ISSUE SEVEN

2013 Banking Industry Customer Satisfaction Survey
NIGERIA

June 2013
kpmg.com/ng

2 | Banking Industry Customer Satisfaction Survey 2013

About this survey
In reading this report, you should bear the following factors in mind: 1. This is a perception study • • • • This survey focuses on the perceived quality of customer service delivery by the banks from the customer’s perspective across the Retail, Corporate/Commercial and Small & Medium Sized Enterprises (SME) segments. This survey does not represent the opinion of KPMG on the skills, capabilities or performance of any of the banks covered. KPMG is responsible for defining the survey questionnaire administered to the respondents. KPMG conducts the survey, but findings represent the opinions of the customers of the banks.

This survey does not seek to establish anything as an absolute fact, but to report on the feelings and broader perceptions of customers with respect to services provided by their banks. The rankings are solely based on the customers’ feedback received from the survey. 2. Perception is neither balanced nor fair, but the study always has a representative sample size Perceptions are by definition subjective; as a result, they are neither balanced nor fair. Also, banks rated in the survey vary by size, service offerings and customer profile. However, the minimum number of respondents required for each bank in the survey guarantees that the result reflects the opinion of a representative customer group in each segment.

Banking Industry Customer Satisfaction Survey Methodology
The Customer Satisfaction Index (CSI) was used in this survey to determine customer satisfaction. CSI is simply a weighted score that assigns
Customer Satisfaction Index (CSI) Customer Service Factors
Convenience

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

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

Measures accessibility and quality of service from delivery channels Convenience Customer Care
Customer Care

Measures interaction of bank staff with customers
Transactions, Methods & Systems

Products & Services

CSI Formula (S x I)

SI

Transactions, Methods & Systems

Measures customer support processes/ systems & turnaround time
Pricing

Measures customers’ perception on fees, charges and rates on products
Products & Services

Pricing

Measures product range and appropriateness to customers’ needs

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

Contents

Foreword 4 Detailed findings 6 Outsourcing the frontline Eating the data elephant The future of banking Testing the waters of ‘crowdsourcing’ Demographics 28 34 12 14 20

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

mobile payments appears to be gaining some momentum and should ultimately transform the payments landscape in the country. KPMG’s seventh annual Banking Industry Customer Satisfaction Survey. After a slow start. In the face of evolving customer behaviour and expectations. .4 | Banking Industry Customer Satisfaction Survey 2013 Foreword These are exciting and challenging times in the Nigerian banking industry. Makurdi. we again hope this annual publication puts the customer at the heart of the agenda for all banks. In this. the feedback for banks is consistent with what we have heard over the last few years – knowledge of their business is extremely important and a key driver of satisfaction. the attention will return to the customer as banks look to grow earnings. Over the last year. banks are already having to contend with a lower yield environment and pressures on fee income. customers want banks to remember that convenience should remain a key focus . After a very profitable year for the industry. Minna. All rights reserved. a Swiss entity. our findings reveal that efforts at promoting alternate channels are yielding positive results. we share our findings from more than 14. excellent customer service has replaced financial stability as the primary reason for maintaining banking relationships in the retail and corporate segments. I am sure you will find the results very interesting and insightful. Already. Asaba.cash availability at ATMs was the most important issue for retail customers in 14 of the 18 locations covered. We have seen a two-fold increase in adoption of almost all the alternate channels and a further increase in ATM usage. I hope the findings and additional commentary are valuable and constructive. Enugu.000 SME and 400 corporate/commercial banking customers. amidst the proliferation of channel options. a Nigerian partnership. Inevitably. customers are redefining the agenda – for the first time in five years. Nnewi and Yola). it has become imperative for banks to listen and understand the voice of the customer as input in shaping their strategies. Calabar.000 retail. over 3. We have again expanded the scope of the survey to cover more customers and increased locations from 10 to 18 (the additional locations: Akure. Bisi Lamikanra Partner & Head Management Consulting © 2013 KPMG Advisory Services. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). For us at KPMG. banks can achieve the level of product offering/suitability that most businesses desire. In the broader survey. However. I would like to thank all the survey respondents for their invaluable time and insights. With a proper understanding of the client’s business. In the corporate segment. we have also seen an increase in the number of retail banking customers that are either planning to or have recently switched banks as well as the prevalence of customers with multi-bank relationships. We also introduced a survey to understand the perceptions of young professionals – a distinct and important demographic group – on how they intend to interact with their banks in the future.

.Banking Industry Customer Satisfaction Survey 2013 | 5 © 2013 KPMG Advisory Services. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). a Nigerian partnership. All rights reserved. a Swiss entity.

the gap between satisfaction and expectation on this element increased from 16 to 18 percentage points. GTBank coming second. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). Also. a Nigerian partnership. Staff attitude and queues in the banking halls were also key areas of concern. there was a marginal decline in overall CSI within this segment as customers expectations continue to increase especially in the area of convenience. 93% of retail customers rated quality of service at the ATM as their most important service measure. Zenith Bank emerged as the most customer focused bank this year. © 2013 KPMG Advisory Services. with last year’s leader. .6 | Banking Industry Customer Satisfaction Survey 2013 Detailed findings Customer expectations continue to increase in the retail segment… This year. a Swiss entity. All rights reserved. Stanbic IBTC maintained the third position for the third consecutive year.

.7 Skye 69.8 UBA 69. © 2013 KPMG Advisory Services.1 Zenith 76. is the need for bespoke products and services tailor-made to meet specific requirements.7 Fidelity 72.1 Diamond 70. This year.8 Sterling 70.1 against customer expectation of 92.9 Fidelity 69. Slight increase in Corporate satisfaction. Overall. Increasingly important to customers however. Fewer SMEs (53% compared to 63% in 2012) expressed satisfaction with the ease of getting credit from their banks.1 FCMB 73. the CSI for Corporates improved by two percentage points from last year.0 Corporate/ Commercial GTBank 74. All rights reserved. attaining the first and second positions respectively.0 Stanbic IBTC 74.1 Zenith 77.. traditional issues such as limited access to loans remained. Stanbic IBTC moved up a spot to third place.6 Ecobank 73.6 First Bank 74.. a Swiss entity. Zenith and First Bank.5 Skye SME 78.3 GTBank 72. it is clear that customers expect banks to do a lot more to bridge this gap. However. albeit with lower overall customer satisfaction ratings from last year.3 Stanbic IBTC 75.0 First Bank 72. While overall satisfaction levels among SME banking customers remained unchanged from last year.0 First Bank 71.7 FCMB 72.3 Sterling 74.6 GTBank 75.9 Stanbic IBTC 69.4 Fidelity 70.9 Skye 73.8 Diamond 72..Banking Industry Customer Satisfaction Survey 2013 | 7 Top 10 Most Customer Focused Banks Retail 77.4 Zenith 76.8 Diamond 74. while Citibank emerged in third place. a Nigerian partnership.9 Citibank 72.5 FCMB SME issues remain the same..1.9 Standard Chartered 72. each moved up one spot. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). driven largely by customers’ increased satisfaction with pricing of bank products. 93% of organisations ranked ability of banks to provide a full range of financial services as important in comparison with 83% last year. with an overall satisfaction rating of 69. GTBank and Zenith retained their positions as the most customer focused banks for the SME segment. This year.

differentiation is difficult to achieve on many fronts. In the retail space. customers are now putting service quality at the front of their banking relationship agenda. a Nigerian partnership. a Swiss entity. Top Five Reasons for Maintaining Banking Relationships Retail 35% Excellent customer service 26% Financial stability 11% Image and reputation 10% Employer requirements 10% Proximity of branches SME 31% Financial stability 30% Excellent customer service 11% Proximity of branches 10% Image and reputation 4% Pricing Corporate/ Commercial 29% Excellent customer service 27% Financial stability 8% Image and reputation 7% Bank’s support of business 6% Efficiency of credit processing © 2013 KPMG Advisory Services. financial stability was the next priority as this remains crucial. For the first time in five years. it is clear that the quality of service delivery experience is a differentiating factor and For SMEs.8 | Banking Industry Customer Satisfaction Survey 2013 RELATIONSHIP ISSUES Excellent customer service now top of the agenda Changing priorities In the very competitive banking landscape. excellent customer service replaced financial stability as the principal reason for maintaining banking relationships for retail and corporate customers. ‘ As the dust from the financial crisis settles and fears about safety of customers’ deposits take the back seat. When asked for their second most important reason. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). service promises must be aligned to customer goals and objectives. All rights reserved. 35% of customers cited excellent customer service as a major reason for continued banking relationships – a 12-percentage point increase from last year. However. excellent customer service replaced financial stability as the principal reason for maintaining banking relationships for retail and corporate customers. . This is perhaps a nod from customers to regulatory efforts aimed at stabilizing the banking industry in recent years. ‘ For the first time in five years. financial stability selected by 31% of customers was closely followed by excellent customer service which was chosen by 30% of customers as the top reasons for maintaining banking relationships.

Banking Industry Customer Satisfaction Survey 2013 | 9 © 2013 KPMG Advisory Services. a Swiss entity. . All rights reserved. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). a Nigerian partnership.

2. today’s customers are looking for personalised service and attention thus making the bank’s frontline staff critical to shaping the customer’s experience with the bank. a Nigerian partnership. GTBank SME © 2013 KPMG Advisory Services.10 | Banking Industry Customer Satisfaction Survey 2013 CUSTOMER CARE Say my name! Indeed. Top Three Banks by CSI Rating . while GTBank and Standard Chartered came second and third with 79. have access to immense customer data and as such can therefore leverage this data through detailed analytics to build a strategy and create new value for customers. Standard Chartered 1. branch staff had a more personal relationship with customers. For instance. banks can equip frontline staff with information to meet service objectives and improve the ability to cross-sell. Stanbic IBTC 1. 79% of customers were satisfied with the level of staff knowledge and understanding of the bank’s products and services compared to last year’s 88%.Customer Care Retail 1. with millions of customers. sometimes even knowing customers by name. By having a better view of customer data. this year. This highlights the importance of getting the right calibre of staff. while First Bank and Citibank came second and third respectively. We have observed the trend of using ‘meeters and greeters’ to help improve the customer journey within the branch. we note an increase of five percentage points to 39% of corporate/ commercial customers who said they were very satisfied with the industry knowledge demonstrated by their bank representatives. Zenith 2. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). nearly all customers across the retail and SME segments rated staff attitude and efficiency in handling complaints and enquiries as the most important customer care issues. Nevertheless. more than ever. GTBank 2. Corporate . Whilst the strong gap between expectation and delivery remains. Banks need to continue to empower frontline staff with training in relationship management and other requisite technical capabilities to enhance the quality of service delivery. the good news is that seven-in-ten customers – similar to last year – expressed satisfaction with the level of proactive communication from their banks. In the corporate segment. with millions of customers. branch staff had a more personal relationship with customers. All rights reserved. Zenith moved up two places to take the lead with a rating of 80. a Swiss entity. this does not necessarily translate to more business. In some other markets.6 respectively. this will pose a significant challenge. corporate customers reported a strong need for industry specialisation within banks and in the intervening period. ‘ Managing customer experience can be quite a daunting challenge especially as customers have diverse needs that can often be at different ends of the same spectrum. First Bank 3. this will pose a significant challenge. especially for customer-facing roles. a few banks and service providers are beginning to introduce holographic virtual greeters as a means of engaging customers. GTBank 3. Last year. With renewed focus on enforcing knowyour-customer (KYC) requirements. it is clear that some banks have started responding by creating specialist teams with a mix of financial and industry-specific skills. but today. Zenith 2. In times past. but this largely remains inconsistent even within the same branch or bank. In the retail segment. sometimes even knowing customers by name. The overall customer care CSI in the corporate segment increased marginally from last year with Zenith Bank emerging in first place for the fourth time in five years. but today. Zenith 3. banks now. But as banks will quickly acknowledge.5 and 78. the overall customer care ratings decreased marginally as satisfaction levels for all customer care elements declined compared to last year. ‘ In times past.

a Swiss entity. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). .Banking Industry Customer Satisfaction Survey 2013 | 11 © 2013 KPMG Advisory Services. All rights reserved. a Nigerian partnership.

com Tokunboh is a Senior Manager in the Management Consulting practice of KPMG in Nigeria. typically referred to as “contract roles” include bulk cash counting. a Nigerian partnership. organisations are increasingly embracing outsourcing strategies as a key lever to transform the way they deliver their services. Hence an unsatisfactory experience with this category of staff is viewed as an indictment and direct reflection of the bank since they are “bank staff” . Tokunboh Osinowo tokunboh. All rights reserved. ‘ The typical customer usually has no clue about the bank’s operating model. or the fact the staff serving him may be an outsourced staff. outsourcing has typically focused on the back office and support functions. however. To this end. direct sales and the call centre have direct interaction with existing customers and may even be the first point of contact for prospective customers. there has been a push towards increased outsourcing of frontline functions within the Nigerian Banking Industry. Though reducing operating costs is clearly a top driver for outsourcing. © 2013 KPMG Advisory Services. as improving process performance and supporting business growth are among other important objectives. customer services. Over the last few years.12 | Banking Industry Customer Satisfaction Survey 2013 VIEWPOINT Outsourcing the frontline Impact on service quality and perspectives on getting it right Globally. a Swiss entity. tellers. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’).kpmg. ‘ .osinowo@ng. A growing number of the frontline functions outsourced. organisations are not pursuing this goal unilaterally.

When an outsourced employee “handles your mess for less. when. Partner with the contract staff provider to select contract staff with the right attitude. product/ services and goals. all stakeholders win. The typical customer usually has no clue about the bank’s operating model. what. evidenced to a large extent by declining customer satisfaction levels attributable to circumstances such as the limited knowledge of employees’ of the bank’s products and services.Banking Industry Customer Satisfaction Survey 2013 | 13 • The biggest risk in outsourcing is poor service delivery A significant drawback to outsourcing the frontline function is poor service quality. It is generally easier to teach people the job than it is to change their attitudes. or the fact the staff serving him may be an outsourced staff. contract staff should be included in select bank-wide trainings to provide well-rounded understanding of the banks’ business. unfriendly/ reactive demeanour of employees and also the inability to promptly resolve customers’ complaints. contract staff who demonstrate the organisation’s core values and desired behaviours must have these values tracked or monitored and should form part of the staff’s overall performance measurement. Contract staff should be treated with respect and not as second class citizens to maintain team spirit as well as a positive and inclusive working environment. The key objective is winning over the hearts and minds of these classes of employees hence all forms of discrimination should be avoided. it’s all about people” . All rights reserved. which can be significant. ” cost savings are limited to those created by simple labour arbitrage. • • © 2013 KPMG Advisory Services. Create the understanding that the best foundation for excellent service is your frontline and work with third party vendors to determine the most appropriate selection process which should include behavioural based skills assessments or psychometric testing. Hence an unsatisfactory experience with this category of staff is viewed as an indictment and direct reflection of the bank since they are “bank staff” . Promote integration between outsourced and full-time employees ensuring that resentments and conflicts are addressed and resolved. This more often than not crystallizes as a negative perception which may hamper customers’ loyalty and result in customers switching in pursuit of better service. • Employ a scorecard based measurement scheme and use incentives aligned to strategic objectives that convert expectations into critical success factors and key performance indicators (KPIs) that can be measured and incentivized. The importance of this step cannot be overemphasized and provides answers to the “5Ws” (why. Spend money to make money as there is always an investment in time and training. who and how) whilst ultimately driving execution. a Swiss entity. In addition. There may even be capital outlays due to a conscious effort to insource certain aspects of the contract employee lifecycle which are crucial to overall objectives. a Nigerian partnership. . its vision. A few essential ingredients to get the best from frontline outsourcing include: • • Develop an effective outsourcing strategy aligned to the organisation’s strategic objectives to provide clarity on needs/ drivers and priorities vis-à-vis the envisioned future state and aligned expectations. At the end of the day – “when services are outsourced. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). For instance. Getting it right When companies manage their outsourcing relationships effectively and structure them for success from the onset. Understand your in-house operations as an outsourced frontline process is only as effective as the inhouse operation it replicates.

. serve them more effectively.co. a Swiss entity. a Nigerian partnership. retail banks must focus on extracting significantly more value from their data assets. as a result.arya@kpmg.uk Neel is a Director in the Management Consulting practice of KPMG in the UK. All rights reserved.14 | Banking Industry Customer Satisfaction Survey 2013 VIEWPOINT Eating the data elephant To succeed in today’s marketplace. Harvesting existing data sources – both internal and external – must be an immediate priority if banks want to stave off the disruptive threat posed by new entrants into the market and ensure that value is not unnecessarily lost. © 2013 KPMG Advisory Services. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). Neel Arya neel. The real competitive advantage will go to those players who are able to successfully combine data from all available sources to develop a better understanding of customer needs and.

there is a strong belief that more must be done to extract value from internal customer data assets. therefore. Many within the insights and analytics space suggest that the function is only a moderate strategic priority for their banks. many banks seem to feel that they must get their internal data under control before they start to look externally. and • The lack of clarity into which pieces of external data are going to add the greatest value. “It’s just a matter of exploiting it. OPINION With almost every bank suggesting that more could be done to capture value from existing internal data. a Swiss entity. In most cases. benchmarking data and credit data. So while most already incorporate data from the more traditional external sources such as Mosaic (which provides consumer classification information) or – on the cards side – bureau data. This will require a change in mindset throughout the organisation with customer data and analytics promoted up the agenda to become an enterprise-wide strategic priority. The risk of not doing so is clear. for example. more nimble. “We need to give customer data the right priority and to think about data capture upfront before we get to the analytics. © 2013 KPMG Advisory Services. . ” It seems clear that a growing number of customer analytics teams now recognise the need to work more closely with the business and IT to develop processes where the capture of customer data is embedded upfront and not as an afterthought. a Nigerian partnership. Moven is another new-model competitor that will use greater insight into individual money management preferences to tailor customer experiences to each individual. I fear that those that are unable or unwilling do so at their own peril. Google. and – as a result – many see data analytics purely as a means to an end rather than recognising the value of achieving a richer understanding of the customers themselves.Banking Industry Customer Satisfaction Survey 2013 | 15 Right across the retail banking industry. As one participant noted. The simple truth is that retail banks’ DNA focuses on product sales. “Banks are not primarily data providers so they don’t think about the inherent commercial value of the data they possess. however. the world is moving at an uncompromising pace and new data sources are emerging continuously. this is a result of a belief that the internal data they already have is of a better quality than most external alternatives. ” suggested one participant. the appetite to spend money is even lower. But it will also re- quire executives and business leaders to become greater champions of analytics and work to instil an increased sense of analytical literacy across the organisation. I believe that bank executives and customer insight and analytics leaders must now focus on ensuring that they are able to extract the maximum value from their existing assets. market entrants. • Potential data privacy concerns and reputational impacts of tapping into customers’ external data. Others. An overall lack of funding and resources for customer insight and analytics is also slowing progress in this space. As one participant I spoke with said. banks are saddled with complex systems that simply are not capable of delivering a ‘single customer view’ across all products and locations. a small minority of the participants that I spoke with noted that leveraging external data to supplement their analysis was a priority for their organisation and these banks seem to be poised to grab the competitive advantage. While mastering their available internal data is certainly a critical first step for customer insight and analytics teams. Due to the industry climate. data is the most important asset. it is challenging to get resources and funding. there is a tangible reluctance to utilise a broader set of external sources such as social media or attitudinal/behavioural data. So while it may be natural for banks to focus on mastering the data they control. ” added another participant. Already. In some cases. But when it comes to harvesting value from external sources. “we are missing opportunities by not consolidating all the different nuggets of customer insight that we have. I believe that it is critical. This means that customer insight and analytics teams will have to become much better at demonstrating the value they add to the business while also developing a highly-honed understanding of the business itself. ” opined another interviewee. ” Another challenge is the lack of awareness of the value that customer insight and analytics can provide to the business. it seems clear that banks that do not also incorporate external sources of data will start to fall behind their competitors in the long-run. for banks to integrate all customer data they can secure – whether internal or external – in order to outperform their competitors and ward off new. I am the first to admit that this will likely be a challenging task. All rights reserved. is reported to have received a banking licence in the Netherlands more than 6 years ago and – with the launch of the Google Wallet – the company now has the ability to aggregate search. in the digital banking model of the future. I would argue that banks must change tack and prioritise their investment in customer insight and analytics to fully exploit the powerful data they already own. Banks that are able to combine their internal and external data to create value will find themselves well placed to thrive in this new world. The reality is that. “whilst it is articulated as being strategically important. In the face of these challenges. from customer risk through to digital customer behaviour. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). note three main challenges that seem to be dampening their interest in the emerging external data sources: • The ability to link external data to individual customers. Retail banks will quickly become susceptible to data literate new entrants coming into the market who understand how to mine data for its commercial value and use that insight to erode away the customer base of traditional banks. email and financial transactional data to build an unprecedented view of consumer behaviour.

Zenith 2. Citibank 3. Such investments also offer banks the opportunity to take advantage of the digital channels for marketing and deepening of customer insights.which many customers prefer to perform via the ATM – the branch remains a prominent channel for other activities and is thus key to customer satisfaction. a Swiss entity. Zenith 2. ‘ With the exception of cash withdrawals and balance enquiry . channels. Diamond SME 1. a Nigerian partnership. ‘ More than 90% of customers would like to seek financial advice and take out new products at the branch. there must be corresponding investments to provide a consistent. Diamond 1. Zenith 2. amidst the push to migrate customers to alternate 1.16 | Banking Industry Customer Satisfaction Survey 2013 CONVENIENCE A case for continued branch excellence Top Three Banks by CSI Rating . GTBank 3. GTBank 3. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). high-quality experience across all channels. This is in spite of an increasing reluctance to stay on long queues – about half of retail customers from this year’s survey are not satisfied with the length of queues at bank branches. What is your preferred channel for carrying out the following? 2% 25% 8% 5% 85% 3% 1% 1% 4% 91% 3% 3% 2% 55% Cash withdrawal 75% Funds transfer Getting financial advice Balance enquiry 37% 2% 1% 2% 2% 3% 1% 84% 8% 3% 2% 95% Branch Branch ATM ATM Internet Internet Social Media Social Media Contact Centre Contact Centre Mobile Mobile 4% 93% Making complaints Bills payment Buying financial products POS © 2013 KPMG Advisory Services. All rights reserved.Convenience Retail Corporate The desire for continued branch interactions may be explained in part by the fact that overall satisfaction with all electronic channels still trails the branch experience by a huge margin. GTBank Channel Preference Q. The results show a gradual shift in the role of the branch from a transactional channel to a sales channel as more than 90% of customers would like to seek financial advice and take out new products at the branch. As such. .

The ATM remains the most utilised alternate channel with nine-in-ten customers using it within the last year. All rights reserved. mobile payments 6% (up from 2%). 2012 Mobile banking Internet banking Contact centre Mobile payments POS 2013 2012 1 10% 6% 13% 7% 15% 6% 12% 5% 6% 2% RBR (2012) Global ATM Market and Forecasts to 2017 . a Nigerian partnership. Overall. Amidst the proliferation of these channels. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). 13% of retail customers surveyed use internet banking (up from 7%). we note a year-on-year decline in overall satisfaction with the internet banking and ATM channels. On a weekly basis. Customers still want improved online security and more user-friendly internet banking platforms as well as reduction in cash dispense errors at ATMs. the Central Bank of Nigeria reported that the value of daily electronic funds transfer had reached the N80 billion mark. Majority of customers (70%) above 60 still prefer to visit a branch to enquire about their balance compared to only 30% of customers under 30. contact centre 12%(up from 5%) and mobile banking 10% (up from 6%). we have also seen a two-fold increase in the number of people using at least one other channel in addition to the branch and ATM.2013 vs. Customers of different age groups also demonstrate varying channel usage patterns. more customers are using alternate channels for their banking transactions. . we believe they should continue current efforts to promote the use of alternate channels as our findings reveal these are yielding positive results. Across the industry. Alternate Channel Usage . When compared to last year’s results. it is imperative for banks to remember that customers are primar- ily looking for convenience and service quality beyond mere availability of these channels. In May 2013. a slightly higher number of older customers visit the branch than the ATM (34% compared to 23%). a sign that customers are continually looking for convenience across a variety of channels. © 2013 KPMG Advisory Services. we have seen a variety of approaches aimed at encouraging customers to use other channels including the use of incentives such as cash back on POS usage. A study by RBR has also forecast the Nigerian ATM market to overtake Saudi Arabia in 2017 . As penetration deepens. a Swiss entity. POS 15% (up from 6%). to become the third largest market in the Middle East & Africa region1.Banking Industry Customer Satisfaction Survey 2013 | 17 Increasing adoption of alternate channels As banks explore more avenues of engaging their customers.

Social Media Usage by Persons Aged Under 30 71% In the corporate segment.All Age Groups Q. only a few banks in the country have fully embraced social media but much of it still remains at the level of information dissemination.5bn in 20122 and is expected to grow further with increasing internet penetration. Online banking presents banks with the opportunity to deepen relationships with younger customers. Loyalty amongst very satisfied internet banking customers is also high. I use social media for personal purposes I interact with my bank through social media Channel Usage .5 million total active internet subscriber population1. banks can no longer afford to ignore this medium. With an estimated 12. January 2013 © 2013 KPMG Advisory Services. Online retailing in the country was estimated at over N77 . Twitter etc) is also gaining ground as a means of customer interaction.18 | Banking Industry Customer Satisfaction Survey 2013 Leveraging online channels Not surprisingly. Currently. ‘ 8% Social media (i. Online banking presents banks with the opportunity to deepen relationships with younger customers. When the same people were asked about their branch experience. a Nigerian partnership. eight-in-ten organisations expressed satisfaction with the quality and availability of their bank’s internet banking platform – an eight percentage point increase from last year. January 2013 BusinessDay. less than three-in-ten expressed similar levels of satisfaction. a Swiss entity. All rights reserved. adoption of internet banking at 15% suggests there is still untapped potential for this channel as has been witnessed in other markets. only 9% of customers interact with their banks using these platforms against 70% of users who use it for other personal purposes.e. However. However. we note the success of GTBank surpassing the one-million fan mark on Facebook in early 2013. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). How often do you interact with your banks through the following channels? 2% ATM Branch 1%2% 56% 13% 9% 32% 14% 30% Internet Banking 5% 5% 76% 83% 73% 2% 2% 9% 4% POS 3% 1% 2% 8% Mobile Banking 3% 4% 79% 1% 1% 2% 8% Contact Centre 1% 1% 1% 77% Mobile Payments 3% 82% At least once every 2 weeks Once a month Rarely Never Weekly 1 2 NCC. ‘ 11% 12% 2% 19% 3% 11% 12% 11% 11% 12% No response . with seven-in-ten saying they will absolutely recommend their banks to other customers. people aged under-30 account for 50% of all internet banking users but only 15% of them ever use internet banking. Facebook. Four-in-ten internet banking users indicated a weekly usage of the channel. With younger customers increasingly using social media as a primary filter that informs their purchasing decisions.

After ‘queues in branches’. With significantly higher usage of ATMs and charges associated with over-the-counter transactions.0 – a seven-percentage point increase from last year. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). Stanbic IBTC 2. Citibank led with a rating of 79. Citibank 2. GTBank 3. In the retail segment. we have seen banks issue service promises guaranteeing specific turnaround times for varying transactions but these promises have not yielded the much expected results. banks are aware of the ongoing issue of crowding at branches. Zenith 3. Zenith SME 1. Clearly. Zenith 2.Nigerian banks may want to consider serving cold fresh juice to waiting customers! Top Three Banks by CSI Rating . © 2013 KPMG Advisory Services. All rights reserved.9. nearly all (95%) retail customers indicated cash availability and uptime at ATMs as being of critical importance. 43% of organisations (compared to last year’s 35%) were very satisfied with quality and clarity of information received from their banks although. deploying more ATMs or assigning more resources to branches as required or as one customer suggested . a Nigerian partnership. Specifically. ‘queues at ATMs’ was another painpoint cited by customers interviewed during the survey. METHODS & SYSTEMS A future without queues For most customers. an ideal scenario would be one where they did not have to queue to get business done. Zenith emerged in first place while Stanbic IBTC led in the SME segment.Banking Industry Customer Satisfaction Survey 2013 | 19 TRANSACTIONS. a Swiss entity.9 and 76. Tackling queues at bank branches must involve different approaches which may vary from branch layout redesign. customers generally felt that more work was required in the area of account statements reconciliation and SMS/ email notifications on transactions. Zenith and First Bank came second and third place respectively with ratings of 78. . in recent years.Transactions. GTBank 3. Methods & Systems Retail Corporate 1. Stanbic IBTC 1. queues are no longer restricted to banking halls but are now common place at ATMs. More than any other driver of convenience. First Bank The transaction methods and systems service area received the highest industry average amongst the five components of the CSI in the corporate segment.

. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). All rights reserved. banks are going to have to rethink the way they attract and retain this class of customers or risk being left behind. a Swiss entity. a Nigerian partnership.20 | Banking Industry Customer Satisfaction Survey 2013 As young professionals become a key demographic driving the bottom line of retail banks. The future of banking Young professionals: a wakeup call for retail banking © 2013 KPMG Advisory Services.

savers. 73% did not select a response. a new cohort of young men and women is entering at the other. and mortgages respectively over the next 10 years. All rights reserved. 20%. sustaining these banking relationships is the next critical step.Banking Industry Customer Satisfaction Survey 2013 | 21 I don’t ever want to have a need to go to the bank. either at the onset as a student or youth corps member or because of the bank’s perceived popularity. consumers. 18% of respondents indicate that they remain with their bank because of the internet banking service. from this survey. car loans.Survey respondent Think of customer demographics as a pipeline of sorts . Although a bank’s popularity is a crucial factor for selection. This is the 21st century. However. I should be able to meet all my banking needs online or on my phone – from opening an account to signing up for internet banking. “ “ . This idea lends itself to two key points: • • Young professionals today will be significant drivers of retail banking revenues tomorrow. Understanding what this group wants will differentiate the winners from the losers in the race for the retail banking space. Presently. We see this group as interesting as they are a good indication of banking customers of the future. . and 9% cite image and reputation as their reason. Specifically. it will be important for banks to position themselves as the primary transaction account. to embark on what (for most of them) will be a 40 to 50 year experience as workers. or through a strong brand presence may be an important way for banks to attract this group of customers. Yet the majority of young professionals tend to maintain at least two to three bank accounts. a Nigerian partnership. For personal loans. whereas 18% chose their bank because of its image and reputation. and 35% of respondents indicated their potential need for personal loans. borrowers and investors. 30% of respondents commenced their banking relationships as students or as corps members. while for both mortgages and car loans. service years. social media and what a “great” bank would look like in the future. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). 79% did not select a response suggesting that young professionals may either not be interested or may not be aware of particular products available to them. it is of minimal importance in determining whether customers stay with the bank. Why young professionals maintain bank accounts Many young professionals tend to select their primary banks. © 2013 KPMG Advisory Services. KPMG set out to survey Nigerian young professionals between the ages of 18 to 30. Given that young professionals tend to have more than one account. a Swiss entity. 21%. Regarding the use of credit products. 11% cite excellent customer service. 16% admit that they are not aware of a bank that is significantly better than their current bank.as people are moving into retirement at one end. specific products and services. In this context. with 79% of them aged 18 . once banks have acquired this category of customers. less than ten percent of young professionals currently use credit facilities.24 falling within this category. Targeting the young professionals at an earlier stage during their time at university. Research was conducted to gain insight on the role of the branch.

. Hence. Five-in-ten respondents said they could not see themselves ever using a branch going forward. All rights reserved. Branch based banking is simply too time consuming for young professionals. A concert. etc. whereas only 1% of respondents selected the branch. Other ways young professionals would like their banks to interact with them include e-mails (20%) and applications on smart phones and tablet devices (15%). a Swiss entity. “ .22 | Banking Industry Customer Satisfaction Survey 2013 Top Five Reasons for Choosing and Maintaining Banking Relationships (Young professionals Under 30) Why I chose my bank Why I still maintain my current banking relationship 18% Started with student/ NYSC account Image and reputation Internet banking service 30% 18% 12% 9% 8% 16% 11% 11% 9% I’m not aware of a bank that is significantly better Excellent customer service Service is really not bad enough to compel me to change Employer requirements Excellent customer service Internet banking service Image and reputation The role of banking channels The service quality of alternate channels will be important for engaging this customer category now and in the future. a Nigerian partnership. than the bank’s ability to fulfil all banking activities at the branch. “ I want a bank that really knows me: my transaction trends. from home. from which it can decipher my preferences and market more solutions to me. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’).Survey respondent Q. They do not want to plan their day around the tedious task of carrying out banking activities in a banking hall. and/ or on the go. Young professionals would like to interact with their bank from work. who would prefer a more expedient way to fulfil their banking transactions. The common factor behind these responses is convenience. even if it is not a banking solution. What will be your most preferred mode of interaction with your bank in the future? Email Video Conferencing Online chat 44% 20% 15% Smartphone apps 7% 5% 5% 4% Phone calls Others Internet banking © 2013 KPMG Advisory Services. they will be more interested in the quality of the bank’s digital capabilities. a chance to listen to a favourite musician live. a chance to watch sports live. 44% of respondents ranked internet banking as the most important way for them to interact with their banks in the future.

“ .4% of respondents selected social media as their preferred option. The results from this survey suggest that young professionals are no exception as only 12% of respondents currently have a financial planner. The majority of young professionals surveyed (71%) indicated that they would like to get financial advice from a trained financial planner.24 25 . member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). with smoother and simplified processes as well as strong data privacy practices. in 5 years 7% 9% 9% 7% 7% Yes. an online personal financial management (PFM) platform may in fact be the suitable tool to meet their needs. Q. Financial advice offered must also be transparent and in the customer’s interest. while 16% of them would like to receive financial advice through materials provided by banks via their websites. only 0. Their preferred social media interaction would include getting updates on new products. since this customer category is growing at a rapid pace and has a keen interest in performing banking activities online.27 28 . however. they would not be completely adverse to their bank contacting them through social media. particularly if the platform is user-friendly.2 years Yes. given various options of ways to interact with their bank. and advanced budgeting capabilities. 41% of respondents said yes. in 1 . in 10 years No. Of those who do not have a financial planner. young professionals prefer to contact their bank utilizing such tools as internet banking or e-mails. “ I expect the bank of the future to be more like a retail outlet than a typical bank branch. never © 2013 KPMG Advisory Services. Clearly. 45% expressed the need for one now and six-in-ten of these respondents believe they will need a financial adviser in one to two years. Such a platform may lead to deepening of customers’ relationships with their bank.Banking Industry Customer Satisfaction Survey 2013 | 23 The role of social media Social media tends to be considered as a good way to interact with young professionals. Would you like your bank to interact with you via social media? 41% 23% Yes No Not sure 36% Financial planning Financial planning through the use of personal finance advisers has yet to take a strong foothold in Nigeria. Yet when probed further on whether they would like their bank to contact them via social media. PFM tools can provide customers with solutions to track expenses with analysis on customers’ spending. promotions and other general information. However. All rights reserved. Yet. . a Swiss entity.30 2% Yes. automated categorization of expenses. while 36% said no. Do you think you will need financial planning advice in the future? 66% 62% 57% 23% 23% 28% Ages 18 . advertisements.Survey respondent Q. a Nigerian partnership.

20% stated that a ‘great’ bank in the future will provide smoother and simplified processes for online services. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’).24 | Banking Industry Customer Satisfaction Survey 2013 The bank of the future While the advent of more sophisticated technologies have increased customer convenience in conducting transactions. customers have become even more demanding. • © 2013 KPMG Advisory Services. a Swiss entity. the great bank of tomorrow will need to rethink its strategy today. All rights reserved. Listening and taking action will be important. 19% stated that a ‘great’ bank of the future will have highly secure online banking. Their priorities and preferences are distinctive – and will require careful consideration by banks as they shape their business models for the future. as they expect better quality at lower costs. responses from young professionals included the desire for more transparency in banking interactions as well as improved security on online services. • • 25% of the respondents feel that a ‘great’ bank will be one that will act responsibly and honestly. a Nigerian partnership. The young professionals of today will be a significant revenue driver for retail banking in the future. When asked what a great bank would look like in the future. .

a Nigerian partnership.Banking Industry Customer Satisfaction Survey 2013 | 25 © 2013 KPMG Advisory Services. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). . a Swiss entity. All rights reserved.

Products and Services Retail Corporate 1. A difficult area for customers across all segments is ease of getting credit facilities. Stanbic IBTC 1. In the retail and SME segments. Citibank 3.26 | Banking Industry Customer Satisfaction Survey 2013 PRODUCTS AND SERVICES Open innovation In an environment where it is difficult to differentiate on the basis of price. GTBank 2. Perhaps. There was a slight increase. Zenith 3. Citibank and First Bank occupied the top three positions respectively. All rights reserved. there was a marginal decline in overall CSI ratings in this area with GTBank leading in both segments. When asked for one innovation they would like to see over the next 12 months. there is still room for improvement with customers still demanding greater specialisation and industry depth from banks. from last year. Stanbic IBTC also came in second position in the SME segment while Skye bank came third for the first time since 2009. online and epayments solutions was the leading response. 31%). Zenith Bank maintained second position in the retail segment while Stanbic IBTC moved a spot up to come third place. banks should begin to consider inviting customers to form part of the product development process as the concept of crowdsourcing is already recording some success in consumer retailing and IT. Stanbic IBTC 3. perhaps banks should begin to consider inviting customers to form part of product development. ‘ ‘ With customers still demanding greater specialisation and industry depth from banks. GTBank 2. the ability to deliver quality products becomes crucial. Zenith Bank. 77% of this group of customers affirmed their satisfaction with the quality of internet banking solutions provided by their banks. If approached and structured properly. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). a Swiss entity. Nearly all corporate/commercial customers indicated that quality of a bank’s e-payments capabilities and product suitability were of critical importance. Only 14% and 19% of retail and SME customers respectively were very satisfied with ease of getting loans. This is not surprising as the CBN’s cashless policy continues to shape the payments landscape. First Bank © 2013 KPMG Advisory Services. Top Three Banks by CSI Rating . However. a Nigerian partnership. Overall CSI ratings increased in the corporate segment by three percentage points from last year’s ratings driven by higher satisfaction levels (74% compared to 61% in 2012) with the breadth of financial products and services provided. Skye SME 1. The satisfaction level for access to long-term credit is also low amongst corporate customers as only 19% were very satisfied with this area. when matched with customers’ expectations. Zenith 2. in the number of customers reporting they were very satisfied with the suitability of banking products to their needs (36% vs. . similar successes may be achieved in banking.

In what areas would you like your bank to improve on its product and service offerings? © 2013 KPMG Advisory Services. a Swiss entity. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). a Nigerian partnership. . All rights reserved.Banking Industry Customer Satisfaction Survey 2013 | 27 Q.

crowdsourcing applies social media tactics – like online polling or discussion groups – making it possible to engage in an ongoing dialogue with targeted customers. open social media campaigns often seen on Facebook. products. while reducing cost and time to market. and bolster customer loyalty. • Combining qualitative and quantitative data. This new twist on market research – which meshes online collaboration tools with social media – could help organisations polish their brands. crowdsourcing updates the classic focus group for the digital era. the financial sector is eagerly testing the waters and creating ‘managed communities’ to gather fresh market intelligence. launch tailored products and transform their processes.uk Jeff is a financial services Principal Advisor in the Management Consulting practice of KPMG in the UK.28 | Banking Industry Customer Satisfaction Survey 2013 VIEWPOINT Testing the waters of ‘crowdsourcing’ Innovation-minded financial services companies are testing the waters of ‘crowdsourcing. a Nigerian partnership. enabling marketers and innovation leaders to collaborate with online communities of hundreds or hundreds of thousands. The benefits of crowdsourcing can include: • Increasing the capacity and breadth of your market research. and potentially innovative. in which you might invite your most valued customers.sevenoaks@kpmg. To differentiate themselves from competitors old and new. with quicker turn-around and analysis. This helps an organisation develop or fine-tune products. To do so. to improve the quality of their market intelligence. programs or processes. ‘ ‘ Although consumer product retailers and manufacturers were among the fastest to embrace crowdsourcing. a crowdsourcing program enables you to build a closed.poole@kpmg.’ A recent phenomenon. – also known as ‘prosumers’ – to register and take part in a single or ongoing conversation.uk Matt leads KPMG’s crowdsourcing offering. Crowd Connection. market insights and ideas. and tap into the ‘voice of their customer.co. controlled community. financial services companies around the world are rethinking their brands. a Swiss entity. . member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’).co. and delivery models. All rights reserved. employees and other key stakeholders to gather deeper. Unlike those very visible. Jeff Poole jeff. Matt Sevenoaks matt.’ to better understand their customers’ deepest wants and needs. a number of leading providers are exploring the emerging research technique of crowdsourcing. In its simplest form. opinion leaders or influencers. © 2013 KPMG Advisory Services.

Among them. • Carefully design program set-up and management. participants. a German insurance company invited clients to create and evaluate insurance options. while an Australian bank encourages customers to post. a Nigerian partnership. © 2013 KPMG Advisory Services. goals. operations and human resources). innovation-minded financial services companies can tap into their customers’ deepest insights. ideally embedded in an organisation’s existing business functions (e. by delivering actions or implementing solutions. by involving your most valued stakeholders. • • Keep it simple in the early stages. • Clearly define purpose. a Swiss entity. Since KPMG formed an alliance with Chaordix Inc. By pursuing crowdsourcing as the natural evolution of traditional market research. promotion and management of any crowdsourcing program. marketing. vote on and discuss new product ideas. the financial sector is eagerly testing the waters and creating ‘managed communities’ to gather fresh market intelligence. a Singapore bank applied crowdsourcing to involve its generation Y clients in new branch design. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). with your fledgling crowdsourcing community. we have combined Chaordix’s Crowd Intelligence™ methodology with KPMG’s subject matter expertise to consult clients on crowdsourcing strategies to address key business challenges.. and put them at the heart of critical brand building.g. incentives. and build credibility. and Follow-through. resolve service gaps. In this time. through collaboration and regular conversation. or to help financial firms comply with new regulations that demand greater public consultation and community engagement. we have observed a variety of best practices that contribute to project success: • Ensure executive sponsorship for any crowdsourcing initiative. to tackle organisational challenges. .Banking Industry Customer Satisfaction Survey 2013 | 29 • • • Obtaining deeper customer insights. Lowering the risks of product development. customer insights. and Increasing customer loyalty. product design and process improvement strategies. sales. and accept the likely hits and misses on the path to achieving ROI. or discover new revenue opportunities. Although consumer product retailers and manufacturers were among the fastest to embrace crowdsourcing. There are also opportunities to use crowdsourcing to engage corporate and commercial banking clients. to show commitment. All rights reserved.

30 | Banking Industry Customer Satisfaction Survey 2013 © 2013 KPMG Advisory Services. a Nigerian partnership. . member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). All rights reserved. a Swiss entity.

Pricing Retail 1. In fact. In the retail segment. About 61%of retail customers are satisfied with the cost of maintaining accounts with their banks and only 12% of those planning to switch banks will do so because of pricing. Care must be taken not to view pricing only in the context of interest rates and fees when dealing with corporate or commercial organisations – only 10% were dissatisfied with the cost of maintaining accounts. GTBank 2. Indeed. pricing for this group of customers relates more to the perceived value derived from the banking relationship. Retail customers would like more clarity and proactive communication from their banks about imminent changes in rates and charges. Rather. while Standard Chartered and Stanbic IBTC came in second and third respectively. A view of the cost-to-serve can facilitate effective pricing decisions through an understanding of the costs required to deliver products and services vis-à-vis the relative importance of these to different customer categories. this is imperative given the recent alterations in service charges across the industry. First Bank 2. GTBank 2. the industry made significant improvements in cost efficiency that helped boost profitability positions last year. the discussion on getting the cost-to-serve right will become even more significant for banks and businesses as banks look to sustain growth in the face of increasing pressures on the top line. In contrast. pricing appears not to be a game changer for most retail customers – only 3% maintain their banking relationships because of pricing. . a Nigerian partnership. Citibank SME Satisfaction with Pricing Q. 10% of retail customers indicated they are likely to be more satisfied if their banks offered more competitive rates and charges. All rights reserved. about half of SMEs and corporate customers are either dissatisfied or indifferent about charges on loans and rates on investment products. GTBank retains number one position for the third consecutive year. Unity 3. a Swiss entity. Diamond 3. 53% of corporate customers that will switch banks will do so because of interest rates and fees. Stanbic IBTC Corporate 1. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). Standard Chartered 1. this may not suffice over the long term. GTBank also emerged in first place in the SME segment while First Bank led in the corporate segment. Top Three Banks by CSI Rating . Standard Chartered 3.Banking Industry Customer Satisfaction Survey 2013 | 31 PRICING Cost-to-serve: a core imperative? As in previous years. Although. With the gradual removal and reduction of some service and transaction related charges. How satisfied are you with the cost of maintaining banks accounts with your banks? Corporate/ Commercial SME 10% 21% 41% Very satisfied Satisfied Indifferent Dissatisfied 17% 17% 44% 28% 22% © 2013 KPMG Advisory Services.

many corporate customers have main-bank relationships even where they have as many as eight bank accounts. Younger customers (under-30) are particularly less loyal. a Nigerian partnership. All rights reserved. they are twice more likely to change banks compared to customers above 60. While attrition may appear low in the corporate segment. ‘ ‘ Younger customers (under-30) are particularly less loyal. This presents a big opportunity for banks looking to capture this segment provided they can deliver on innovative. service quality remains the leading reason for retail customers planning to switch banks © 2013 KPMG Advisory Services. technology-driven products and services with underlying convenience. Loyalty in this context would mean choosing to increase the volume of business done with one bank at the expense of another or increasing the number of products and services held. a Swiss entity. . We expect that competition for loyalty amongst banks will be the next battlefield. they are twice more likely to change banks compared to customers above 60. Keeping with last year. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’).32 | Banking Industry Customer Satisfaction Survey 2013 LOYALTY More customers looking elsewhere Our findings reveal that customers are increasingly willing to shop around for banking services that meet their needs – about 10% of retail customers expressed willingness to switch banks within the next 1-3months – a fairly significant number considering that over 40% of respondents already hold more than one bank account.

Earlier. Q. Frontline staff have a strong role to play in delivering service quality. Would you recommend your bank to others? Retail SME Corporate 51% 21% 18% 8% 2% Absolutely will Often will Sometimes will Absolutely will not No response 59% 23% 11% 5% 2% Absolutely will Often will Sometimes will Absolutely will not No response 49% 28% 15% 4% 4% Absolutely will Often will Sometimes will Absolutely will not No response © 2013 KPMG Advisory Services. All rights reserved. loyal customers have the potential to become a bank’s biggest brand ambassadors with consequent impact in reducing its costs of sale and increasing its share of the customer’s wallet. The approach to this must be strategic and embedded within the bank’s culture otherwise there will be little perceived value. . What is the primary reason for changing or planning to change your bank? (Retail) 51% 12% 13% 13% 5% 6% Innovative products and services Financial stability Interest rates and fees Proximity of branches Turnaround time for requests and enquiries Service quality Q. banks need to continue to train and enable their staff to identify and meet customers’ needs and aspirations. Amongst retail customers. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). we found a strong relationship between loyalty and satisfaction with the bank’s staff attitude. a Nigerian partnership.Banking Industry Customer Satisfaction Survey 2013 | 33 whereas more than half of corporate customers who indicated their plans to switch banks will do so because of interest rates and fees. Thus. Significantly. a Swiss entity. we highlighted the critical value of branch interactions in influencing the overall customer experience.

50 million N50 .250 million N250 . a Swiss entity. a Nigerian partnership.10 billion Above N10 billion 8%5% 56% 13% 18% Less than 300 300 . .000 21% n = 425 © 2013 KPMG Advisory Services. 035 Commercial/ Corporate Respondents Annual Turnover Number of employees 12% 15% 19% 33% N500million .000 Above 2.N250.500 million 6% 14% 42% 5% 58% Less than 10 10 . 424 SME Respondents Annual Turnover 3% 1% Number of employees 2% Below N1 million N1 .001 .60 Above 60 14% Male Female 56% 44% 34% Income (Monthly) 1% 1% Occupation 3% 3% 3% Below N50. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’).50 51 -100 100 .40 41 .2.N1 million Greater than N1 million 5% 45% 15% 21% 24% 23% 33% 23% Self-employed Private sector employee Student Public sector employee Unemployed Retired n = 14.000 1. All rights reserved.2 billion N2 .000 N501.000 N101.000 .5 billion N5 .000 .1 billion N1 .250 34% 35% n = 3.000 N251.10 million N10 .500 501 -1.34 | Banking Industry Customer Satisfaction Survey 2013 Demographics Retail Respondents Gender Age 2% 50% Below 30 31 .5 million N5 .N100.000 .000 N50.N500.000 .

Acknowledgements We would like to thank all respondents who took part in the research. Majority of the interviews were conducted in person across eighteen major cities in Nigeria. a Nigerian partnership. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’). Neel Arya. Wale Abioye.Banking Industry Customer Satisfaction Survey 2013 | 35 Survey Locations Kano Kaduna Minna Yola Ilorin Ibadan Abuja Makurdi Akure Enugu Onitsha Nnewi Aba Calabar Port Harcourt Lagos Benin Asaba The survey was conducted between January and March 2013. We are also grateful to Communications and Marketing Research Group (CMRG). Matt Sevenoaks and Tokunboh Osinowo for sharing their insights. a Swiss entity. © 2013 KPMG Advisory Services. Jeff Poole. Gaelan Bloomfield. Torera Banjo. . Tinuke Esan and Olaseni Shoyoola. particularly those who participated in in-depth interviews and provided important insights and contributions. The KPMG project team: Bode Abifarin. targeting a minimum number of respondents for a representative sampling across the 20 banks. Funso Ero-Phillips. All rights reserved. KPMG Nigeria partners and staff as well as Daniel Knoll.

No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties.kpmg. there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. © 2013 KPMG Advisory Services.kpmg.com/ng The views and opinions expressed herein are those of the survey respondents and do not necessarily represent the views and opinions of KPMG. member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”).com Marie-Therese Phido Marketing. Any trademarks or service marks identified in this document are the property of their respective owner(s). No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. All rights reserved. The KPMG name. Designed in Nigeria.Contact us For further information about this publication and our services.com kpmg. a Swiss entity.chidozie@ng.kpmg. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information. logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. nor does KPMG International have any such authority to obligate or bind any member firm. a Nigerian partnership.kpmg. KPMG International provides no client services.com Ngozi Chidozie Management Consulting T: +234 704 527 6024 E: ngozi. Publication name: Banking Industry Customer Satisfaction Survey Issue number: 7 Publication date: June 2013 . please contact: Bisi Lamikanra Partner and Head Management Consulting T: +234 704 527 6005 E: bisi.abifarin@ng.com Bode Abifarin Management Consulting T: +234 704 527 6485 E: bode.lamikanra@ng.phido@ng. Knowledge & Communications T: +234 704 527 6012 E: marie-therese.