Need for banks to improve on communication charges to customers

There seems to be a communication gap between the Deposit Money Banks (DMB) and their customers in the areas of offers, fees, and other charges. Banks operating in the country need to invest in improving how they communicate about fees, offers, among others, to their customers, according to report.

The EY Global Consumer Banking Survey 2014 shows that customers are notably less satisfied with transparency and clarity of fees and communication than other elements of the experience.

Customers want financial institutions to be clearer about what they offer, the fees they are charging and how to avoid paying the fees. EY presented survey respondents with 31 benefits and asked them to select the five most important benefits, evaluate their current primary financial services provider (PFSP)’s performance against those benefits. The survey then probed into channel usage and preferences, ways to receive advice and the impacts of improving the experience and problem resolution on the relation.

One of the key findings is that most customers attributed high levels of importance and satisfaction to benefits associated with institutional stability.

The more interesting findings, according to the report, were: banks fall short in meeting some basic customer expectations, such as transparency of fees, communication and problem resolution; there is significant opportunity for differentiation and growth by customising solutions to meet customers’ needs and helping them achieve their financial goals.

Two of the top five problems for which customers requested assistance related to unexpected fees and disputed charges. 42 percent of those who reported a problem were less than satisfied with the resolution. Those who were satisfied with the resolution increased their business with the institution, while those who were dissatisfied reported closing some or all of their accounts and services.

Segun Aina, immediate past president of Chartered Institute of Bankers of Nigeria (CIBN), says there is need for greater bank customers protection in Nigeria, and “we need to enhance the customer complaints handling system in banks as a matter of urgency.”

He recommends that every bank should have an articulated customer complaints management system that is functional and properly communicated to all its customers. This, he says, will reduce the incidents of customer complaints.

Nigerian banks should engage with their shareholders/investors and customers far more than they do now to enable them to harvest the ideas generated by these shareholders/investors and customers, which will make their policies robust and comprehensive, he says.

However, customers in emerging markets in general have recorded a higher increase in confidence than the global average. Across Africa, confidence has increased most in Nigeria by 69 percent, followed by Kenya 66 percent, and South Africa 33 percent. The survey also revealed that 44 percent of customers globally express complete trust in their primary financial services provider, with the strongest levels in Africa observed among customers in Kenya 59 percent, followed by Nigeria 48 percent, and South Africa 45 percent.

“Despite another challenging year for banks globally, confidence in the banking industry among African customers has experienced a significant increase most notably in Kenya and Nigeria, with South Africa tracking the global trend,” Colin Daley, EY Advisory Banking sector leader for West Africa, said.

HOPE MOSES-ASHIKE