheuseofATMmachines(93percent),whilethebranchwaspreferredforbuyingfinancialproductssuchasloans(93percent),gettingfinancialadvice(80percent)andmakingcomplaints(74percent).ATMsandmobilebankingwerealsocitedaschannelsusedforbalanceenquiry.
Internet Banking Mobile Banking Call Centre/Telephone BankingBranch ATM POS
Buying financial products e.g. loans
Getting financial advice
Making complaints
Funds transfer
Bill payments
Balance enquiry
Cash withdrawals
80%74%
26%
59%
5% 6% 7%
20%
31%
45%
93%
3% 3%8%
4%8%
34%
1%7%
30%36%
93%
1% 1%6%
13%
4% 2%
84 |Countryhighlights
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Zambia | 85
© 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.
67.266.166.065.264.864.863.861.260.357.2
BancABCTNFBCKingdomBarclaysNMB
Standard CharteredCBZStanbic
Metbank
Overthelast10years,Zimbabwe’sfinancialservicesindustryhasbeenseverelyaffectedbythedownturninitseconomywhichhasbeenlargelycharacterizedbyhyperinflation,lowfinancial
intermediation and shortages of cash in the local currency as well as other externalfactorsbeyonditscontrol.Thesuspensionofthelocalcurrencyandtheintroductionofamulti-currencysysteminFebruary2009helpedtorestorepricestabilityandrestartfinancialintermediation.
Moreover,theopportunitiespresentedbythemulti-currencysystemledtorenewedinterestinthebankingsectorbyboththelocalandforeigninvestors.However,theZimbabweanbankingmarketisprovingtobehardnuttocrackwithpeculiarchallengessuchaslowliquidityconditions,limitedaccesstooffshorelinesofcreditandtheprevalenceofcash-basedtransactionscreatinghighcompetitivehurdles.Itisworthnotingthat–aspartofitseconomicrecoveryanddevelopmentplan–Zimbabwewouldneedtointegratetheinformalsectorwhich,givenitssignificancetotheeconomy,shouldhelptoexpandgrowth.ThebankingsectorinZimbabweiscurrentlybeingservicedby16commercialbanks,twomerchantbanksandfourbuildingsocietieswithabankingpenetrationratethatstands at 60 percent1ofthecountry’spopulation.
1 FinScopeConsumerSurvey2012
Top 10 most customer-focused banks
Sevenofthetop10banksrankedabovethe country’sindustryaverageCSIscoreof61.5.
61.5
Zimbabwe
86 |Countryhighlights
© 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.
Surveyhighlights– Zimbabwe
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
33% verysatisfied
withstaff’sfriendliness and politeness.
26%verysatisfiedwith
the promptness ofattentiongiventoenquiriesandrequests.
29% of
customersverysatisfiedwithavailabilityofATMs.
60%
dissatisfiedwithease of transaction trackingviainternetbanking.
22%verysatisfiedwith
the timeliness and turnaround time in processing transactions.
29% verysatisfiedwith the accuracy of information provided.
28% verysatisfied
thattheirbank’sproducts and servicesmeettheirneeds.
22%verysatisfiedwith
funds transfer servicesoftheirbank.
45% satisfiedwith the
cost of maintaining accounts.
23% satisfiedwith the
interest rates offered on deposits and investmentproducts.
1
3
BancABC
(76.9)BancABC
(69.1)BancABC
(74.0)BancABC
(62.3)TN Bank
(62.5)
2 TN Bank
(71.3)FBC
(68.5)TN Bank
(72.2)NMB
(62.0)Kingdom Bank
(61.1)
Standard Chartered
(70.2)TN Bank
(68.0)NMB
(71.5)TN Bank
(61.5)Post Bank
(56.1)
Customer service factors
Rank
Customer Care
Convenience Transaction Methods & Systems
Products and Services
Pricing
(Numberofrespondents=321)
Only
Zimbabwe | 87
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Weekly channel usage in Zimbabwe
Surveyhighlights– Zimbabwe
Financial stability
Turnaround time for requests and enquiries
Interest rates and fees
Service quality
Innovative products & services12.2%
6.1%8.5%
13.4%
59.8%
Channel usage and preference
TheATMisthemostwidelyusedchannelonaweeklybasis(32percent)followedbythebranch(27percent).Elevenpercentuseinternetbankingweeklyand2percentusemobilebankingwhile17percentusethePOS.
InZimbabwe,thebranchclearlydominatesasthemostpreferred channel for performing transactions ranging from cashwithdrawals,balanceenquiry,fundstransferandbillpaymentswithmorethan80percentofrespondentssaying they prefer to use the branch for performing most transactions.
Customer loyalty
With only a third of customers indicating that they would absolutely repeatbusinesswiththeirbank,andjust32percentsayingtheywouldabsolutelyrecommendtheirbankto others, customer loyalty and advocacyinZimbabweisratherlow.Twenty-onepercentofcustomerssurveyedindicatedtheymightchangebanks,citing‘servicequality’asthetopfactorinfluencingtheirdecision.
ATM32% Branch27% POS17%Internetbanking
Mobilebanking11% 8% Call
centre3% MobilePayment2%
Top customer reasons for changing banks
88 |Countryhighlights
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Service improvement area
CustomersinZimbabwewantbanksto reduce wait times for transaction processingandrequestsandimprovethecompetitivenessofinterestrates,feesandcharges.
Seamless points of contact in the bank
Availability of alternate channels
Improved delivery ofservices through channels
Friendly, polite andproactive staff
Reduction in wait timesfor transaction processing and requests
Fast and effectivecomplaints resolution
Competitiveness of interest rates,
fees and charges
20.1%19.8%
17.4%14.2%
12.9%7.9%
7.7%
Customers’ top service improvement area
Zimbabwe | 89
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34% 15%43%
Age
21-30 years 31-40 years 41-55 years
4%Above 55 years
4%Under 20 years
37%63%
Gender
Male Female
Employment status
3%Others
25%Public
26%Private
2%Retired
23%Self-employed
21%Student
Demographics
(Numberofrespondents=25,456) (Numberofrespondents=25,456)
(Numberofrespondents=25,456)
90 |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.
Wewouldliketothankthefollowingpeoplefortheirinvaluablecontributiontothissurvey:
Allsurveyrespondents,KPMGPartnersandemployeesacrossAfrica.
TheKPMGProjectAfricasurveyteam,including:BodeAbifarin,RukaiyaMohammed,AdeyemiErjirinde,RichardOlatunji,WaleAbioye,DennisObigwe,GoncaloTraquina,KabeloMoyo,ZacharieBassong,Odette Aguie,PapeBocarGueye,DesmondKoomson,ChungaMafipe,JimmyMasinde,PeterArogo,PrincettaJones,MelodyGonyoraandSarahSaunders.
TheKPMGProjectAfricabankingresourcecentre:Marie-TheresaPhido,FemiAlabi,BodeAbifarinandRukaiyaMohammed.
Acknowledgements
Report contacts
West AfricaBode AbifarinSenior ManagerKPMG NigeriaT:+2347045276485E:[email protected]
East AfricaJimmy MasindeSenior ManagerKPMG East AfricaT:+254735336640E:[email protected]
South AfricaImran MotenAssociate DirectorKPMG South AfricaT:+27827181897E:[email protected]
AfricaBankingIndustryCustomerSatisfactionSurvey | 91
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92 |Countryhighlights
© 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.
© 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.
Contact us
Bisi LamikanraPartnerKPMG NigeriaT:+2347045276005E:[email protected]
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Vitor RibeirinhoPartner KPMG AngolaT:+351210110161E: [email protected]
Gerard DevlinPartnerKPMG BotswanaT:+2673912400E:[email protected]
Rene LibongPartnerKPMG Cameroon and ChadT: +23733439679E:[email protected]
Olatounde De SouzaAssociate DirectorKPMG Côte D’IvoireT:+22520225753E:[email protected]
Mahesh PuniaPartnerKPMG East AfricaT:+254202806000E:[email protected]
Daniel S. AdoteyePartnerKPMG GhanaT:+233302766306E: [email protected]
Ndiaga SarrSenior PartnerKPMG SenegalT:+221338492727E:[email protected]
Vidal T. O. DeckerPartnerKPMG Sierra LeoneT: +232 22 22 2061E:[email protected]
Dumi TshumaPartnerKPMG ZambiaT: +260211372900E: [email protected]
Brian NjikizanaDeputy Senior PartnerKPMG ZimbabweT:+2634302600E:[email protected]
kpmg.com/socialmedia
TheviewsandopinionsexpressedhereinarethoseofthesurveyrespondentsanddonotnecessarilyrepresenttheviewsandopinionsofKPMG.
Theinformationcontainedhereinisofageneralnatureandisnotintendedtoaddressthecircumstancesofanyparticularindividualorentity.Althoughweendeavourtoprovideaccurateandtimelyinformation,therecanbenoguaranteethatsuchinformationisaccurateasofthedateitisreceivedorthatitwillcontinuetobeaccurateinthefuture.Nooneshouldactonsuchinformationwithoutappropriateprofessionaladviceafterathoroughexaminationoftheparticularsituation.
©2013KPMGAdvisoryServices,aNigerianpartnership,memberfirmoftheKPMGnetworkofindependentfirmsaffiliatedwithKPMGInternationalCooperative(“KPMGInternational”),aSwissentity.KPMGInternationalprovidesnoclientservices.NomemberfirmhasanyauthoritytoobligateorbindKPMGInternationaloranyothermemberfirmvis-à-visthirdparties,nordoesKPMGInternationalhaveanysuchauthoritytoobligateorbindanymemberfirm.Allrightsreserved.
TheKPMGname,logoand“cuttingthroughcomplexity”areregisteredtrademarksortrademarksofKPMGInternational.
DesignedbyEvalueserve.
Publicationname:AfricaBankingIndustryCustomerSatisfactionSurvey
Publicationnumber:121597
Publicationdate:April2013
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