2010 KPMG Nigeria Banking Industry Customer Satisfaction Survey

04
Banking
2010 Banking
Industry
Preserving Customer Confidence
and Trust in a Rapidly Changing Industry June 2010
Customer
Satisfaction
Survey

Foreword 2
Scope and Methodology 3
12
Conclusion 14
The Customer's Perspective 5
Redefining Customer Value
Banking Survey
Contents
The views and opinions expressed in this survey report are those of the survey respondents and do not necessarily
represent the views and opinions of KPMG Professional Services. Unless otherwise stated in this publication, we have not sought to
establish the reliability of the information obtained from sources outside of KPMG. We therefore cannot provide any assurances or
guarantees that the survey findings represent an accurate view of the banking industry.There may be material differences between the
findings of the survey and the actual state of the industry. No one should act upon the survey results or other information contained in
this publication without appropriate professional advice after a thorough examination of the particular situation.
KPMG accepts no liability or responsibility from the reliance of any party on the contents of this publication.
© 2010 KPMG Professional Services, a partnership registered in Nigeria and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Nigeria.

Foreword
1
"The customer’s perception is your reality”
- Kate Zabriskie
© 2010 KPMG Professional Services, a partnership registered in Nigeria and a member firm of the KPMG network of
independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
All rights reserved. Printed in Nigeria.
Banking Survey Issue 4
The Nigerian banking industry is in a period of rapid and increasing change which
has been sparked off on the one hand by the recent banking industry reforms
instituted by the Central Bank of Nigeria (CBN), and on the other hand by external
global/ macro-economic pressures; an outcome of the world-wide financial crises.
The regulatory - led reforms in the Nigerian banking industry have been aimed at
upgrading the current practice and standard of banking within the country. The
changes have included the adoption of a common year-end regime for Nigerian
Banks, implementation of tenure limits for CEOs and non-executive directors, and
the industry wide audit of all banks to verify and validate their financial health. It is
envisaged that a more robust and healthy financial system will emerge after the
implementation of these reforms.
While Banks struggle with these changes and try to unearth solutions that will
ensure continued relevance and ultimately preserve shareholder value, it will be
interesting to learn how these changes may have affected the unintended victims -
the Customers.
In this year's survey, we attempt to delve into the psyche of bank customers as we
seek answers to such queries as: Is 'financial stability' still a critical basis for
establishing and maintaining banking relationships? Has the recent industry
turmoil/shake-up affected perceived service delivery to customers? How confident
and trusting are customers in their banks?
We again expanded the range of respondents across all customer segments and
locations to ascertain the impact of these changes on customer trust, banking
decisions and satisfaction levels. Overall, we surveyed about 8,000, 1,100 and 400
retail, SME and commercial/corporate respondents respectively across nine (9)
locations nationwide.
Results of this year's survey present a mix of surprises as well as some expected
developments. While some dominant players from previous years maintain
dominance of key segments and sectors, we see the emergence of new leaders in
other market segments. In addition, while the overall customer satisfaction (CS)
level for the corporate banking segment grew marginally, a decline was witnessed
in the CS level for the retail and SME segments.
Do these changes suggest a possible lack of consistency in addressing customer
needs or are they reflective of the effort required by banks to effectively capture
and deliver value to customers?
This year's survey attempts to provide answers to these questions and more.
Happy reading
Adebisi Lamikanra
Partner, Business Performance Services

The scope of this year's survey was consistent with that of the previous (2009)
edition, covering the retail, small and medium-scale enterprises (SMEs) and the
commercial/corporate banking customer segments. Overall, the survey covered
about 9,500 respondents, broken down as follows: 8,000 retail customers, 1,100
SME customers and 400 commercial/corporate customers.
In determining the respondent sampling and survey locations for the retail and
SME segments, the following factors were considered: concentration of
commercial activity, density of bank branches and the potential number of bank
customers at the locations.
On the basis of the above, the following nine (9) locations across the country were
targeted as follows: Aba, Abuja, Benin, Ibadan, Kaduna, Kano, Lagos, Onitsha and
Port-Harcourt. In each of these locations, effort was made to ensure that
retail/SME respondents were randomly selected from high density/traffic areas
such as shopping malls, markets, university campuses, residential areas, state and
federal secretariat complexes, business offices, etc.
For the corporate/commercial segment, respondent selection was driven by the
need to ensure the inclusion of the leading companies in each of the major
business sectors. Sampling was based on KPMG's internal database of formal
business establishments as well as the most recent copy of the Top 500
Companies in Nigeria (Goldstar Publications).
2 Scope and
Methodology
Like prior years, feedback from the corporate/commercial respondents was
solicited from key personnel managing the organisation's banking relationships.
Others
3%
Self-
30%
Employed
Student
19%
Civil/Public Servant
17%
Private Sector
Employee
31%
Figure 1:
Occupational Category
Retail Respondent Demographics - Analysis by
Figure 2:
Establishment Type
SME Respondent Demographics - Analysis by
Limited Liability
Company
29.6%
Sole Proprietorship
59.3%
Others
0.5%
Limited Liability
Partnership
5.9%
Non-Governmental
Organization
4.7%
Figure 3: Corporate/Commercial Respondent Demographics:
Analysis by Turnover
Less than N250m
24%
N1b-
29%
N5b
N250m-
23%
N1b
N5b-
9%
N10b
Greater than N10b
15%
10
6
7
0 10 20 30 40 50 60
Others
Agriculture
Embassies/Multilaterals/Foundations/NGOs
Educational Institutions
Engineering
Conglomerates
Food, Beverage and Tobacco
Healthcare and Pharmaceuticals
Media and Publishing
Airlines and Hospitality
Real Estate and Construction
Service
Logistics and Automobiles
Non-Bank Financial Services Institutions
ICT and Telecoms
Manufacturing
Oil and Gas
Frequency Ratings
Figure 4: Corporate Respondent Demographics: Analysis by Industry
9
10
15
17
19
19
22
22
22
33
37
38
50
56

These individuals were excluded in the retail banking survey so as not to introduce
a bias to the survey results.
The overall methodology adopted in calculating the customer satisfaction index
(CSI) remains the same as with the previous editions of the survey and is as
depicted in the diagram below.
Overall Score CSI
Perceived Value
Ratings -
Satisfaction (S)
& Importance (I)
S I (S x I)/ I
Customer Service Factors
Customer Care
Measures interaction of bank staff
with customers
Product/Service Offering
Measures product range &
appropriateness to customers’ needs
Transaction Methods & Systems
Measures customer support processes/
systems & turnaround time
Convenience
Measures accessibility & quality of service
from delivery channels
Pricing
Measures fees, charges and rates on product
Weighted
Score
Figure 5: Methodology for Computing Customer Satisfaction Index CSI
Page four

Page six
The banking industry in Nigeria has been faced with several changes over the last
twelve months. On the one hand, market pressures have resulted in the capital
market crash leading to huge exposure to margin loans and also the exposure to
the downstream oil and gas sector. On the other hand, recent regulator-led
reforms are pushing banks to refocus their business on banking and its critical
enablers - governance, risk management, and reporting.
This section analyses customer responses/views in the light of the industry
changes over the past year. How confident are the customers in their banks (may
be reflected in CSI ratings)? What factors are guiding customers in maintaining
banking relationships? Has the recent shake-up in the industry affected customers'
perception of service delivery?
Although all banks were rated during the survey, not all the banks were ranked
eventually, because the survey targeted a minimum sample size of respondents
for each of the 24 banks. Banks excluded from the retail and corporate/
commercial analysis numbered two (2) and three (3) banks respectively. These
exclusions were necessary to avoid drawing inferences that may not be
representative of the actual customer experience in such banks.
GTBank Sets a 3-Year Record in Retail Banking
rd
For the 3 consecutive year, GTBank clinched the top position. With a CSI of 77
.21,
GTBank out performed all the other banks to maintain its position as the leading
retail bank. Following closely behind and maintaining last year's position is Zenith
rd
Bank with a CSI rating of 75.81. Access Bank moved up two positions, coming 3
with a CSI rating of 74.85..
3
Customer Satisfaction Index (%)
70 74 76 78
Stanbic-IBTC
Bank PHB
Oceanic Bank
Fidelity Bank
FCMB
Intercontinental Bank
Diamond Bank
Access Bank
Zenith Bank
GTBank
71.91
Figure 7: Top 10 Most Customer Focused Banks-Retail
GTBank Maintains Dominance
in Retail Banking
The Customer's
Perspective
Figure 6: Most Customer Focused Bank
by Location: Retail
Access Bank
Port Harcourt
Fidelity Bank
Onitsha
GT Bank
Lagos
Zenith Bank
Kano
Zenith Bank
Kaduna
Ibadan
GT Bank
Benin
Zenith Bank
Abuja
GT Bank
Aba
Bank
Location
72

Page six
Service Delivery Channel Champions
In evaluating the customer satisfaction level with banks' service delivery channels
for the retail segment, three key channels were assessed namely: ATM, Branch
Skye Bank which featured in last year's top ten most customer focused banks did
not make the list this year, and Bank PHB, which exited from the top ten last year
re-emerged within the top ten.
In addition, the positioning of the other top-ten players changed in comparison
th
with last year's performance. Stanbic IBTC dropped six places from the 4 position
th
in 2009 to the 10 position this year, while Fidelity Bank moved up two notches
th th
from the 9 position (last year) to the 7 position (this year).
Overall, this year's survey result shows a general decline in aggregate customer
satisfaction levels from 75.88 (in 2009) to 71.91 this year. Though GTBank is
leading the pack, it's overall CSI dropped by 6.35 from the 2009 position. The same
with Zenith Bank and Access Bank with a CSI decline of 4.64 and 3.39
respectively.
What is however most instructive, and contrary to general expectations within the
industry, is the continued feature of some banks impacted by the Central Bank's
recent banking audits. Whilst Intercontinental Bank and Oceanic Bank are not new
rd th
to the top ten ranking (ranking 3 and 7 respectively in 2009), their continued
presence in the top ten in spite of poor audit reports (and negative press) may be
reflective of the efforts of the management team at managing customer service
and maintaining public confidence, as well as pronouncements by the Central
Bank of Nigeria regarding customer interest protection/safeguards, in these banks.
Analysis of customer comments shows that while financial stability remains a key
consideration for transacting businesses with banks, and regardless of concerns
on the banks financial position, customers continue to maintain a relationship with
these banks, and value the robustness of their product and service suite, as well
as the proximity of their branches.
Industry Service Leaders
In line with our usual practice, retail customers assessed satisfaction levels with
their banks along five key service areas. The positioning of the banks varied across
the five customer service areas. GTBank came tops in all the customer service
areas except product/service offering where Access Bank led the pack.
Pricing
Intercontinental
Bank
Zenith Bank
GT Bank
Convenience
Stanbic-IBTC
Transaction Methods
& Systems
Zenith Bank
Product/Service
Offering
Zenith Bank
Diamond Bank
GT Bank
Customer Care
3
2
1
Ranking
Customer Service
Areas (Retail)
GT Bank
GT Bank
Access Bank
Zenith Bank
EquItorial Trust
Bank
Sterling Bank
GT Bank
GTBank Maintains its Dominance
across Major Service Areas
Figure 8: Ranking of Bank Performance by Customer Service Areas - Retail

Page seven
GTBank also leads the way in the Corporate Banking Segment
For the first time in the history of this survey, Zenith Bank's leadership in the
corporate banking segment was challenged. GTBank emerged the most customer
focused bank with a CSI of 80.08.
nd
Zenith Bank took the 2 position with a CSI of 78.26, while FCMB (displacing Skye
rd rd
Bank from last year's 3 position and moving up four notches) took the 3 position
with a CSI rating of 77
.26. Citibank and Bank PHB showed major improvements in
th
their performance this year with Citibank climbing 5 places to claim the 4 position
and Bank PHB emerging among the top ten for the first time.
The industry wide CSI grew marginally at 33% (against 21% in 2009) of Nigerian
banks having a CSI of 75 and above. This may imply improving levels of customer
satisfaction within the corporate segment and suggests that more banks may be
focusing on customer satisfaction as a key differentiating factor.
and Internet Banking. The assessment covered the proximity, accessibility,
availability and quality of service delivery by these channels amongst other factors.
st
GTBank led in channel performance, managing to clinch the 1 position in ATM
Banking with a CSI rating of 79.57 and Internet Banking with a CSI score of 74.59.
Zenith Bank came tops in Branch banking with a CSI of 81.56.
Figure 9: Ranking of Bank Performance by Service Delivery Channels - Retail
2010 SME Focused Banks
About 1,100 SME banking customers were sampled across the nine (9) locations.
Unlike the prior year where there were no market leaders, GTBank and Zenith Bank
have emerged as the clear leaders in this industry segment.
Figure 10: Ranking of Bank Performance by Customer Service Areas - SME
Internet Banking
Zenith Bank
Branch
GTBank
ATM
3
2
1
Ranking
Channels (Retail)
3
GTBank
GT Bank Intercontinental Bank
Zenith Bank Diamond Bank
Zenith Bank Intercontinental Bank
Zenith Bank
Pricing
Convenience
Transaction Methods
& Systems
Product/Service
Offering
Customer Care
3
2
1
Ranking
Customer Service
Areas (SME)
Zenith Bank
Skye Bank
GT Bank
Intercontinental
Bank
Zenith Bank
GT Bank
Diamond Bank
GT Bank
Zenith Bank
Diamond Bank
GT Bank
Zenith Bank
Diamond Bank
Zenith Bank
GT Bank
GTBank beats Zenith
to emerge as Most Customer
Focused Bank in Corporate
Industry leaders begin to
emerge in the SME segment

Banking Survey Issue 4 Page eight
72 74 76 78 80 82
Customer Satisfaction Index (%)
First Bank
Bank PHB
Diamond Bank
Access Bank
Skye Bank
FCMB
Citibank
Zenith Bank
GTBank
75.18
GTBank and Zenith dominate in all Customer Service Areas for Corporate
Customers
GTBank was the leading bank in the rankings across the five customer service
areas. The bank achieved the 1 position in the areas of customer care (84.08),
convenience (82.55), transaction methods & systems (86.51), products & service
offering (75.48) and pricing (72.69). Zenith Bank also demonstrated a good showing
as it took the position in four key areas including customer care (82.16),
convenience (81.57), transaction methods & systems (84.29) and products &
service offering (74.07). Sterling Bank clinched the position for pricing.
st
nd
2
nd
2
Figure 12: Ranking of Bank Performance by Customer Service Areas - Corporate
Reasons for Maintaining Banking Relationships
This year's survey reveals that the predominant rationale for customers maintaining
banking relationship with their respective banks remains unchanged. In the
corporate segment, "Financial Stability" still flags as the most important reason for
maintaining relationship with banks while "Excellent Customer Service" retains its
position as the most important reason for retail customers.
Ranking
2
1 3
Customer Service Areas
(Corporate)
Pricing
Convenience
Transaction Methods &
Systems
Product/Service
Offering
Customer Care
Fidelity Bank
Sterling Bank
GT Bank
Zenith Bank
Zenith Bank
Zenith Bank
Zenith Bank
GT Bank
GT Bank
GT Bank
GT Bank
Skye Bank
Access Bank
Sterling Bank
Citibank
Figure 11: Top 10 Most Customer Focused Banks - Corporate
Financial Stability and Excellent
customer Service as key reasons
for maintaining banking relations
in corporate and retail segments,
respectively.

Page nine Banking Survey Issue 4
Service Expectation
The survey also revealed the key service expectations for all the segments covered
in the survey. Banks will need to pay attention to these key buyer values to better
delight and increase the satisfaction levels of their customers. The analyses show
that retail customers value banks with speedy transaction processing, while SME
and corporate customers, on the other hand, are cost conscious and therefore
value competitive rates, fees and other charges.
resolution system
Improved relationship
management
Competitiveness of interest
rates, fees and charges
Corporate
Access to Credit
Reduction in wait times
Competitiveness of interest
rates, fees and charges
SME
Minimal system downtime
Improved ATM Services
Minimal transaction wait
Retail
3rd
2nd
1st
Key Buyer Values
Customer
Segment
Efficient & effective
complaints/ feedback
Figure 15: Top 3 Customer Buyer Values by Segment
Ratings per Bank
The frequency of ratings per bank is an indication of the bank's market focus or
target customer segment. It may also be an indication of the bank's 'share of mind'
of the customer. While GTBank is the most rated bank by the retail and corporate
segments, Zenith Bank was the most rated bank by the SME segment.
Rating Frequency Rating Frequency
Figure 13: Rationale for Maintaining
Banking Relationship: Corporate
Figure 14: Rationale for Maintaining Banking
Relationship: Retail
5% 10% 15% 20%
Availability of Alternate Banking Channels
Pricing/ Cost of Products and Services
Provision of Full Range Financial Services
Access to Credit
Proximity/ Accessibility to Branch Network
Parent Company/ Affiliate requirement
Image and Reputation
Excellent Customer Service
Financial Stability
8.08%
8.85%
9.84%
9.93%
13.39%
16.06%
17
.24%
8.20%
8.42%
5% 10% 15% 20%
Access to Credit
Pricing/Cost of Product and Services
Access to Alternate Delivery Channels
Employer's Requirement (Salary Accounts)
Proximity and Accessibility of Branch Network
Image and Reputation
Financial Stability
Excellent Customer Service
8.45%
11.13%
11.53%
13.59%
15.25%
15.87%
16.25%
7
.93%

Fidelity Bank
Zenith Bank
Diamond Bank
Bank PHB
Skye Bank
First Bank
Oceanic Bank
UBA
GTBank
1600
56
67
69
73
79
81
142
169
187
190
40 90 140 190 240
Figure 18: Top 10 Rated Banks: Corporate
Figure 16: Top 10 Rated Banks: Retail Figure 17: Top 10 Rated Banks: SME
55
78
92
93
132
190
210
50 70 90 110 130 150 170 190 210 230
Rating Frequency
Eco Bank
Bank PHB
Diamond Bank
Skye Bank
First Bank
Oceanic Bank
UBA
GTBank
Zenith Bank
GTBank
Zenith Bank
First Bank
UBA
Diamond Bank
Oceanic Bank
Access Bank
Ecobank
Skye Bank
GTBank and Zenith Bank
emerge as the most
frequently rated banks
658
661
997
1016
1443
200 400 600 800 1000 1200 1400
Rating Frequency
359
521
565
1076
1361 197
183
177
Rating Frequency

The Key to Sustaining Customer Confidence
Redefining customer value is going beyond planning, to delivering good customer
satisfaction levels across all the customer segments. It involves assessing
customers' perceived values and their relative importance and determining how
best a bank should position itself to deliver services that match customers'
perceived value in order to gain a competitive edge. To redefine customer value, a
bank needs to:
Profile Customers:
Identify Value Elements:
Spot High Value Customers:
Develop Delivery Strategies:
Conclusion
Careful profiling and need analysis of the banks customers'
base will reveal certain customer idiosyncrasies, behavioural patterns or life style
choices, which may prove invaluable towards the development of specific
products and services as well as target marketing.
Good market insight and a clear understanding of
customers' value elements will enable a bank to define the value elements
which will be the basis of the offering to each customer or market segment.
Understanding the needs of customer will assist
the bank to rethink its assessment of the most profitable customer segments. A
balanced view of the customer needs, attraction and retention cost, value
elements and satisfaction drivers will reveal the most valuable customer
segments and set direction for formulating strategies for specific customers or
customer segments.
Strategies will need to be defined in detail to
deliver higher satisfaction levels on the identified value elements and customer
needs. Value elements may vary significantly across locations and the bank
should be mindful of these often marked differences when developing products
and new ways of providing customer service.
As the Nigerian economy slowly recovers from the effects of the economic
downturn, customer attitudes and behaviours will continue to change thus implying
shifting needs and values. Banks that rely on old customer service delivery models
and assumptions may suddenly realise that they are competing in a market that has
evolved beyond their reach. On the other hand, banks that continuously realign their
business strategies in line with the emerging customer needs may not only retain
their existing customers, but also gain unique competitive advantages in the
industry.
Redefining Customer
Value in a rapidly
changing world:
4
Today, banks that will win must
be able to continuously reassess
and redefine what constitutes
value to their customers and
deliver each and every time.

Beyond Financial Stability, banks must continue to deliver value
Again, this year's edition of the BICSS indicates that customers value financial
stability and excellent customer service above all other factors when making
informed decisions on their banking relationships.
These two factors represent building blocks for banks to continually explore
avenues of sustaining and improving the satisfaction levels of their customers. This
requires banks to constantly redefine their service delivery strategies to enhance
the value of satisfaction factors relevant to their customer base.
“Pricing,” the surprise for the SME and corporate segment
Surprisingly, whilst “pricing” as a factor on its own does not determine overall/
absolute customer satisfaction, it has featured very prominently as a critical buyer
value for the SME and Corporate segments in this year's study. Customers across
these segments are asking for more competitive rates in interest, fees and the
other changes, beyond any other value.
Who will lead the Pack
The survey findings over the past 4 years, reveal opportunities for Nigerian banks to
identify and create sources of competitive advantage.
Banks that will break out as leaders in each segment, i.e. retail, corporate or SME,
must develop new strategies aimed at far surpassing or improving current levels of
satisfaction.
Conclusion
Beyond Financial Stability,
Service Delivery is Key
5

The key
to success
Moving
Customers’
to Centre Stage
market wants as opposed
to what they can produce.
The results of our 2010
Customer Satisfaction
Survey confirm again that
service delivery is the
most important factor that
customers look for to build
a lasting relationship with
any bank. Customer
service is critical to
building competitive
advantage in the industry,
achieving lasting
profitability in an up market
and retaining market share
in a down economy.
Service Delivery -
a competitive
advantage.
The changing nature of the
customer and the impact
of an unpredictable
business environment
converge to produce a
platform of constant
change that banks need to
be aware of, monitor and
respond to with dynamic
marketing strategies.
It is now more important
for banks to focus on
product innovation as they
increase their customer
centricity, and reposition
their services to deliver
what they believe the
© 2010 KPMG Professional Services, a partnership registered in Nigeria and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. Printed in Nigeria.

2010 KPMG Nigeria Banking Industry Customer Satisfaction Survey

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