Africa
Banking
Industry
Retail Customer
Satisfaction Survey
September 2016
kpmg.com
About this survey
To succeed in today’s banking environment, bank executives
need to understand their customers: their preferences, their
channel usage, their needs and their satisfaction.
That is why we talked with more than 33,000
retail banking customers spread across 18 different
African markets. We asked them what was important
to them in a banking relationship. We asked them
what channels they currently use and what channels
they would like to use. And we asked them how
their current banks compared to their expectations.
Through the eyes of the customer
The data we collected from our conversations
reflect the opinions of real banking customers.
As such, they reflect only the perceptions of
customers and – as a result – they may not always
be fair. Perceptions are, by definition, subjective.
To be clear: the data reported in this survey does
not reflect the opinions of KPMG member firms.
Rather, it illustrates the feelings and experiences
of customers based on the service they received
at their particular banks.
Delivering a balanced view
For this survey, we talked with retail banking
customers across 18 sub-Saharan countries
in Africa. With the exception of Nigeria (where
response rates were higher than average) we
collected data from at least 650 individual banking
‘relationships’ in each market we surveyed.
A minimum number of respondents were required
for each bank in the survey to ensure that results
reflected the opinion of a representative customer
group.
Understanding the methodology
For this report (and our previous report in 2013), we
used our Customer Service Index (CSI) methodology
to determine customer satisfaction. The CSI is a
weighted score that reflects the relationship between
the importance rating allocated by customers to
certain measures and their satisfaction with the same
measures.
The CSI ranks importance and satisfaction across
six key measures:
Customer
care
Convenience
Executional
excellence
Branding
Value for
money
Products
and services
Customer care:
How customers feel about their
interactions with their bank.
Convenience:
Customer perceptions around
channel accessibility and quality.
Executional excellence:
Views on transaction processes
and information.
Products and services:
Perceptions on product and service
quality and availability.
Value for money:
Whether customers feel they are
getting value from rates and fees.
Branding:
Whether customers trust their bank
and believe their brand messages.
02
Foreword
04
Executive summary
06
Building the relationship
08
Customer care
10
Encouraging the shift to internet and mobile
banking: A Nigerian perspective
12
Executional excellence
14
Tapping customer data to drive growth:
A South African perspective
16
Products and services
18
Banking Transformation:
An East African Perspective
20
Loyalty
22
The future of the branch in the digital era:
An Angolan perspective
24
Channels
26
Value for money
28
A single view
32
Market profiles and highlights
107
Demographics
108
Acknowlegements
109
Contacts
Table of
contents
1Africa Banking Industry Customer Satisfaction Survey
Customers are still concerned about financial stability;
but what they primarily want from their banks is
enhanced high-quality service, more innovation
and greater convenience.
Some of the reasons for this shift are obvious. Regu -
lators across the continent have been highly focused
on building up the stability of their banks with higher
capital ratio requirements, tighter lending requirements
and more stringent regulatory requirements. In some
cases, this has led to consolidation as smaller, less
capital efficient banks are squeezed out of the market.
In many other cases, it has raised customer and investor
confidence as the banking sector regains strength.
At the same time, other regulatory and policy reforms –
this time focused on improving financial inclusion as a
way to drive economic growth and development – have
driven higher levels of competition across many markets.
Regional players have continued to expand their footprints
across Africa, emboldened by more liberalized market
regulation and the growing maturity of regional trade
and economic blocs.
New entrants and non-traditional players are gaining
a foothold in many markets, further intensifying
competition and creating disruption. At the same time,
however, these new players have also widened financial
literacy amongst Africans and – in many cases –
heightened expectations of how traditional banks
should operate.
With more competition and fewer concerns about
the stability of their banks, Africa’s banking customers
have naturally started to differentiate their banks based
on their experience when interacting with their banks.
The problem is that ‘customer satisfaction’ is not a
single lever or discreet project that banking executives
can simply invest into, activate or install. Rather it is
a complex web of facets and perceptions, all of which
combine to create the customer experience. There are
dozens of potential levers and thousands of combinations
that can be pulled, and no two banks will pull them
in the same way.
Foreword
By Adebisi Lamikanra, Partner, KPMG in Nigeria and Head of Financial Services Africa
Much has changed across Africa’s banking industry in the past
three years. In 2013, when we published our first edition of the
Africa Banking Industry Customer Satisfaction Survey, our report
found that retail customers were most concerned about the
financial stability of their banks. Fast forward to 2016 and the
rules of the game have changed.
2 Africa Banking Industry Customer Satisfaction Survey
Banking executives should see this as a massive
opportunity. What our survey clearly demonstrates
is that there are many ways to influence customer
satisfaction. This report has several examples of retail
banks that ‘punch above their weight’ in many satisfaction
measures – often by leveraging technology or new
business models to leap ahead of their better-funded
or better-known competitors. And there are plenty of
examples of large regional banks that have extended
their customer service prowess into new markets.
It must be made very clear, however, that this is a
perception survey and – as such – only measures the
views of customers and their feelings towards their
bank, it’s employees, products, services and channels.
It does not necessarily reflect actual capabilities or
individual experiences. But, as has often been said,
‘perception is everything’ and this has never been truer
than in the banking sector. With competition raging
across the continent, customers have never been so
empowered to change banks if they feel they are not
getting the experience they deserve. Indeed, our survey
suggests that around one in ten banking customers in
Africa is currently considering switching banks.
We believe that the data within this report provides
valuable benchmarks and important indicators for
Africa’s banking executives. But we also recognize
that the data on its own only tells half the story. That
is why we have asked some of our banking leaders
from across the continent to share their views and
opinions on some of the big issues facing Africa’s banks
today. Their viewpoints provide actionable advice and
insightful perspectives for Africa’s banking industry.
To help readers better visualize the data and its impl-
ications, we have also included a handful of customer
profiles that represent an ‘average’ banking customer
across various markets in Africa. Understanding what
is important to individual customers and customer
segments is key to understanding the future of banking
in Africa.
Those who had the opportunity to read our report in
2013 will also notice that this year’s survey includes
more countries – 18 individual markets are included
in this report – and more commentary from KPMG
professionals across the continent.
We hope this publication provides valuable insights
to Africa’s retail banking executives and other stake-
holders, investors and regulators. To discuss these
results further, we encourage you to contact your local
KPMG member firm.
3Africa Banking Industry Customer Satisfaction Survey
Our survey demonstrates that branches continue
to be most preferred channel for Africa’s banking
customers. But our data also suggests that use of
alternative delivery channels is on the rise in most
African markets. As more options become available,
our survey shows that customers are increasingly
shifting their preferences towards these channels.
This report also suggests that efforts by Africa’s
banks to improve customer service have started to
pay off with the majority of customers now saying
service has improved. Half are happy enough to
recommend their bank to others.
However, the data also shines a spotlight on
some key areas for improvement for Africa’s banks,
particularly given the rising levels of competition
in most markets. Based on our data, this report
provides a number of clear suggestions for Africa’s
banking executives:
•
Improve the quality of interactions between
employees and customers
Ninety-one percent say that staff’s attitude and
their knowledge of products is important and
almost 83 percent say they are satisfied with
these measures. However, while customers
believe that prompt responses to their complaints
are equally important, just 77 percent are satisfied
with their banks in this regard.
•
Increase the focus on delivering fast, accurate
and timely transactions
Eighty-nine percent say that the timeliness of
transaction processing is important to their
satisfaction, but just 33 percent are currently
satisfied with this measure. Similarly, 90 percent
say that receiving accurate and complete
information from banks is important but just
34 percent are satisfied with the information
they receive.
Executive Summary
Africa’s retail banking customers are looking for good service
quality from their banks. And they are increasingly willing to
switch banks if they feel they can get better service elsewhere.
Africa Banking Industry Customer Satisfaction Survey4
•
Rethink the mix of products and services
to respond to shifting customer preferences
Seventy-six percent of Africa’s banking customers
are satisfied with the range of products and services
offered by their banks. Seventy are happy with
the ease of accessing products across various
channels. And less than one-in-five show any
significant satisfaction with the availability of
loans and other credit products.
•
Focus on satisfaction to drive recommendations
and loyalty
Sixty-four percent say that satisfaction with their banks
had increased over the past year. Half now say they
would recommend their bank to family and friends.
However, one-in-ten banking customers is currently
considering changing banks, most often looking for
improved customer service.
•
Encourage further adoption of alternative channels
More than 7 percent now say they use POS terminals
or mobile banking at least once per week; more than
a third use ATMs as frequently. However, more than
two-thirds also admit to never having used POS, inter -
net or mobile banking and only 4 percent interact with
their bank using social media on a weekly basis.
•
Deliver value for the fees and interest rates that
are offered
Just 59 percent are satisfied with the cost of
maintaining their accounts with their banks and only
58 percent are happy with the interest rates offered
on deposits and investment products. Interestingly,
less than 8 percent of respondents say that pricing
was a major factor when selecting their banks.
5Africa Banking Industry Customer Satisfaction Survey
Excellent customer service is key to success in
Africa’s banking sector. Indeed, whereas just three
years ago, banking customers said that the financial
stability of their bank was the top reason they were
maintaining their banking relationship, today’s
banking customers are clearly more focused on
the service they receive from their bank.
It is worth noting, however, that while financial
stability fell into second place as a primary reason
for maintaining a bank account, it remains a key
factor for almost a quarter of Africa’s banking
customers. In fact, the percentage of those that cited
financial stability as a factor rose by 2.5 percent
between 2013 and 2016 suggesting that – in some
markets – more will need to be done to strengthen
the banking system.
In part, the shift away from financial stability reflects
the growing strength of Africa’s banking markets and
regulation. But it is also being driven by increased
awareness of customer rights (largely the result of
successful national financial inclusion programs)
and greater competition between players. At the
same time, Africa’s diaspora and business travelers
are returning home with increased expectations of
their banks based on their international experience.
This points to a valuable opportunity for Africa’s
banks to differentiate themselves based on excellent
customer service which, in turn, should allow them
to increase market share and improve loyalty
amongst existing customers. In fact, of customers
that said they were contemplating changing their
banks, almost a third said it was because of service
quality.
As Africa becomes more integrated into the global
business environment, Africa’s banks will need to
start adopting customer service approaches now in
use at many international and foreign banks. First
Direct and Santander Banks, for example, have
a relentless approach to delivering outstanding
customer service across all of their touchpoints.
1
Banks in Nigeria are following suit with many now
implementing a ‘meet and greet’ policy where
customers are warmly received at the branch and
quickly attended to.
Banks in Tanzania, Burundi, South Africa, Angola and
Ghana should be particularly focused on improving
customer service, as customers in these markets
were the most likely to cite excellent customer
service as a key differentiator when choosing a bank.
And in total, 12 of the 18 countries included in our
survey rated excellent customer service as the
most important reason for maintaining a banking
relationship.
Building the relationship
Retail banks looking to increase market share in Africa will need
to find ways to delight their customers. According to our survey,
banking customers across most of Africa remain with their banks
because of the level of customer service they receive. But they
will also leave their bank if they feel they will get better customer
service elsewhere. Clearly, customer service has become a key
point of competitive differentiation for Africa’s banks and their
customers.
1 Tim Knight, David Conway & Tamsin Jenkins (2015).
KPMG Nunwood; New Era of Experience Branding.
Customer Experience Excellence Center 2015 UK Analysis
6 Africa Banking Industry Customer Satisfaction Survey
Our data and our experience in the market suggest
that most of Africa’s banks are working to address their
core customer service challenges. We have seen a
number of initiatives that focus on incorporating global
customer service practices to improve areas such as
transaction speed and quality, the willingness of staff
to assist customers and overall employee friendliness.
Chad
South
Africa
23.6%
36.8%
24.0%
22.0%
36.3%
29.7%
21.7%
38.4%
21.7%
34.5%
13.6%
21.0%
24.3%
34.7%
19.4%
27.3%
34.0%
23.8%
32.0%
45.0%
9.6%
30.0%
31.8%
21.3%
27.7%
37.4%
23.6%
20.6%
43.0%
17.9%
Uganda
32.5%
20.0%
Rwanda
Tanzania
44.1%
Burundi
Kenya
Zimbabwe
Zambia
Angola
Côte
d’Ivoire
Senegal
Ghana
Sierra
Leone
Nigeria
Cameroon
Botswana
12.2%
30.2%
35.0%
DRC
Excellent customer service
Financial stability
Primary reasons for maintaining a bank account
7Africa Banking Industry Customer Satisfaction Survey
Of all the possible elements that influence customer
satisfaction, survey respondents reported being
most concerned about customer care. According to
our survey, customers rank the friendliness of staff
and their willingness to assist as a key contributor
to their satisfaction. Equally important is the staff’s
knowledge and understanding of the bank’s products
and services.
On both accounts, banks seem to be striving to
meet customer expectations. Almost 83 percent
of customers said they were satisfied with staff’s
attitude and an almost equal number voiced
satisfaction with the staff’s product and service
knowledge. However, it is worth noting that less
than 10 percent said they were ‘extremely’ satisfied,
suggesting that all banks have some room for
further improvement.
Interestingly, the largest gaps between importance
and satisfaction emerged in the area of complaint
handling and resolution. Ninety-one percent of
respondents said that the promptness of the
attention given to their complaint was important,
yet only 77 percent voiced any level of satisfaction
in this area. Similarly, 90 percent said that the quality
of the feedback on their complaints was important
but just 75 percent said they were satisfied.
Satisfaction levels varied across the 18 markets
in our survey. Banking customers in Zimbabwe
were the most likely to be either very satisfied
or extremely satisfied with staff’s attitude and
willingness to assist. And they were the most likely
to be highly satisfied with staff’s product knowledge.
Customers in Tanzania, on the other hand, were the
most likely to voice satisfaction with the speed at
which complaints and enquiries are handled.
As banks strive to close the gap between expectation
and satisfaction, technology will form part of the
solution. Africa’s banks are increasingly leveraging
Customer Relationship Management (CRM) systems
to better capture, track and close customer complaints.
Improved service provision through alternate
channels – particularly mobile and internet – will
also help improve the perception of customer care.
However, bank executives will also want to pay
particular attention to their branch and call center
staff. As we note on page 22 of this report, Africa’s
banking customers demonstrate a clear preference
for branch banking and a growing demand for
call center services. Ensuring that these front-line
employees understand the bank’s customer care
values and demonstrate the desired level of
customer focus will be critical.
Customer care
With respondents citing customer care as the most important
factor contributing to their satisfaction with their banks, our
survey suggests that Africa’s retail banks will need to put
additional focus on improving the quality of the interactions
between employees and customers. Leaders at Africa’s banks
will need to set the customer-centric culture from the top down
in order to drive real improvements in customer care.
1 Tim Knight, David Conway & Tamsin Jenkins (2015).
KPMG Nunwoord; New Era of Experience Branding.
Customer Experience Excellence Center 2015 UK Analysis
Africa Banking Industry Customer Satisfaction Survey8
So, too, will be the need to set the tone from the
top. Indeed, our experience suggests that the most
customer-centric global banks are those where the CEO
takes ownership of the customer agenda and drives the
development of a customer-centric culture with genuine
and deliberate enthusiasm.
Many leading global banks are also taking additional
steps to ensure their employees strive for the highest
quality customer service. Santander runs empathy
training across its 14,000-strong customer-facing
workforce; First Direct Bank goes as far as recruiting
staff from the healthcare sector to find staff with proven
customer service capabilities.
1
Ultimately, delivering an excellent customer service
experience requires leadership from the top and for banks
to take a more holistic approach to the customer journey,
paying close attention to how customer complaints are
captured and resolved. African banks that succeed at
this should enjoy improved customer satisfaction in the
future.
65.53
91.4%
66.85
80.1%
66.43
73.79
96.3%
72.12
78.9%
75.77
85.2%
66.84
84.1%
73.82
90.3%
71.25
81.4%
74.87
86.1%
76.53
87.0%
91.6%
73.97
87.0%
79.14
86.7%
74.75
87.6%
77.34
83.6%
75.67
85.2%
70.44
87.0%
72.5
86.5%
Africa
Average
69.90
87.4%
Customer Care CSI
Importance
Chad
South
Africa
Uganda
Rwanda
Tanzania
Burundi
Kenya
Zimbabwe
Zambia
Angola
Côte
d’Ivoire
Senegal
Ghana
Sierra
Leone
Nigeria
Cameroon
Botswana
DRC
Customer care: Importance and satisfaction
9Africa Banking Industry Customer Satisfaction Survey
In particular, social media channels are gaining
significant adoption in Nigeria. Platforms such
as Facebook, Instagram, Twitter, LinkedIn and
Tumblr are widely used by Nigerians as a way
to communicate with friends and the wider public.
In fact, according to our survey, 77 percent of
Nigeria’s banking customers now use social
media for personal purposes.
The problem is that Nigeria’s banks have largely
failed to translate this passion for the internet
and social media into increased adoption of internet
and mobile banking solutions. Just 42 percent of
Nigerian banking customers said they use online
banking platforms for one or more banking activities.
And just 40 percent said they have interacted with
their bank using social media in the past.
The benefits of shifting transactions to web-based
platforms are clear. For customers, web-based
platforms offer convenience, 24 / 7 access, and
freedom of location. For Nigeria’s banks, the shift
promises the opportunity to improve service
delivery and achieve a lower cost-to-serve.
So why are Nigeria’s banks struggling to move
customers to internet and mobile banking platforms?
Nigeria’s banks have certainly put significant invest-
ment and effort into developing a better and easier
online banking system. And Nigeria’s customers
have certainly proven themselves to be internet-
savvy.
Part of the problem relates to conversion. More
than two-thirds of Nigerian banking customers say
they have never tried their bank’s online platform.
So while Nigerian banking halls are often filled with
customers happily using their phones to text, chat,
browse and shop online, just one-in-three of them
have ever considered using that same device to
avoid the banking hall altogether. Introducing these
customers to alternative channels should be a top
priority for Nigeria’s banks.
Encouraging the shift to internet and
mobile banking: A Nigerian perspective
Nigerians love the internet. The country is estimated to have
more than 148 million mobile telephone subscribers and at
least 92 million of them access internet data services on their
devices. And, with around one-third of Nigeria’s population
now under 24 years old and a growing middle class population,
all signs suggest that internet penetration and usage is set
to grow significantly.
Africa Banking Industry Customer Satisfaction Survey10
Ease of use is also a key challenge for Nigeria’s banks
and this influences the willingness of customers to adopt
web-based channels. As one – rather typical – Nigerian
banking respondent told us, “My friends tell me it’s not
easy to use so I’ve never really bothered. Besides, there’s
too much hassle to sign up.” Our data reinforces this
view: when it came to the use of the online channel,
respondents reported the lowest levels of satisfaction
for the ease of navigation and the visual design.
With recent media attention on cyber security risks such
as cloning and identity theft on the rise, many Nigerian
customers are also deeply concerned about the security
of their transactions. As another survey respondent told
us, “I do not trust the system, I’d rather go to the bank
for the money to be transferred by the bank’s staff than
do it myself as I would get the blame should anything
go wrong.” So while many banks have introduced more
robust security measures recently, they will need to
continue to focus on assuring customers of the safety
of their online channels.
How can Nigerian banks start to improve internet banking
penetration? We believe focus must be placed on three
key areas:
1. Improving the customer experience
•
Reinvigorate and refresh the bank’s web assets to
prioritize ease of use, navigation and visual design;
aim to simplify the number of steps to complete
a transaction or add more robust capabilities
that respond to their customers’ technological
sophistication.
•
Introduce improved functionality targeted to specific
customer segments such as corporate customers
or SMEs who are particularly focused on security and
the need for customized financial reporting and access
to reliable, real-time financial data.
•
Harness employees as channel ambassadors and
customer experience experts; banks should be
encouraging their own employees to use online
banking and suggest opportunities for improvement.
2. Reinforcing customer trust
•
Enhance customer awareness and online literacy
by promoting greater awareness of online security
through the various online banking touch points;
banks must assure customers that every precaution
has been taken to ensure the security of their funds
while also explaining the importance of keeping
access details safe.
•
Improve response time to fraud complaints; just
6 percent of survey respondents from Nigeria reported
an experience of fraud but more than half of those said
it took more than two weeks to resolve their case.
3. Ensuring customer accessibility
•
Provide 24 / 7 access to online platforms; focus
on deploying the right monitoring tools to ensure
99 percent uptime on the online banking platform
and allocate responsibility for uptime to specific staff
members or teams.
•
Review the costs and fees associated with online
banking platforms to ensure that they are reasonable
in comparison to alternative options; make sure that
cost does not become a barrier to online banking.
While customer adoption of online channels may be
slower than expected in Nigeria, it is also clear that
momentum is already picking up. We believe that web-
based banking will soon prove to be a lucrative brand-
booster for those banks able to iron out the kinks and
educate customers about the convenience and security
of online banking.
Bode Abifarin
Senior Manager
Management Consulting
KPMG in Nigeria
11Africa Banking Industry Customer Satisfaction Survey
Second only to the quality of customer service,
Africa’s banking customers care deeply about the
speed, accuracy and completeness of their banking
transactions. In fact, in 7 of the 18 countries surveyed,
customers ranked executional excellence as the most
important factor influencing their overall satisfaction
with their banks.
In particular, customers attributed the highest
importance to the accuracy and completeness of the
information (such as bank statements, advice slips
and the calculation of bank fees) they receive from
their banks. Yet while almost 90 percent of customers
said they believed this aspect to be important or
very important, only around a third of all customers
voiced a high level of satisfaction in this area.
Customers also seem concerned about the
transparency of fees and account costs. “They
make all the promises in the world to you, but as
soon as you take the facility you start to see hidden
charges that you were never told about,” noted
one respondent.
While regulators across the continent have certainly
made significant strides – often supported by
Customer Protection Regulation – banks will need
to continue to take the lead in promoting fairness,
transparency and responsibility. The reality is that
customers are increasingly aware of their rights and
bad perceptions can quickly become bad publicity.
In a number of markets – particularly Angola,
Cameroon, Ivory Coast, Senegal and the Democratic
Republic of Congo – customers also noted the
importance of the overall timeliness and turnaround
time of transaction processing. Our survey suggests
that banks may have significant room for improve-
ment here: 89 percent said transaction timeliness and
turnaround times were important but only 33 percent
said they were very or extremely satisfied with their
bank’s track record.
Investment into new transaction technologies
and tools will be key to improving transaction times.
However, it will also require banks to streamline and
optimize their processes in order to achieve greater
efficiency without compromising regulatory standards
and risk controls. In the Democratic Republic of
Congo, for example, weak payment systems and
low adoption rates for e-payment solutions have
reinforced the cash economy which, in turn, has led
to long queues at banking halls and slow turnaround
times in processing transactions. Better technology
will be central to improving transaction times in the
DRC; so too will more efficient branch processes.
Similarly, customers in Nigeria, Rwanda and
Zimbabwe noted the importance of receiving
information in a timely manner and in an easy-to-
understand format. Governments in both Rwanda
and Zimbabwe are currently focused on financial
literacy initiatives and this data suggests that
customers in these markets are beginning to
gain a clearer understanding of their rights and
expectations.
Executional excellence
While Africa’s retail banking customers clearly want better
service quality, they also want better transaction processing
times and information accuracy. As financial literacy programs
drive heightened expectations around the information banking
customers should receive, Africa’s banks will need to increase
their focus on delivering fast, accurate and timely transactions
across all of their customer channels. For many, this will require
more than just new technology and tools, it will also require
processes to be streamlined and optimized.
12 Africa Banking Industry Customer Satisfaction Survey
It is worth noting that – while some customers and
regulators are concerned about the potential for fraud
in the system – just 5 percent of current banking
customers said they had experienced an incidence
of fraud with their bank. And around 60 percent of
those who had experienced fraud reported only a
single experience. That being said, fraud remains a
key concern for many banking customers and Africa’s
banks will therefore need to continue to focus on
identifying, predicting and eliminating fraud and
communicating their efforts and achievements to
customers.
64.89
91.6%
66.59
78.8%
67.23
74.94
96.6%
72.95
78.5%
72.47
85.4%
66.75
84.8%
74.90
91.0%
71.02
81.1%
74.85
85.0%
76.40
85.8%
93.1%
72.38
84.6%
79.59
88.8%
73.29
86.9%
78.58
84.2%
73.59
82.8%
71.81
86.2%
69.78
86.8%
Executional excellence CSI
Importance
72.33
86.2%
Africa
Average
Chad
South
Africa
Uganda
Rwanda
Tanzania
Burundi
Kenya
Zimbabwe
Zambia
Angola
Côte
d’Ivoire
Senegal
Ghana
Sierra
Leone
Nigeria
Cameroon
Botswana
DRC
Executional excellence: Importance and satisfaction
13Africa Banking Industry Customer Satisfaction Survey
Focus on the customer
Our experience suggests that many banks may be
missing significant growth opportunities that could
be achieved by consolidating all of the different
‘nuggets’ of customer data at their disposal to
create tangible and actionable insights about their
customers.
Customer analytics can drive significant benefits for
Africa’s banks. A well embedded customer analytics
capability could, for example, enable the bank
to target the right customers during marketing
campaigns, maximize cross/up sell opportunities,
improve customer satisfaction and reduce churn
and fraud cases.
Many banks are also starting to leverage customer
analytics to identify who their most valuable
customers are, how they behave and how best
to retain them and attract others. It is allowing for
the provision of real-time, individualized service
at every stage of customer interaction: marketing,
acquisition, cross-sell, service, and retention.
The more sophisticated banks are now starting
to apply ‘predictive analytics’ approaches to their
customer data to capture more forward-looking
insights that go beyond analyzing events that
happened in the past to instead start to predict
what events will happen next and, in doing so,
better inform their decision-making.
The battle for the customer
Recent research by KPMG International suggests
that few banks around the world fully understand
the value that data and analytics can provide in
terms of customer insights and richer customer
experiences.
1
Unfortunately for the banking sector, there are
organizations like Google and Facebook that do
understand the value of customer insights and
they are keen to use this knowledge to create
new banking propositions that deliver exceptional
customer experiences. Both organizations have
already launched successful money remittance
services, largely by creating an unprecedented
view of customer preferences by aggregating
search, social media and financial transaction data.
Simply put, customer insights are driving the
next wave of competitive advantage and banks
will therefore need to go beyond merely under-
standing the needs of their customer across
the various touchpoints to ensure they can also
anticipate and rapidly respond to those needs.
Tapping customer data to drive growth:
A South African Perspective
As banks across Africa start to roll out increasingly sophisticated
digital channels and systems, many are starting to explore how
they might use their increasing wealth of data to create sustain-
able growth and improve efficiency. Rightfully so: banks around
the world are already finding increasingly valuable ways to apply
analytics across their organizations and – in doing so – are creating
unique competitive advantages.
1
Going beyond the data: Turning data from insights into value,
KPMG International, July 2015
14 Africa Banking Industry Customer Satisfaction Survey
Building the customer view
One of the key issues most organizations face in the
implementation of a customer analytics strategy is the
deployment of the right solutions to accurately analyze
and interpret data.
Integrating data technology into existing systems and
business models is not an easy task. Most banks are
saddled with complex, product-centric legacy systems
and ‘siloed’ data and are simply not capable of achieving
a ‘single view’ of the customer across all products
and geographies. Furthermore, the poor integration of
multiple systems and the complexity of data structures
within banks has impacted the quality and integrity of
the customer data that exists.
We believe that – to effectively manage and analyze
customer data – Africa’s banks will need to:
•
Build a long term data strategy that is deeply rooted
in the long term business and customer strategy goals
of the bank. The data strategy should support specific
business outcomes and focus on finding the data
required to reach the goals.
•
Get the right high-quality data to the business
in a fast, flexible manner. Business and IT must work
closely together to develop processes that enforce
the capture of quality customer data upfront and not
as an after-thought.
•
Develop systems and capabilities that aggregate
data across business lines to create a single view of
the customer.
•
Overcome internal obstacles by managing, measuring,
and compensating employees based on how well they
use relevant data to make business decisions and drive
business outcomes.
Next steps
While the digitization of banks and the availability of
sophisticated analytics tools has now made it possible
for banks to gain unique and valuable customer insights,
banking executives will need to think carefully about
what capabilities, culture and infrastructure they will
need to move from data to analytics to value.
To start, Africa’s banks could be taking a number of
immediate steps to capture greater value from their
customer data – from identifying customer data gaps
and building a ‘single view’ of the customer through to
improving the quality of data and creating centralized
Centers of Excellence for customer analytics that cut
across Marketing, IT and Finance.
Relationship-based product
and fee price optimization
Top focus areas for analytics
in banking
Customer churn reduction
Client prospecting
Portfolio risk monitoring
and management
Branch sales effectiveness
and cross sell
Commercial RM sales
lead generation
Retail and commercial
card analytics
Extended services analytics
and needs
Next best product
identification
Fraud prevention and
security checks
Onie Okharedia
Senior Manager
Management Consulting
KPMG in South Africa
15Africa Banking Industry Customer Satisfaction Survey
With just three out of ten banking customers in
Africa saying that the products and services being
offered by their banks meet their needs, it is clear
that there is significant room for improvement and
differentiation across the sector.
Banking customers in Africa and around the world
are increasingly starting to demand more customized
products and services, tailored to their specific
segment and stage of life. By prioritizing and
improving customer segmentation, banks are able
to improve their understanding of the customer,
design products and then tailor product features
that respond to the needs of defined groups and
populations. This should allow banks to create better
alignment between their customer preferences and
their suite of products and services.
At the same time, Africa’s banks will need to focus
on driving innovation across their product and service
offering. As noted in a recent KPMG South Africa
report, there has been little true ‘innovation’ from
traditional banks in the sector. Instead, “there has
been a proliferation of marginal tweaks in product
features, dreamt up by marketing teams in an attempt
to differentiate in a crowded market. The end result
is that consumers are left confused”.
1
The challenge is to not overcomplicate the
proposition. On the one hand, customers want
products that meet their unique needs and
preferences, but the vast majority also prefer
‘plain vanilla’ products that are easy to under -
stand and that can be explained and supported
by the staff in the branches.
Banks will also want to carefully consider the
relationship between brand and product value
as a way to identify areas for differentiation.
Some products are essentially ‘experience’ goods
(i.e. customers need to experience the benefits
to value them) and can therefore be influenced
by brand. Others, however, are more commoditized
and depend less on brand perception.
Accessibility and affordability of products and
services is also a key consideration for many
banking customers in Africa, particularly credit
products. In fact, just 20 percent of respondents
said they were very satisfied with the availability
of credit products such as loans, overdrafts, salary
advances and mortgages. At the same time,
customers also reported difficulty accessing their
bank’s various products and services across the
available channels. Banks that hope to differentiate
themselves must therefore not only tailor their
products to the needs of the customers, they must
also make them affordable and easily accessible.
Products and services
As customer preferences change and banks struggle to do
more with less, many banking executives are starting to look
at their mix of products and services to see how they might
better tailor their offerings to respond to shifting customer
demand while also growing their bottom line. Getting the
balance right could deliver significant customer experience
benefits and competitive advantage.
1 http://www.kpmg.com/za/en/issuesandinsights/articlespublications/
financial-services/pages/product-innovation-in-the-banking-market.aspx
16 Africa Banking Industry Customer Satisfaction Survey
With increasing pressure on banks to retain and
grow their customer base in a retail world that is
characterized by intense competition and growing
customer sophistication, Africa’s bank executives will
need to gain a clearer understanding of what their
customers expect, want and value in a financial
institution.
88.9%
61.74
72.7%
60.74
81.3%
94.9%
58.09
75.9%
71.06
80.8%
74.48
79.2%
62.07
81.2%
66.95
75.7%
67.57
81.6%
70.12
84.1%
76.32
64.26
81.1%
68.13
83.3%
71.42
80.1%
66.14
79.4%
73.88
77.4%
67.59
91.6%
62.02
80.3%
60.89
Products and services importance
Products and services CSI
81.6%
66.86
Africa
Average
Chad
South
Africa
Uganda
Rwanda
Tanzania
Burundi
Kenya
Zimbabwe
Zambia
Angola
Côte
d’Ivoire
Senegal
Ghana
Sierra
Leone
Nigeria
Cameroon
Botswana
DRC
Products and services: Importance and satisfaction
17Africa Banking Industry Customer Satisfaction Survey
Banks are embracing digital transformation
East Africa’s banking industry is growing at a rapid
pace as technology unlocks access to customer
segments that were once too costly to serve. Mobile
technology, in particular, has been revolutionizing
the East Africa banking and payment system. Banks
are increasingly partnering with Mobile Network
Operators (MNOs) to enhance the delivery of
banking services to customers and to reach the
unbanked population. In Kenya, for example,
Commercial Bank of Africa (CBA) partnered with
Safaricom to offer M-shwari while in Ethiopia,
microfinance institutions are partnering with
M-Birr to increase outreach to the unbanked.
Mobile Virtual Network Operators (MVNOs) are also
gaining popularity and a number of announcements
have been made including the recent partnership
between Equity Bank and Airtel to launch Equitel,
a platform that allows customers to access credit
loans, perform cross border money transfers and
send and receive money from other commercial
banks. MVNOs have promised to enhance
accessibility and – in a greater sense – promote
financial inclusion by providing financial services
to the masses through the convenience of their
handsets.
The use of social media continues to grow with
Kenya experiencing smart phone growth rates and
internet penetration rates of over 50 percent.
1
This
has led to increased e-commerce in the sector, with
many banks leveraging online platforms for service
delivery and customer growth.
Banks are aspiring to build agile business
and operating models
Global and regional trends are shaping business
transformation in the East Africa banking industry
with banks seeking to transform both their business
strategies and operating models. In this era of high
levels of financial inclusion, banks are facing stiff
competition from non-traditional competitors
who have grown significantly in areas traditionally
exclusive to banks. Growth of Savings and Credit
Cooperative Organizations (or SACCOs), micro-
finance institutions and informal financial service
providers is also heightening competition.
In this environment, retail banks operating in
East Africa will need to build agile businesses.
Technology in the banking sector is constantly
evolving, customers’ expectations and preferences
keep changing and financial products and services
are being reinvented. It will take constant innovation
to properly respond to both customer demands and
competitive pressure.
At the same time, customers increasingly expect
a new experience from their bank. This means that
banks will need to not just develop new applications
but also new functionality and rapid enhancements
to existing ones. Banks are therefore focused on
adopting business models that are efficient, cost
effective and sustainable.
Banking Transformation:
An East African Perspective
1 Communications Authority of Kenya
18 Africa Banking Industry Customer Satisfaction Survey
Personalizing customer experience
East Africa banks are also building digital capabilities
and increasing customer touch points in an effort to
personalize the customer journey and create a seamless
customer experience. This has driven an increase in
alternate channels including internet, agency, mobile
banking, and contact centers.
The modern bank customer is more demanding, more
aware and more tech-savvy. The customer expects
services anywhere, anytime and on any device and
banks must therefore invest significantly in enhancing
the customer experience.
The ever changing regulations
Recent publications of the revised Prudential Guidelines
and Risk Management Guidelines in East Africa Central
Banks sets the scene for significant enhancements in
risk and capital management in the banking industry in
East Africa. In particular, there has been an increase in
minimum core capital across the East African countries.
This is expected to boost the financial stability of the
banking sector and reposition under-capitalized banks in
order to enable them to play enhanced roles in the sector.
It will also promote the entry of large banks and banking
sector consolidation.
For banks in East Africa – and across the continent –
successful business transformation will require keen
focus in four key areas:
1. Strategy: Ensure a strategic position in the
disruptive market
•
Formulate and implement an innovation strategy:
Banks need to be continuously seeking out and
developing innovative products and services.
•
Think holistically from the customer perspective:
Develop and execute a complete end-to-end digital
transformation strategy in order to improve customer
engagement.
•
Reduce operational costs to stay competitive:
Focus on applying automation and business process
improvements where applicable.
•
Enhance partnerships with other players: Seek out
traditional and non-traditional partners that can help
bridge your capability gaps.
2. Security: Invest in robust controls and
system security
•
Create a cyber defensible position: As banks focus
on innovation and increase reliance on technology
the threat of cyber breach increases.
•
Ensure a well-controlled operation: Banks need
to invest heavily on governance, controls, ethics,
policies and information systems audit.
3. Customers: Enhance customer loyalty
•
Know your customers and their preferences: Improve
the use of data, customer analytics and external data
to drive customer insights.
•
Understand the environment: Invest in market
intelligence to gain information on key markets and
customer segments.
•
Meet the pace of customer demand: Focus on
providing products and services in real time.
4. Regulation: Invest in resources and capabilities
to comply with regulations
•
Ensure regulatory compliance: Banks should ensure
they have the right resources and the right capabilities
to remain compliant.
Jimmy Masinde
Director
Management Consulting
KPMG East Africa
19Africa Banking Industry Customer Satisfaction Survey
Across most of Africa, banks seem to have made
significant improvements in customer service over
the past year. Their efforts are being recognized:
almost two-thirds (64 percent) of our respondents
said satisfaction with their bank had increased.
Customers in Sierra-Leone were the most likely to
say they had experienced increases in satisfaction
(89 percent said so) followed by customers in Angola
(82 percent) and those in Botswana (78 percent).
However, just 35 percent of customers in Chad
and 41 percent of those in Tanzania noted any
increase in satisfaction.
With customer satisfaction up, our survey suggests
that around half of Africa’s banking customers have
now started to advocate for their banks: 50 percent
of our respondents said they had recommended
their bank to friends and family in the past.
Our data reinforces the close link between customer
satisfaction and customer recommendations. Indeed,
those countries with the highest reported increases
in customer satisfaction were also the most likely to
recommend their bank (83 percent of respondents
from Sierra-Leone and 78 percent of those from
Angola have recommended their bank) while those
with the lowest levels of satisfaction increases
(Tanzania and Chad, for example) reported the
lowest likelihood to recommend their bank.
While satisfaction seems fairly high across the
region, our data indicates that around one in ten
current banking customers is ‘in play’ – they have
either recently changed banks or plan to change
banks in the near future.
Interestingly, there seems to be little indication of
a strong relationship between customer satisfaction
and customer churn. In fact, customers in Angola
(where satisfaction and likelihood to recommend
was high) were not only among the most likely
to say they plan to switch banks, they were also
four times more likely than customers in Chad
(the country with the lowest levels of satisfaction
increase) to be planning to change banks.
It is important to note, however, that this data is
much more indicative of the level of competition
in the market than the relationship between satis-
faction and loyalty. The reality is that Angolans
enjoy high levels of competition, low barriers to
switching banks and significant choice; customers
in Chad do not.
Underpinning this point is the fact that service
quality was ranked as the leading motivator for
those currently considering changing banks.
Interest rates and fees were cited as the second
leading reason for switching banks, followed by
the attraction of more innovative products and
services.
Loyalty
Africa’s retail banking customers seem to feel that their banking
experience has improved over the past year and most now
say they have recommended their bank to others. Yet our data
suggests that around one in ten current banking customers
is ‘in play’ and currently considering switching banks. Those
that can demonstrate superior service quality should be able
to steal these customers away from their competitors.
20 Africa Banking Industry Customer Satisfaction Survey
The lesson for Africa’s banking executives is that a
significant portion of their current books of business are
up for grabs. Improved satisfaction will help drive loyalty
and advocacy, but ultimately customers are looking for
the best possible service quality. Those that are able to
offer (and deliver) exceptional customer service should
be well placed to win market share in this competitive
environment.
% that have
recommended
their bank in the
past 12 months
% that believe
satisfaction has
increased
% of customers
that are
considering
changing banks
Angola 78% 82% 20%
Botswana 56% 78% 4%
Burundi 27% 59% 14%
Cameroon 58% 63% 21%
Chad 35% 35% 5%
Cote D’Ivoire 47% 53% 7%
DRC 52% 64% 11%
Ghana 55% 70% 11%
Kenya 63% 68% 8%
Nigeria 77% 66% 8%
Rwanda 27% 57% 8%
Senegal 53% 60% 12%
Sierra-Leone 83% 89% 12%
South Africa 46% 58% 2%
Tanzania 32% 41% 3%
Uganda 45% 65% 4%
Zambia 49% 63% 11%
Zimbabwe 50% 77% 10%
AFRICA 50% 64% 10%
Satisfaction and willingness to recommend
21Africa Banking Industry Customer Satisfaction Survey
In large part, the evolving character of the bank
branch is being driven by changing customer
expectations. The reality is that bank customers
are already enjoying customized multichannel
customer experiences through online shopping
on their mobile phones and increasingly expect
their banks to be able to offer the same quality of
experience. Simply put, banks are no longer being
compared to their peers, but rather to the ‘best’
shopping experience the customer has had in
their lifetime.
The problem is that banks are struggling to antici-
pate customer demand and take the right steps to
integrate the ‘digital’ experience with the ‘physical’
experience. And this has allowed technology start-
ups, retailers and telecommunications companies
to essentially invade the banking market. Banks
are being forced to move quickly in order to defend
their dominant position.
This process is already well underway in international
markets and – given the speed at which disruption
is occurring – it’s expected that the impact on Africa’s
banks is imminent. And there are increasing signs
that Africa’s banks are beginning to act to structurally
integrate the physical and digital experience.
Our data illustrates the change underway. In
Angola, for example, the branch continues to be
the dominant channel but there are important
changes happening in the mix of activities. The
number of customers who said they prefer the
branch for their ‘transactional’ activities – such as
withdrawals, transfers and payments – decreased
while the number who prefer it for financial advice
increased.
Combined with the fact that Angolan banking
customers report an increase in the use of non-
branch channels (such as call centers and mobile
banking), our data suggests that Angolan banks
are facing many of the same trends as their regional
and international counterparts. Given that banking
customers in South Africa and Kenya report mobile
banking usage rates comparable to Angola’s branch
usage rates, it seems Angola is now moving through
an evolution in behavioral patterns.
The future of the branch in the
digital era: An Angolan perspective
Will digital banking make the traditional bank branch
obsolete? Probably not. But it is already clear that branches –
as we know them today – will undergo massive change
over the coming years. Indeed, we believe that the branch’s
continued viability as a banking distribution strategy will
require significant changes to the size and nature of the
channel, making them smaller, more cost-efficient and
oriented towards product sales and financial advice.
22 Africa Banking Industry Customer Satisfaction Survey
Against a backdrop of decreasing profitability and
disappointing performance within their commercial
networks, a growing number of Africa’s banks are
starting to reflect on the future role of the traditional
bank branch. However, before adopting some of the
structural measures already underway in international
markets (such as eliminating and realigning branches
by migrating activities to digital channels), we believe
that Angolan banks must first start by creating a solid
foundation upon which to position the branch of the
future.
We believe Africa’s banks should now be focused on
three key areas to ensure their branch network remains
relevant, efficient and cost effective in the future.
1. Realigning their branch locations and format
to reflect customer preferences
•
Optimize branch network capacity against customer
preferences and behaviors (particularly in key regions
and micro-markets); ensure that capacity aligns to
demand.
•
Redefine the branch network by reevaluating and
reassessing the optimal mix of functions and services
to be located in the branch; consider specific network
segments (such as Corporate or Affluent) and potential
functionality options (such as auto-stop or full service).
2. Strengthening branch commercial activity
•
Develop a clear understanding of branch operations,
identifying transactional and administrative activities
in order to develop strategies for ‘migrating’ these
activities from branches to alternative channels or
centralized services; retask the freed-up resources
to sales.
•
Automate as many of the branch processes as possible
with a focus on enhancing business efficiency by
improving the interaction and reducing the sales cycle
within the branch.
•
Integrate the analytical activities of marketing with the
relationship experience of the commercial network to
enhance the quality of leads available to the branches.
•
Strengthen branch management and performance
through the adoption of management and performance
measurement tools.
3. Preparing the foundation for digital conversion
•
Create simple and targeted products for digital channels
that encourage migration of segments of control.
•
Monitor and correct the leakage of commercial pre-
sales interactions, sales and service opportunities with
a view to improving future commercial migration.
Our experience suggests that the integration of ‘physical’
and ‘digital’ bank experience is inevitable. Some Angolan
banks have already begun the journey of transforming
their commercial networks, not only to reposition their
services within the future distribution strategy, but also
as a way to strengthen the profitably of their institution.
Goncalo Traquina
Associate Partner
Management Consulting
KPMG in Angola
23Africa Banking Industry Customer Satisfaction Survey
On face value, one could be excused for thinking
that Africa’s banking customers are highly loyal to
traditional channels. Branches are still the most
used channel across Africa (98 percent say they
use the branch to conduct banking business) and
more than two-thirds of Africa’s customers admit to
never having used POS terminals, internet banking,
mobile banking or mobile payments.
Dig a little deeper, however, and it starts to become
clear that Africa’s banking customers are on the
cusp of a metamorphosis towards rapid adoption
of alternate channels. Branch use and ATM use are
on the decline (albeit marginally) since our survey in
2013, suggesting that Africa’s banking customers are
now starting to move towards ‘cashless’ payments.
At the same time, the use of internet banking,
mobile banking and mobile payments has risen
significantly. Reported use of mobile payments
increased 18 percentage points since our survey
in 2013; internet banking usage increased by
8 percentage points; and mobile banking increased
by 6 percentage points.
While access to high-quality alternate channels
varies across the region, access is not the primary
challenge for Africa’s banks. More than two-thirds
of Africans have a mobile phone and more than a
quarter have internet access. African consumers are
happy to use their mobile phones to send important
messages and buy goods but have yet to transfer
this confidence to mobile banking or payments
in the same way.
Significant benefits can be achieved by driving
adoption of alternate channels. For banks, the
shift to alternate channels reduces costs, improves
turnaround time and alleviates pressure on branch
resources – all of which helps enhance customer
satisfaction. Today, more than two-thirds of Africa’s
banking customers say they prefer to use the branch
to conduct funds transfers; around half say they
use the branch to conduct balance enquiries and
bill payments, all of which could be conducted
more efficiently and at lower cost through digital
and alternate channels.
Ultimately, this data suggests that Africa’s banks
could achieve significant improvements in margins
and customer satisfaction by investing in customer
education and alternate channel promotion.
Customers using their phones to text while standing
in queues at the branch are prime candidates for
‘on site’ conversion schemes while urban customers
could be attracted by reduced fees and preferred
interest rates.
Channels
Branches may still be the most popular retail banking channel
in Africa, but there are clear and growing signs that Africa’s
banking customers are rapidly moving towards alternate
channels. The challenge for Africa’s banks will be to increase
adoption of existing channels while exploring new ways
to meet their customers on their own terms.
24 Africa Banking Industry Customer Satisfaction Survey
At the same time, however, our data also suggests that
Africa’s banks could be doing more to reach out to their
customers through more popular channels such as social
media. Indeed, 56 percent of respondents to our survey
said they use social media at least once per week, yet
just 4 percent said they interact with their bank over
social media as frequently. Almost 80 percent said they
had never interacted with their bank on social media.
Clearly, Africa’s banks face a massive opportunity to
develop a highly differentiated customer proposition –
one that delivers a consistent experience across the
various channels and focuses on building relationships
through channel interactions rather than simply ‘selling’
products and services.
Many
times
a day
Once
a day
Several
times
a week
Once
a week
Once
every
two
weeks
Once
a month Rarely Never
Branch 4% 2% 8% 9% 14% 41% 20% 2%
ATM 3% 3% 18% 12% 17% 17% 10% 21%
POS 1% 1% 4% 2% 4% 6% 15% 68%
Internet banking 1% 0% 1% 1% 2% 4% 10% 80%
Mobile banking 1% 0% 4% 2% 4% 6% 12% 70%
Mobile payments 1% 0% 2% 1% 3% 7% 13% 73%
Call center 1% 0% 1% 1% 2% 4% 18% 73%
Channel use frequency
25Africa Banking Industry Customer Satisfaction Survey
Customers and social activists are clearly concerned
about high bank fees and interest rates. “No Banking
Day” in Nigeria in early 2016 may not have disrupted
banking operations, but it certainly influenced the
perception that customers may not be getting value
from their banks.
Similar actions have catalyzed regulatory and policy
change in other markets. For example, in Zimbabwe,
public pressure has pushed the Central Bank to
negotiate lending rate caps with the Bankers
Association of Zimbabwe. Nigeria’s banks recently
completed a regulated process of phasing out their
Commission on Transaction (COT) charges. In South
Africa, protests by the Economic Freedom Fighters
and loud complaints about ATM charges by local
customers has led to a recommendation that all
ATM fees must be clearly stated and agreed upon
for each transaction at the terminal.
While value for money may draw significant
attention from politicians, social activists and
regulators, our survey suggests that Africa’s
banking customers are not as concerned about
pricing when selecting their banks. In fact, just
7.5 percent of our respondents across Africa said
that pricing was their biggest consideration when
deciding whether to maintain their existing banking
relationship.
This does not mean that Africa’s banks can set
their costs or rates with impunity. Almost four-fifths
of our respondents said that the cost of maintaining
their account was a highly important factor when
assessing customer satisfaction. Across Africa, only
around 60 percent of customers voiced any level
of satisfaction with the cost of maintaining their
accounts, suggesting that many of Africa’s banks
could be addressing customer satisfaction concerns
through improved customer segmentation and
pricing strategies.
Customers reported higher concerns about the
interest rates they receive on deposits and investment
products. Eighty-one percent said rates were highly
important to their level of customer satisfaction, yet
just 58 percent voiced satisfaction with the rates they
receive. Customers in Zimbabwe, Senegal and Sierra
Leone returned the highest levels of dissatisfaction
with the rates they receive on deposits and investment
products.
Our data suggests that customers are becoming
increasingly aware of the consistent ‘inconsistency’
between the interest rates they receive on their
deposits and the rates charged by their banks for
credit products. As a result, we expect customers
and consumer protection groups across Africa to
continue to pressure banks for greater transparency
and fairness in the cost of transactions and the rates
offered. Those that put transparency and fairness
at the top of the agenda – not only in their dealings
with customers but also in their culture and brand –
should see positive results.
Value for money
Pricing of interest rates and fees may not be the primary
driver of differentiation in Africa, but customers certainly
expect to get value for the money they pay their banks.
While customers report slightly higher levels of satisfaction
with bank charges and fees than they did in the past, our
survey shows that a significant proportion of banking
customers continue to harbor deep dissatisfaction with
the fees and charges they pay.
26 Africa Banking Industry Customer Satisfaction Survey
However, our data also suggests that certain customers
may be willing to pay more if they think they are getting
additional value for their money. Indeed, many of the
banks that were ranked highest in the value for money
category were not the least expensive but were perceived
to deliver the most value.
While banks may continue to face increasing pressure
from customers to reduce their fees, we believe that
those banks able to create more value for customers will
strike gold in today’s environment faster than those who
simply focus on topline returns.
56.59
87.9%
56.87
68.1%
60.41
63.07
92.4%
69.26
78.3%
75.76
81.7%
57.36
79.8%
66.41
87.5%
65.43
75.9%
71.05
81.2%
73.07
80.3%
87.0%
68.49
84.3%
54.90
88.4%
72.09
87.3%
76.20
80.9%
69.73
77.8%
51.53
83.3%
57.69
77.3%
DRC
Value for CSI
Importance
64.77
82.2%
Africa
Average
Chad
South
Africa
Uganda
Rwanda
Tanzania
Burundi
Kenya
Zimbabwe
Zambia
Angola
Côte
d’Ivoire
Senegal
Ghana
Sierra
Leone
Nigeria
Cameroon
Botswana
DRC
Value for money: Importance and satisfaction
27Africa Banking Industry Customer Satisfaction Survey
Angola: Geraldo Lopes
A single
view
On his choice of banks: “I have had to open multiple
accounts with other banks where I work simply
because of branch proximity. I tried to shop around
to see what other banks are offering to maximize my
returns on investments. Given the tight time schedule
and travels, I don’t have time to visit the branch often.”
On his channel preferences: “Traffic is terrible here
and I won’t spend time going to the branch. Recently,
one of my new banks called me to activate my internet
banking. The challenge has always been remembering
the passwords. I find the ATM useful except sometimes
I am on the oil rigs with no access to ATMs.”
On his banking needs: “It will be useful for me to
monitor my account and investments remotely and be
able to move money to our joint account, so my wife
can access funds in my absence. I will say I do over
70 percent of my transactions in cash.”
On what is important to him: “I consider investments,
proximity of branches and friendly branch staff as
important to me. I will move banks depending on who
is offering me value for my money.”
KPMG Insight: Geraldo represents a typical mid-career
professional in an African city. He can be ‘wowed’
by a bank that targets him with solutions rather than
vanilla products, service and dedicated relationship
management as well as alternate channels. He is likely
to appreciate:
•
Investment and insurance offerings, mobile and
online banking
•
Dedicated relationship management, knowledgeable
and friendly staff.
Achieving a ‘single view’ of the customer is not
easy. Legacy systems, siloed data, information
gaps and organizational structures all create significant
challenges as banks attempt to better understand
their customers.
That is why we compiled our data to illustrate a
variety of ‘average’ customers in various markets
across Africa. We looked at key demographic
segments – students, middle-class workers, urban
entrepreneurs and millennials, for example – and
analyzed their responses to create a ‘single view’
of customers in key markets.
While these personas are clearly fictional, they
do represent the opinions and responses of these
customer segments and reinforce the fact that
customer preferences and need vary across
segments and markets.
Geraldo is a 40-year old Angolan
living in Luanda. As an engineer,
Geraldo works for a multinational
oil company earning around
15.5 million kwanza per year.
He considers himself responsible
and – with a wife and two teenage
children – is family-centered.
28 Africa Banking Industry Customer Satisfaction Survey
Botswana: Nuru Thabiso Democratic Republic of Congo: Rishi Mutombo
On her choice of banks: “I opened Current and
Savings bank accounts with First National Bank four
years ago, when I moved to Gaborone from Otse.
I never changed banks because of the proximity of
their branches.”
On her channel preferences: “My typical transactions
with First National Bank include using the ATM for cash
withdrawals, mobile banking for balance enquiries and
bill payments, and the branch for all other activities.”
On her banking needs: “Sometimes I go to the
branch in person or I just call the contact center but
I find mobile transfers and banking easier and quicker.
Certainly, the ATM and mobile are my best friends
when it comes to getting cash out or transferring
money to friends and family in Otse. POS is not really
my thing; I’m not sure if I can trust those till girls
enough to use my cards in shops.”
On what is important to her: “I am generally satisfied
with my bank, especially the ambiance, friendly staff
and there is no waiting time. The mobile banking and
the variety of banking products meet my needs. When
I have issues, they are quite responsive.”
KPMG Insight: Nuru represents the ‘everyday
employee’ in the value chain. Her bank can deploy
special offers to turn her from a loyal customer into a
raving fan. Nuru is most likely to consider the following
banking solutions more favorably:
•
E-solutions such as e-savings accounts, mobile apps,
payment protections, credit and mortgage solutions
•
Well trained, knowledgeable and friendly contact
center staff.
On his choice of banks: “I used to keep money
in my home, but last year, one of my colleagues told
me about the benefits of keeping money in a bank,
therefore I opened a current account with Rawbank
as I believe they are financially stable.”
On his channel preferences: “I go to the bank
primarily to deposit the money I make from tours and
cab rides; and use the ATM when I need to withdraw
money for myself or to give to my wife to go to the
market.”
On his banking needs: “The branch, ATM and
customer care are measures that are essential to my
banking relation ship. I am satisfied with the ambiance
of the branches and the cash availability, uptime and
security of the ATMs. However, I have to travel a fair
distance when I need to go the bank, when I get
there, the turnaround time is not the best and
after all this, my issue is not always addressed
appropriately.”
On what is important to him: “My satisfaction
has only increased since I opened this account;
I can sleep more peacefully now because I know
my money is secure.”
KPMG Insight: Rishi represents the average working
class individual. He needs certain products and services
to make his banking experience more enjoyable such as:
•
Allowing him to deposit money via the ATM instead
of only at the branches
•
A ‘go-to’ person in the bank he can easily reach out
to for enquiries and complaints resolution.
Nuru is 26 and lives in Gaborone,
Botswana. Nuru spends her days
working in the city as an admini-
strative assistant at a hotel and
also helps at her aunt’s corner
shop as a part-time cashier.
She earns around 4,500 pula
per month from both jobs.
Married with four children, 32-year
old Rishi works as a travel guide
for tourists in Kinshasa. As this
is largely a seasonal job, Rishi
supplements his income working
as a taxi driver in the city. Rishi’s
income is highly variable but,
on average, he earns around
300 dollars a month.
29A single view
Kenya: Amani KahangiGhana: Kwabena Chambas
On his choice of banks: “I opened a bank account
with Kenya Commercial Bank 10 years ago and mainly
maintain my account with them because of their
excellent customer service.”
On his channel preferences: “I mainly withdraw cash
on KCB’s ATMs as the service reliability is top-notch.
Mobile banking is my preferred choice for balance
enquiries and I visit the branch whenever I need
to carry out any other activities such as transferring
funds, getting financial advice, making complaints,
bill payments, buying financial products and cash
deposits.”
On his banking needs: “I would like to set up a
trust fund for my two little girls to help cover their
future educational expenses. Customer care, security
of alternate channels and the overall timeliness
and turnaround time in processing transactions are
influential in my choice of bank and I’m satisfied with
most of these elements.”
On what is important to him: “The bank still has
improve ments to make in terms of the queues at
the branches and the products and services offered,
especially loans, overdrafts and mortgages. There
should be enough tellers to curb the long queues and
the charges on over the counter withdrawals should
be reduced.”
KPMG Insight: Amani represents a mid-career
professional. Customers at this point have usually
banked with their financial institutions for a while and
expect a form of reward for their loyalty. Other products
and services that could interest them include:
•
Dedicated relationship management to cater to their
needs (such as providing advice on investments and
trust funds)
•
Better rates and a more seamless application process
for loans and mortgages.
On his choice of banks: “About 6 years ago, I opened
a Current and Savings account with GCB Bank Ghana
and I love the new image the bank portrays after the
rebranding exercise they undertook in 2014.”
On his channel preferences: “My usual transactions
with the bank include using the ATM to withdraw
cash, mobile banking for balance enquiries and bill
payments, internet banking to transfer funds, the
contact center to make complaints and the branch
for any other activities I need to carry out.”
On his banking needs: “I perform the bulk of my
trans actions digitally as I use the internet and mobile
banking platforms and they sufficiently satisfy my
needs so I have no reason to go to the bank often.
I also use the ATM weekly as I believe it’s important
to always carry cash in case of a rainy day.”
On what is important to him: “Customer care and
digital banking measures are paramount to my banking
relationship and I’m very satisfied with the bank’s
digital banking platform. However, the bank staff
could be friendlier and attend to issues more promptly
when I go to the branch.”
KPMG Insight: Kwabena represents the typical
upcoming professional. Most of these professionals
are from the Millennial Generation and need a unique
mix of customer care and technologically advanced
products and services. Some products that could
appeal to them include:
•
Secure and innovative e-channels
•
A personalized platform to begin accessing financial
advice from their early career stages.
Amani is a 37-year-old Graphic
Designer who started his
career working in the marketing
department of a multi-national
company before setting up his
own company “Kahangi Designs”
in Kisumu. He now earns around
2.4 million kenyan shillings per
year.
Kwabena studied Aerospace
Engineering at a very prestigious
university in Ghana and now
works for the civil service where
he earns about 85,000 cedis per
annum. He currently lives alone
in Accra and, at 28 years old,
has now started saving up for
a family of his own.
30 Africa Banking Industry Customer Satisfaction Survey
Nigeria: Kike Adekoya South Africa: Lerato Govender
On her choice of banks: “When I first came to
university 3 years ago, I opened a GTCrea8 account
with GTBank and I stay with them mostly because of
the proximity they offer to alternate banking channels.”
On her channel preferences: “I use a diverse range of
platforms for the different activities I need to carry out;
the ATM for cash withdrawals, mobile banking for funds
transfer and balance enquiries, internet banking when
I need to obtain financial advice, social media to make
complaints and the branch to deposit cash.”
On her banking needs: “Most of my transactions
are via the ATMs and internet/mobile banking platforms.
I also enjoy interacting with my bank on Facebook and
Twitter as these are easier and more fun platforms to
communicate with the bank. However, sometimes the
bank takes a long time to respond to my enquiries
and complaints and this makes me very frustrated.”
On what is important to her: “Alternate channels
are very important to me and the bank is doing a good
job in terms of constant innovation. It is very easy to
use a lot of their services, particularly the mobile banking
platform. However, the length of the queues at the
branches is still a major issue whenever I go there to
deposit money.”
KPMG Insight: Kike is a prime example of the modern
tech-savvy student. As trends are ever-changing in the
world, innovative value-added services that could help
keep these students’ attention are:
•
Cardless cash withdrawals from the ATMs and
improved response rates on social media
•
Relevant information could also be provided that
informs them about periods to expect downtime
on the bank’s alternate channels.
On her choice of banks: “I have been banking with
First National Bank for over 20 years and have stayed
with them because of their integrity, financial stability
and the fact that they always put their customers first.”
On her channel preferences: “The ATM is a channel
I greatly appreciate as I use it for many activities
such as cash withdrawals, funds transfer, balance
enquiries and cash deposits. I visit the branch or call
my Relationship Manager when I need to carry out
any other activities.”
On her banking needs: “The bank has a branch a stone’s
throw away from the hospital I work at, therefore, it
is convenient for me to visit their branches whenever
I need to. If I can’t go to the branch, I call my Relation-
ship Manager or use the ATM to transfer funds to my
children who are in different universities around the
world.”
On what is important to her: “Customer service, the
branch and the ATM need to be upper echelon as these
are my main points of contact with the bank. The bank
has done an outstanding job with these measures and
have taken it a step further by offering me customized
services and products. But the interest rates offered
on investment and deposit products and the proximity
of ATMs still need to be worked on to improve my
satisfaction level.”
KPMG Insight: Lerato represents the affluent
professional at the peak of her career. The bank can
keep her interested and raise her level of enthusiasm
by offering the following products and services:
•
Professional investment advisory services to help
her make wise investment decisions
•
A method of linking her accounts to her children’s
accounts to create a more seamless process of
transferring funds.
Kike is a 19-year-old student
currently in the third year of
a Law degree at the University
of Lagos (UNILAG). As Kike is
now approaching graduation,
she has started taking her savings
more seriously and currently
keeps her 30,000 naira allowance
in a special student savers
account.
Lerato has been a Gynecologist
for the past 17 years and is now
one of the top-rated and most
well respected Gynecologists
in the Durban Metropolitan Area.
She earns 1.2 million rand each
year and, as a result, has a diverse
portfolio of investments.
31A single view
50 Chad
86 South Africa
94 Uganda
74 Rwanda
90 Tanzania
42 Burundi
66 Kenya
102 Zimbabwe
98 Zambia
Angola
34
Côte d’Ivoire 54
Senegal 78
Ghana 62
Sierra Leone 82
Nigeria 70
Cameroon 46
Botswana 38
58 DRC
32 Africa Banking Industry Customer Satisfaction Survey
Market profiles
and highlights
Contents
34 Angola
38 Botswana
42 Burundi
46 Cameroon
50 Chad
54 Cote d’Ivoire
58 Democratic Republic of Congo (DRC)
62 Ghana
66 Kenya
70 Nigeria
74 Rwanda
78 Senegal
82 Sierra Leone
86 South Africa
90 Tanzania
94 Uganda
98 Zambia
102 Zimbabwe
33Africa Banking Industry Customer Satisfaction Survey
Angola
According to the National Bank of Angola, Angola’s economy
grew at around 4.9 percent in 2015. However, the country’s
economic stability has been challenged recently by global
uncertainty, which has adversely affected the price of oil (falling
around 55 percent since January 2014). This is particularly
important for the Angolan economy due to its dependence
on raw materials; the sector represented about 35 percent
of the Angolan GDP in 2014.
As a result, the Angolan government is now focused
on diversifying the economy and reducing dependence
on the oil sector, together with exchange rate stabilization
measures. Given the worsening expectations of the
current account balance and trade balance, budget
execution will also be a key factor supporting the
economic development of the Angolan economy
in the coming years.
While the executive government has made efforts
to reduce public spending, it is clear that the timing
of the oil price recovery will be a critical factor that
could significantly impact the state’s ability to support
the movement to diversify the economy.
The past few years have seen the adoption of a
more pronounced regulatory environment, aimed at
empowering the institutions for future challenges,
supported by a variety of different initiatives and led
by the National Bank of Angola.
The Central Bank is currently focused on processes
related to accounting and prudential, fiscal and
compliance aimed at improving the robustness and
resilience of institutions (through Asset Quality
Assessment – Phase 2 and notices about capital
ratios) and increasing internal comparability. Focus
is also being placed on international stakeholders
(IFRS, notices about capital ratios and FATCA) and
increasing the capacity of financial institutions to
engage with their international partners (AML / CFT
and Sanctions).
The deceleration in economic growth has spread to the
Angolan banking sector and no new financial institutions
have been licensed by the BNA since 2013 (even though
the regulator expects there to be 29 institutions by the
end of this year). However, the evolution of the financial
system in Angola in recent years has been instrumental
in the country’s consolidation.
The Angolan banking sector is viewed as an ‘empowering
engine’ and as the most important sector of the Angolan
economy due to its role in supplying resource development
and talent in Angola.
35Angola
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Quality of
feedback on
enquiries/
resolution of
complaints
ATMs – Cash
availability
Overall
timeliness
and
turnaround
time in
processing
transactions
Products
and services
that meet
your require-
ments/
needs
Cost of
maintaining
accounts
with the
banks i.e.
COT and
other related
charges
Trust that
the bank is
honest and
will do the
right thing
2
Prompt
attention
and
response
to your
enquiries/
complaints
Branches –
Proximity
(closeness)
of branches
Accuracy
and
complete-
ness of
information
provided
i.e. bank
statements,
advice
slips, basis
of bank
charges /
fees etc.
Availability
of salary
advance
Interest rates
offered on
deposits and
investment
products
Your
confidence
that the
bank puts
the customer
first
3
Staff
knowledge
and under-
standing of
the bank’s
products /
services
ATMs –
Security
of ATM
location
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Ease of
accessing
different
products/
services
seamlessly
across
different
bank
channels
Your
confidence
that the bank
will deliver
65%
satisfaction
64%
satisfaction
66%
satisfaction
65%
satisfaction
69%
satisfaction
65%
satisfaction
61%
satisfaction
58%
satisfaction
69%
satisfaction
62%
satisfaction
63%
satisfaction
68%
satisfaction
58%
satisfaction
62%
satisfaction
73%
satisfaction
63%
satisfaction
65%
satisfaction
36 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Branches remain the preferred channel for Angolan
banking customers. Angolan financial institutions offer
a range of different channels, largely in line with those
offered in most mature banking centers. However, it
appears that customers still prefer to visit a branch,
often to the detriment of other channels. Indeed,
customers reported a preference for using a branch for
every type of interaction except cash withdrawal and
balance enquiry (where ATMs were the predominant
preference).
AfricaAngola
26 %
54 %
57 %
74 %
10 %
33 %
7 %
6 %
7 %
4 %
2 %
6 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
Despite the high level of competitiveness of the banking
sector, Angolan banking customers seem loyal to their
bank; eighty percent of respondents said they would not
consider changing their institution and 78 percent said
they would recommend their bank. That being said, 20
percent of respondents said they would consider leaving
their financial institution. Factors driving this churn include
the quality of service, followed by the proximity of ATMs
and competitive pricing in both commissioning and rates
charged.
30 %
Service
quality
6 %
Others
Interest
rates
and fees
Financial
stability
Quality of
internet/
mobile
banking
4 %
Proximity
of ATMs
Innovative
products
and services
Turnaround
time for
requests
and enquiries
18 %
16 %
10 %
9 %
7 %
Top reasons for maintaining Banking relationship
37
Angola
Botswana
Botswana’s banks had already suffered sharp drops
in profitability with post-tax profits falling from a high
of 25.7 percent in 2013 to just 12.5 percent in the third
quarter of 2015. With the economy now growing at a
slower pace, many analysts believe that The Bank of
Botswana will cut interest rates further, adding new
pressure onto banks’ interest margins and profitability.
The Bank of Botswana reduced the reserve requirement
ratio for lenders to 5 percent in 2015 in an effort to
release more liquidity into the system. The Bank also
hoped that the moratorium on non-interest banking
charges would catalyze innovation and spur competition
amongst the country’s 13 banks. The moratorium was
officially lifted on December 31st, 2015.
Looking ahead, we expect to see increased use of
mobile technology and wider rural penetration as new
disruptors enter the market and traditional banks start
to diversify their product offerings and channels. Banks
will need to move quickly if they hope to counter the
traction being achieved by the mobile banking products
already being offered by some of the country’s tele-
communications providers.
However, in order to survive in the longer-term,
Botswana’s banks will need latitude to grow their
non-interest income. According to the Central Bank,
the moratorium on bank charges will be evaluated
on a case-by-case basis provided all matters identified
by the independent audits have been satisfactorily
addressed.
Nevertheless, it is widely expected that companies
will continue to reduce borrowing – both domestically
and internationally – which, in turn, will prolong the
country’s lowest credit growth rates in a decade.
Following decades of strong growth on the back of one of
the world’s fastest growing economies, Botswana’s banks
have faced significant challenges over the past three years.
Tighter liquidity, low interest rate margins and a moratorium
on non-interest banking charges have depressed profitability.
39Botswana
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff
knowledge
and under-
standing of
the bank’s
products /
services
ATMs –
ATM uptime
Accuracy
and
complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Products and
services that
meet your
require-
ments / needs
Interest rates
offered on
deposits and
investment
products
Your
confidence
that the bank
will deliver
2
Staff with a
professional
can-do
attitude and
willingness
to assist
ATMs –
Cash
availability
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Trust that
the bank is
honest and
will do the
right thing
3
Staff ability
to understand
your needs
and
proactively
offer
alternatives/
useful advice
ATMs –
Proximity
(closeness)
of ATMs
Overall
timeliness
and
turnaround
time in
processing
transactions
Availability
of loans
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Your
confidence
that the bank
puts the
customer
first
85%
satisfaction
94%
satisfaction
88%
satisfaction
87%
satisfaction
85%
satisfaction
93%
satisfaction
88%
satisfaction
88%
satisfaction
86%
satisfaction
59%
satisfaction
76%
satisfaction
93%
satisfaction
86%
satisfaction
87%
satisfaction
71%
satisfaction
93%
satisfaction
87%
satisfaction
94%
satisfaction
40 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Botswana’s banking customers are highly focused on
service quality. In fact, exceptional customer service
was cited as the top reason for maintaining a banking
relationship and – for those few (4 percent) considering
a change in banks – service quality ranked as the top
reason for the change. More than three-quarters
(78 percent) of Botswana’s banking customers say
that satisfaction has increased over the past year and,
as a result, 56 percent say they would recommend
their bank to others.
Reported mobile channel usage is high in Botswana –
more than three times the African average – largely due
to shifts in customer preferences for services such
as bill payments and balance enquiries. Since our last
survey in 2013, customers have moved away from POS
terminals to pay bills in favor of mobile technologies and
branches.
ATMs have also seen increased adoption, particularly
for cash withdrawals. Indeed, whereas 41 percent of
respondents in 2013 said they preferred branches for
cash withdrawal, that number has fallen to just 9 percent
today. At the same time, stated preferences for cash
withdrawal from ATMs rose from 59 percent to 91 percent.
AfricaBotswana
26 %
5 %
57 %
54 %
10 %
17 %
7 %
5 %
7 %
24 %
2 %
1 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
Service
quality
5 %
Turnaround
time for
requests
and enquiries
Others
Innovative
products
and services
Quality of
internet/
mobile
banking
5 %
Proximity
of branches
6 %
Financial
stability
Interest
rates
and fees
Proximity
of ATMs
3 %
23 %
12 %
11 %
8 %
28 %
Primary reason for changing banks (of those that indicated a change)
41
Botswana
Burundi
Burundi’s government has shown signs of working
towards improving both the stability and competition
within the banking sector by opening access to foreign
banks based in the region (namely Kenya’s KCB and
Tanzania’s CRDB Bank). And the government has kicked
off a six-year National Finance Inclusion Strategy that
aims to improve access to financial products and remove
barriers to banking, particularly for rural populations,
women, youth and small entrepreneurs.
However, while the opening of Burundi’s bank market
to regional players certainly helped to revitalize the
sector and led to an overall growth in the size of the
securities market, it has become increasingly clear that
the financial system is overly dominated by the banking
sector and therefore suffers from a lack of diversification.
Burundi’s financial system consists of 10 banks, three
of which account for around 58 percent of the market
share and 68 percent of deposits. For the most part,
Burundi’s operating banks tend to focus on deposit-
taking and shy away from loans and credit products.
Those loans that are approved tend to be concentrated
in the retail sector. In part, this is in response to
concerns about credit risk. But it is also because
there is little long-term savings in Burundi which, in
turn, makes it difficult for banks to finance investments.
Largely due to the recent unrest, inflation has risen
to above 5.5 percent and the local currency – the
Burundian Franc – has lost significant value against
foreign currencies. Coupled with concerns about a
resurgence of violence and a run on withdrawals by
customers fleeing the country, banks in Burundi seem
likely to continue to face near-term challenges.
Were it not for an outbreak of violence and unrest in 2015,
the tiny landlocked nation of Burundi seemed on a strong
growth trajectory. Annual economic growth had averaged
around 4 percent through the start of the decade and
estimates suggested that growth would reach 5 percent
in 2015. As is often the case, violence routed these gains:
the World Bank now estimates that Burundi’s growth rate
in 2015 was – 2.3 percent.
43Burundi
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff
knowledge
and under-
standing of
the bank’s
products /
services
Branches –
Turnaround
time at the
branches
Accuracy
and
complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Products and
services that
meet your
require-
ments / needs
Interest rates
offered on
deposits and
investment
products
Trust that
the bank is
honest and
will do the
right thing
2
Staff ability
to understand
your needs
and
proactively
offer
alternatives /
useful advice
Branches –
Proximity
(closeness)
of branches
Overall
timeliness
and
turnaround
time in
processing
transactions
Availability
of overdraft
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Your
confidence
that the bank
puts the
customer
first
3
Quality of
feedback on
enquiries /
resolution of
complaints
Branches –
Ambience
– look and
feel
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Your
confidence
that the bank
will deliver
60%
satisfaction
64%
satisfaction
74%
satisfaction
75%
satisfaction
75%
satisfaction
57%
satisfaction
33%
satisfaction
68%
satisfaction
84%
satisfaction
82%
satisfaction
77%
satisfaction
64%
satisfaction
37%
satisfaction
70%
satisfaction
83%
satisfaction
80%
satisfaction
81%
satisfaction
44 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Innovative
products
and services
6 %
Financial
stability
Turnaround
time for
requests
and enquiries
Interest
rates
and fees
Proximity
of ATMs
5 %
Quality of
internet/
mobile
banking
5 %
Proximity
of branches
Others
Service
quality
18 %
15 %
10 %
8 %
8 %
25 %
Primary reason for changing banks (of those that indicated a change)
AfricaBurundi
26 %
38 %
57 %
16 %
10 %
2 %
7 %
2 %
7 %
2 %
2 %
0 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
Burundi’s banking customers were amongst the least
likely on the continent to say that they had recommended
their bank to others. Just 27 percent said they had –
or were likely to – provide a recommendation for their
banks, compared to 50 percent of all other African
banking customers.
While 59 percent of customers admitted that
satisfaction had increased over the past years, it
must be noted that this was from a fairly low base.
Not surprisingly, 14 percent of Burundi’s banking
customers have either recently changed banks or
are planning a change in the near future.
While Burundi boasts just 3.1 bank branches per 100,000
people, the branch was cited as the dominant preference
for all banking activities by Burundian customers. Even
for transactions that are facilitated by ATMs (such as cash
withdrawal and balance enquiries), more than 80 percent
of customers said they prefer to interact at the branch.
Largely due to a lack of reliable infrastructure and low
levels of internet penetration, few of Burundi’s banking
customers said they had used an alternative channel
in the past week. Indeed, more than 93 percent of all
customers admitted they had never used a POS terminal,
internet banking or any type of mobile banking or payment
system in the past at all.
45
Burundi
Cameroon
While economic growth remained at around 4 percent
over the past decade (a level insufficient to make any
real dent in overall poverty levels), growth jumped to
5.9 percent in 2014 and 6.2 percent in 2015, largely on
the back of expanding oil production. Indeed, following
the reactivation and use of enhanced oil recovery
techniques aimed at optimizing production from mature
fields, growth in Cameroon’s oil sector expanded by
28 percent in 2015.
Cameroon’s banking sector also seems to be gaining
strength, in part due to the recapitalization of two
troubled banks in 2013. Cameroon’s remaining banks are
largely strong and compliant with regulatory and prudent
standards. Leveraging this strength, Cameroon’s banks
hope to raise around CFA300 billion (USD520 million)
on the capital markets in 2016, largely to shore up the
budget envelope for the year.
The banking system has also been vitalized by the launch
of two new government backed institutions: the Bank of
SMEs (which launched in July 2015 with capital of around
CFA10 billion) and the soon-to-be-launched Agricultural
Bank. The introduction of these two new banks is expected
to not only encourage development, but should also
improve access to loans for small to medium enterprises,
which currently make up around 70 percent of Cameroon’s
local businesses.
While the banking sector includes 13 commercial
banks, microfinance has gained widespread popularity
and there are currently more than 400 microfinance
institutions operating in the country. With some Africa
venture capitalists now eyeing the largest of these
institutions, there are some indications that one or
more microfinance institutions may evolve into a
formal bank within the next 2 years.
Cameroon’s government, together with the Banking
Commission of Central Africa (COBAC), have initiated a
number of measures to further strengthen Cameroon’s
banking sector and reduce the risk they pose to the
financial system.
However, to drive further growth of the system
and promote deeper financial inclusion, we believe
the govern ment and Central Bank should focus on
encouraging banking diversity, either by developing
agricultural value chains, enhancing competitiveness
or by strengthening the strategic management of
urban development. Improved sector governance and
enhanced public expenditure effectiveness would also
help encourage growth and investment in the sector.
Benefiting from strong tailwinds as a result of their member-
ship in the Central African Economic and Monetary Community
(CEMAC) and well positioned as a trade corridor for land -locked
Central African markets, Cameroon’s economy has enjoyed
strong economic growth over the past 2 years.
47Cameroon
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff with a
professional
can-do
attitude and
willingness
to assist
Branches -–
Proximity
(closeness)
of branches
Overall
timeliness
and
turnaround
time in
processing
transactions
Products and
services that
meet your
require-
ments / needs
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Trust that
the bank is
honest and
will do the
right thing
2
Staff ability
to understand
your needs
and
proactively
offer
alternatives /
useful advice
ATMs –
Security of
ATM location
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Interest rates
offered on
deposits and
investment
products
Your
confidence
that the bank
will deliver
3
Staff
knowledge
and under-
standing of
the bank’s
products /
services
Branches –
Turnaround
time at the
branches
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Availability
of loans
Your
confidence
that the bank
puts the
customer
first
57%
satisfaction
29%
satisfaction
66%
satisfaction
58%
satisfaction
72%
satisfaction
59%
satisfaction
39%
satisfaction
58%
satisfaction
67%
satisfaction
66%
satisfaction
71%
satisfaction
62%
satisfaction
40%
satisfaction
68%
satisfaction
67%
satisfaction
66%
satisfaction
71%
satisfaction
48 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Quality of
internet/
mobile
banking
3 %
Financial
stability
6 %
Proximity
of ATMs
Service
quality
Others
3 %
Innovative
products and
services
4 %
Turnaround
time for
requests
and enquiries
6 %
Interest
rates
and fees
26 %
25 %
28 %
Primary reason for changing banks (of those that indicated a change)
Banking customers in Cameroon seem fairly pleased
with their banks overall. Almost two-thirds (63 percent)
of respondents reported improved satisfaction with their
bank over the past year and 58 percent said they had
either recently recommended or would likely recommend
their bank to others.
However, that has not seemed to stop Cameroonian
customers from shopping around; one-in-five say they
would consider changing banks, most often in pursuit
of better interest rates, better service or better internet
and mobile banking offerings.
AfricaCameroon
26 %
11 %
57 %
19 %
10 %
2 %
7 %
1 %
7 %
2 %
2 %
1 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
Cameroonian banking customers report a strong
preference for conducting virtually every banking
transaction at their branch. With the exception of
cash withdrawals – where ATMs narrowly beat out
the branch by a margin of 53 percent to 47 percent –
and balance enquiries, more than 80 percent of
Cameroonian respondents said they prefer to use
the branch for all their banking activities.
In large part, this strong preference for branch
transactions is due to a lack of perceived alternatives.
More than eight-in-ten respondents from Cameroon
said they had never used a POS terminal, internet
banking or mobile banking in the past.
49
Cameroon
Chad
Chad enjoyed strong economic growth of 6.9 percent
in 2014 but growth fell in 2015 (to around 4.1 percent)
as fluctuations in oil prices – Chad’s main export – slowed
investment and devastated profits. Ongoing security
challenges, allegations of corruption and regional conflicts
continue to undermine the country’s economic growth
and limit the adoption of banking services outside of
the main urban centers.
Chad’s banks went through a major recapitalization
program supervised by the Central African Banking
Commission (COBAC) which effectively tripled the
cumulative capital held by the country’s banks but,
at the same time, significantly increased government
ownership, particularly in Commercial Bank Chad,
Banque Commerciale du Chari, Banque Agricole et
Commerciale, and Societe Generale Tchad.
However, it is worth noting that the top four banks
in our customer perception survey for Chad all have
a certain level of government ownership while the
wholly-private banks tend to rank lower for customer
satisfaction.
There are currently 8 banks operating in Chad, along-
side some 200 microfinance organizations which have
focused largely on the agricultural and trade sectors.
Going forward, the government plans to improve access
to microfinance as a way to speed up the monetization
of the economy.
While Chad often ranks as one of the poorest countries in the
world, its membership in the Central African Economic and
Monetary Union Community (CEMAC) provides the country
with significant monetary and financial advantages, including
the free transfer of capital, a fixed but adjustable exchange-
rate system, pooling of currency reserves and – likely most
importantly – an unlimited guarantee on the currency from
the French Treasury.
51Chad
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Prompt
attention and
response
to your
enquiries /
complaints
ATMs –
Proximity
(closeness)
of ATMs
Overall
timeliness
and
turnaround
time in
processing
transactions
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Your
confidence
that the bank
will deliver
2
Staff ability
to understand
your needs
and
proactively
offer
alternatives /
useful advice
ATMs –
Cash
availability
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Products and
services that
meet your
require-
ments / needs
Interest rates
offered on
deposits and
investment
products
Your
confidence
that the
bank puts
the customer
first
3
Staff
knowledge
and under-
standing of
the bank’s
products /
services
Branches –
Proximity
(closeness)
of branches
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Availability
of overdraft
Trust that
the bank is
honest and
will do the
right thing
77%
satisfaction
51%
satisfaction
70%
satisfaction
74%
satisfaction
77%
satisfaction
80%
satisfaction
56%
satisfaction
70%
satisfaction
74%
satisfaction
73%
satisfaction
79%
satisfaction
80%
satisfaction
58%
satisfaction
71%
satisfaction
72%
satisfaction
70%
satisfaction
80%
satisfaction
52 Market profiles and highlights
Channel usage and preferences
Customer loyalty
AfricaChad
26 %
32 %
57 %
41 %
10 %
6 %
7 %
7 %
7 %
3 %
2 %
8 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
Service
quality
3 %
Quality of
internet/
mobile
banking
6 %
Turnaround
time for
requests
and enquiries
Financial
stability
Others
3 %
Proximity
of ATMs
6 %
Proximity
of branches
Interest
rates
and fees
19 %
11 %
8 %
44 %
Primary reason for changing banks (of those that indicated a change)
Banking customers in Chad report some of the lowest
increases in customer satisfaction over the past year. In fact,
where 64 percent of African respondents say satisfaction
has increased, just 35 percent of Chadians say the same.
Not surprisingly, only around a third of Chadian banking
customers say they would recommend their bank to
friends and family. However, this low level of
recommendation and satisfaction increases does
not seem to have greatly impacted loyalty; just
5 percent of Chadians say they either recently
have or plan to change banks.
While less than 8 percent of Chadians have an account
with a financial institution, our data suggests that banking
customers enjoy a range of banking channels. Chadians
use the branch and the call center more frequently
than most Africans, but seem to be quickly adopting
alternative channels, particularly internet banking and
POS terminals.
Chadians report a growing preference for ATMs,
which emerged as the most frequently used channel
on a weekly basis. Sixty-nine percent of Chadians said
they prefer the ATM for cash withdrawal and 40 percent
stated a preference for using ATMs for balance enquiry.
53
Chad
Cote
d’Ivoire
Foreign banks largely dominate the Ivorian banking
system with 16 of the 23 operating banks belonging
to international or regional groups. The banking system
is generally stable with overall capital adequacy ratios
above the regulatory requirement of 8 percent. However,
less than one-in-ten Ivoirians currently have a formal
bank account and our survey suggests that those that
do have formal accounts are somewhat dissatisfied with
the costs and convenience of their accounts.
As the largest economy in the West African Economic
and Monetary Union (UEMOA), Cote D’Ivoire is bene-
fiting from the growth of the economic zone. Cote
D’Ivoire’s banking sector is well controlled and – not-
withstanding clear issues related to financial inclusion –
is vibrant and growing.
While the market experienced significant consolidation
following the post-election crisis, most observers expect
further consolidation as smaller banks struggle to meet
the newly increased capital requirements (which rose
from XOF5 billion to XOF10 billion). Smaller banks may
also struggle to meet the compliance requirements of
Basel II and Basel III which will come into force in 2017.
A planned switch to IFRS will also create complications
for Ivorian banks.
The Ivorian people have demonstrated that they are
willing to try new financial innovations and technologies.
Microfinance already plays a key role in providing savings
and loans outside of Abidjan – the country’s economic
capital – and some estimates suggest that mobile
money has already reached penetration rates of more
than 90 percent across the country.
For Cote D’Ivoire, the road to financial inclusion requires
the participation of all players – traditional banks, tele-
communications providers, microfinance players and
technology providers.
Having suffered a decade of social and political turmoil,
Cote D’Ivoire has enjoyed significant growth since the end
of the Second Ivorian Civil War in 2011. GDP has increased
from – 4.7 percent in 2011 to 8.4 percent in 2015 and banks
have seen their total balance sheet increase by around
13 percent per year since the cessation of hostilities.
55Cote d’Ivoire
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff with a
professional
can-do
attitude and
willingness
to assist
ATMs –
ATM
uptime
Overall
timeliness
and
turnaround
time in
processing
transactions
Products and
services that
meet your
require-
ments / needs
Interest rates
offered on
deposits and
investment
products
Your
confidence
that the bank
puts the
customer
first
2
Staff ability
to understand
your needs
and
proactively
offer
alternatives /
useful advice
Branches –
Turnaround
time at the
branches
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Trust that
the bank is
honest and
will do the
right thing
3
Prompt
attention
and response
to your
enquiries /
complaints
ATMs –
Cash
availability
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Availability
of loans
Your
confidence
that the bank
will deliver
68%
satisfaction
33%
satisfaction
70%
satisfaction
78%
satisfaction
61%
satisfaction
69%
satisfaction
42%
satisfaction
60%
satisfaction
70%
satisfaction
54%
satisfaction
76%
satisfaction
66%
satisfaction
41%
satisfaction
65%
satisfaction
69%
satisfaction
81%
satisfaction
79%
satisfaction
56 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Service
quality
2 %
Proximity
of branches
Innovative
products
and services
Others
Turnabout
time for
requests
and enquiries
Interest
rates
and fees
31 %
22 %
7 %
7 %
31 %
Primary reason for changing banks (of those that indicated a change)
Africa Cote d’Ivoire
Branch ATM POS Internet
Mobile
Call
centre
26 %
16 %
57 %
16 %
10 %
0 %
7 %
1 %
7 %
4 %
2 %
1 %
Percentage of respondents that use each channel at least once per week
While financial inclusion may be low across the country,
the majority (53 percent) of those with formal bank
accounts seem to feel that satisfaction has improved over
the past year. At the same time, 47 percent say they have
recommended their bank to friends and family. And, as a
result, only 7 percent of banking customers say they are
considering changing banks (either to find better interest
rates and fees or to receive better service quality).
Ivorian banking customers clearly prefer to use the
branch for most of their banking activities. More than
nine-in-ten customers say they prefer the branch for
making complaints, transferring funds, getting financial
advice and buying financial products. The majority also
report a strong preference for conducting bill payments
and balance enquiries at the branch.
ATMs are starting to gain popularity in Cote D’Ivoire.
Fifty-nine percent of respondents said they prefer the
ATM for cash withdrawals and almost a third (32 percent)
said they prefer the channel for balance enquiries. And
while only 4 percent of banking customers say they use
the mobile channel at least once per week, the channel is
clearly gaining traction for activities such as bill payments
and balance enquiries.
57
Cote d’Ivoire
Democratic
Republic
Congo
Not surprisingly, Congolese banks are competing
aggressively for every new banking customer. Retail
banks are increasingly offering loan products to
customers (which was not the case a few years
ago when banks were only lending to businesses)
and competing on offers such as access to car loan
products and 10-year mortgages. With the recent
liberalization of the insurance market in the Democratic
Republic of Congo, banks may soon start to also offer
insurance products in order to diversify their service
portfolio and create new competitive advantages.
However, competition is also heating up from non-
traditional financial services providers. A growing
number of telecoms companies operating in the
DRC now offer mobile financial services; many have
put significant investment behind advertising their
offers to the Congolese population.
Against this background, banks operating in the
DRC have been highly focused on improving customer
satisfaction. In part, this is a clear reaction to competitive
pressures from both inside and outside of the sector.
But it also reflects challenges internal to the banks;
most are currently working to integrate their disparate
data and technology systems into a single coherent
and efficient environment but risk eroding customer
service in the process.
Clearly, the DRC’s banking sector remains small. Total
bank assets were estimated at just USD3.6 billion in
2012, with the five largest banks holding more than
60 percent of the total. However, as internet penetration
expands across the country and infrastructure becomes
more reliable, we expect the DRC to become a rich source
of new customers for those banks able to intensify their
investment into customer education and advertising.
While competition is heating up between banks operating
in the DRC, the reality is that poor infrastructure continues to
hamper the uptake of banking services outside of key cities.
Alternative channels have made some inroads, but intermittent
power cuts, a lack of internet access and low levels of financial
literacy continue to impede access to banking services for the
vast majority of the population.
59Democratic Republic of Congo
Highlights | Most important
Rank
Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff with a
professional
can-do
attitude and
willingness
to assist
Branches –
Ambience
– look and
feel
Overall
timeliness
and
turnaround
time in
processing
transactions
Products
and services
that meet
your require-
ments /
needs
Interest rates
offered on
deposits and
investment
products
How well
the bank
inspires you
2
Staff
knowledge
and under-
standing of
the bank’s
products /
services
ATMs –
Security
of ATM
location
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges / fees
etc.
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Trust that
the bank is
honest and
will do the
right thing
3
Staff ability
to understand
your needs
and
proactively
offer
alternatives /
useful advice
ATMs –
ATM uptime
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Availability
of loans
How well
the bank is
regarded in
the media
71%
satisfaction
33%
satisfaction
75%
satisfaction
78%
satisfaction
76%
satisfaction
69%
satisfaction
39%
satisfaction
60%
satisfaction
74%
satisfaction
78%
satisfaction
82%
satisfaction
72%
satisfaction
47%
satisfaction
65%
satisfaction
76%
satisfaction
76%
satisfaction
81%
satisfaction
60 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Service
quality
2 %
Innovative
products
and services
Proximity
of branches
Turnaround
time for
requests
and enquiries
Financial
stability
Others
Interest
rates
and fees
22 %
15 %
13 %
11 %
9 %
29 %
Primary reason for changing banks (of those that indicated a change)
AfricaDemocratic Republic of Congo
26 %
26 %
57 %
25 %
10 %
0 %
7 %
1 %
7 %
1 %
2 %
2 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
Customer loyalty seems surprisingly high given the
CSI scores reported in the DRC. More than half of our
respondents said they would absolutely recommend
their bank to others and 89 percent said they would
remain loyal to their bank. At the same time,
64 percent of customers noted an overall increase
in customer service, albeit from a rather low initial
base.
As noted earlier, the state of infrastructure across the
DRC inhibits the wide-spread adoption of alternative
channels. Not surprisingly, use of POS terminals was
almost non-existent while more than 93 percent of
banking customers responding to this survey said they
had never used internet or mobile banking services.
However, with the introduction of Mpesa services, Airtel
money and Tigo cash, use of mobile financial services –
albeit through non-traditional sources – should rise
considerably.
While a quarter of customers say they use an ATM at
least once a week, there is a clear preference for using
the branch for all types of banking activity including cash
withdrawal, balance enquiry and deposits.
61
Democratic Republic of Congo
Ghana
The banking industry in Ghana has also witnessed
some consolidation: recent mergers and acquisitions
include Access Bank and Intercontinental Bank, Ecobank
and TTB Bank, and HFC Bank and the Republic Bank
of Trinidad and Tobago. Universal Merchant Bank was
acquired by Fortiz Private Equity Fund Limited and
rebranded UMB. We expect a few more new entrants
and further consolidation in the industry.
Customers are the prime beneficiaries of the increased
competition in the banking industry. The influx of foreign
banks, especially from Nigeria, has created some benefits
for Ghana’s banking customers. Efficiency is up and
there has been a notable level of improvement in
service delivery across the sector. Competition has
also led to the broader introduction of new technological
innovations and alternative channels such as ATMs,
internet banking, mobile banking and telephone banking.
In addition to fierce competition, Ghana’s banking
sector has seen several regulatory developments in
recent times. The Bank of Ghana raised the Reserve
Ratio Requirement (RRR) from 9 percent to 11 percent
before reducing it to the present 10 percent. The regulator
also reviewed upwards the minimum capital required for
commercial banks; new banks entering Ghana’s banking
industry will be required to have a minimum capital of
GHC120 million. The Central Bank has also introduced its
first Deposit Insurance Bill which seems likely to pass
into law sometime in 2016.
Similarly, the Central Bank has been forced to intervene
in the currency market, issuing several directives. The
directives, which were mainly aimed at curbing spec-
ulation and the hoarding of dollars, were attempts
by the regulatory authority to slow the depreciation
of the Cedi against major foreign currencies. Against the
USD year-to-date (Feb 2016), the Cedi has depreciated
1.83 percent; and full year 2015 depreciation was around
20 percent (the Cedi opened at GHC3.18 to the US dollar
in January and closed in December at GHC3.82 to the
dollar).
Looking ahead, we estimate the banking industry will
continue to grow in Ghana, albeit against a backdrop
of intense competition, regulatory interventions and
increased customer sophistication.
The banking industry should expect three major trends
to shape the next three years. The first is the continued
digitization of delivery channels and banking services.
The second is the increased activity of new disruptors.
As a result of these, the third trend will be the rise of
customer choice and advocacy.
Amongst others, we see opportunities for banks
to focus on Ghana’s growing middle class, spurred by
the rising income of young professionals. At the same
time, just 30 percent of Ghana’s population is ‘banked’.
To take full advantage of these opportunities, Ghanaian
banks need to rethink their overall strategy, business
model and operating model in order to serve both the
increasingly affluent client segments and the unbanked.
However, this will require renewed focus on improving
service excellence. The results of the KPMG 2016 Banking
Industry Customer Satisfaction Survey (BICSS) for Ghana
reveal some interesting trends; and banks need to pay
attention to what Ghanaian banking customers are
saying.
Competition is getting tougher for banks in Ghana. There
are currently 29 universal banks and dozens of new and non-
traditional competitors. These non-traditional competitors are
gaining market share with innovative products and financial
solutions such as micro-finance and mobile money.
63Ghana
Highlights | Most important
Rank
Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff
knowledge
and under-
standing of
the bank’s
products /
services
ATMs –
Cash
availability
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Products and
services that
meet your
require-
ments / needs
Interest rates
offered on
deposits and
investment
products
Trust that
the bank is
honest and
will do the
right thing
2
Prompt
attention and
response to
your
enquiries /
complaints
ATMs –
Security
of ATM
location
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Availability
of loans
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Your
confidence
that the bank
puts the
customer
first
3
Staff ability
to understand
your needs
and
proactively
offer
alternatives /
useful advice
Call Center –
Politeness /
communi-
cation skills
of call center
agents
Overall
timeliness
and
turnaround
time in
processing
transactions
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Your
confidence
that the bank
will deliver
63%
satisfaction
46%
satisfaction
56%
satisfaction
62%
satisfaction
62%
satisfaction
58%
satisfaction
43%
satisfaction
41%
satisfaction
63%
satisfaction
67%
satisfaction
61%
satisfaction
64%
satisfaction
39%
satisfaction
54%
satisfaction
62%
satisfaction
70%
satisfaction
66%
satisfaction
64 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Service
quality
6 %
Financial
stability
Proximity
of branches
Innovative
products
and services
Proximity
of ATMs
2 %
Others
Turnaround
time for
requests and
inquiries
Interest
rates and
fees
22 %
9 %
8 %
8 %
8 %
39 %
Primary reason for changing banks (of those that indicated a change)
AfricaGhana
26 %
19 %
57 %
31 %
10 %
2 %
7 %
3 %
7 %
4 %
2 %
7 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
While the data seems to indicate that Ghanaian bank
customers are somewhat disappointed with the level
of service they are receiving, seven-in-ten still agreed that
they were receiving better service today than they were
last year. More than half – 55 percent – said they would
recommend their bank to others and just 11 percent said
they had plans to change their bank in the next two years,
largely to find better service quality.
Across Ghana, ATMs are the most frequently used
channel for banking. But while almost a third of
respondents said they use the ATM at least once
a week, this is a significant drop from 2013 when
56 percent of respondents reported the same.
Interestingly, respondents also suggested they
use the branch less frequently than in 2013 when
27 percent said they used it weekly.
It is surprising, however, that Ghanaian respondents
also indicated lower usage of all other alternative delivery
channels. Indeed, usage fell for mobile banking and
internet banking while POS saw a slight uptick from the
reported 2013 weekly usage of just 1 percent. Ghanaian
banking customers do, however, show a strong affinity
for call center and telephone banking, using this service
more than three times as often as others across Africa.
65
Ghana
Kenya
The next few years should bring considerable change
to Kenya’s banking sector. With 43 registered banks –
roughly half of which have less than Kshs5 billion in
equity – the new capital requirements should drive
significant consolidation as smaller players seek to
survive and larger players consolidate their market
reach and boost their distribution.
At the same time, the adoption of new technologies
and the digitization of banking services is driving Kenya’s
banks to refine their business and operating models.
Use of alternative service delivery methods is on the
rise, although some banks still struggle to communicate
the range of services and respective fees attached to
each delivery channel. The more innovative banks are
quickly building partnerships with mobile phone platforms
to offer more convenient and cost-effective banking
channels.
As the Kenyan banking market becomes more devolved,
banks have increasingly been focused on trying to
capitalize on opportunities at the county and local level
in an effort to increase their retail customer base. At
the same time, strong progress towards integrating the
East African Economic Community and the Common
Market for Eastern and Southern Africa is creating new
commercial opportunities for banking sector players.
Overall, Kenya’s banking sector is expected to remain
stable and on an upward growth trajectory over the
next few years. However, with licensing for new banks
currently suspended, foreign players seeking to enter
Kenya’s market will need to focus on inorganic growth
for the time being. Given the consolidation expected
in the market, there should be lots of potential targets
seeking new foreign capital.
The past 2 years have been busy for the Central Bank of Kenya.
New capital requirements were announced (raising the bar from
1 billion Kenyan Shillings to 5 billion Kenyan Shillings by 2018),
a new credit pricing framework (the Kenya Banks Reference
Rate or KBRR) was introduced, three new MVNO licenses were
approved and a new Governor was installed.
67Kenya
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff ability
to understand
your needs
and
proactively
offer
alternatives/
useful advice
Branches –
Proximity
(closeness)
of branches
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Products and
services that
meet your
require-
ments / needs
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Trust that
the bank is
honest and
will do the
right thing
2
Prompt
attention and
response to
your
enquiries/
complaints
ATMs –
ATM
uptime
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Ease of
accessing
different
products/
services
seamlessly
across
different bank
channels
Interest rates
offered on
deposits and
investment
products
Your
confidence
that the bank
puts the
customer
first
3
Staff
knowledge
and under-
standing of
the bank’s
products /
services
ATMs –
Proximity
(closeness)
of ATMs
Overall
timeliness
and
turnaround
time in
processing
transactions
Availability
of loans
Your
confidence
that the bank
will deliver
84%
satisfaction
49%
satisfaction
75%
satisfaction
81%
satisfaction
85%
satisfaction
82%
satisfaction
68%
satisfaction
80%
satisfaction
80%
satisfaction
77%
satisfaction
80%
satisfaction
84%
satisfaction
72%
satisfaction
84%
satisfaction
80%
satisfaction
84%
satisfaction
83%
satisfaction
68 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Service
quality
2 %
Financial
stability
Innovative
products
and services
Interest
rates
and fees
Quality of
internet/
mobile
banking
2 %
Proximity
of branches
2 %
Turnaround
time for
requests
and enquiries
Others
19 %
17 %
9 %
9 %
40 %
Primary reason for changing banks (of those that indicated a change)
AfricaKenya
26 %
15 %
57 %
43 %
10 %
5 %
7 %
3 %
7 %
26 %
2 %
3 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
Kenya’s retail banking customers seem highly loyal to
their banks. Almost two-thirds (63 percent) said they
would recommend their bank to others (in comparison
to just 50 percent who said the same regionally) and just
8 percent said they were considering changing banks.
In part, this seems to be due to rising satisfaction levels:
64 percent of Kenyan banking customer said satisfaction
had increased over the past year.
Kenya has long been viewed as a pioneer of mobile
payments and banking so it is not surprising that Kenyans
indicated that they use the mobile channel almost four
times as often as their regional peers. Our data suggests
that use of this channel is up considerably; versus our
survey in 2013, usage of mobile payments has increased
by more than 7 percent while usage of mobile banking
has risen by almost 15 percent.
That being said, the ATM still emerged as the most
frequently used channel with over 43 percent of
Kenyan respondents indicating usage on a weekly
basis. The branch is the most preferred channel for
banking activities such as funds transfer, financial
advice, making complaints, bill payments, buying
financial products and cash deposits.
69
Kenya
Nigeria
The recent strong headwinds faced by Nigeria’s banking
industry can be attributed to oil price shocks and its
implications on Nigeria’s economic activity which has
slowed significantly from 6.2 percent growth to a fore -
cast of negative growth of 1.8 percent in 2016 (IMF).
Responses by the government include withdrawal of
public sector funds (which is a source of low cost deposit
and contributed 4.25 percent to the overall deposit base
of banks) and delayed flexible exchange rate policy
impacted the banking industry significantly with overall
industry return on equity falling from 20.3 percent to
11 percent.
Furthermore, gaps in the supply and lack of liquidity
in the foreign exchange market (resulting from the
lower oil price and the Central Bank response) has also
significantly slowed trade and transaction banking
volumes and adversely impacted the related income
for the banking industry. The industry’s performance has
been affected by the crystallization of non-performing
loans and elevation of cost of risk from the significant
exposure (about 25 percent of total industry loans) to the
oil and gas sector as well as other sectors impacted by
the economic downturn. In response to this threat to
their profitability, the banking industry has implemented
various tactical initiatives to reduce cost on channel and
staff rationalization as applicable.
However, sustainable growth and liquidity is dependent
on growing the customer base, especially in the retail
space. Demand for optimal service delivery is now a
critical pillar of the banking industry as customers have
become more conscious of their rights and are leveraging
social media platforms to express dissatisfaction. This
heightened demand and sophistication of customers,
coupled with the Central Bank’s increased focus on fair
treatment, makes customer service a critical requirement
for success in the Nigeria banking space.
The banking industry is expanding its drive for financial
inclusion, aided by an improved regulatory framework
which addresses agency banking requirements as well
as increased leverage of mobile money platforms. The
banking industry has also embraced digital innovation
with the continuous introduction of additional channels
and processing platforms to improve convenience and
turnaround time for transactions.
Given the evolving macroeconomic and market environ-
ment, it is clear that success in Nigeria’s banking industry
will largely depend on the capacity of players to compete
in the retail and the small-to-medium enterprise (SME)
segments of the market. Nigerian banks will need to
remain innovative and adopt a number of key initiatives
such as scenario-based strategic planning and data and
analytics to enable them address future uncertainties,
deepen share of wallet of their existing customer base
and ultimately continue to differentiate themselves in
their market.
Nigeria’s banking industry has faced a turbulent macro economic
environment recently, with strong headwinds that have generally
impacted industry profitability and performance. However, the
banking industry has demonstrated a reasonable level of
resilience and the macroeconomic shocks have had little impact
on the overall stability of most banks who have maintained
strong prudential fundamentals.
71Nigeria
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Prompt
attention and
response
to your
enquiries /
complaints
ATMs –
Cash
availability
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Products and
services that
meet your
require-
ments / needs
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Your
confidence
that the bank
puts the
customer
first
2
Staff with a
professional
can-do
attitude and
willingness to
assist
ATMs –
ATM
uptime
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Interest rates
offered on
deposits and
investment
products
Trust that
the bank is
honest and
will do the
right thing
3
Staff ability
to understand
your needs
and
proactively
offer
alternatives /
useful advice
ATMs –
Security of
ATM location
Overall
timeliness
and
turnaround
time in
processing
transactions
Availability
of loans
Your
confidence
that the bank
will deliver
78%
satisfaction
36%
satisfaction
77%
satisfaction
80%
satisfaction
79%
satisfaction
78%
satisfaction
56%
satisfaction
54%
satisfaction
82%
satisfaction
75%
satisfaction
81%
satisfaction
77%
satisfaction
62%
satisfaction
72%
satisfaction
84%
satisfaction
82%
satisfaction
78%
satisfaction
72 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Service
quality
3 %
Proximity
of ATMs
6 %
Financial
stability
Interest rates
and fees
Others
2 %
Innovative
products
and services
6 %
Turnaround
time for
requests
and enquiries
Proximity
of branches
15 %
9 %
7 %
Primary reason for changing banks (of those that indicated a change)
52 %
AfricaNigeria
26 %
27 %
57 %
63 %
10 %
11 %
7 %
8 %
7 %
7 %
2 %
2 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
Despite facing some challenges in terms of service
delivery and alternative channel usage, customer
loyalty in Nigeria remains high. Only around 8 percent
of customers indicated that they might change banks
in the near future, more than half of whom say they
are looking for improved service quality.
Nigerian banking customers are more than twice as likely
to use an ATM as they are a branch, with almost half of
Nigerian respondents (47 percent) saying their ATM
preference is related to the proximity and closeness of
the machines. Interestingly, while 86 percent say they
prefer ATMs for cash withdrawal and 66 percent say they
prefer the machines for balance enquiry, only 4 percent
prefer the ATM for cash deposits, suggesting customers
still may not trust the ATMs as much as they do branch
employees.
While Nigerians are keen users of the ATM, this may
have dampened adoption of other alternative channels
such as POS terminals, internet or mobile banking. In
fact, our data suggests that more than three-quarters of
Nigeria’s banking customers have never used internet or
mobile banking, indicating room for banks to differentiate
their alternative channels with customers.
73
Nigeria
Rwanda
Rwanda is part of the East African Community which
gives it access to a market of more than 100 million
people. In recent years, Rwanda has attracted a number
of new African, international and regional players to the
banking market. Competition has heightened significantly,
leading to tremendous growth in the use of alternative
banking channels such as agency and mobile banking.
In particular, the sector has attracted the attention of
Atlas Mara, a new entrant seeking a pan-African footprint,
which recently acquired and merged their holdings in
BRD Commercial Bank Limited with Banque Populaire
du Rwanda (BPR) to form the country’s second largest
bank behind the Bank of Kigali.
Non-banking channels – such as mobile money and
agency banking models – have continued to make
inroads in Rwanda. According to the Central Bank, it is
estimated that the number of mobile money accounts
grew by more than 400 percent between 2012 and 2015;
2
7.6 million mobile money accounts had been opened by
the end of 2015, a significant portion of the population,
without discounting individuals with multiple mobile
accounts across the various telecom operators
However, it must be noted that these platforms rely
significantly on the stability, quality, availably and cost
of mobile and internet services. Increased adoption will
depend heavily on these factors going forward.
Rwanda has enjoyed tremendous success since the turn
of the century. The economy has grown significantly,
reaching an annual growth rate of 7.4 percent in 2015.
The poverty rate has fallen impressively (dropping from
46 percent to 39 percent between 2010 and 2014 alone)
1
and life expectancy has increased by more than 13 years
for the average Rwandan.
1
National Bank of Rwanda, Monetary Policy
and Financial Stability Statements
2 National Institute of Statistics Rwanda
75Rwanda
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff
knowledge
and under-
standing of
the bank’s
products /
services
Branches –
Proximity
(closeness)
of branches
Overall
timeliness
and
turnaround
time in
processing
transactions
Products and
services that
meet your
require-
ments / needs
Interest rates
offered on
deposits and
investment
products
How well
the bank
inspires you
2
Staff with a
professional
can-do
attitude and
willingness
to assist
Branches –
Ambience
– look and
feel
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Your
confidence
that the bank
puts the
customer
first
3
Staff ability
to understand
your needs
and
proactively
offer
alternatives /
useful advice
Branches –
Turnaround
time at the
branches
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Availability
of loans
Trust that
the bank is
honest and
will do the
right thing
89%
satisfaction
48%
satisfaction
79%
satisfaction
83%
satisfaction
86%
satisfaction
91%
satisfaction
70%
satisfaction
80%
satisfaction
87%
satisfaction
92%
satisfaction
93%
satisfaction
93%
satisfaction
71%
satisfaction
90%
satisfaction
86%
satisfaction
94%
satisfaction
94%
satisfaction
76 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Service
quality
Turnaround
time for
requests
and enquiries
Innovative
products
and services
Financial
stability
Others
Interest
rates
and fees
13 %
13 %
13 %
10 %
8 %
44 %
Primary reason for changing banks (of those that indicated a change)
AfricaRwanda
26 %
39 %
57 %
37 %
10 %
0 %
7 %
1 %
7 %
8 %
2 %
0 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
While the majority (57 percent) of Rwanda’s banking
customers believe that satisfaction has increased over
the past year, only around a quarter of customers say
they have either recommended their bank or plan to
recommend their bank to others. However, this has not
translated into significant customer churn for Rwanda’s
banks; just 8 percent said they plan to change banks,
slightly below the African average of around 10 percent.
Much like their peers in other African markets, Rwandan
banking customers tend to prefer using the branch for
almost every type of transaction except cash withdrawal
(for which 54 percent report a preference for ATMs).
However, mobile banking is clearly making inroads:
18 percent say they prefer the channel for bill payments,
8 percent prefer mobile for balance enquiries and
3 percent say they prefer the channel for funds transfer.
Given that many banking customers in Rwanda said they
had never used either online (internet) banking or POS
terminals, it is not surprising that the branch, ATMs and
mobile banking emerged as the most frequently used
channels in Rwanda.
77
Rwanda
Senegal
Competition is starting to heat up. With good
prospects for economic growth, a history of political
stability, an escalating housing boom and low banking
penetration, Senegal has attracted a number of new
banks and regional players including UBA, Diamond
Bank, Orabank and First Bank of Nigeria. The sector
has also enjoyed strong growth in both assets and
liabilities (liquid liabilities as a percentage of GDP rose
to 45 percent in 2014).
This has led to a rapid increase in banking infrastructure.
In fact, between 2007 and 2014, the number of bank
branches increased by around 78 percent and, between
2010 and 2013, the number of bank accounts increased
by 50 percent.
That being said, bank penetration across the country
remains low (at around 12 percent) and few outside of
the urban areas have access to formal banking services.
As a result, the economy remains highly cash-intensive.
The country also lacks an electronic payment system to
support large-value transactions, a critical requirement
for supporting economic growth and development.
Senegal’s economy grew at around 5 percent in 2015
and the country remains a very attractive market for new
banks (a number of which are now awaiting approval from
the central bank). As the West African Economic and
Monetary Union gains more momentum, it is expected
that Senegal will start to attract more regional and inter-
national banks looking to participate in the region’s growth.
Boasting almost twice as many banks per capita as Cote
D’Ivoire, Senegal enjoys a rapidly expanding banking sector.
A group of traditional players (such as Societe Generale, CBAO,
Ecobank and BICIS) dominate the sector, representing around
75 percent of the total market share.
79Senegal
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff with a
professional
can-do
attitude and
willingness
to assist
Branches –
Proximity
(closeness)
of branches
Overall
timeliness
and
turnaround
time in
processing
transactions
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Interest rates
offered on
deposits and
investment
products
Your
confidence
that the bank
puts the
customer
first
2
Staff
knowledge
and under-
standing of
the bank’s
products /
services
ATMs –
Cash
availability
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Availability
of loans
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Your
confidence
that the bank
will deliver
3
Staff ability
to understand
your needs
and
proactively
offer
alternatives /
useful advice
Branches –
Ambience
– look and
feel
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Availability
of salary
advance
How well
the bank is
regarded in
the media
67%
satisfaction
29%
satisfaction
65%
satisfaction
69%
satisfaction
73%
satisfaction
69%
satisfaction
35%
satisfaction
34%
satisfaction
68%
satisfaction
65%
satisfaction
78%
satisfaction
71%
satisfaction
38%
satisfaction
56%
satisfaction
66%
satisfaction
65%
satisfaction
78%
satisfaction
80 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Excellent
customer
service
4 %
Proximity
of alternate
delivery
channels
5 %
Pricing/cost
of products
and services
Proximity
of branches
Financial
stability
Employer
requirement
Image and
reputation
22 %
22 %
13 %
9 %
24 %
Reasons for maintaining banking relationship
Africa Senegal
Branch ATM POS Internet
Mobile
Call
centre
26 %
16 %
57 %
14 %
10 %
3 %
7 %
2 %
7 %
2 %
2 %
1 %
Percentage of respondents that use each channel at least once per week
Sixty percent of Senegal’s banking customers report that
their satisfaction has increased over the past year. More
than half (53 percent) say they have recommended their
bank to friends and family. Yet 12 percent suggest
they would be interested in changing banks.
Bank branches are overwhelming the most preferred
channel for all types of banking activity in Senegal. Just
1 percent of Senegalese customers indicated preference
for any channel other than the branch for their cash
deposits and for purchasing financial products. More
than three-quarters also prefer the branch for financial
advice, balance enquiries and funds transfer.
Interestingly, Senegalese banking customers
demonstrated a relatively strong preference for
call centers: more than one-in-ten said they prefer
to use call centers for balance enquiries, financial
advice and making complaints.
81
Senegal
Sierra
Leone
The Ebola crisis has officially ended and Sierra Leone’s
government is currently implementing its National Ebola
Recovery Strategy (NERS) with the expectation of getting
the country back on a trajectory to be a middle income
country by 2035 through its “Agenda for Prosperity:
2013 – 2018” developmental roadmap. The inflow of
Ebola-driven aid and development assistance, which
is channeled through the banking sector, is expected
to lessen the impact of both the Ebola crisis and the
slow economy, on Sierra Leone’s banks.
At the same time, the banking sector is being
strengthened through the standardization of payment
instruments, the introduction of the Real Time Gross
Settlement (RTGS) System, the establishment of an
Automated Clearing House (ACH) System and the
establishment of a Scripless Securities Settlement
(SSS) System. Legislation such as the Credit Reference
Act and the Borrowers and Lenders Act are also gaining
operational momentum.
With only around 600,000 open bank accounts for
a population of about 7 million people, Sierra Leone
clearly offers a sizable untapped market for banks.
Adoption of alternative delivery models has been
low, creating significant opportunity for innovative
and results-driven banks to capture and expand
market share. A ‘national switch’ is scheduled for
operation by December 2016 which should greatly
improve the scope and reach of alternative delivery
models over time.
Sierra Leone is clearly committed to moving past
the crises of 2014 – 2015 to resume the strong growth
trajectory of the last decade. The country will need
a committed, strong and innovative banking sector to
achieve its development goals.
Having enjoyed unprecedented GDP growth between 2012
and early 2014, banks in Sierra Leone faced some difficult market
pressures during the latter part of 2014 and 2015. The Ebola crisis,
which hit the country particularly hard, virtually shut down
business for nearly 24 months, leading to a significant increase
in Non-Performing Loans (NPLs). The collapse of the global
mining sector undercut growth nationally and allegations
of malpractice and mismanagement at two of Sierra Leone’s
biggest banks undermined confidence in the banking sector.
83Sierra Leone
Highlights | Most important
Rank
Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff with a
professional
can-do
attitude and
willingness
to assist
ATMs –
ATM
uptime
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Interest rates
offered on
deposits and
investment
products
Trust that
the bank is
honest and
will do the
right thing
2
Staff ability
to understand
your
needs and
proactively
offer
alternatives /
useful advice
Mobile
banking –
security
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Availability
of loans
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Your
confidence
that the bank
puts the
customer
first
3
Staff
knowledge
and under-
standing of
the bank’s
products /
services
ATMs –
Cash
availability
Overall
timeliness
and
turnaround
time in
processing
transactions
Availability
of salary
advance
Your
confidence
that the bank
will deliver
80%
satisfaction
45%
satisfaction
82%
satisfaction
69%
satisfaction
84%
satisfaction
76%
satisfaction
67%
satisfaction
47%
satisfaction
80%
satisfaction
82%
satisfaction
81%
satisfaction
80%
satisfaction
56%
satisfaction
68%
satisfaction
85%
satisfaction
65%
satisfaction
90%
satisfaction
84 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Service
quality
4 %
Turnaround
time for
requests
and enquiries
5 %
Proximity
of ATMs
Proximity
of branches
Financial
stability
4 %
Innovative
products and
services
5 %
Interest
rates
Others
14 %
11 %
11 %
46 %
Primary reason for changing banks (of those that indicated a change)
AfricaSierra Leone
26 %
34 %
57 %
17 %
10 %
0 %
7 %
0 %
7 %
0 %
2 %
0 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
Despite high-profile scandals in the media, low
alternative channel adoption and frequent challenges
related to ATM downtime, almost nine-in-ten Sierra
Leonean banking customers said that satisfaction has
increased. Only 12 percent say they plan to change
banks in the near future and 83 percent say they have
recommended their bank to others.
It is perhaps not surprising that customers in Sierra
Leone seem reluctant to adopt alternative delivery
channels. At last count, there were only 58 ATM
machines and 72 POS terminals in operation across
the country. Other alternative channels – such as
mobile payments and internet banking – are available
but on a very limited basis.
As a result, the branch emerged as the most widely
and frequently used channel with more than a third of
customers saying they use it at least once a week and
nearly half using it once a month. In comparison, just
17 percent of customers say they use the ATM on a
weekly basis and just 12 percent use it monthly.
85
Sierra Leone
South
Africa
South Africa’s banks emerged relatively unscathed
from the global financial crisis and are generally well
capitalized; the capital adequacy ratio for the country’s
banking sector was 14.4 percent in October 2015, well
in excess of the 10 percent prudential requirement.
Profits at South Africa’s banks are also up, with the
sector reporting almost USD5 billion in profits in 2015,
up from USD4 billion a year earlier.
However, over the past year, South Africa has experienced
somewhat sluggish economic growth which, in turn,
has had a negative impact on the banking sector. Rising
interest rates and falling currency rates against the
US dollar are creating challenges to economic growth.
Severe droughts in the agricultural sector and job cuts
in the mining sector are pushing up both unemployment
rates. And increased capital and liquidity requirements
– combined with the need to shift from product-centric
to customer-centric models – are adding costs to banks’
balance sheets.
Further regulatory reform in the banking sector will
likely add to the challenges facing South Africa’s banks,
particularly the need to achieve a liquidity coverage ratio
(LCR) of 100 percent by 2019, and the need to comply
with the Net Stable Funding Ratio (NSFR) as part of
the Basel III regulatory reform. All signs indicate that
these regulatory reforms will impede the growth of the
country’s banks, increase costs and significantly impact
traditional business models and operating structures.
Ultimately, South Africa’s banking sector will be driven
by not only regulatory reform and economic trends, but
also by technological advances, changes in customer
preferences and increased competition from players
outside of the industry. In this environment, banks will
need to focus on improving their executional excellence,
branding and customer care rankings in order to remain
competitive.
Long viewed as the most politically and economically
stable market in Sub-Saharan Africa, South Africa boasts
a well-developed regulatory environment, high levels of
ICT adoption and impressive levels of banking penetration.
With total assets of more than USD360 billion, South
Africa’s banking sector is dominated by five large banks
which, together, account for more than 90 percent of the
total banking assets.
87South Africa
Highlights | Most important
Rank
Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff with a
professional
can-do
attitude and
willingness
to assist
ATMs –
Cash
availability
Accuracy and
complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Ease of
accessing
different
products/
services
seamlessly
across
different bank
channels
Interest rates
offered on
deposits and
investment
products
Trust that
the bank is
honest and
will do the
right thing
2
Staff ability
to understand
your needs
and
proactively
offer
alternatives /
useful advice
ATMs –
ATM
uptime
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Products and
services that
meet your
require-
ments / needs
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Your
confidence
that the bank
puts the
customer
first
3
Quality of
feedback on
enquiries /
resolution of
complaints
ATMs –
Security of
ATM location
Overall
timeliness
and
turnaround
time in
processing
transactions
Availability
of salary
advance
Your
confidence
that the bank
will deliver
94%
satisfaction
67%
satisfaction
91%
satisfaction
86%
satisfaction
90%
satisfaction
94%
satisfaction
86%
satisfaction
93%
satisfaction
94%
satisfaction
88%
satisfaction
95%
satisfaction
94%
satisfaction
91%
satisfaction
92%
satisfaction
95%
satisfaction
87%
satisfaction
91%
satisfaction
88 Market profiles and highlights
Channel usage and preferences
Service
quality
Interest
rates
and fees
15 %
8 %
77 %
Primary reason for changing banks (of those that indicated a change)
Others
Customer loyalty
South African banking customers
seem loyal to their banks but
somewhat reluctant to recommend
them to others. Only 2 percent of
those surveyed said they plan to
change banks in the near future but
only 54 percent said they would
recommend their bank. However,
while 58 percent indicated that
they had seen an improvement
in customer service over the past
year, South Africa’s banks will need
to strive to close the gap between
what their customers demand and
the level of satisfaction they report.
AfricaSouth Africa
26 %
7 %
57 %
45 %
10 %
32 %
7 %
10 %
7 %
12 %
2 %
0 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
South African banking customers demonstrated high
levels of alternative channel adoption, thanks in large
part to the country’s developed ICT infrastructure. South
Africans were more than three times as likely as other
Africans to use a POS terminal on a weekly basis and
more than 30 percent more likely to use internet or
mobile banking than other African markets.
The ATM emerged as the most frequently used channel
with many citing reliability of service as the key reason
for their ATM selection. However, customers stated a
strong preference for the branch when obtaining financial
advice, making complaints or purchasing financial
products.
89
South Africa
Tanzania
In 2014, the Bank of Tanzania raised the capital
adequacy ratio for core capital to 12.5 percent and for
total capital to 14.5 percent with a deadline of August
2017. Along with recent provisions requiring banks to
maintain a 1 percent general provision on current loans,
many of Tanzania’s 53 banking institutions may require
capital injections to achieve the minimum core capital
requirements of TZS15 billion (USD 7.5 million).
While Tanzania’s banking sector accounts for more than
70 percent of the total financial system assets in the
country, the market is largely dominated by four banks
that account for more than half of the industry’s total
assets and more than three-quarters of its net profits.
Mobile banking services from banks and mobile money
services from telecommunications providers have helped
rapidly increase financial inclusion in Tanzania. More
than eight-in-ten Tanzanians had access to some sort
of financial services by 2014 and the government has
ambitions to provide access to formal banking services
to half the population by the end of 2016.
Alternate delivery channels are enjoying rapid adoption,
particularly in Tanzania’s cities where the vast majority of
banking customer live. Further innovation by the banks
and the introduction of more sophisticated handsets
by mobile companies will be key to improving financial
inclusion and driving new growth for banks operating
in Tanzania.
Looking ahead, most observers expect to see continued
tightening of regulation and gradually increasing capital
requirements as the Bank of Tanzania focuses on creating
greater stability in the industry. According to the central
bank governor, the Bank of Tanzania will continue to
implement policies aimed at promoting the efficiency
and safety of the financial system as a whole.
On the back of some important economic and structural reforms
implemented over the past decade, Tanzania has enjoyed strong
economic growth rates (of more than 7 percent) since 2012.
Bank growth has also been strong with total assets growing
by 11.4 percent in 2015 and loans, advances and overdrafts
increasing by 16.4 percent.
91Tanzania
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff ability
to understand
your needs
and
proactively
offer
alternatives /
useful advice
ATMs –
Proximity
(closeness)
of ATMs
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Products and
services that
meet your
require-
ments / needs
Interest rates
offered on
deposits and
investment
products
Your
confidence
that the bank
will deliver
2
Staff with a
professional
can-do
attitude and
willingness
to assist
ATMs –
ATM
uptime
Overall
timeliness
and
turnaround
time in
processing
transactions
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Your
confidence
that the bank
puts the
customer
first
3
Prompt
attention and
response
to your
enquiries /
complaints
ATMs –
Security of
ATM location
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Availability
of salary
advance
Trust that
the bank is
honest and
will do the
right thing
87%
satisfaction
79%
satisfaction
84%
satisfaction
91%
satisfaction
86%
satisfaction
86%
satisfaction
85%
satisfaction
84%
satisfaction
85%
satisfaction
89%
satisfaction
88%
satisfaction
85%
satisfaction
72%
satisfaction
87%
satisfaction
87%
satisfaction
92%
satisfaction
87%
satisfaction
92 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Banking customers in Tanzania seem highly loyal to their
bank. Indeed, just 41 percent of respondents said that
service levels had increased over the past year versus
64 percent across Africa. And less than a third (32 percent)
said they had recommended their bank to others (versus
50 percent across Africa). However, only 3 percent
of customers in our survey said they were considering
changing banks – most often in search of a better
customer experience – versus 10 percent of customers
across Africa.
While branches remain the most popular banking
channel (more than 70 percent of respondents said
they prefer the branch for funds transfers and bill
payments and more than 90 percent reported a
preference for branches for making complaints, cash
deposits, buying financial products and getting financial
advice), alternate channels have seen rapid adoption
in Tanzania. Customers in Tanzania were twice as likely
as other Africans to use t at least once
per week and four times as likely to use a call center.
That being said, banking and telecommunication infra-
structure is starting to improve in Tanzania and, as a
result, customers are starting to shift some of their
activities to ATMs and mobile and internet-based
platforms.
Excellent
customer
service
4 %
Proximity
of alternate
delivery
channels
Financial
stability
Employer
requirements
Others
3 %
Pricing/cost
of products
and services
Proximity
of branches
Image and
reputation
11 %
10 %
10 %
10 %
8 %
46 %
Reasons for maintaining banking relationship
AfricaTanzania
26 %
21 %
57 %
45 %
10 %
3 %
7 %
9 %
7 %
14 %
2 %
8 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
93
Tanzania
Uganda
The country has also encouraged the entry of regional
banks into the Ugandan marketplace, allowing foreign
investors to create 100 percent foreign-owned companies.
This has drawn many of Africa’s top regional banks to
the market where they hope to make an impact on the
banking sector. Today, six banks – only two of which are
indigenous – account for almost two-thirds of the total
market share.
However, bank profitability has declined somewhat since
2011, driven in part by higher operating costs and tighter
competition from both mobile money operators and
Uganda’s smaller banks who are increasingly focused
on leveraging new innovations to increase their market
share and their profitability.
Recognizing the benefits of maintaining a strong and
relevant banking environment, Uganda’s government
recently updated the Financial Institutions Act of 2004
to allow for new concepts in banking and finance. Most
notably, the regulation allows for the creation of Islamic
Banking products and formalizes the introduction of
agency banking and bancassurance.
These changes should provide strong growth opportunity
for Uganda’s banks, particularly the agency banking
model which should allow Uganda’s banks (who have
traditionally been concentrated in major urban areas)
to expand their reach outside of the cities, thereby
driving financial inclusion (a major objective of Uganda’s
government).
Following the general election held in February 2016,
many had expected the Central Bank of Uganda to
tighten its monetary policy in the hope of mopping up
some of the excess liquidity that characterized election
years in the past. However, with the Central Bank
reducing the bank rate to 15 percent in June 2016 (from
17 percent in February 2016), it seems this trend may
not materialize. The Central Bank has, however, remained
active in issuing Treasury Bills and bonds.
Following a sustained period of high economic growth
between 1987 and 2010, Uganda’s growth rate has steadied
at around 5 percent in 2015. In large part, Uganda’s banking
sector was encouraged by a series of impactful liberalization
policies enacted in the late 1980s which ushered in a period
of significant macroeconomic stability.
95Uganda
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff
knowledge
and under-
standing of
the bank’s
products /
services
ATMs –
Proximity
(closeness)
of ATMs
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Products and
services that
meet your
require-
ments / needs
Interest rates
offered on
deposits and
investment
products
Trust that
the bank is
honest and
will do the
right thing
2
Staff with a
professional
can-do
attitude and
willingness
to assist
Branches –
Proximity
(closeness)
of branches
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Your
confidence
that the bank
will deliver
3
Staff ability
to understand
your needs
and
proactively
offer
alternatives /
useful advice
ATMs –
Cash
availability
Overall
timeliness
and
turnaround
time in
processing
transactions
Availability
of loans
Your
confidence
that the bank
puts the
customer
first
92%
satisfaction
52%
satisfaction
88%
satisfaction
85%
satisfaction
90%
satisfaction
88%
satisfaction
71%
satisfaction
74%
satisfaction
88%
satisfaction
88%
satisfaction
88%
satisfaction
85%
satisfaction
83%
satisfaction
86%
satisfaction
85%
satisfaction
66%
satisfaction
90%
satisfaction
96 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Interest
rates
and fees
4 %
Turnaround
time for
requests
and enquiries
Financial
stability
Proximity
of branches
Others
Service
quality
15 %
15 %
15 %
11 %
41 %
Primary reason for changing banks (of those that indicated a change)
AfricaUganda
26 %
40 %
57 %
41 %
10 %
3 %
7 %
3 %
7 %
4 %
2 %
4 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
Ugandan banking customers seem loyal to their banks
with just 4 percent of customers saying they had either
recently changed banks or planned to change banks in
the near future. And almost half (45 percent) say they
would recommend their bank to family and friends.
This reflects the fact that almost two-thirds of banking
customer believe that their banking experience has
improved over the past year.
With the number of operating ATMs rapidly increasing
across the country and the number of services available
on ATMs broadening, Ugandan banking customers report
a growing preference for ATMs for a variety of bank
transactions. ATMs emerged as the preferred channel
for cash withdrawals and for balance enquiries across the
country and are gaining significant traction as a preferred
channel for cash deposits and bill payments.
The data also suggests that bank customers are starting
to gain exposure to new channels with more than
two-fifths of customers saying they had tried mobile
banking, mobile payments, POS terminals, call centers,
ATMs and branch channels at some point in the past.
97
Uganda
Zambia
However, a recent tightening of monetary policy and
an increase in the policy rate (from 12.5 percent to
15 percent) in November 2015 – combined with restricted
access to the Overnight Lending facility – has led to
spikes in interest rates overall. In fact, interest rate
spreads widened in 2014 with average lending rates
rising to as high as 25 percent for first-time borrowers.
Not surprisingly, high interest rates and more cautious
lending by the banks has strangled access to loans for
individuals and small enterprises (just 17 percent of our
respondents said they were satisfied with the availability
of loans).
Financial inclusion has certainly improved. The pro-
portion of adults with access to a formal financial
institution increased from 23 percent in 2009 to more
than 38 percent in 2015. Yet with more than half of
Zambia’s adult population living in rural areas, Zambia’s
banks clearly have significant opportunity to grow their
customer base by expanding services outside of the key
cities. The rapid adoption of mobile banking and alternate
delivery challenges will certainly create new opportunities
for banks able to capitalize on new technologies.
Zambia’s banking sector is largely dominated by four
banks who account for more than 60 percent of the
country’s total liabilities and assets. And, as a result,
there has been little incentive to improve the quality of
over-the-counter services, lower interest rates, expand
retail services or invest in banking infrastructure.
That being said, Zambia continues to be among the
top markets in Africa for ease of doing business. The
country boasts good regulatory controls, no foreign
exchange controls and a politically stable environment.
Those banks able to combine new technologies with
improved customer service should find Zambia to be
a strong growth opportunity.
While economic growth is slowing and inflation rates are
increasing, Zambia’s banks managed to achieve double digit
growth between 2012 and 2015. More recently, the revocation
of Statutory Instruments 33 and 55 (which mandated the use
of the local Kwacha for domestic transactions and required
the monitoring of foreign exchange trans actions) has led
to improved profitability as banks realized gains on foreign
exchange transactions and fees generated from foreign
currency denominated deposits.
99Zambia
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Staff with a
professional
can-do
attitude and
willingness
to assist
ATMs –
Security of
ATM location
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Products and
services that
meet your
require-
ments / needs
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Trust that
the bank is
honest and
will do the
right thing
2
Prompt
attention and
response
to your
enquiries /
complaints
ATMs –
Proximity
(closeness)
of ATMs
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Interest rates
offered on
deposits and
investment
products
Your
confidence
that the bank
puts the
customer
first
3
Staff ability
to understand
your needs
and
proactively
offer
alternatives /
useful advice
Branches –
Proximity
(closeness)
of branches
Overall
timeliness
and
turnaround
time in
processing
transactions
Availability
of loans
Your
confidence
that the bank
will deliver
88%
satisfaction
17%
satisfaction
85%
satisfaction
87%
satisfaction
86%
satisfaction
90%
satisfaction
76%
satisfaction
82%
satisfaction
92%
satisfaction
87%
satisfaction
90%
satisfaction
90%
satisfaction
89%
satisfaction
89%
satisfaction
89%
satisfaction
88%
satisfaction
94%
satisfaction
100 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Service
quality
5 %
Turnaround
time for
requests
and enquiries
Others
Innovative
products and
services
Quality of
internet/
mobile
banking
5 %
Proximity
of branches
6 %
Financial
stability
Interest
rates
and fees
23 %
12 %
11 %
8 %
28 %
Primary reason for changing banks (of those that indicated a change)
Proximity
of ATMs
3 %
AfricaZambia
26 %
10 %
57 %
30 %
10 %
5 %
7 %
3 %
7 %
12 %
2 %
1 %
Percentage of respondents that use each channel at least once per week
Branch ATM POS Internet
Mobile
Call
center
While almost two-thirds (63 percent) of Zambian banking
customers said that satisfaction with their bank had
increased over the past year, less than half said they
would recommend their bank to friends and family. More
than one-in-ten suggested they had either recently
switched banks or were planning to do so soon; those
looking to change banks were most often searching
for better customer service and better rates.
Not surprisingly given the lack of banking infrastructure
outside of the key cities, Zambian banking customers
have become rapid adopters of the mobile channel. More
than a third of respondents said they had used mobile
banking at some point, versus just 17 percent that had
tried internet banking and 23 percent that had used a call
center or telephone banking.
While respondents may suggest that they use the
ATM more frequently than the branch, most still say
they prefer using the branch for all their banking needs
except cash withdrawal and balance enquiries. Call
centers seem to be gaining some traction for less
frequent requirements such as receiving financial
advice and making complaints while mobile banking
is rapidly gaining preference for balance enquiries and
bill payments.
101
Zambia
Zimbabwe
The Central Bank has been working to stabilize the
economy and drive social inclusion. The Zimbabwe
Asset Management Company (ZAMCO) was established
to deal with the sector’s high levels of non-performing
loans (NPLs) and has had some immediate success;
between September 2014 and December 2015, the level
of NPLs fell from 20.45 percent to just 10.87 percent.
3
Stability has also been improved by the introduction
of an interbank market through an arrangement with
Afreximbank. Essentially Afreximbank will issue bonds
(AFTRADES) to local banks on the funding side with the
central bank accessing and applying the funds to those
banks which may be short. This has led to improved
liquidity.
In a bid to drive greater financial inclusion, the
Government of Zimbabwe has also created a National
Financial Inclusion Strategy and asked banks to create
a board-approved financial inclusion plan by the end of
2015. In an effort to increase the levels of loans provided
to individuals, the Central Bank has also reached an
agreement with the Bankers Association of Zimbabwe
to create an interest rate guideline where low-risk
borrowers can access loans for rates as low as between
6 to 10 percent per annum.
However, Zimbabwe’s banks continue to face capital
pressures over the coming years. The Central Bank
increased capital requirements from USD5 million
to USD100 million by 2020 for Tier 1 banks. Having
overseen the closure of nine banks following the global
financial crisis in 2008, the Central Bank is under-
standably concerned about the viability of the existing
banks and the potential impact of any unexpected
liquidity challenges.
Inflation has continued in the negative territory (to
a current rate of around -2.5 percent) and economic
growth remains stagnant (at around 1 percent per year).
However, the sector’s resilience over the past decade –
particularly following the adoption of the multicurrency
regime in February 2009 – suggests that there may
still be hope for a return to the strong socio-economic
performance and middle-income prospects of the 1990s.
The Zimbabwean banking sector has enjoyed stability and
strong growth over the past five years with total banking
sector deposits growing by 66.5 percent (to USD5.6 billion)
between 31 December 2011 and 31 December 2015.
1
Profits
across the sector are also up, rising by more than 156 percent
between December 2014 and December 2015, reaching a high
of USD127.47 million.
2
1. January 2016 Monetary Policy Statement
2. January 2015 and January 2016 Monetary Policy Statements
3. January 2016 Monetary Policy Statement
103Zimbabwe
Highlights | Most important
Rank Customer care Convenience Executional
excellence
Products and
services
Value for
money
Branding
1
Prompt
attention
and response
to your
enquiries /
complaints
ATMs –
Cash
availability
Information
(e.g. alerts,
statements)
provided
in a timely
manner and
easy-to-
understand
format
Products and
services that
meet your
require-
ments / needs
Interest rates
offered on
deposits and
investment
products
How well
the bank
inspires you
2
Staff
knowledge
and under-
standing of
the bank’s
products /
services
Branches –
Turnaround
time at the
branches
Accuracy
and complete-
ness of
information
provided
i.e. bank
statements,
advice slips,
basis of bank
charges /
fees etc.
Ease of
accessing
different
products /
services
seamlessly
across
different bank
channels
Cost of
maintaining
accounts with
the banks
i.e. COT and
other related
charges
Your
confidence
that the bank
will deliver
3
Quality of
feedback on
enquiries /
resolution of
complaints
ATMs –
Security of
ATM location
Overall
timeliness
and
turnaround
time in
processing
transactions
Availability
of loans
How well
the bank is
regarded in
the media
77%
satisfaction
51%
satisfaction
87%
satisfaction
50%
satisfaction
82%
satisfaction
81%
satisfaction
30%
satisfaction
74%
satisfaction
90%
satisfaction
77%
satisfaction
88%
satisfaction
77%
satisfaction
28%
satisfaction
83%
satisfaction
86%
satisfaction
85%
satisfaction
83%
satisfaction
104 Market profiles and highlights
Channel usage and preferences
Customer loyalty
Service
quality
5 %
Others
Financial
stability
Innovative
products
and services
Quality of
internet/
mobile
banking
3 %
Proximity
of ATMs
Turnaround
time for
requests
and enquiries
Interest
rates and
fees
17 %
17 %
14 %
11 %
9 %
24 %
Primary reason for changing banks (of those that indicated a change)
Proximity
of branches
2 %
AfricaZimbabwe
Branch ATM POS Internet
Mobile
Call
center
26 %
10 %
57 %
31 %
10 %
16 %
7 %
2 %
7 %
7 %
2 %
14 %
Percentage of respondents that use each channel at least once per week
Retail banking customers in Zimbabwe report that they
are happier with the service they receive from their banks
but are not overly eager to recommend their bank to
others. More than three-quarters (77 percent) said they
believed customer service to have improved over the past
year – 13 percent more than the regional average – but
just half of all customers said they would recommend
their bank. One-in-ten customers said they were
considering changing banks in the future, for the most
part in search of better service quality
Our survey suggests that – while Zimbabwean banking
customers may frequent ATMs and branches less often
than their regional peers – alternative service channels
have enjoyed significant adoption. Zimbabwean respond-
ents were seven times more likely to say they use a call
center or telephone banking at least once per week and
60 percent more likely to use a POS once a week than
the African average.
Yet while ATMs proved to be the most popular channel
for cash withdrawals, the vast majority of Zimbabwean
banking customers indicated a strong preference for
the branch when conducting all other business and
transactions. The fact that just 10 percent of respondents
said they use the branch weekly is no surprise; most
Zimbabweans are paid once a month and rarely visit the
branch outside of payday.
105
Zimbabwe
106 Africa Banking Industry Customer Satisfaction Survey
Demographics
9 %
18
–
20
38 %
21
–
30
Age
32 %
31
–
40
17 %
31
–
60
4 %
61
+
55 %
Male
45 %
Female
Gender
22 %
Civil/
public
servant
2 %
Other
25 %
Private
sector
employee
21 %
Student
4 %
Retired
4 %
Unemployed
23 %
Self-
employed
Employment
107Africa Banking Industry Customer Satisfaction Survey
The KPMG Project Africa survey team, including:
Bode Abifarin, Onie Okharedia, Molabowale
Adeyemo, Richard Olatunji, Wale Abioye, Goncalo
Traquina, Kabelo Moyo, Chunga Mafipe, Jimmy
Masinde, Gilpin-Jackson Ayorinde, Nyarkoh Peter
Muyengwa Tendai, Wilson Kaindi; Wallace Nganga;
Kabelo Moyo; Gery Devlin; Vanessa Nguedia;
Nsegbe Moise; Jacques Minyem; Alfred Affoyon;
Tessia Schiphra; Marc-Olivier Sampennie; Samba
Diagola; Patrick Kipsang; Vincent Kadaala; Vincent
Onjala; Albert Opeodu; Jeremiah Dan-Okayi;
Olusegun Zacchaeus; Robert Dzato.
Acknowledgements
We would like to thank all survey respondents,
KPMG Partners and employees across Africa
for their invaluable contribution to this survey.
108 Africa Banking Industry Customer Satisfaction Survey
Report contacts
West Africa
Bode Abifarin
Senior Manager
KPMG Nigeria
T: +234 803 402 0982
East Africa
Jimmy Masinde
Director
KPMG East Africa
T: +254 73 533 6640
South Africa
Onie Okharedia
Senior Manager
KPMG South Africa
T: +27 82 719 0736
Francophone Africa
Amadou Lamine Diop
Director
KPMG Senegal
T: +221 775 69 9947
KPMG contacts
Bisi Lamikanra
Partner
KPMG Nigeria
T: +234 803 535 3092
E: [email protected].com
Goncalo Tracquina
Director
KPMG Angola
T: +351 91 510 0237
Gerard Devlin
Partner
KPMG Botswana
T: +267 391 2400
E: gerry[email protected]
Rene Libong
Partner
KPMG Cameroon and Chad
T: +237 33 439 679
Samba Diagola
Partner
KPMG DRC
T: +243 990 010 007
Olatounde De Souza
Associate Director
KPMG Côte D’Ivoire
T: +225 20 225 753
Andrew Jackson
Head of Advisory and Markets
KPMG East Africa
T: +254 20 280 6000
E: andrewjackson@kpmg.co.ke
Eric Aholi
Partner
KPMG East Africa
T: +254 20 280 6000
Daniel S. Adoteye
Partner
KPMG Ghana
T: +233 30 276 6306
E: dadoteye@kpmg.com
Tanja Ferreira
Director
KPMG South Africa
T: +278 271 92053
E: tanja.fer[email protected]
Pierre Fourie
Director
KPMG South Africa
T: +278 249 08077
E: Pierrejnr.Fourie@kpmg.co.za
Ndiaga Sarr
Senior Partner
KPMG Senegal
T: +221 33 849 2727
Vidal T. O. Decker
Partner
KPMG Sierra Leone
T: +232 22 22 2061
E: vtodecker@kpmg.com
Jason Kazilimani
Partner
KPMG Zambia
T: +260 211 37 2900
Themba Mudidi
Partner
KPMG Zimbabwe
T: +263 4 302 600
Contacts
109Africa Banking Industry Customer Satisfaction Survey
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