2012 KPMG Nigeria Banking Industry Customer Satisfaction Survey Final PDF

ISSUE SIX
2012 Banking Industry

Customer Satisfaction
Survey
May 2012
kpmg.com
About this Survey

How You Should Read and Interpret this Survey Report and its Findings
In reading this report, you should bear the following factors in mind:
1. This is a perception study
This survey focuses on the perceived quality of customer service delivery by the banks from the customers perspective across the Retail, Corporate/Commercial and SME segments).
This survey does not represent the opinion of KPMG on the skills, capabilities or performance of any of the banks
covered.
KPMG conducts the survey, but ndings represent the opinions of the customers of the banks.
KPMG is responsible for dening the survey questionnaire administered to the respondents.
This survey does not seek to establish anything as absolute fact (as perceptions are by denition subjective), but to report
on the feelings and broader perceptions of customers with respect to services provided by their banks. The rankings are
solely based on the feedback received from the survey.
2. Perception is never balanced or fair, but the study always has a representative sample size.
Banks rated in the survey vary by size, service offerings and customer prole. Respondents in the survey are asked
to rate their banks on a selection of key criteria across ve factors detailed below.
The minimum number of respondents required for each bank in the survey guarantees that the bank ratings reect
the opinion of a representative customer group and not the opinions of individuals.
Methodology
nc
nie
Co
are
SxI
CSI =
I
Pricing
S= Satisfaction
I = Importance
Transact
Metho ions
ds
/
ucetss
d
rorvic
e
Convenience measures accessibility &

quality of service from delivery channels.
e Custo
m
e
rC
nv
The Customer Satisfaction Index (CSI) used to rate the banks is composed of ve key factors - Convenience,
Product/Service Offering, Transaction Methods and Systems, Pricing and Customer Care.
SP
Customer Care measures interaction of

the bank and its staff with customers.
Transaction Methods & Systems
measures customer support processes/
systems including turnaround time.
Pricing measures fees, charges and rates
on products and the perceived value.
Product/Service Offering measures
product range & appropriateness to the
customers needs.
Contents
Foreword
Survey Highlights
Detailed Findings
Through the Eyes of the Customer
16
Takeaways
27
Demographics
28
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity.
All rights reserved.
5 | Banking Industry Customer Satisfaction Survey 2012
Banking Industry Customer Satisfaction Survey 2012 | 6
Foreword
I am pleased to present the 2012 edition of our
annual Banking Industry Customer Satisfaction
Survey. A number of changes were introduced this
year to broaden the scope of the survey and further
enrich the quality of responses across the retail, SME,
and commercial/corporate segments. Over 10,000
retail banking customers and more than 2,000 SMEs
and large corporate organisations in Nigeria responded
to questions on their preferences, levels of satisfaction
and expectations from their banks.
Since our rst survey in 2007, we have witnessed a marked evolution of the
customer. This years survey reveals an overall increase in satisfaction levels
of retail and SME customer segments albeit still below the pre-nancial crisis
levels while overall satisfaction fell in the corporate segment. With the evolving banking landscape - largely driven by regulation - still very much a subject of
national discourse; about half of retail customers still cite Financial Stability as the
prime reason for maintaining their banking relationships.
As technology continues to redene how customers interact with each other and
their nancial services providers, we have broadened the scope of the survey to better understand customer preferences and attitudes towards traditional and alternate
channels. Our survey conrmed the ATM as the fastest growing channel; more than
half of customers visit an ATM on a weekly basis. However, the level of adoption of
other alternate channels is still relatively low.
At KPMG, we believe these alternate channels will all gain traction as they offer exciting
and promising opportunities for both banks and their customers. However, there is a need
for banks, the industry regulator and other key stakeholders to address customer concerns
identied in this report and in some cases review the delivery approach to optimise these
channels. We also expect the branch to continue to remain a key channel but anticipate the
distinctions between branch and alternate channels to continue to thin thus creating opportunities for banks and nancial services providers in general to deliver seamless multichannel
experiences to their customers.
Our survey also demonstrates that customers are increasingly sensitive to service quality and as
customer condence in the industry increases, the likelihood of switching is expected to increase.
Hence, the time is now for banks to go beyond customer service to building customer loyalty and
advocacy.
I hope you nd the survey results helpful and welcome feedback or suggestions for next years
survey.
Bisi Lamikanra
Partner & Head
Management Consulting
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity.
All rights reserved.
Survey Highlights
Mixed Results
Maintaining Relationships
The survey results revealed increased satisfaction in the

retail and SME segments driven largely by satisfaction
with service delivery through channels and customer
care. On the other hand, overall CSI fell in the corporate
segment; a signicant number of corporate customers
expressed displeasure with the ability of banks to meet
their needs.
Across all segments, Financial Stability remains the most

important factor customers consider in choosing to maintain a banking relationship. However, of note is that in the
retail segment, customers are more likely to switch banks
because of Service Quality not Financial Stability.
2012 KPMG Advisory Services, a Nigerian partnership, member rm of the KPMG network of independent rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Adoption of Alternate Channels

Remains Low
Strong Call for Industry

Specialisation
While majority of our respondents had used at least one

alternate channel, overall adoption remains low except for
ATMs. Specically, only 7% of respondents use internet
banking; POS - 6%; telephone banking - 5%; mobile payments - 2%; compared to ATM - 82% and branch - 97%.
Nine-in-ten corporate respondents highlighted customer

relationship managers knowledge of their industry and
ability to provide alternatives as being very important to
them. However, there was consistent feedback from respondents that banks could perform better in this area.
Strong knowldege of the customers business ranked as
the highest service expectation of corporate respondents. Indeed, 66% of those organisations who said they
would not increase transactions with their banks were not
satised with the ability of their relationship managers to
present them with useful advice.
Detailed Findings
Over the past ve years, we have witnessed many initiatives by
banks to engage better with customers and our ndings suggest that
customers are responding to some of these initiatives evidenced by
the 3-percentage point increase in the banking industry's overall customer satisfaction recorded this year in the retail segment.
Top 10 Most Customer Focused Banks (Retail)
Top 10 Most Customer Focused Banks (SME)
GTBank
77.9
GTBank
Zenith
77.7
Zenith
76.1
Stanbic IBTC
75.7
Diamond
Fidelity
74.8
74.4
FCMB
73.9
FirstBank
70.0
71.0
72.0
73.0
74.0
78.3
Stanbic IBTC
78.2
76.0
FirstBank
75.7
FCMB
75.7
75.1
74.9
Sterling
73.1
Access
Standard Chartered
Diamond
73.3
Sterling
78.4
Access
75.0
Standard Chartered
79.1
Ecobank
75.0
76.0
Industry Average
Retail and SME banking customers

responding to new initiatives
GTBank emerged as the most customer
focused bank with a CSI rating of 77.9 in
this segment, while last years leader Zenith Bank, came in second with a rating
of 77.6. Both banks showed signicant
improvements in overall customer satisfaction levels by an increase of three and
two percentage points respectively from
last years ratings.
77.0
78.0
79.0
72.0
73.0
74.5
74.0
75.0
76.0
77.0
78.0
79.0
80.0
Industry Average
This years survey also reveals some

rst-time entrants in the top ten Standard Chartered Bank and Sterling Bank
secured the sixth and ninth positions
respectively. The gap amongst the top
ten has also narrowed from six to four
percentage points highlighting increased
competition.
Bank, Stanbic IBTC and Access Bank

respectively. Overall CSI for this segment
increased by nearly ve percentage points
from last year, driven largely by respondents satisfaction levels with service
delivery through channels and customer
care. However, about four-in-ten SMEs still
indicate difculty in accessing short-term
credit from banks.
In the SME segment, GTB also led the

pack with Zenith Bank coming a close
second followed by Standard Chartered
FIVE YEAR SNIPPET
In the retail segment, GTBank has maintained the top position

since 2008, except in 2011 when Zenith held the top spot. Other
banks that have featured consistently in the top ten are Diamond,
Access, and Stanbic IBTC.
In the corporate segment, Zenith emerged in rst place in 2008
and 2009 while GTBank has maintained rst place since 2010.
Other banks that have featured in the top ten every year since
2008 are First Bank and Diamond Bank.
In the very competitive banking landscape, differentiation is difcult to

achieve on many fronts. However, banks that will be successful in the
corporate market will need to leverage the latest technologies to deliver
practical, convenient and seamless alternatives.
Top 10 Most Customer Focused

Banks (Commercial/ Corporate)
Banks nd corporate organizations

hard to please
for deep industry specialization within

banks.
Overall CSI in the corporate segment this

year fell by nearly six percentage points
to 68.7 reecting dissatisfaction in the
levels of service delivery from a signicant number of commercial/corporate organizations surveyed. From the different
interviews we conducted, the message
is clear: corporate customers expect
banks to provide higher levels of reliable
service and support their businesses
throughout their entire value chains.
While banks may face regulatory

constraints that affect their degree of
exibility in interacting with corporate
clients, customers expect their banks to
demonstrate innovation that anticipates
evolving regulation and their business
needs. Respondents would like to see
more user-friendly internet banking services and seamless transaction processing across channels. Corporate customers also appear increasingly unwilling to
conduct transaction-type activities from
the branch.
About half of all corporate respondents

were either dissatised or indifferent
about their banks ability to support their
business needs. When probed further,
respondents expressed concern about
their relationship managers understanding of their industry highlighting the need
GTBank
72.5
Zenith
71.3
FirstBank
70.2
Sterling
68.6
Diamond
68.4
UBA
68.3
Skye
68.3
Stanbic IBTC
68.2
Access
67.8
StanChart
67.8
60.0
65.0
70.0
75.0
Industry Average
CSI Ratings per Industry (Commercial/ Corporate)

Building, Construction & Real Estate
71.0
Conglomerates
71.0
Agriculture
70.9
Hospitality
70.8
Aviation
70.3
Food Beverage & Tobacco
70.0
Manufacturing
69.9
Non-Bank Financial Services
68.9
Maritime
68.9
Educational Institutions
68.9
68.8
Services
Oil & Gas
68.5
Transport & Logistics
68.2
Healthcare
67.6
Media, Advertising & Publishing
66.6
ICT
62.8
60.0
64.0
68.0
72.0
Industry Average
80.0
RELATIONSHIP ISSUES
Financial stability
remains key
In recent times, regulatory changes have
been at the forefront of the Nigerian
nancial services industry with initiatives
such as the cashless society drive. These
initiatives have directly impacted the
relationships of banks with their customers. Some respondents expressed
dissatisfaction at the approach taken by
some banks to migrate them to alternate
channels such as the introduction of
withdrawal charges prior to the commencement of the CBN initiative.
Our ndings reveal yet again that Financial Stability (27%) remains the leading factor for most retail customers in
maintaining their relationships with their
banks followed by Excellent Customer
Service (23%) and the banks Image and
Reputation (18%). About one in ten retail
customers also noted Proximity of Alternate Delivery Channels as a key factor.
Feedback from retail customers also suggests some measure of anxiety in light
of recent regulatory interventions.
Hence, banks will need to continue to
reassure customers and ensure they
Top Reasons for Maintaining Banking Relationships

Financial
Stability
27%
Financial
Stability
Customer
Service
23%
Customer
Service
Image &
Reputation
Proximity of
Branches
Access to Other
Channels
26%
19%
Image &
Reputation
18%
12%
9%
18%
Proximity of
Branches
11%
Financial
Stability
29%
Customer
Service
23%
Image &
Reputation
10%
Banks Support
of Business
10%
Relationship
with Bank Rep.
5%
Relationship
with Bank Rep.
6%
Banks Support
of Business
5%
Reasonable
Charges
5%
Retail
remain informed; while some banks also
need to go further to rebuild trust with
their customers. Our ndings also reveal
that customers perceive the banks image
as a more important factor in the banking
relationship than pricing of bank products.
SME
Commercial/
Corporate
ity as the primary reason for maintaining

their banking relationships. The main
reason corporate customers continued
their banking relationship was based on
Excellent Customer Service in 2008,
however it has been Financial Stability
from 2009.
In the same vein, SMEs and corporate

organisations also ranked Financial Stabil-
Regaining Trust
Since the onset of the last nancial crisis, customer condence has been waning around the world and Nigerian banks are
not exempt from this trend. As the dust settles from the recent industry shake-up, many customers can be forgiven for
remaining cautious about their nances and banking relationships. Some of the customers surveyed are in the process of
seeking or have already sought to diversify perceived risks in the banking sector by opening an account with an additional
bank or switching to another bank entirely. Here are a few suggestions on how banks can regain the trust of their customers.
Increase transparency
Banks have long been associated with
hidden charges and complex products.
However, customers expect banks to
deal more transparently especially in
the areas of pricing and fees - with no
surprises. Only then will banks be seen
to be acting in the best interest of their
customers.
Renew your customer value

proposition
Some of the recent changes in the industry - mergers, acquisitions and regulatory interventions - have reshaped the
identity of some banks in the mind of
the customer. It is imperative for banks
to refresh their value propositions to provide clarity in the minds of customers.
Cultivate a customer-focused culture

A culture that prioritises the customer
will do more to gain trust than one which
only advances protability targets. Right
from recruitment, banks must ensure
that their people have a strong desire
to deliver great service. Further investments must also be made in the form of
training and work exposure to empower
staff to deliver rst-class customer
service.
CONVENIENCE
Branching out
Ensuring that customers have ease of access and readily available channels to use
is an integral step towards guaranteeing
the convenience of delivery channels for
the customer. With customers getting
used to shorter turnaround times and
the immediacy offered by technology
devices, they are also demanding similar
levels of speed and convenience from
banks.
Increasingly, channels must provide full
functionality and maintain high levels of
reliability and availability to meet customer expectations. Customers want to be
able to process near- instant transactions
from their mobile devices and computers from the comfort of their homes or
workplaces.
Top Three Banks by CSI Rating - Convenience
Rank
Retail
SME
Commercial/
Corporate
Zenith
Standard Chartered
GTBank
GTBank
Zenith
Zenith
Diamond
GTBank
FirstBank
As they migrate to these self-service

channels such as ATM, internet and
mobile--, banks are also presented with
the opportunity to leverage technology
to deliver efcient and more personalized services.
Retail banking respondents rated Zenith

Bank highest in the area of convenience
followed by GTBank and Diamond Bank
with CSI ratings of 79.0, 77.5 and 76.3
respectively. Zenith and GTBank maintained their positions from last year but
Diamond Bank replaced Fidelity Bank in
third position.
Nonetheless, it is apparent that more
progress is required in the ease of access to alternate channels. Satisfaction
levels with mobile banking, internet
banking, and call centre services were
rated comparatively low in the high 50s
and low 60s - whereas satisfaction with
ATMs was over 80%.
The convenience CSI in the SME segment was slightly higher than retail as
Standard Chartered Bank moved into rst
place with a rating of 80.1 an 8-percentage point increase from last year.
Top Three Banks by CSI Rating - Channels (Retail)
Contact
Centre
Mobile
Banking
Standard
Chartered
ETB
Stanbic
IBTC
GTBank
GTBank
Standard
Chartered
Zenith
FirstBank
Sterling
Diamond
GTBank
Rank
Branch
ATM
Internet
Zenith
Zenith
Diamond
Stanbic
IBTC
The satisfaction levels for the availability

of channels were generally higher for
SME in comparison with retail, except
for the POS which had 60% satisfaction.
Some of the issues highlighted with the
POS include frequent network unreliability/ downtime causing challenges in
completing transactions for merchants
and customers.
In the corporate segment, only three-in-ten

customers were very satised with the
quality and availability of internet banking
and contact centre provided by their banks.
FIVE YEAR SNIPPET
Convenience reached its lowest point this year in the corporate segment in
a reection of higher expectations from respondents. In the retail segment,
convenience has declined from its peak in 2009.
For the rst time, the industry average for convenience was the lowest of
all the ve CSI factors in the corporate segment.
In the corporate segment, Zenith Bank has emerged in rst position in
three of the last ve years.
Alternate channels: yes, but

what do they mean?
Its no longer news: the ATM has been
the fastest growing channel in Nigeria in
recent years, a reection of the ubiquity
of ATMs in many cities. Almost eight-inten customers surveyed use the ATM
and nearly two thirds of these people
visit an ATM on a weekly basis. It should
come as no surprise that cash withdrawals and balance enquiry are the most
common transactions customers would
like to perform via the ATM.
However, despite the proliferation of new
channels in recent years, our ndings
show that adoption of other alternate
channels is still low. Only 7% of respondents use internet banking, POS (6%),
telephone banking (5%) and mobile payments (2%). Although, customers would
like to use some of these alternate
channels for transactions such as bill payments and getting nancial advice, the
uptake is not as high as expected and
some still remain oblivious of the value
proposition that these channels provide.
Banks cannot afford to take for granted

customer awareness of channels available to them. For instance, of all retail
respondents surveyed, only 33% of
private sector employees and 15% of
students use internet banking. Banks
still need to continue to communicate
and reassure their customers of the
available services and benets associated with the use of these channels.
Only 7% of respondents
use internet banking;
POS - 6%; telephone
banking - 5%; and mobile
payments - 2%.
Banks must also seek to address the

concerns or reasons for scepticism on
the part of customers such as concerns
about the level of security provided on
online banking platforms.
The signicant adoption of the ATM
suggests that the potential of the other
emerging channels such as internet
banking and mobile payments can be
realized.
Channel Usage
Q. How often do you use the following channels?
All Age Groups
Branch
ATM
POS
Internet Banking
Mobile Banking1
Contact Centre
Mobile Payments2
0%
Weekly
20%
40%
At least once every 2 weeks
60%
Once a month
80%
Rarely
100%
Never
Mobile banking allows customers to use their applications on mobile phones as another channel for their banking
services such as deposits, withdrawals, account transfer, bill payment, and balance inquiry.
Mobile payments involve the use of mobile phones toinitiate and conrm payments between two parties.
Coupled with the rise of ATM usage,

there has been a decline not just in
the usage of branches but also in the
preference of the branch for carrying out
transaction-type activities like withdrawals. Less than half of respondents identied the branch as a preferred method for
cash withdrawal.
In line with trends in other mature
markets, people aged under-30 account
for about 45 percent of internet banking

users while people aged 55 and over
account for only 3 percent of all mobile
banking users. As expected, the most
common mobile banking activities are
balance enquiry and funds transfer.
Contrary to the belief that older people
tend to visit the branch more often, our
survey revealed that a similar number
of people above 55 that visit the branch
also use the ATM several times a week.

Across the different locations, the survey
reveals that Lagos and Kaduna customers
(9%) use internet banking more than any
other location. Lagos and Abuja customers reported the highest use of telephone
banking (7%) while nine out of ten customers in Ibadan use the ATM the highest for
any location.
Weekly Usage of Banking Channels by Persons Aged Under 30
65%
29%
3%
2%
1%
POS
Branch
ATM
Mobile Banking
Internet Banking
Optimising the alternate channel opportunity

The opportunity for banks in the area of alternate channels is widely acknowledged: Nigeria has a large unbanked
population and widespread mobile phone penetration across income groups. Understandably there are socio-economic realities for banks to contend with, however, the survey results suggest that banks are failing to sufciently
leverage the potential offered by these channels to drive satisfaction, convenience and the cost-to-serve.
Deepen customer segmentation
A broad roll-out of alternate channels is
not a guarantee for reducing costs and
driving operational efciency. As a matter
of fact, many banks in mature economies
are yet to fully realize the benets. We
suggest that by looking through the eyes
of the customer to understand their needs
and preferences, banks can effectively
dene unique customer segments and
appropriate value propositions beyond
the traditional classications. There is also
need to invest in IT-driven business intelligence to harness customer information
to aid understanding of customer behavior
and expectations.
Deliver clear messages
In communicating the value proposition
of various channels available to customers, banks must be careful to ensure that
the relevance, benets, security and most
importantly how-to-use information are
targeted at different customer demograph-
ics. Generic and irrelevant communication

does little to drive customer value and
increases costs instead. Communication efforts must take into account how
different customer segments respond to
information.
Target seamless multichannel
integration
As demonstrated in the survey results,
many customers already use multiple
channels hence banks need to integrate
these channels to deliver seamless
channel experiences for customers. For instance, there are opportunities to integrate
contact centres with internet banking such
that customers experiencing difculties
can get immediate solutions. Delivering
seamless customer experience will also
require a paradigm shift from silo-based
approach to customer management to an
enterprise approach. It will require signicant investments in IT but also provide opportunities for cross-selling and deepening
customer relationships.
Reconceptualise the branch model

As more transaction-type activities are
migrated to other self-service channels,
we expect the role of the branch to evolve.
Currently, most banking distribution models are designed around the branch but
as more channels emerge, the branch will
become one of many other channels. This
represents an opportunity for branches
to reconceptualise their branch models from layout design to stafng to ensure
optimization and improved delivery of
customer experience.
However, branch optimization needs to
start with an articulated customer strategy
and customer segmentation that is insightful and pragmatic. This would require a
full dimensioning of customer, channel
and product protability challenging the
nancial management and cost allocation
practices of banks today.
Through the
eyes of the
customer
Banks all over the world are playing catch-up on the ever-evolving social media front where many customers are savvy. How
can Nigerian banks leverage this platform successfully?
If your banks social media strategy is not

built around the customer experience,
then there is a good chance that it is going to fail.
That is because more than any other
banking channel social media is all
about the customer experience.
prole rather than multiple divisions. For

banks, this means developing a single
view of the customer so that frontline
social media employees are able to
serve customer needs efciently across
the various divisions and businesses.
However, taking a customer centric view

is not going to be easy for most banks.
In part, that is because banking communications have traditionally been either
one-way (advertising, direct mail, statements, etc) or one-on-one (customer
service, branch banking, telephone banking, etc). As a result, many banks may
be unprepared for the changes that must
occur to make social media strategies
succeed.
Customers will expect their banks to

be responsive to their needs over social
media. Given the immediacy of social
media tools like Twitter, customers have
come to expect that their social interactions will elicit an immediate (or at the
very least, rapid) response. This has two
implications for banks: frontline staff
will need to be empowered to make
immediate decisions; and information
will need to be available in real-time for
employees to properly address customer concerns.
Walking in the customers

shoes
Building relationships based

on trust
Lets take a look at how an average customer might view interactions with their
bank over social media. First, they probably only want to deal with one company
Most importantly, however, is that

customers will expect their banks to be
more transparent in all of their interactions over social media.
This not only means providing customers

with more information, it also requires the
bank to be open to criticism even encourage it in order to provide a better customer experience. This will call for something
of a culture shift within the bank that must
start at the top and permeate down to the
frontline staff.
More than any other

banking channel, social
media is all about the
customer experience.
Building a community
They will also expect to gain some unique
value from engaging with their bank over
social media. In some cases, this may
simply be a better customer experience
or faster response time. But it may also
offer banks an opportunity to differentiate
themselves.
Banks may consider the gameication
of nancial services (for example, a
tool that allows customers to play with
different investment scenarios), or even
incentivization (say, providing a better
rate to customers who apply through
social channels).
More active social network users may
also welcome a community aspect to
the banks offerings. In fact, this may provide one of the biggest opportunities for
banks: experience in the telecommunications industry shows that peer-to-peer
customer support can generate not only
signicant cost savings for companies,
but also provide faster (and sometimes
more personal) issue resolution.
Customers will expect

their banks to be more
transparent in all of
their interactions over
social media.
nels and services will certainly emerge
to enhance (or even replace) existing
networks, even as customer expectations become more sophisticated.
Marty Carroll
marty.carroll@kpmg.co.uk
Clearly, taking a customer-centric view

of social media is going to be a longterm strategy.
Whats more, those customers that provide peer support are more likely to be
advocates of the bank and may be harnessed as net promoters in the future.
But banks will also need to remember
that customers can be ckle. New chan-
TRANSACTIONS, METHODS & SYSTEMS
Faster please!
Using the Transactions, Methods, and
Systems (TMS) component of the CSI,
we assessed customer satisfaction
with quality of information provided and
turnaround time of transactions at banks.
Retail respondents ranked Zenith Bank
highest ahead of other banks.
Overall, retail respondents expressed
highest levels of satisfaction for transaction, methods and systems in a nod to
numerous efforts by banks to address
waiting times in banking halls. Progress
needs to continue, however, as typical issues such as long queues, difcult-to-understand information and lack of prompt
feedback from bank staff still remain.
In the corporate segment, GTBank
secured rst place with a rating of 78.5
followed by Zenith and First Bank. For
the fourth year in a row, the CSI for
TMS has the highest industry average at
74.0, although the average has been on
a decline since 2010 when it was 80.5.
Satisfaction with information provided
on bank statements and advice slips
remained unchanged from last year
nearly nine-in-ten respondents for both
years were satised with the accuracy
and completeness of those documents.
Top Three Banks by CSI Rating - Transactions Methods & Systems
Rank
Retail
SME
Commercial/
Corporate
Zenith
GTBank
GTBank
GTBank
Zenith
Zenith
Stanbic
IBTC
Stanbic
IBTC
FirstBank
Satisfaction with transaction processing

Q. How satised are you with the timeliness of transactions?
A. Very Satised
37%
26%
44%
40%
37%
26%
Commercial/
Corporate
SME
Retail
2011
2012
FIVE YEAR SNIPPET

Customer satisfaction with timeliness of transaction processing across all segments has
increased signicantly over the last ve years.
Since 2009, the Transactions, Methods and Systems (TMS) factor has recorded the
highest industry average rating (in the corporate segment) out of the ve components
annually.
Over the last ve years, Zenith and GTBank have achieved a place in the top three every
year in both segments.
CUSTOMER CARE
Making it a strategic priority
As customers interface with staff and

different touch points, banks need to
be able to identify the key moments of
truth for their customers. For instance,
by identifying the different stages of a
customers visit to the branch, a bank
can ensure it adequately engages the
customer at each stage (including queuing) such that the customer leaves with
a positive experience at each point. By
proactively anticipating customer needs
and offering suitable alternatives, banks
can also deliver fullling experiences to
customers.
There is also a need to invest in equipping staff with the right tools and
knowledge to communicate clearly and
demonstrate sufcient knowledge of
the banks offerings or the customers
situation/ business. Indeed, nine-in-ten
Top Three Banks by CSI Rating - Customer Care
Rank
Retail
SME
Commercial/
Corporate
GTBank
GTBank
Zenith
Standard
Chartered
Stanbic
IBTC
GTBank
Zenith
Zenith
FirstBank
corporate respondents highlighted customer care issues such as their relationship managers knowledge of their industry and ability to provide alternatives was
very important to them.
66% of those organisations who said
they would not increase transactions
with their banks were not satised with
the ability of their relationship managers
to present them with useful advice. Over
seven-in-ten (75%) of the same organizations said their banks did not sufciently
update them on market trends.
In the retail segment, 83% of retail respondents who were planning to switch
banks said they were not very satised
with handling of enquiries and complaints by their banks.
In recent years, banks have made signicant strides in the area of customer
care. In this period, customer care has
evolved from the single service desk in
the bank branch to full contact centres
with tens or hundreds of staff answering phone calls and resolving diverse
queries. Much of it remains reactive; to
meet customer expectations and deliver
a compelling customer experience,
banks need to be proactive in this area.
Dont sit like a lame duck, ask how

you can help our business!
- Senior representative of
a leading ICT company
Zenith Bank and GTBank demonstrated

strong performance in the retail segment
with CSI ratings above 80 the only ratings
above 80 in this years survey in any retail
CSI category. There has been a general
increase in customer care satisfaction this
year. For example, more than 80% of retail
customers are satised with staff knowledge and understanding of the banks
products and services.
For the SME segment, GTBank emerged in
rst place followed by Stanbic and Zenith
respectively. The customer care service
area received the highest industry average
amongst the ve components of the CSI.
Moreover, more than half of SME customers were very satised with staff friendliness.
In the corporate segment, Zenith maintained rst place from last year with a
two-percentage point increase. Although
the customer care CSI increased from last
year, there was a noticeable decrease in
certain areas of satisfaction. For instance,
respondents were less satised with
the banks ability to proactively provide
services to meet the companys changing
needs. This year, 73% of respondents were
satised compared to last years 81%.
FIVE YEAR SNIPPET

Satisfaction with response to enquiries was at its highest this year for the retail
segment.
Nearly all respondents over the last ve years have indicated the very strong
importance of the ability of banks to proactively provide services that meet
changing business needs, yet this element has consistently recorded the lowest
satisfaction level each year.
PRODUCTS & SERVICES
Delivering the product difference

It is no longer simply a question of the different products offered by the bank, but also a question of
the suitability of the product being offered. Is it relevant to the customers needs? Is it readily accessible and/or has adequate guidance been given to explain the use of the product or service?
What is required to achieve improved
product and service offering is strong
product management. A key element
of product management is to manage
the products offered through customer
segmentation.
Tailoring services and products to the
needs of a specic type of customer,
instead of a generic offering for a broad
category of customers will give customers a better impression of the banks
ability to understand their needs.
As customers consolidate payment relationships and embrace electronic forms
of payments, banks become exposed
to greater competition from non-bank
nancial services providers with the
consequent impact on margins. Mobile
solutions, for instance, are bound to
allow new entrants capture part of the
payment value chain.
Indeed, of the retail respondents who
stated they would not recommend their
bank to others, 46% expressed dissatisfaction or indifference towards the
banks ability to provide products and
services that meet their needs. Particularly, customers in all three segments
cited product and service suitability as
very important to them ahead of other
questions asked in this area.
Moreover, product and service offerings
can be further improved through the
provision of value added services that
respond to customer needs, particularly that of convenience. Such services
include those that utilize electronic

alternatives to reduce the extensive
use of paper trails to complete transactions and even shorten the completion
timeframe. Of those who expressed
dissatisfaction/indifference towards the
convenience of products and services,
60% of corporate customers felt that
there was little innovation to anticipate
their changing needs.
In the retail segment, the CSI ratings for
the top three banks were higher than
last year; the top two banks recorded
a six-percentage-point increase. When
asked for their level of satisfaction on
mortgage facilities, only 5% of respondents provided responses perhaps
reecting the underdevelopment of the
mortgage industry in Nigeria. More than
seven out of ten respondents expressed
some degree of satisfaction with funds
transfer services provided.
rst place, followed by Stanbic which had a

rating of 78.2, and Zenith rounding up third
position with 77.5. Only 29% of respondents were very satised with the loan products available to them. This is an increase
from last year, where 23% of respondents
were very satised.
In the corporate segment, GTBank came
in rst place for the third year in a row with
a rating of 71.6. Zenith and First Bank had
ratings of 70.3 and 69.7 respectively. With
respect to the facilities provided by banks,
corporate respondents showed the least
amount of satisfaction for short and long
term credit with only 21% and 19% of respondents respectively claiming to be very
satised with the loan facilities they had
received. This is a sharp decline from last
year where 36% of respondents were very
satised with short term credit and 34%
were very satised with long term credit.
Within the SME segment, GTBank

received a rating of 79.4 to emerge in
Top Three Banks by CSI Rating - Products & Services
Rank
Retail
SME
Commercial/
Corporate
GTBank
GTBank
GTBank
Zenith
Stanbic
IBTC
FirstBank
Fidelity
Zenith
Zenith
FIVE YEAR SNIPPET
The industry average for product and service offering CSI (retail) climaxed at 75.2 in
2009, however, it plummeted by 12 percentage points the following year. Since then it
has been on the rise, reaching 73.2 in this years survey.
In the corporate segment, this years CSI for product and service offering has been the
lowest obtained over the last ve years at 67.7.
Delivering targeted enhanced banking services

There is a great opportunity for Nigerian banks to deliver compelling experiences to corporate customers by
adequately supporting their businesses throughout their
nancial supply value chain.
Currently, the approach to product development is usually
reactive and product-centric as opposed to customerfocused. Banks must strive to understand the underlying processes behind a customers physical (movement
of goods) and nancial supply value chain, understand
pain-points and issues faced in addressing their nancial
service needs and as such develop or provide enhanced
automated banking products/ solutions that is integrated
with the customers nancial value chain. This is key to
delivering value and generating signicant income. In
addition, few banks perform extensive customer and/ or
industry segmentation to determine the appropriate mix
of capabilities to drive revenue expansion and tailor offerings to such specic industries.
along customer processes (B2C, B2B, C2B, C2C, etc)

rather than by instruments such as cards or cash. Hence,
payment solutions are strategically designed to comprehensively address the nancial service needs of all stakeholders in the economy hence ensuring maximal nancial
inclusion of not just customers but transactions.
Corporate customers are interested in improving visibility
of net cash/ liquidity position rather than just payments
and are demanding more efcient treasury management
to optimize working capital and eventually, measurable
value for shareholders.
In other markets, many banks are re-adapting their business models such that commercial products are aligned
PRICING
Getting pricing right

While many customers are choosing to
stay with their banks based on the banks
perceived nancial stability and service
quality, in the end, charges and rates
can still be hard to swallow if they are
perceived as uncompetitive.
Admittedly, effective pricing in nancial
services can be difcult to achieve. With
pressures to deliver shareholder value
amidst a tight regulatory environment,
banks often have few options with respect to interest rates, fees and charges.
Risk-based and cost-based approaches to
pricing appear to offer minimal differentiation since they are now common place.
However, by adopting a customerfocused approach - one that leverages
technology to develop and implement
a pricing model mapped to customer
data, buying patterns and risk, banks can
achieve a balance between protablity
and customer value. It will also provide
the opportunity to ensure that loyal customers are adequately rewarded through
incentives and rightly-priced products.
In the retail segment, GTBank retains

number one position from last year with
an improved CSI of 71.2 while Stanbic
IBTC and FCMB came in second and
third respectively. 67% of retail respondents are generally satised with
the cost of maintaining accounts with
the banks, while 54% are satised with
the interest rates offered on deposits
and investment products.
slightly more satised than retail regarding account maintenance costs - 69% of
respondents expressed satisfaction. Six-inten SME respondents also expressed satisfaction with interest rates offered.
With respect to pricing for corporate
customers, Keystone emerged as in rst
place. Importantly, overall pricing CSI in
this segment declined by nearly ve percentage points from last year.
Customers in the SME segment were
Top Three Banks by CSI Rating - Pricing
Rank
Retail
SME
Commercial/
Corporate
GTBank
GTBank
Keystone
Stanbic
IBTC
Stanbic
IBTC
Union
FCMB
FCMB
Zenith
Satisfaction with Pricing

Q. How satised are you with the cost of maintaining banks accounts with your banks?
Although many respondents will prefer to

see lower rates and charges from banks,
less than 20% of SMEs and corporates
expressed outright dissatisfaction with
their banks in this area perhaps reecting
an awareness of the little differentiation
amongst banks in the area of pricing.
Instead, customers expect banks to
match fees with value provided in the
form of exibility, transparency, timely
advice and proactive communication.
SMEs
20%
Corporates
11%
Dissatised
Satised
FIVE YEAR SNIPPET
Over the past ve years, pricing has generally been the customer service area
with the lowest rating in the retail segment compared to the other four CSI
components.
For the rst time, pricing did not have the lowest CSI rating in the corporate
segment
Fidelity and GTBank were the only two banks to rank amongst the top three for
three times in the past ve years.
LOYALTY
Whats driving loyalty?

The local banking industry has experienced an extensive and ongoing shift in
condence which has generally impacted
loyalty. Greater customer awareness also
means that customers are demanding
higher levels of personalised services.
While most customers expressed willingness to continue with their banks, we
found that about half of those who would
like to change their banks have remained
primarily because of their perception of
the banks stability. As customer condence in the banking industry begins to
rise, there is likely to be an increase in

customer switching rates and the associated costs of acquiring and retaining
customers.
Research shows that up to 90% of
customers do not complain when they
experience a dissatiser hence by
tackling only the 10% of dissatised
who complaincommon practice in the
nancial services industry banks are
exposed to signicant attrition risk1.
The impact of loyalty goes beyond the
size of the customer base; customers with

strong loyalty can help business growth
through referrals, recommendations and
increased business. A signicant number
of customers use social media on a fairly
regular basis and this readily gives them a
platform to voice their discontent or otherwise to an audience far beyond the reach
of any banks PR.
Hence, the time is now for banks to invest
in moving existing customers along the
loyalty curve into the zone of affection
where they become advocates for the
Customer Advocacy
Q. Would you recommend your bank to others?
54%
12%
57%
48%
12%
10%
25%
9%
7%
5%
17%
17%
17%
5%
5%
SME
Absolutely Will
Often Will
Sometimes Will
Commercial/
Corporate
Absolutely Will Not
No Response
Retail
My banks management team needs to work diligently

and assure customers of their loyalty, train their staff to
be exceptional, only then can they win my condence.
- Lagos-based businesswoman
Operations Council, Corporate Executive Board
bank. Building customer loyalty and

advocacy will require commitment and
discipline from the highest levels of the
bank it cannot be approached as a
one-time project but rather as an ongoing
one that prioritizes improving customer
experiences at all touch points.
For retail customers seeking to switch
banks, the survey reveals service quality
to be the overwhelming reason about
ve-in-ten customers cited this factor.
Other reasons for wanting to switch
were turnaround time (11%) and inter-
est rates (11%). Only 3% of corporate

respondents expressed intentions to
change their banks within the next 3
months about half cited poor service
quality as the primary reason. The low
switching rate amongst corporates can
be attributed to these organisations
holding multiple banking relationships
and high costs associated with switching
banks.
their banks recognize their loyalty. On the

other hand, just over half of customers
(52%) with more than 20 years of banking relationships feel their banks recognize their loyalty.
Generally, customers who have spent

between two to ve years with their
banks are more likely to answer that
Customer Switching
Q. What is your primary reason for changing (or planning to change) your bank ?
Service Quality
49.6%
Turnaround Time for Requests and Enquiries
10.8%
Interest Rates & Fees
10.5%
Financial Stability
8.9%
8.3%
Proximity of Branches
Others
6.5%
Innovative Products & Services
Access to Credit
5.0%
0.3%
Service Expectations
Understanding the key service areas
where customers would like to see immediate improvements is an integral part
of fullling customers needs. Knowing
the areas that can be remedied to offer
customers a better banking experience
is key to increasing their satisfaction and
loyalty.
As seen throughout the survey, customers are expecting banks to deliver faster
transaction processing. When asked how
their bank could improve its services,
many retail respondents identied
reduction in wait times for transaction
processing and requests as a primary
area of improvement. This has remained
unchanged as the primary improvement
area since 2010. Of note as well, friendly, polite and proactive staff appears as
one of the top three improvement areas
for banks.
The main areas of improvement noted

by the SME segment aligns with those
of retail customers. Competitive interest rates, fees and charges, is also one
of the top three expectations of SMEs.
As discussed earlier, corporate organizations expect banks to demonstrate
stronger knowledge of their businesses.
Organisations that expressed dissatisfaction with their banks ability to
partner with them effectively were more
likely to suggest improved relationship management and deeper industry
knowledge as ways banks can strengthen their services.
Majority of retail and

SME customers want
to spend less time processing transactions.
Knowledge of the
customers business
in the corporate sector
remains a key issue.
Corporate Expectations
Q. How can your bank improve its services?
Takeaways
Deepen knowledge of
the customers business
Optimise alternate channels

to reduce wait times
Leverage technology to
provide innovative solutions
across customer value chains
Demographics
Retail Respondents
Employment Status
Income (Monthly)
2%
3%
5%
1%
Gender
4%
21%
23%
Age
19%
14%
20%
46%
24%
41%
59%
35%
28%
54%
Public
Private
Below N20,000
Self-Employed
Student
Retired
Others
N101,000 - N250,000
N251,000 - N500,000
Greater than N500,000
N20,000 - N100,000
Male
Under 30
31 - 40
41-55
Above 55
Female
n = 10,577
SME Respondents
Annual Turnover
Number of Employees
Sector
Commerce & Trade
2%
3%
6%
34%
ICT
31%
13%
Manufacturing
12%
23%
8%
7%
Healthcare
21%
24%
6%
Transport & Logistics
5%
Oil & Gas
5%
Agriculture
Services
40%
Below N1m
N1m - N5m
Less than 10
10 - 50
N5m - N50m
N50m - N250m
51 - 100
101 - 250
2%
Educational Institutions
2%
Hospitality
2%
Food Beverage & Tobacco
n = 1,705
3%
Others
2%
1%
Commercial/ Corporate Respondents

Annual Turnover
Sector
Number of Employees
Manufacturing
16%
7%
21%
6%
9%
20%
10%
Non-Bank Financial Services
10%
10%
Oil & Gas
11%
ICT
9%
Services
23%
18%
60%
7%
5%
Transport and Logistics
5%
Food, Beverage & Tobacco
28%
5%
Healthcare
4%
4%
Hospitality
Less than N250m
N250m - N1bn
Less than 300
300 500
N1bn - N5bn
N5bn - N10bn
500 1,000
1,000 2,000
Greater than N10bn
Aviation
Conglomerates
Education
500 1,000
Agriculture
Maritime
3%
3%
3%
2%
2%
n = 405
Survey Locations
Kano
Kaduna
Ilorin
Abuja
Ibadan
Lagos
Onitsha
Benin
Aba
Port Harcourt
Majority of the surveys were conducted in person

across ten major cities in Nigeria, targeting a minimum number of respondents for a representative
sampling across the 24 banks. Recently merged
banks were measured as separate entities.
Acknowledgements
We would like to thank the following people for their invaluable contribution to this
survey:
All survey respondents, Communications and Marketing Research Group (CMRG),
Marty Carroll (KPMG in the UK), KPMG Nigeria partners and staff.
The KPMG project team: Wale Abioye, Atinuke Esan, Valerie Nwandu and Oyindamola
Jaiyesimi.
Contact us
For further information about this publication and our services, please contact:
Bisi Lamikanra
Partner and Head
T: +234 704 527 6005
E: bisi.lamikanra@ng.kpmg.com
Ngozi Chidozie
T: +234 704 527 6024
E: ngozi.chidozie@ng.kpmg.com
Bode Abifarin
T: +234 704 527 6485
E: bode.abifarin@ng.kpmg.com
Marie-Therese Phido
Marketing, Knowledge & Communications
T: +234 704 527 6012
E: marie-therese.phido@ng.kpmg.com
kpmg.com/ng
The views and opinions expressed herein are those of the survey respondents and do not necessarily represent the views and opinions of KPMG.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is
received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a
thorough examination of the particular situation.
2012 KPMG Advisory Services, a Nigerian partnership, member firm of the KPMG network of independent firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to obligate or bind any
member firm. All rights reserved.
Any trademarks or service marks identified in this document are the property of their respective owner(s).
The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International.
Designed in Nigeria. Publication name: Banking Industry Customer Satisfaction Survey Issue number: 6 Publication date: May 2012

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ISSUE SIX

2012 Banking Industry

About this Survey

Convenience measures accessibility &

Customer Care measures interaction of

Through the Eyes of the Customer

5 | Banking Industry Customer Satisfaction Survey 2012

Banking Industry Customer Satisfaction Survey 2012 | 6

4 | Banking Industry Customer Satisfaction Survey 2012

The survey results revealed increased satisfaction in the

Across all segments, Financial Stability remains the most

Banking Industry Customer Satisfaction Survey 2012 | 5

Adoption of Alternate Channels

Strong Call for Industry

While majority of our respondents had used at least one

Nine-in-ten corporate respondents highlighted customer

6 | Banking Industry Customer Satisfaction Survey 2012

Banking Industry Customer Satisfaction Survey 2012 | 7

Top 10 Most Customer Focused Banks (Retail)

Top 10 Most Customer Focused Banks (SME)

Retail and SME banking customers

This years survey also reveals some

Bank, Stanbic IBTC and Access Bank

In the SME segment, GTB also led the

FIVE YEAR SNIPPET

In the retail segment, GTBank has maintained the top position

8 | Banking Industry Customer Satisfaction Survey 2012

Banking Industry Customer Satisfaction Survey 2012 | 9

In the very competitive banking landscape, differentiation is difcult to

Top 10 Most Customer Focused

Banks nd corporate organizations

for deep industry specialization within

Overall CSI in the corporate segment this

While banks may face regulatory

About half of all corporate respondents

CSI Ratings per Industry (Commercial/ Corporate)

Food Beverage & Tobacco

Non-Bank Financial Services

Transport & Logistics

Media, Advertising & Publishing

10 | Banking Industry Customer Satisfaction Survey 2012

Top Reasons for Maintaining Banking Relationships

ity as the primary reason for maintaining

In the same vein, SMEs and corporate

Renew your customer value

Cultivate a customer-focused culture

Banking Industry Customer Satisfaction Survey 2012 | 11

12 | Banking Industry Customer Satisfaction Survey 2012

Top Three Banks by CSI Rating - Convenience

As they migrate to these self-service

Banking Industry Customer Satisfaction Survey 2012 | 13

Retail banking respondents rated Zenith

Top Three Banks by CSI Rating - Channels (Retail)

The satisfaction levels for the availability

In the corporate segment, only three-in-ten

FIVE YEAR SNIPPET

14 | Banking Industry Customer Satisfaction Survey 2012

Alternate channels: yes, but

Banks cannot afford to take for granted

Banks must also seek to address the

At least once every 2 weeks

Banking Industry Customer Satisfaction Survey 2012 | 15

Coupled with the rise of ATM usage,