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Customer Confidence In The Global Banking Industry Bounces Back



Consumer confidence in the banking industry is on the rise globally with Kenyan customers among the most confident in the continent, driven by an increase in access to financial services through alternate channels.

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These are the findings of EY’s 2014 Global Consumer Banking study, winning through customer experience, which surveyed over 32,000 banking customers in 43 countries including respondents from Kenya. It shows banks are providing traditional banking services well, but need to focus on important aspects of the customer experience. Banks must earn the highest levels of trust in order to retain customers, win more business and create genuine loyalty.

African customers also express stronger advocacy for their primary financial service provider than seen globally and are more likely to recommend their primary financial service provider. Customers in Kenya (62%) are the strongest advocates, followed by South Africa (51%) and Nigeria (46%). On a global average, only four out of every ten people can recommend their bank or financial services provider to other customers.

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“Customers’ experience is the main driver of trust and is also the single most common reasons that customers open and close accounts globally; but customers in Africa also place greater importance on finding ways to save money, mobile banking features, reputation and protecting their financial information,” says Steve Osei-Mensah, Advisory Leader for Financial Services in East and Central Africa.

The Kenyan banks also need to improve their efficiency when it comes to problem resolution with more than half of customers in Kenya having experienced a problem in the 12 months prior to the survey being carried out, compared to approximately one third of bank customers globally.

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“According to the survey, a high percentage of Kenyan customers want banks to provide them with plans that will help them reach their financial goals and help them invest in their financial well-being. This is why a higher percentage of Kenyan bank customers (86 percent, compared to an African average of 78 percent) want access to financial experts” says Celestine Munda, Advisory Leader for East and Central Africa.

Kenyan bank customers are also in need of customized products and services to fit their needs and lower their costs.

Banks in Kenya are facing increased competition from technology companies and mobile phone providers, who are providing customers with more options in banking and cash transfer.

Kenyans have more options than ever. And they and do not view traditional banks as having significant competitive advantage over newer types of financial institutions and technology companies. Kenya is clearly a global leader when it comes to alternative ways of banking, with 21 percent of Kenyans using a mobile service provider as their primary financial services provider; compared to an African and global Average of 6 percent and 2 percent respectively.

Caroline Vutagwa
Caroline Vutagwahttps://my.techmoran.com
Minding my own business is not enough for me that's why you will always find me minding Africa's Businesses as well as Technology and of course letting you know about it. Talk to me on [email protected]

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