KPMG Professional Services have urged Nigerian banks to leverage technology and other new business models and stay ahead of competition in the industry to remain attractive to customers.
Besides, the firm also stressed the need to uphold high level of stability in banking operations, saying this remained customers’ key factor for maintaining bank accounts.
KPMG in a recent survey showed that there are many ways to influence customer satisfaction and make them sustain patronage of the bank. According to the report, there are examples of large regional banks that have extended their customer service prowess into new markets.
It noted that 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.
The reasons for this shift, according to the report includes regulators high focus on building the stability of their banks with higher capital ratio requirements, tighter lending requirements and more stringent regulatory requirements among others.
Furthermore, the report said this has led to consolidation in some cases, 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 liberalised 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 report, however, explained that there are 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.