"Fintechs Outperformed Commercial Banks": KPMG Highlights Nigerian Banks' Weakest Area in New Report
- The management of customer complaints remains the weakest aspect of the Nigerian banking sector, according to a survey by KPMG
- It stated that resolution continues to be the least strong experience pillar for retail customers for the fourth week in a row
- In 2024, however, the banking industry achieved modest gains in consumer satisfaction in a number of key areas
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
International professional services firm KPMG has reported that the Nigerian banking industry's weakest area continues to be the handling of consumer complaints.
Source: UGC
Its recently issued 2024 Banking Industry Customer Experience Survey made this known.
The report, which is the second edition of KPMG's West Africa customer research publication, includes information from 700 commercial/corporate organizations, 5,000 SMEs, and more than 33,000 retail customers in Ghana and Nigeria.
The Nigerian segment of the report said,
“For the fourth consecutive time, resolution (turning a poor experience into a great one) remains the weakest experience pillar for retail customers. Ongoing technology challenges, including recent core banking and mobile app upgrades, have hindered banks’ ability to address customer complaints effectively.
“By contrast, fintechs have consistently outperformed commercial banks in this area, with customers praising the speed and quality of their resolution services as critical differentiators,” the survey partly read.
According to the survey, the banking sector saw slight improvements in customer experience in 2024 across several important segments, The Punch reported.
The corporate segment stood out as the most improved, surpassing the 80-point threshold in overall customer experience ratings, while the SME segment saw the biggest increase, with its customer experience score rising by more than two percentage points from the previous year.
“In contrast, the retail segment recorded only marginal improvement, which was largely driven by rising satisfaction with non-traditional players as traditional banks saw a decline in their average customer experience performance.
Interestingly, the top-rated retail bank's score this year was over two percentage points lower than its score from the previous year. Experiences with retail banking at commercial banks are still very similar.
The results may indicate that traditional banks need to innovate and differentiate their service offerings, as the top-ranked bank and the eighth-ranked bank are only separated by just one percentage point.
According to KPMG, the need for dependable and effective digital banking solutions has increased due to increased inflation and ongoing currency volatility.
CBN refunds N7.05 billion
Legit.ng reported that the Central Bank of Nigeria (CBN) has forced several commercial banks to refund N7.05 billion and $714.569 to bank customers in eight months following disputes in the financial system.
The eight-month recovery is reportedly part of the one billion naira illegally withheld by the banks under controversial situations.
Findings show that many bank customers have reported unauthorised or fraudulent deductions by commercial banks in Nigeria, with customers accusing the banks of siphoning their funds.
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Source: Legit.ng
