Banks fail to translate internet adoption to drive mobile banking

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, according to a survey by KPMG.

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 the survey, 77 percent of Nigeria’s banking customers now use social media for personal purposes. The report from the survey revealed that 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.

Speaking at the official presentation of the KPMG 2016 Africa Banking Industry Retail Customer Satisfaction Survey in Lagos, Adebisi Lamikanra, partner, KPMG, Nigeria and head of financial services Africa, said 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.

“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,” Lamikanra said.

The 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. The report provides a number of clear suggestions for Africa’s banking executives, which include improving the quality of interactions between employees and customers, increasing the focus on delivering fast, accurate and timely transactions, rethinking the mix of products and services to respond to shifting customer preferences and focusing on satisfaction to drive recommendations and loyalty.