KPMG Survey: UBA Emerges Top 5 In Customer Experience Survey, SME, Retail Banking, Others

United Bank for Africa (UBA) Plc, has emerged among the top five banks, in various survey segmentations, in the KPMG 2024 West Africa Banking Industry Customer Experience Survey released recently.

The survey however showed that complaint resolution remained the weakest pillar of customer experience in Nigerian banks’ retail sector, despite progress in other areas, as they continued to face challenges in effectively addressing customer grievances, significantly impacting overall satisfaction levels.

The survey showed that UBA earned second place in SME Banking as well as a third place in Retail Banking, marking a significant leap in rankings that highlights the bank’s transformation under its Customer First (C1st) philosophy.

In Retail Banking, the bank rose to third place up from the 14th place recorded in 2023, while in SME Banking, it jumped to second position up from sixth place last year.

The bank also made notable progress in Corporate Banking, climbing to fourth place from 8th in 2023. These milestones underscore the bank’s ability to consistently exceed customer expectations and deliver unmatched service across all its business segments.

Speaking on the achievement, UBA’s group managing director/CEO, Oliver Alawuba, said: “This recognition is a testament to our ability to turn aspirations into achievements and challenges into victories. At the heart of this success lies our unwavering commitment to the Customer First (C1st) philosophy. It is not just a slogan but the essence of who we are. Through C1st, we’ve redefined customer satisfaction, delivered value, and earned the trust and loyalty of our clients.”

Alawuba who credited UBA’s success to the dedication of its employees, said, “From retail branches to corporate offices, from technology teams to front-line staff, every effort contributed to this extraordinary transformation. I extend my heartfelt gratitude to our exceptional team for making this possible.”

While celebrating this milestone, the GMD disclosed that UBA remains committed to becoming the undisputed number one across all segments, adding that the bank aims to achieve this through deepened customer relationships, strengthened processes, and continuous innovation.

“The world of banking is evolving rapidly, and customer expectations are at an all-time high. To lead in this dynamic landscape, we must stay agile, innovative, and unwavering in our commitment to excellent service. Together, we will set new benchmarks and deliver unparalleled value to our customers,” he stated.

The survey also showed that Stanbic IBTC Bank once again emerged as a leader, securing the top position for the fourth consecutive year. Its superior complaint management and customer experience delivery have set a benchmark in the industry.

Stanbic IBTC’s dominance in the retail banking segment is underpinned by its outstanding performance in key customer experience areas. These include high transaction success rates, prompt issue resolution, and innovative mobile app features, such as a budgeting tool and enhanced security measures.

One customer praised the bank, saying, “I reported unusual activity on my account, and the bank swiftly resolved the issue while reassuring me about the safety of my funds. Their prompt response left a lasting impression.”

Despite this leading position, Stanbic IBTC recorded a slight decline in its customer experience score, falling by nearly three percent compared to the previous year. This highlights the need for further improvements, especially in ensuring mobile app reliability.

In the SME segment, Stanbic IBTC excelled in personalisation, outperforming peers by addressing specific customer needs effectively. One SME client noted, “Stanbic IBTC has consistently exceeded my expectations. My relationship manager is always attentive and goes the extra mile to resolve issues.”

First City Monument Bank (FCMB) climbed to second place in the retail banking segment, making its first appearance in the top five in six years. Customers highlighted the bank’s efficient transaction processing and responsive customer support.

United Bank for Africa (UBA) secured third place, driven by improvements in service delivery and user experience. Customers commended UBA’s chatbot for its effectiveness and ease of use.

Keystone Bank and Sterling Bank retained their positions in the top five for the third consecutive year. Both banks earned accolades for strong relationship management, seamless loan services, and reliable digital platforms.

Despite these successes, the broader banking industry struggles with complaint resolution. This pillar was identified as the lowest-performing in the retail segment, with customers expressing frustration over delayed responses and unresolved issues, which eroded trust in many banks.

KPMG’s report evaluated customer interactions across six key pillars: Integrity, Resolution, Expectations, Time and Effort, Personalisation, and Empathy. While Nigerian banks scored highest in managing expectations, they significantly lagged in resolution, underscoring the need for a more proactive approach to handling customer complaints.Nigerian travel packages.

The SME segment saw the highest growth in customer experience scores, increasing by over two percent compared to the previous year. However, personalisation remained the weakest pillar for the third year in a row, with banks struggling to provide value-added services tailored to SMEs’ needs.

An SME respondent remarked, “While some banks are supportive, many fail to understand the unique challenges we face. There’s a gap in offering tailored solutions that go beyond basic banking services.”

In corporate banking, GTBank reclaimed the top spot for the first time in seven years. Clients praised the bank’s faster turnaround times for resolving account issues and its improved client relationships.

Zenith Bank and Access Bank tied for second place, maintaining strong performances in delivering structured financial solutions like trade finance and tailored credit facilities. UBA and Citibank rounded out the top five, with both banks earning recognition for their proactive and reliable service delivery.

The survey also highlighted the impact of Nigeria’s challenging economic environment on banking operations. Inflation, currency instability, and rising operational costs have strained customers’ purchasing power, leading to higher expectations for digital banking solutions.Nigerian travel packages

Digital platforms have become critical, with more customers relying on mobile apps and online services. However, 21 percent of retail banking customers who switched banks cited transaction reliability issues—such as app crashes and slow loading times—as their primary reason. Suboptimal user interfaces and unintuitive navigation were also noted as barriers, especially for less tech-savvy users.

To improve mobile banking experiences, banks are investing in modern core systems and intuitive user interface (UI) and user experience (UX) designs. These efforts aim to enhance compatibility, simplify navigation, and ensure robust technical support. However, poorly executed transitions to modern systems have resulted in service disruptions, frustrating customers and undermining trust.

Despite the rise in digital payments, cash remains a vital part of Nigeria’s retail economy. Weekly ATM usage rose slightly from 43 percent in 2023 to 44 percent in 2024, though this is still far below the 68 percent recorded in 2019. Challenges such as network downtimes and cash shortages have necessitated a hybrid approach to service delivery, combining digital and cash-based solutions.

In Ghana, ongoing debt restructuring and an IMF bailout in 2023 have reshaped customer behaviors. While inflation and currency instability constrained spending, banks recorded improvements in the Empathy pillar, reflecting better understanding and responsiveness to customer needs.

KPMG’s report draws parallels between Nigeria and Ghana, emphasising shared needs for personalised digital experiences and proactive customer engagement. However, it also highlights unique dynamics, such as Ghana’s high mobile money penetration compared to Nigeria’s growing fintech influence.

As Nigeria’s banking sector navigates economic uncertainties, the focus on customer experience remains critical. KPMG’s report underscores the urgency for banks to enhance complaint resolution, adopt robust risk management strategies, and deliver personalised services to meet evolving customer expectations.

While Stanbic IBTC’s leadership in complaint resolution sets an example, the industry must close persistent gaps to restore trust and improve satisfaction. With rising inflation, accelerating digital adoption, and shifting customer preferences, the coming years will test the resilience and adaptability of Nigerian banks.

Banks that prioritise customer-centric innovations and efficient issue resolution will be better positioned to thrive in this dynamic landscape.