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This survey focuses on the perceived quality of customer service delivery by the banks from the customers perspective across the Retail, Corporate/Commercial and SME segments).
This survey does not represent the opinion of KPMG on the skills, capabilities or performance of any of the banks
covered.
KPMG conducts the survey, but ndings represent the opinions of the customers of the banks.
KPMG is responsible for dening the survey questionnaire administered to the respondents.
This survey does not seek to establish anything as absolute fact (as perceptions are by denition subjective), 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 feedback received from the survey.
2. Perception is never balanced or fair, but the study always has a representative sample size.
Banks rated in the survey vary by size, service offerings and customer prole. Respondents in the survey are asked
to rate their banks on a selection of key criteria across ve factors detailed below.
The minimum number of respondents required for each bank in the survey guarantees that the bank ratings reect
the opinion of a representative customer group and not the opinions of individuals.
Methodology
nc
nie
Co
are
SxI
CSI =
I
Pricing
S= Satisfaction
I = Importance
Transact
Metho ions
ds
/
ucetss
d
rorvic
e
e Custo
m
e
rC
nv
The Customer Satisfaction Index (CSI) used to rate the banks is composed of ve key factors - Convenience,
Product/Service Offering, Transaction Methods and Systems, Pricing and Customer Care.
SP
Contents
Foreword
Survey Highlights
Detailed Findings
16
Takeaways
27
Demographics
28
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity.
All rights reserved.
Foreword
I am pleased to present the 2012 edition of our
annual Banking Industry Customer Satisfaction
Survey. A number of changes were introduced this
year to broaden the scope of the survey and further
enrich the quality of responses across the retail, SME,
and commercial/corporate segments. Over 10,000
retail banking customers and more than 2,000 SMEs
and large corporate organisations in Nigeria responded
to questions on their preferences, levels of satisfaction
and expectations from their banks.
Since our rst survey in 2007, we have witnessed a marked evolution of the
customer. This years survey reveals an overall increase in satisfaction levels
of retail and SME customer segments albeit still below the pre-nancial crisis
levels while overall satisfaction fell in the corporate segment. With the evolving banking landscape - largely driven by regulation - still very much a subject of
national discourse; about half of retail customers still cite Financial Stability as the
prime reason for maintaining their banking relationships.
As technology continues to redene how customers interact with each other and
their nancial services providers, we have broadened the scope of the survey to better understand customer preferences and attitudes towards traditional and alternate
channels. Our survey conrmed the ATM as the fastest growing channel; more than
half of customers visit an ATM on a weekly basis. However, the level of adoption of
other alternate channels is still relatively low.
At KPMG, we believe these alternate channels will all gain traction as they offer exciting
and promising opportunities for both banks and their customers. However, there is a need
for banks, the industry regulator and other key stakeholders to address customer concerns
identied in this report and in some cases review the delivery approach to optimise these
channels. We also expect the branch to continue to remain a key channel but anticipate the
distinctions between branch and alternate channels to continue to thin thus creating opportunities for banks and nancial services providers in general to deliver seamless multichannel
experiences to their customers.
Our survey also demonstrates that customers are increasingly sensitive to service quality and as
customer condence in the industry increases, the likelihood of switching is expected to increase.
Hence, the time is now for banks to go beyond customer service to building customer loyalty and
advocacy.
I hope you nd the survey results helpful and welcome feedback or suggestions for next years
survey.
Bisi Lamikanra
Partner & Head
Management Consulting
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity.
All rights reserved.
Survey Highlights
Mixed Results
Maintaining Relationships
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Detailed Findings
Over the past ve years, we have witnessed many initiatives by
banks to engage better with customers and our ndings suggest that
customers are responding to some of these initiatives evidenced by
the 3-percentage point increase in the banking industry's overall customer satisfaction recorded this year in the retail segment.
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
GTBank
77.9
GTBank
Zenith
77.7
Zenith
76.1
Stanbic IBTC
75.7
Diamond
Fidelity
74.8
74.4
FCMB
73.9
FirstBank
70.0
71.0
72.0
73.0
74.0
78.3
Stanbic IBTC
78.2
76.0
FirstBank
75.7
FCMB
75.7
75.1
74.9
Sterling
73.1
Access
Standard Chartered
Diamond
73.3
Sterling
78.4
Access
75.0
Standard Chartered
79.1
Ecobank
75.0
76.0
Industry Average
77.0
78.0
79.0
72.0
73.0
74.5
74.0
75.0
76.0
77.0
78.0
79.0
80.0
Industry Average
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
GTBank
72.5
Zenith
71.3
FirstBank
70.2
Sterling
68.6
Diamond
68.4
UBA
68.3
Skye
68.3
Stanbic IBTC
68.2
Access
67.8
StanChart
67.8
60.0
65.0
70.0
75.0
Industry Average
71.0
Conglomerates
71.0
Agriculture
70.9
Hospitality
70.8
Aviation
70.3
70.0
Manufacturing
69.9
68.9
Maritime
68.9
Educational Institutions
68.9
68.8
Services
Oil & Gas
68.5
68.2
Healthcare
67.6
66.6
ICT
62.8
60.0
64.0
68.0
72.0
Industry Average
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
80.0
RELATIONSHIP ISSUES
Financial stability
remains key
In recent times, regulatory changes have
been at the forefront of the Nigerian
nancial services industry with initiatives
such as the cashless society drive. These
initiatives have directly impacted the
relationships of banks with their customers. Some respondents expressed
dissatisfaction at the approach taken by
some banks to migrate them to alternate
channels such as the introduction of
withdrawal charges prior to the commencement of the CBN initiative.
Our ndings reveal yet again that Financial Stability (27%) remains the leading factor for most retail customers in
maintaining their relationships with their
banks followed by Excellent Customer
Service (23%) and the banks Image and
Reputation (18%). About one in ten retail
customers also noted Proximity of Alternate Delivery Channels as a key factor.
Feedback from retail customers also suggests some measure of anxiety in light
of recent regulatory interventions.
Hence, banks will need to continue to
reassure customers and ensure they
27%
Financial
Stability
Customer
Service
23%
Customer
Service
Image &
Reputation
Proximity of
Branches
Access to Other
Channels
26%
19%
Image &
Reputation
18%
12%
9%
18%
Proximity of
Branches
11%
Financial
Stability
29%
Customer
Service
23%
Image &
Reputation
10%
Banks Support
of Business
10%
Relationship
with Bank Rep.
5%
Relationship
with Bank Rep.
6%
Banks Support
of Business
5%
Reasonable
Charges
5%
Retail
remain informed; while some banks also
need to go further to rebuild trust with
their customers. Our ndings also reveal
that customers perceive the banks image
as a more important factor in the banking
relationship than pricing of bank products.
SME
Commercial/
Corporate
Regaining Trust
Since the onset of the last nancial crisis, customer condence has been waning around the world and Nigerian banks are
not exempt from this trend. As the dust settles from the recent industry shake-up, many customers can be forgiven for
remaining cautious about their nances and banking relationships. Some of the customers surveyed are in the process of
seeking or have already sought to diversify perceived risks in the banking sector by opening an account with an additional
bank or switching to another bank entirely. Here are a few suggestions on how banks can regain the trust of their customers.
Increase transparency
Banks have long been associated with
hidden charges and complex products.
However, customers expect banks to
deal more transparently especially in
the areas of pricing and fees - with no
surprises. Only then will banks be seen
to be acting in the best interest of their
customers.
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
CONVENIENCE
Branching out
Ensuring that customers have ease of access and readily available channels to use
is an integral step towards guaranteeing
the convenience of delivery channels for
the customer. With customers getting
used to shorter turnaround times and
the immediacy offered by technology
devices, they are also demanding similar
levels of speed and convenience from
banks.
Increasingly, channels must provide full
functionality and maintain high levels of
reliability and availability to meet customer expectations. Customers want to be
able to process near- instant transactions
from their mobile devices and computers from the comfort of their homes or
workplaces.
Rank
Retail
SME
Commercial/
Corporate
Zenith
Standard Chartered
GTBank
GTBank
Zenith
Zenith
Diamond
GTBank
FirstBank
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Contact
Centre
Mobile
Banking
Standard
Chartered
ETB
Stanbic
IBTC
GTBank
GTBank
Standard
Chartered
Zenith
FirstBank
Sterling
Diamond
GTBank
Rank
Branch
ATM
Internet
Zenith
Zenith
Diamond
Stanbic
IBTC
Convenience reached its lowest point this year in the corporate segment in
a reection of higher expectations from respondents. In the retail segment,
convenience has declined from its peak in 2009.
For the rst time, the industry average for convenience was the lowest of
all the ve CSI factors in the corporate segment.
In the corporate segment, Zenith Bank has emerged in rst position in
three of the last ve years.
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Only 7% of respondents
use internet banking;
POS - 6%; telephone
banking - 5%; and mobile
payments - 2%.
Channel Usage
Q. How often do you use the following channels?
All Age Groups
Branch
ATM
POS
Internet Banking
Mobile Banking1
Contact Centre
Mobile Payments2
0%
Weekly
20%
40%
60%
Once a month
80%
Rarely
100%
Never
Mobile banking allows customers to use their applications on mobile phones as another channel for their banking
services such as deposits, withdrawals, account transfer, bill payment, and balance inquiry.
Mobile payments involve the use of mobile phones toinitiate and conrm payments between two parties.
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
65%
29%
3%
2%
1%
POS
Branch
ATM
Mobile Banking
Internet Banking
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Through the
eyes of the
customer
Banks all over the world are playing catch-up on the ever-evolving social media front where many customers are savvy. How
can Nigerian banks leverage this platform successfully?
Lets take a look at how an average customer might view interactions with their
bank over social media. First, they probably only want to deal with one company
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
themselves.
Banks may consider the gameication
of nancial services (for example, a
tool that allows customers to play with
different investment scenarios), or even
incentivization (say, providing a better
rate to customers who apply through
social channels).
More active social network users may
also welcome a community aspect to
the banks offerings. In fact, this may provide one of the biggest opportunities for
banks: experience in the telecommunications industry shows that peer-to-peer
customer support can generate not only
signicant cost savings for companies,
but also provide faster (and sometimes
more personal) issue resolution.
Marty Carroll
marty.carroll@kpmg.co.uk
Whats more, those customers that provide peer support are more likely to be
advocates of the bank and may be harnessed as net promoters in the future.
But banks will also need to remember
that customers can be ckle. New chan-
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Faster please!
Using the Transactions, Methods, and
Systems (TMS) component of the CSI,
we assessed customer satisfaction
with quality of information provided and
turnaround time of transactions at banks.
Retail respondents ranked Zenith Bank
highest ahead of other banks.
Overall, retail respondents expressed
highest levels of satisfaction for transaction, methods and systems in a nod to
numerous efforts by banks to address
waiting times in banking halls. Progress
needs to continue, however, as typical issues such as long queues, difcult-to-understand information and lack of prompt
feedback from bank staff still remain.
In the corporate segment, GTBank
secured rst place with a rating of 78.5
followed by Zenith and First Bank. For
the fourth year in a row, the CSI for
TMS has the highest industry average at
74.0, although the average has been on
a decline since 2010 when it was 80.5.
Satisfaction with information provided
on bank statements and advice slips
remained unchanged from last year
nearly nine-in-ten respondents for both
years were satised with the accuracy
and completeness of those documents.
Rank
Retail
SME
Commercial/
Corporate
Zenith
GTBank
GTBank
GTBank
Zenith
Zenith
Stanbic
IBTC
Stanbic
IBTC
FirstBank
44%
40%
37%
26%
Commercial/
Corporate
SME
Retail
2011
2012
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
CUSTOMER CARE
Rank
Retail
SME
Commercial/
Corporate
GTBank
GTBank
Zenith
Standard
Chartered
Stanbic
IBTC
GTBank
Zenith
Zenith
FirstBank
corporate respondents highlighted customer care issues such as their relationship managers knowledge of their industry and ability to provide alternatives was
very important to them.
66% of those organisations who said
they would not increase transactions
with their banks were not satised with
the ability of their relationship managers
to present them with useful advice. Over
seven-in-ten (75%) of the same organizations said their banks did not sufciently
update them on market trends.
In the retail segment, 83% of retail respondents who were planning to switch
banks said they were not very satised
with handling of enquiries and complaints by their banks.
In recent years, banks have made signicant strides in the area of customer
care. In this period, customer care has
evolved from the single service desk in
the bank branch to full contact centres
with tens or hundreds of staff answering phone calls and resolving diverse
queries. Much of it remains reactive; to
meet customer expectations and deliver
a compelling customer experience,
banks need to be proactive in this area.
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Rank
Retail
SME
Commercial/
Corporate
GTBank
GTBank
GTBank
Zenith
Stanbic
IBTC
FirstBank
Fidelity
Zenith
Zenith
The industry average for product and service offering CSI (retail) climaxed at 75.2 in
2009, however, it plummeted by 12 percentage points the following year. Since then it
has been on the rise, reaching 73.2 in this years survey.
In the corporate segment, this years CSI for product and service offering has been the
lowest obtained over the last ve years at 67.7.
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
In other markets, many banks are re-adapting their business models such that commercial products are aligned
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
PRICING
slightly more satised than retail regarding account maintenance costs - 69% of
respondents expressed satisfaction. Six-inten SME respondents also expressed satisfaction with interest rates offered.
With respect to pricing for corporate
customers, Keystone emerged as in rst
place. Importantly, overall pricing CSI in
this segment declined by nearly ve percentage points from last year.
Rank
Retail
SME
Commercial/
Corporate
GTBank
GTBank
Keystone
Stanbic
IBTC
Stanbic
IBTC
Union
FCMB
FCMB
Zenith
SMEs
20%
Corporates
11%
Dissatised
Satised
Over the past ve years, pricing has generally been the customer service area
with the lowest rating in the retail segment compared to the other four CSI
components.
For the rst time, pricing did not have the lowest CSI rating in the corporate
segment
Fidelity and GTBank were the only two banks to rank amongst the top three for
three times in the past ve years.
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
LOYALTY
Customer Advocacy
Q. Would you recommend your bank to others?
54%
12%
57%
48%
12%
10%
25%
9%
7%
5%
17%
17%
17%
5%
5%
SME
Absolutely Will
Often Will
Sometimes Will
Commercial/
Corporate
Absolutely Will Not
No Response
Retail
- Lagos-based businesswoman
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Customer Switching
Q. What is your primary reason for changing (or planning to change) your bank ?
Service Quality
49.6%
10.8%
10.5%
Financial Stability
8.9%
8.3%
Proximity of Branches
Others
6.5%
Access to Credit
5.0%
0.3%
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Service Expectations
Understanding the key service areas
where customers would like to see immediate improvements is an integral part
of fullling customers needs. Knowing
the areas that can be remedied to offer
customers a better banking experience
is key to increasing their satisfaction and
loyalty.
As seen throughout the survey, customers are expecting banks to deliver faster
transaction processing. When asked how
their bank could improve its services,
many retail respondents identied
reduction in wait times for transaction
processing and requests as a primary
area of improvement. This has remained
unchanged as the primary improvement
area since 2010. Of note as well, friendly, polite and proactive staff appears as
one of the top three improvement areas
for banks.
Knowledge of the
customers business
in the corporate sector
remains a key issue.
Corporate Expectations
Q. How can your bank improve its services?
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Takeaways
Deepen knowledge of
the customers business
Leverage technology to
provide innovative solutions
across customer value chains
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Demographics
Retail Respondents
Employment Status
Income (Monthly)
2%
3%
5%
1%
Gender
4%
21%
23%
Age
19%
14%
20%
46%
24%
41%
59%
35%
28%
54%
Public
Private
Below N20,000
Self-Employed
Student
Retired
Others
N101,000 - N250,000
N251,000 - N500,000
Greater than N500,000
N20,000 - N100,000
Male
Under 30
31 - 40
41-55
Above 55
Female
n = 10,577
SME Respondents
Annual Turnover
Number of Employees
Sector
Commerce & Trade
2%
3%
6%
34%
ICT
31%
13%
Manufacturing
12%
23%
8%
7%
Healthcare
21%
24%
6%
5%
5%
Agriculture
Services
40%
Below N1m
N1m - N5m
Less than 10
10 - 50
N5m - N50m
N50m - N250m
51 - 100
101 - 250
2%
Educational Institutions
2%
Hospitality
2%
n = 1,705
3%
Others
2%
1%
Sector
Number of Employees
Manufacturing
16%
7%
21%
6%
9%
20%
10%
10%
10%
11%
ICT
9%
Services
23%
18%
60%
7%
5%
5%
28%
5%
Healthcare
4%
4%
Hospitality
Less than N250m
N250m - N1bn
300 500
N1bn - N5bn
N5bn - N10bn
500 1,000
1,000 2,000
Aviation
Conglomerates
Education
500 1,000
Agriculture
Maritime
3%
3%
3%
2%
2%
n = 405
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Survey Locations
Kano
Kaduna
Ilorin
Abuja
Ibadan
Lagos
Onitsha
Benin
Aba
Port Harcourt
Acknowledgements
We would like to thank the following people for their invaluable contribution to this
survey:
All survey respondents, Communications and Marketing Research Group (CMRG),
Marty Carroll (KPMG in the UK), KPMG Nigeria partners and staff.
The KPMG project team: Wale Abioye, Atinuke Esan, Valerie Nwandu and Oyindamola
Jaiyesimi.
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Contact us
For further information about this publication and our services, please contact:
Bisi Lamikanra
Partner and Head
Management Consulting
T: +234 704 527 6005
E: bisi.lamikanra@ng.kpmg.com
Ngozi Chidozie
Management Consulting
T: +234 704 527 6024
E: ngozi.chidozie@ng.kpmg.com
Bode Abifarin
Management Consulting
T: +234 704 527 6485
E: bode.abifarin@ng.kpmg.com
Marie-Therese Phido
Marketing, Knowledge & Communications
T: +234 704 527 6012
E: marie-therese.phido@ng.kpmg.com
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.
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, 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. No one should act on such information without appropriate professional advice after a
thorough examination of the particular situation.
2012 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. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to obligate or bind any
member firm. All rights reserved.
Any trademarks or service marks identified in this document are the property of their respective owner(s).
The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International.
Designed in Nigeria. Publication name: Banking Industry Customer Satisfaction Survey Issue number: 6 Publication date: May 2012