2012 KPMG Nigeria Banking Industry Customer Satisfaction Survey

ISSUE SIX
2012 Banking Industry
Customer Satisfaction
Survey
May 2012
kpmg.com

About this Survey
HowYou Should Read and Interpret this Survey Report and its Findings
In reading this report, you should bear the following factors in mind:
1. This is a perception study
• This survey focuses on the perceived quality of customer service delivery by the banks from the customer’s per-
spective across the Retail, Corporate/Commercial and SME segments).
• This survey does not represent the opinion of KPMG on the skills, capabilities or performance of any of the banks
covered.
• KPMG conducts the survey, but findings represent the opinions of the customers of the banks.
• KPMG is responsible for defining the survey questionnaire administered to the respondents.
This survey does not seek to establish anything as absolute fact (as perceptions are by definition subjective), but to report
on the feelings and broader perceptions of customers with respect to services provided by their banks. The rankings are
solely based on the feedback received from the survey.
2. Perception is never balanced or fair, but the study always has a representative sample size.
• Banks rated in the survey vary by size, service offerings and customer profile. Respondents in the survey are asked
to rate their banks on a selection of key criteria across five factors detailed below.
• The minimum number of respondents required for each bank in the survey guarantees that the bank ratings reflect
the opinion of a representative customer group and not the opinions of individuals.
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Methodology
The Customer Satisfaction Index (CSI) used to rate the banks is composed of five key factors - Convenience,
Product/Service Offering, Transaction Methods and Systems, Pricing and Customer Care.
• Convenience measures accessibility &
quality of service from delivery channels.
• Customer Care measures interaction of
the bank and its staff with customers.
• Transaction Methods & Systems
measures customer support processes/
systems including turnaround time.
• Pricing measures fees, charges and rates
on products and the perceived value.
• Product/Service Offering measures
product range & appropriateness to the
customer’s needs.
S x I
I
S= Satisfaction
I = Importance
Pricing
CSI =

Contents
Foreword
Survey Highlights 4
Detailed Findings 6
Through the Eyes of the Customer 16
Takeaways 27
Demographics 28
© 2012 KPMG Advisory Services, a Nigerian partnership, member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’), a Swiss entity.
All rights reserved.

5 | Banking Industry Customer Satisfaction Survey 2012

Banking Industry Customer Satisfaction Survey 2012 | 6
Foreword
I am pleased to present the 2012 edition of our
annual Banking Industry Customer Satisfaction
Survey. A number of changes were introduced this
year to broaden the scope of the survey and further
enrich the quality of responses across the retail, SME,
and commercial/corporate segments. Over 10,000
retail banking customers and more than 2,000 SMEs
and large corporate organisations in Nigeria responded
to questions on their preferences, levels of satisfaction
and expectations from their banks.
Since our first survey in 2007
, we have witnessed a marked evolution of the
customer. This year’s survey reveals an overall increase in satisfaction levels
of retail and SME customer segments – albeit still below the pre-financial crisis
levels – while overall satisfaction fell in the corporate segment. With the evolv-
ing banking landscape - largely driven by regulation - still very much a subject of
national discourse; about half of retail customers still cite Financial Stability as the
prime reason for maintaining their banking relationships.
As technology continues to redefine how customers interact with each other and
their financial services providers, we have broadened the scope of the survey to bet-
ter understand customer preferences and attitudes towards traditional and alternate
channels. Our survey confirmed the ATM as the fastest growing channel; more than
half of customers visit an ATM on a weekly basis. However, the level of adoption of
other alternate channels is still relatively low.
At KPMG, we believe these alternate channels will all gain traction as they offer exciting
and promising opportunities for both banks and their customers. However, there is a need
for banks, the industry regulator and other key stakeholders to address customer concerns
identified in this report and in some cases review the delivery approach to optimise these
channels. We also expect the branch to continue to remain a key channel but anticipate the
distinctions between branch and alternate channels to continue to thin thus creating oppor-
tunities for banks and financial services providers in general to deliver seamless multichannel
experiences to their customers.
Our survey also demonstrates that customers are increasingly sensitive to service quality and as
customer confidence in the industry increases, the likelihood of switching is expected to increase.
Hence, the time is now for banks to go beyond customer service to building customer loyalty and
advocacy.
I hope you find the survey results helpful and welcome feedback or suggestions for next year’s
survey.
Bisi Lamikanra
Partner & Head
Management Consulting
© 2012 KPMG Advisory Services, a Nigerian partnership, member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’), a Swiss entity.
All rights reserved.

Survey Highlights
Mixed Results
The survey results revealed increased satisfaction in the
retail and SME segments driven largely by satisfaction
with service delivery through channels and customer
care. On the other hand, overall CSI fell in the corporate
segment; a significant number of corporate customers
expressed displeasure with the ability of banks to meet
their needs.
Maintaining Relationships
Across all segments, Financial Stability remains the most
important factor customers consider in choosing to main-
tain a banking relationship. However, of note is that in the
retail segment, customers are more likely to switch banks
because of Service Quality not Financial Stability.
© 2012 KPMG Advisory Services, a Nigerian partnership, member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (‘’KPMG International’’), a Swiss entity. All rights reserved.

Adoption of Alternate Channels
Remains Low
While majority of our respondents had used at least one
alternate channel, overall adoption remains low except for
ATMs. Specifically, only 7% of respondents use internet
banking; POS - 6%; telephone banking - 5%; mobile pay-
ments - 2%; compared to ATM - 82% and branch - 97%.
Strong Call for Industry
Specialisation
Nine-in-ten corporate respondents highlighted customer
relationship managers’ knowledge of their industry and
ability to provide alternatives as being very important to
them. However, there was consistent feedback from re-
spondents that banks could perform better in this area.
Strong knowldege of the customer’s business ranked as
the highest service expectation of corporate respond-
ents. Indeed, 66% of those organisations who said they
would not increase transactions with their banks were not
satisfied with the ability of their relationship managers to
present them with useful advice.

Over the past five years, we have witnessed many initiatives by
banks to engage better with customers and our findings suggest that
customers are responding to some of these initiatives evidenced by
the 3-percentage point increase in the banking industry's overall cus-
tomer satisfaction recorded this year in the retail segment.
Detailed Findings

Top 10 Most Customer Focused Banks (Retail) Top 10 Most Customer Focused Banks (SME)
Retail and SME banking customers
responding to new initiatives
GTBank emerged as the most customer
focused bank with a CSI rating of 77
.9 in
this segment, while last year’s leader Ze-
nith Bank, came in second with a rating
of 77
.6. Both banks showed significant
improvements in overall customer satis-
faction levels by an increase of three and
two percentage points respectively from
last year’s ratings.
This year’s survey also reveals some
first-time entrants in the top ten – Stand-
ard Chartered Bank and Sterling Bank
secured the sixth and ninth positions
respectively. The gap amongst the top
ten has also narrowed from six to four
percentage points highlighting increased
competition.
In the SME segment, GTB also led the
pack with Zenith Bank coming a close
second followed by Standard Chartered
Bank, Stanbic IBTC and Access Bank
respectively. Overall CSI for this segment
increased by nearly five percentage points
from last year, driven largely by respond-
ents’ satisfaction levels with service
delivery through channels and customer
care. However, about four-in-ten SMEs still
indicate difficulty in accessing short-term
credit from banks.
FIVEYEAR SNIPPET
• In the retail segment, GTBank has maintained the top position
since 2008, except in 2011 when Zenith held the top spot. Other
banks that have featured consistently in the top ten are Diamond,
Access, and Stanbic IBTC.
• In the corporate segment, Zenith emerged in first place in 2008
and 2009 while GTBank has maintained first place since 2010.
Other banks that have featured in the top ten every year since
2008 are First Bank and Diamond Bank.
GTBank
Zenith
Stanbic IBTC
Diamond
Fidelity
FCMB
Standard Chartered
FirstBank
Sterling
Access
Industry Average
GTBank
Zenith
Standard Chartered
Stanbic IBTC
Access
FCMB
FirstBank
Diamond
Sterling
Ecobank
Industry Average
77.9
77.7
73.1
73.3
73.9
74.4
74.8
75.0
75.7
76.1
79.1
74.5
74.9
78.4
78.3
78.2
76.0
75.7
75.7
75.1
79.0
75.0 77
.0
73.0
71.0 80.0
76.0 78.0
74.0
73.0
72.0 75.0 77
.0 79.0
78.0
76.0
74.0
72.0
70.0

In the very competitive banking landscape, differentiation is difficult to
achieve on many fronts. However, banks that will be successful in the
corporate market will need to leverage the latest technologies to deliver
practical, convenient and seamless alternatives.
“ “
Banks find corporate organizations
hard to please
Overall CSI in the corporate segment this
year fell by nearly six percentage points
to 68.7 reflecting dissatisfaction in the
levels of service delivery from a signifi-
cant number of commercial/corporate or-
ganizations surveyed. From the different
interviews we conducted, the message
is clear: corporate customers expect
banks to provide higher levels of reliable
service and support their businesses
throughout their entire value chains.
About half of all corporate respondents
were either dissatisfied or indifferent
about their banks’ ability to support their
business needs. When probed further,
respondents expressed concern about
their relationship managers’ understand-
ing of their industry highlighting the need
for deep industry specialization within
banks.
While banks may face regulatory
constraints that affect their degree of
flexibility in interacting with corporate
clients, customers expect their banks to
demonstrate innovation that anticipates
evolving regulation and their business
needs. Respondents would like to see
more user-friendly internet banking ser-
vices and seamless transaction process-
ing across channels. Corporate custom-
ers also appear increasingly unwilling to
conduct transaction-type activities from
the branch.
CSI Ratings per Industry (Commercial/ Corporate)
Building, Construction & Real Estate
Food Beverage &Tobacco
Services
Conglomerates
Manufacturing
Oil & Gas
Agriculture
Non-Bank Financial Services
Transport & Logistics
Hospitality
Maritime
Healthcare
Aviation
Educational Institutions
Media, Advertising & Publishing
ICT
Industry Average
71.0
70.9
71.0
70.8
70.3
70.0
69.9
68.9
68.9
68.9
68.5
68.8
68.2
67.6
66.6
62.8
72.0
60.0 64.0 68.0
GTBank
Zenith
FirstBank
Sterling
Diamond
Skye
UBA
Stanbic IBTC
Access
StanChart
72.5
Industry Average
71.3
70.2
67.8
67.8
68.2
68.3
68.3
68.4
68.6
60.0 80.0
75.0
70.0
65.0
Top 10 Most Customer Focused
Banks (Commercial/ Corporate)

In recent times, regulatory changes have
been at the forefront of the Nigerian
financial services industry with initiatives
such as the cashless society drive. These
initiatives have directly impacted the
relationships of banks with their cus-
tomers. Some respondents expressed
dissatisfaction at the approach taken by
some banks to migrate them to alternate
channels such as the introduction of
withdrawal charges prior to the com-
mencement of the CBN initiative.
Our findings reveal yet again that Finan-
cial Stability (27%) remains the lead-
ing factor for most retail customers in
maintaining their relationships with their
banks followed by Excellent Customer
Service (23%) and the bank’s Image and
Reputation (18%). About one in ten retail
customers also noted Proximity of Alter-
nate Delivery Channels as a key factor.
Feedback from retail customers also sug-
gests some measure of anxiety in light
of recent regulatory interventions.
Hence, banks will need to continue to
reassure customers and ensure they
remain informed; while some banks also
need to go further to rebuild trust with
their customers. Our findings also reveal
that customers perceive the bank’s image
as a more important factor in the banking
relationship than pricing of bank products.
In the same vein, SMEs and corporate
organisations also ranked Financial Stabil-
ity as the primary reason for maintaining
their banking relationships. The main
reason corporate customers continued
their banking relationship was based on
Excellent Customer Service in 2008,
however it has been Financial Stability
from 2009.
Since the onset of the last financial crisis, customer confidence has been waning around the world and Nigerian banks are
not exempt from this trend. As the dust settles from the recent industry shake-up, many customers can be forgiven for
remaining cautious about their finances and banking relationships. Some of the customers surveyed are in the process of
seeking or have already sought to diversify perceived risks in the banking sector by opening an account with an additional
bank or switching to another bank entirely. Here are a few suggestions on how banks can regain the trust of their customers.
Financial
Stability
Customer
Service
Image &
Reputation
Proximity of
Branches
Access to Other
Channels
Top Reasons for Maintaining Banking Relationships
Financial
Stability
Customer
Service
Image &
Reputation
Proximity of
Branches
Relationship
with Bank Rep.
Bank’s Support
of Business
Financial
Stability
Customer
Service
Image &
Reputation
Bank’s Support
of Business
Relationship
with Bank Rep.
Reasonable
Charges
27%
23%
18%
12%
9%
26%
18%
11%
5%
19%
5%
29%
10%
10%
6%
23%
5%
Retail SME Commercial/
Corporate
Financial stability
remains key
RELATIONSHIP ISSUES
Increase transparency
Banks have long been associated with
hidden charges and complex products.
However, customers expect banks to
deal more transparently especially in
the areas of pricing and fees - with no
surprises. Only then will banks be seen
to be acting in the best interest of their
customers.
Renew your customer value
proposition
Some of the recent changes in the indus-
try - mergers, acquisitions and regula-
tory interventions - have reshaped the
identity of some banks in the mind of
the customer. It is imperative for banks
to refresh their value propositions to pro-
vide clarity in the minds of customers.
Cultivate a customer-focused culture
A culture that prioritises the customer
will do more to gain trust than one which
only advances profitability targets. Right
from recruitment, banks must ensure
that their people have a strong desire
to deliver great service. Further invest-
ments must also be made in the form of
training and work exposure to empower
staff to deliver first-class customer
service.
RegainingTrust

Branching out
Ensuring that customers have ease of ac-
cess and readily available channels to use
is an integral step towards guaranteeing
the convenience of delivery channels for
the customer. With customers getting
used to shorter turnaround times and
the immediacy offered by technology
devices, they are also demanding similar
levels of speed and convenience from
banks.
Increasingly, channels must provide full
functionality and maintain high levels of
reliability and availability to meet custom-
er expectations. Customers want to be
able to process near- instant transactions
from their mobile devices and comput-
ers from the comfort of their homes or
workplaces.
As they migrate to these self-service
channels such as ATM, internet and
mobile--, banks are also presented with
the opportunity to leverage technology
to deliver efficient and more personal-
ized services.
CONVENIENCE
TopThree Banks by CSI Rating - Convenience
Rank Retail
Zenith Standard Chartered GTBank
GTBank Zenith Zenith
Diamond GTBank FirstBank
SME Commercial/
Corporate
1
2
3

Retail banking respondents rated Zenith
Bank highest in the area of convenience
followed by GTBank and Diamond Bank
with CSI ratings of 79.0, 77
.5 and 76.3
respectively. Zenith and GTBank main-
tained their positions from last year but
Diamond Bank replaced Fidelity Bank in
third position.
Nonetheless, it is apparent that more
progress is required in the ease of ac-
cess to alternate channels. Satisfaction
levels with mobile banking, internet
banking, and call centre services were
rated comparatively low – in the high 50s
and low 60s - whereas satisfaction with
ATMs was over 80%.
The convenience CSI in the SME seg-
ment was slightly higher than retail as
Standard Chartered Bank moved into first
place with a rating of 80.1 – an 8-per-
centage point increase from last year.
The satisfaction levels for the availability
of channels were generally higher for
SME in comparison with retail, except
for the POS which had 60% satisfaction.
Some of the issues highlighted with the
POS include frequent network unreli-
ability/ downtime causing challenges in
completing transactions for merchants
and customers.
FIVEYEAR SNIPPET
• Convenience reached its lowest point this year in the corporate segment in
a reflection of higher expectations from respondents. In the retail segment,
convenience has declined from its peak in 2009.
• For the first time, the industry average for convenience was the lowest of
all the five CSI factors in the corporate segment.
• In the corporate segment, Zenith Bank has emerged in first position in
three of the last five years.
TopThree Banks by CSI Rating - Channels (Retail)
Rank Branch ATM Internet Contact
Centre
Mobile
Banking
Zenith Zenith Stanbic
IBTC
Stanbic
IBTC
Standard
Chartered
Standard
Chartered
Diamond GTBank
ETB
Zenith
GTBank
FirstBank Diamond GTBank
Sterling
1
2
3
In the corporate segment, only three-in-ten
customers were very satisfied with the
quality and availability of internet banking
and contact centre provided by their banks.

Alternate channels: yes, but
what do they mean?
Q. How often do you use the following channels?
All Age Groups
Channel Usage
Branch
ATM
POS
Internet Banking
Mobile Banking1
Contact Centre
Mobile Payments2
100%
80%
60%
40%
20%
0%
Weekly At least once every 2 weeks Once a month Rarely Never
Only 7% of respondents
use internet banking;
POS - 6%; telephone
banking - 5%; and mobile
payments - 2%.
1
Mobile banking allows customers to use their applications on mobile phones as another channel for their banking
services such as deposits, withdrawals, account transfer, bill payment, and balance inquiry.
2
Mobile payments involve the use of mobile phones toinitiate and confirm payments between two parties.
It’s no longer news: the ATM has been
the fastest growing channel in Nigeria in
recent years, a reflection of the ubiquity
of ATMs in many cities. Almost eight-in-
ten customers surveyed use the ATM
and nearly two thirds of these people
visit an ATM on a weekly basis. It should
come as no surprise that cash withdraw-
als and balance enquiry are the most
common transactions customers would
like to perform via the ATM.
However, despite the proliferation of new
channels in recent years, our findings
show that adoption of other alternate
channels is still low. Only 7% of respond-
ents use internet banking, POS (6%),
telephone banking (5%) and mobile pay-
ments (2%). Although, customers would
like to use some of these alternate
channels for transactions such as bill pay-
ments and getting financial advice, the
uptake is not as high as expected and
some still remain oblivious of the value
proposition that these channels provide.
Banks cannot afford to take for granted
customer awareness of channels avail-
able to them. For instance, of all retail
respondents surveyed, only 33% of
private sector employees and 15% of
students use internet banking. Banks
still need to continue to communicate
and reassure their customers of the
available services and benefits associ-
ated with the use of these channels.
Banks must also seek to address the
concerns or reasons for scepticism on
the part of customers such as concerns
about the level of security provided on
online banking platforms.
The significant adoption of the ATM
suggests that the potential of the other
emerging channels such as internet
banking and mobile payments can be
realized.

Coupled with the rise of ATM usage,
there has been a decline not just in
the usage of branches but also in the
preference of the branch for carrying out
transaction-type activities like withdraw-
als. Less than half of respondents identi-
fied the branch as a preferred method for
cash withdrawal.
In line with trends in other mature
markets, people aged under-30 account
for about 45 percent of internet banking
users while people aged 55 and over
account for only 3 percent of all mobile
banking users. As expected, the most
common mobile banking activities are
balance enquiry and funds transfer.
Contrary to the belief that older people
tend to visit the branch more often, our
survey revealed that a similar number
of people above 55 that visit the branch
also use the ATM several times a week.
Across the different locations, the survey
reveals that Lagos and Kaduna customers
(9%) use internet banking more than any
other location. Lagos and Abuja custom-
ers reported the highest use of telephone
banking (7%) while nine out of ten custom-
ers in Ibadan use the ATM – the highest for
any location.
The opportunity for banks in the area of alternate channels is widely acknowledged: Nigeria has a large unbanked
population and widespread mobile phone penetration across income groups. Understandably there are socio-eco-
nomic realities for banks to contend with, however, the survey results suggest that banks are failing to sufficiently
leverage the potential offered by these channels to drive satisfaction, convenience and the cost-to-serve.
Deepen customer segmentation
A broad roll-out of alternate channels is
not a guarantee for reducing costs and
driving operational efficiency. As a matter
of fact, many banks in mature economies
are yet to fully realize the benefits. We
suggest that by looking through the eyes
of the customer to understand their needs
and preferences, banks can effectively
define unique customer segments and
appropriate value propositions beyond
the traditional classifications. There is also
need to invest in IT-driven business intel-
ligence to harness customer information
to aid understanding of customer behavior
and expectations.
Deliver clear messages
In communicating the value proposition
of various channels available to custom-
ers, banks must be careful to ensure that
the relevance, benefits, security and most
importantly how-to-use information are
targeted at different customer demograph-
ics. Generic and irrelevant communication
does little to drive customer value and
increases costs instead. Communica-
tion efforts must take into account how
different customer segments respond to
information.
Target seamless multichannel
integration
As demonstrated in the survey results,
many customers already use multiple
channels hence banks need to integrate
these channels to deliver seamless
channel experiences for customers. For in-
stance, there are opportunities to integrate
contact centres with internet banking such
that customers experiencing difficulties
can get immediate solutions. Delivering
seamless customer experience will also
require a paradigm shift from ‘silo-based’
approach to customer management to an
enterprise approach. It will require signifi-
cant investments in IT but also provide op-
portunities for cross-selling and deepening
customer relationships.
Reconceptualise the branch model
As more transaction-type activities are
migrated to other self-service channels,
we expect the role of the branch to evolve.
Currently, most banking distribution mod-
els are designed around the branch but
as more channels emerge, the branch will
become one of many other channels. This
represents an opportunity for branches
to reconceptualise their branch models -
from layout design to staffing – to ensure
optimization and improved delivery of
customer experience.
However, branch optimization needs to
start with an articulated customer strategy
and customer segmentation that is insight-
ful and pragmatic. This would require a
full dimensioning of customer, channel
and product profitability – challenging the
financial management and cost allocation
practices of banks today.
Optimising the alternate channel opportunity
Weekly Usage of Banking Channels by Persons Aged Under 30
ATM
Branch
Internet Banking
Mobile Banking
POS
65% 29% 3% 2% 1%

Through the
eyes of the
customer
If your bank’s social media strategy is not
built around the customer experience,
then there is a good chance that it is go-
ing to fail.
That is because – more than any other
banking channel – social media is all
about the customer experience.
However, taking a customer centric view
is not going to be easy for most banks.
In part, that is because banking commu-
nications have traditionally been either
one-way (advertising, direct mail, state-
ments, etc) or one-on-one (customer
service, branch banking, telephone bank-
ing, etc). As a result, many banks may
be unprepared for the changes that must
occur to make social media strategies
succeed.
Walking in the customer’s
shoes
Let’s take a look at how an average cus-
tomer might view interactions with their
bank over social media. First, they proba-
bly only want to deal with one ‘company’
profile rather than multiple divisions. For
banks, this means developing a ‘single
view’ of the customer so that frontline
social media employees are able to
serve customer needs efficiently across
the various divisions and businesses.
Customers will expect their banks to
be responsive to their needs over social
media. Given the immediacy of social
media tools like Twitter, customers have
come to expect that their social interac-
tions will elicit an immediate (or at the
very least, rapid) response. This has two
implications for banks: frontline staff
will need to be empowered to make
immediate decisions; and information
will need to be available in real-time for
employees to properly address cus-
tomer concerns.
Building relationships based
on trust
Most importantly, however, is that
customers will expect their banks to be
more transparent in all of their interac-
tions over social media.
This not only means providing customers
with more information, it also requires the
bank to be open to criticism – even encour-
age it – in order to provide a better custom-
er experience. This will call for something
of a culture shift within the bank that must
start at the top and permeate down to the
frontline staff.
Building a community
They will also expect to gain some unique
value from engaging with their bank over
social media. In some cases, this may
simply be a better customer experience
or faster response time. But it may also
offer banks an opportunity to differentiate
Banks all over the world are playing catch-up on the ever-evolv-
ing social media front where many customers are savvy. How
can Nigerian banks leverage this platform successfully?
“More than any other
banking channel, social
media is all about the
customer experience.”

themselves.
Banks may consider the ‘gameification’
of financial services (for example, a
tool that allows customers to play with
different investment scenarios), or even
incentivization (say, providing a better
rate to customers who apply through
social channels).
More active social network users may
also welcome a ‘community’ aspect to
the bank’s offerings. In fact, this may pro-
vide one of the biggest opportunities for
banks: experience in the telecommunica-
tions industry shows that peer-to-peer
customer support can generate not only
significant cost savings for companies,
but also provide faster (and sometimes
more personal) issue resolution.
What’s more, those customers that pro-
vide peer support are more likely to be
advocates of the bank and may be har-
nessed as net promoters in the future.
But banks will also need to remember
that customers can be fickle. New chan-
nels and services will certainly emerge
to enhance (or even replace) existing
networks, even as customer expecta-
tions become more sophisticated.
Clearly, taking a customer-centric view
of social media is going to be a long-
term strategy.
“Customers will expect
their banks to be more
transparent in all of
their interactions over
social media.”
Marty Carroll
marty.carroll@kpmg.co.uk

Using the Transactions, Methods, and
Systems (TMS) component of the CSI,
we assessed customer satisfaction
with quality of information provided and
turnaround time of transactions at banks.
Retail respondents ranked Zenith Bank
highest ahead of other banks.
Overall, retail respondents expressed
highest levels of satisfaction for transac-
tion, methods and systems in a nod to
numerous efforts by banks to address
waiting times in banking halls. Progress
needs to continue, however, as typical is-
sues such as long queues, difficult-to-un-
derstand information and lack of prompt
feedback from bank staff still remain.
In the corporate segment, GTBank
secured first place with a rating of 78.5
followed by Zenith and First Bank. For
the fourth year in a row, the CSI for
TMS has the highest industry average at
74.0, although the average has been on
a decline since 2010 when it was 80.5.
Satisfaction with information provided
on bank statements and advice slips
remained unchanged from last year –
nearly nine-in-ten respondents for both
years were satisfied with the accuracy
and completeness of those documents.
Faster please!
TRANSACTIONS, METHODS & SYSTEMS
FIVEYEAR SNIPPET
TopThree Banks by CSI Rating -Transactions Methods & Systems
Corporate
• Customer satisfaction with timeliness of transaction processing across all segments has
increased significantly over the last five years.
• Since 2009, the Transactions, Methods and Systems (TMS) factor has recorded the
highest industry average rating (in the corporate segment) out of the five components
annually.
• Over the last five years, Zenith and GTBank have achieved a place in the top three every
year in both segments.
Q. How satisfied are you with the timeliness of transactions?
A. Very Satisfied
Satisfaction with transaction processing
26%
44%
26%
40%
37%
37%
2011 2012
Rank Retail
Zenith GTBank GTBank
GTBank Zenith Zenith
Stanbic
IBTC
Stanbic
IBTC
FirstBank
SME Commercial/
Corporate
1
2
3

In recent years, banks have made sig-
nificant strides in the area of customer
care. In this period, customer care has
evolved from the single service desk in
the bank branch to full contact centres
with tens or hundreds of staff answer-
ing phone calls and resolving diverse
queries. Much of it remains reactive; to
meet customer expectations and deliver
a compelling customer experience,
banks need to be proactive in this area.
As customers interface with staff and
different touch points, banks need to
be able to identify the key moments of
truth for their customers. For instance,
by identifying the different stages of a
customer’s visit to the branch, a bank
can ensure it adequately engages the
customer at each stage (including queu-
ing) such that the customer leaves with
a positive experience at each point. By
proactively anticipating customer needs
and offering suitable alternatives, banks
can also deliver fulfilling experiences to
customers.
There is also a need to invest in equip-
ping staff with the right tools and
knowledge to communicate clearly and
demonstrate sufficient knowledge of
the bank’s offerings or the customer’s
situation/ business. Indeed, nine-in-ten
Zenith Bank and GTBank demonstrated
strong performance in the retail segment
with CSI ratings above 80 – the only ratings
above 80 in this year’s survey in any retail
CSI category. There has been a general
increase in customer care satisfaction this
year. For example, more than 80% of retail
customers are satisfied with staff knowl-
edge and understanding of the bank’s
products and services.
For the SME segment, GTBank emerged in
first place followed by Stanbic and Zenith
respectively. The customer care service
area received the highest industry average
amongst the five components of the CSI.
Moreover, more than half of SME custom-
ers were very satisfied with staff friendli-
ness.
In the corporate segment, Zenith main-
tained first place from last year with a
two-percentage point increase. Although
the customer care CSI increased from last
year, there was a noticeable decrease in
certain areas of satisfaction. For instance,
respondents were less satisfied with
the bank’s ability to proactively provide
services to meet the company’s changing
needs. This year, 73% of respondents were
satisfied compared to last year’s 81%.
Making it a strategic priority
CUSTOMER CARE
FIVEYEAR SNIPPET
TopThree Banks by CSI Rating - Customer Care
• Satisfaction with response to enquiries was at its highest this year for the retail
segment.
• Nearly all respondents over the last five years have indicated the very strong
importance of the ability of banks to proactively provide services that meet
changing business needs, yet this element has consistently recorded the lowest
satisfaction level each year.
Rank Retail
GTBank GTBank Zenith
Standard
Chartered
Stanbic
IBTC
GTBank
Zenith Zenith FirstBank
SME Commercial/
Corporate
1
2
3
Don’t sit like a lame duck, ask how
you can help our business!
“
“
- Senior representative of
a leading ICT company
corporate respondents highlighted cus-
tomer care issues such as their relation-
ship managers’ knowledge of their indus-
try and ability to provide alternatives was
very important to them.
66% of those organisations who said
they would not increase transactions
with their banks were not satisfied with
the ability of their relationship managers
to present them with useful advice. Over
seven-in-ten (75%) of the same organiza-
tions said their banks did not sufficiently
update them on market trends.
In the retail segment, 83% of retail re-
spondents who were planning to switch
banks said they were not very satisfied
with handling of enquiries and com-
plaints by their banks.

Delivering the product difference
PRODUCTS & SERVICES
What is required to achieve improved
product and service offering is strong
product management. A key element
of product management is to manage
the products offered through customer
segmentation.
Tailoring services and products to the
needs of a specific type of customer,
instead of a generic offering for a broad
category of customers will give custom-
ers a better impression of the bank’s
ability to understand their needs.
As customers consolidate payment rela-
tionships and embrace electronic forms
of payments, banks become exposed
to greater competition from non-bank
financial services providers with the
consequent impact on margins. Mobile
solutions, for instance, are bound to
allow new entrants capture part of the
payment value chain.
Indeed, of the retail respondents who
stated they would not recommend their
bank to others, 46% expressed dis-
satisfaction or indifference towards the
bank’s ability to provide products and
services that meet their needs. Particu-
larly, customers in all three segments
cited product and service suitability as
very important to them ahead of other
questions asked in this area.
Moreover, product and service offerings
can be further improved through the
provision of value added services that
respond to customer needs, particu-
larly that of convenience. Such services
include those that utilize electronic
alternatives to reduce the extensive
use of paper trails to complete transac-
tions and even shorten the completion
timeframe. Of those who expressed
dissatisfaction/indifference towards the
convenience of products and services,
60% of corporate customers felt that
there was little innovation to anticipate
their changing needs.
In the retail segment, the CSI ratings for
the top three banks were higher than
last year; the top two banks recorded
a six-percentage-point increase. When
asked for their level of satisfaction on
mortgage facilities, only 5% of re-
spondents provided responses perhaps
reflecting the underdevelopment of the
mortgage industry in Nigeria. More than
seven out of ten respondents expressed
some degree of satisfaction with funds
transfer services provided.
Within the SME segment, GTBank
received a rating of 79.4 to emerge in
first place, followed by Stanbic which had a
rating of 78.2, and Zenith rounding up third
position with 77
.5. Only 29% of respond-
ents were very satisfied with the loan prod-
ucts available to them. This is an increase
from last year, where 23% of respondents
were very satisfied.
In the corporate segment, GTBank came
in first place for the third year in a row with
a rating of 71.6. Zenith and First Bank had
ratings of 70.3 and 69.7 respectively. With
respect to the facilities provided by banks,
corporate respondents showed the least
amount of satisfaction for short and long
term credit with only 21% and 19% of re-
spondents respectively claiming to be very
satisfied with the loan facilities they had
received. This is a sharp decline from last
year where 36% of respondents were very
satisfied with short term credit and 34%
were very satisfied with long term credit.
It is no longer simply a question of the different products offered by the bank, but also a question of
the suitability of the product being offered. Is it relevant to the customer’s needs? Is it readily acces-
sible and/or has adequate guidance been given to explain the use of the product or service?
TopThree Banks by CSI Rating - Products & Services
FIVEYEAR SNIPPET
• The industry average for product and service offering CSI (retail) climaxed at 75.2 in
2009, however, it plummeted by 12 percentage points the following year. Since then it
has been on the rise, reaching 73.2 in this year’s survey.
• In the corporate segment, this year’s CSI for product and service offering has been the
lowest obtained over the last five years at 67
.7
.
Rank Retail
GTBank GTBank GTBank
Zenith
Fidelity Zenith
FirstBank
Stanbic
IBTC
Zenith
SME Commercial/
Corporate
1
2
3

Delivering targeted enhanced banking services
There is a great opportunity for Nigerian banks to de-
liver compelling experiences to corporate customers by
adequately supporting their businesses throughout their
financial supply value chain.
Currently, the approach to product development is usually
reactive and product-centric as opposed to customer-
focused. Banks must strive to understand the underly-
ing processes behind a customer’s physical (movement
of goods) and financial supply value chain, understand
pain-points and issues faced in addressing their financial
service needs and as such develop or provide enhanced
automated banking products/ solutions that is integrated
with the customer’s financial value chain. This is key to
delivering value and generating significant income. In
addition, few banks perform extensive customer and/ or
industry segmentation to determine the appropriate mix
of capabilities to drive revenue expansion and tailor offer-
ings to such specific industries.
In other markets, many banks are re-adapting their busi-
ness models such that commercial products are aligned
along customer processes (B2C, B2B, C2B, C2C, etc)
rather than by instruments such as cards or cash. Hence,
payment solutions are strategically designed to compre-
hensively address the financial service needs of all stake-
holders in the economy hence ensuring maximal financial
inclusion of not just customers but transactions.
Corporate customers are interested in improving visibility
of net cash/ liquidity position rather than just payments
and are demanding more efficient treasury management
to optimize working capital and eventually, measurable
value for shareholders.

Getting pricing right
PRICING
While many customers are choosing to
stay with their banks based on the bank’s
perceived financial stability and service
quality, in the end, charges and rates
can still be hard to swallow if they are
perceived as uncompetitive.
Admittedly, effective pricing in financial
services can be difficult to achieve. With
pressures to deliver shareholder value
amidst a tight regulatory environment,
banks often have few options with re-
spect to interest rates, fees and charges.
Risk-based and cost-based approaches to
pricing appear to offer minimal differenti-
ation since they are now common place.
However, by adopting a customer-
focused approach - one that leverages
technology to develop and implement
a pricing model mapped to customer
data, buying patterns and risk, banks can
achieve a balance between profitablity
and customer value. It will also provide
the opportunity to ensure that loyal cus-
tomers are adequately rewarded through
incentives and rightly-priced products.
Although many respondents will prefer to
see lower rates and charges from banks,
less than 20% of SMEs and corporates
expressed outright dissatisfaction with
their banks in this area perhaps reflecting
an awareness of the little differentiation
amongst banks in the area of pricing.
Instead, customers expect banks to
match fees with value provided in the
form of flexibility, transparency, timely
advice and proactive communication.
In the retail segment, GTBank retains
number one position from last year with
an improved CSI of 71.2 while Stanbic
IBTC and FCMB came in second and
third respectively. 67% of retail re-
spondents are generally satisfied with
the cost of maintaining accounts with
the banks, while 54% are satisfied with
the interest rates offered on deposits
and investment products.
Customers in the SME segment were
Q. How satisfied are you with the cost of maintaining banks accounts with your banks?
Satisfaction with Pricing
SMEs Corporates
Dissatisfied
Satisfied
FIVEYEAR SNIPPET
• Over the past five years, pricing has generally been the customer service area
with the lowest rating in the retail segment compared to the other four CSI
components.
• For the first time, pricing did not have the lowest CSI rating in the corporate
segment
• Fidelity and GTBank were the only two banks to rank amongst the top three for
three times in the past five years.
slightly more satisfied than retail regard-
ing account maintenance costs - 69% of
respondents expressed satisfaction. Six-in-
ten SME respondents also expressed satis-
faction with interest rates offered.
With respect to pricing for corporate
customers, Keystone emerged as in first
place. Importantly, overall pricing CSI in
this segment declined by nearly five per-
centage points from last year.
TopThree Banks by CSI Rating - Pricing
Rank Retail
GTBank GTBank Keystone
FCMB FCMB
Union
Stanbic
IBTC
Stanbic
IBTC
Zenith
SME Commercial/
Corporate
1
2
3
11%
20%

Q. Would you recommend your bank to others?
Customer Advocacy
Absolutely Will Often Will Sometimes Will Absolutely Will Not No Response
54% 12% 12% 25%
10% 9%
17%
7% 5%
5%
17% 17%
5%
57% 48%
Corporate
What’s driving loyalty?
LOYALTY
The local banking industry has experi-
enced an extensive and ongoing shift in
confidence which has generally impacted
loyalty. Greater customer awareness also
means that customers are demanding
higher levels of personalised services.
While most customers expressed willing-
ness to continue with their banks, we
found that about half of those who would
like to change their banks have remained
primarily because of their perception of
the bank’s stability. As customer confi-
dence in the banking industry begins to
rise, there is likely to be an increase in
customer switching rates and the as-
sociated costs of acquiring and retaining
customers.
Research shows that up to 90% of
customers do not complain when they
experience a dissatisfier hence by
tackling only the 10% of dissatisfied
who complain—common practice in the
financial services industry— banks are
exposed to significant attrition risk1
.
The impact of loyalty goes beyond the
size of the customer base; customers with
strong loyalty can help business growth
through referrals, recommendations and
increased business. A significant number
of customers use social media on a fairly
regular basis and this readily gives them a
platform to voice their discontent or other-
wise to an audience far beyond the reach
of any bank’s PR.
Hence, the time is now for banks to invest
in moving existing customers along the
loyalty curve into the ‘zone of affection’
where they become advocates for the
1
Operations Council, Corporate Executive Board
My bank’s management team needs to work diligently
and assure customers of their loyalty, train their staff to
be exceptional, only then can they win my confidence.
“
“
- Lagos-based businesswoman

Q. What is your primary reason for changing (or planning to change) your bank ?
Customer Switching
Service Quality
Financial Stability
Interest Rates & Fees
TurnaroundTime for Requests and Enquiries
Proximity of Branches
Others
Innovative Products & Services
Access to Credit
10.5%
8.9%
8.3%
6.5%
5.0%
0.3%
10.8%
49.6%
bank. Building customer loyalty and
advocacy will require commitment and
discipline from the highest levels of the
bank – it cannot be approached as a
one-time project but rather as an ongoing
one that prioritizes improving customer
experiences at all touch points.
For retail customers seeking to switch
banks, the survey reveals service quality
to be the overwhelming reason – about
five-in-ten customers cited this factor.
Other reasons for wanting to switch
were turnaround time (11%) and inter-
est rates (11%). Only 3% of corporate
respondents expressed intentions to
change their banks within the next 3
months – about half cited poor service
quality as the primary reason. The low
switching rate amongst corporates can
be attributed to these organisations
holding multiple banking relationships
and high costs associated with switching
banks.
Generally, customers who have spent
between two to five years with their
banks are more likely to answer that
their banks recognize their loyalty. On the
other hand, just over half of customers
(52%) with more than 20 years of bank-
ing relationships feel their banks recog-
nize their loyalty.

Service Expectations
Understanding the key service areas
where customers would like to see im-
mediate improvements is an integral part
of fulfilling customer’s needs. Knowing
the areas that can be remedied to offer
customers a better banking experience
is key to increasing their satisfaction and
loyalty.
As seen throughout the survey, custom-
ers are expecting banks to deliver faster
transaction processing. When asked how
their bank could improve its services,
many retail respondents identified
“reduction in wait times for transaction
processing and requests” as a primary
area of improvement. This has remained
unchanged as the primary improvement
area since 2010. Of note as well, “friend-
ly, polite and proactive staff” appears as
one of the top three improvement areas
for banks.
The main areas of improvement noted
by the SME segment aligns with those
of retail customers. “Competitive inter-
est rates, fees and charges,
” is also one
of the top three expectations of SMEs.
As discussed earlier, corporate organi-
zations expect banks to demonstrate
stronger knowledge of their businesses.
Organisations that expressed dis-
satisfaction with their banks’ ability to
partner with them effectively were more
likely to suggest improved relation-
ship management and deeper industry
knowledge as ways banks can strength-
en their services.
Majority of retail and
SME customers want
to spend less time pro-
cessing transactions.
Knowledge of the
customer’s business
in the corporate sector
remains a key issue.
Q. How can your bank improve its services?
Corporate Expectations

1
2
3
Takeaways
Deepen knowledge of
the customer’s business
Optimise alternate channels
to reduce wait times
Leverage technology to
provide innovative solutions
across customer value chains

Demographics
Retail Respondents
SME Respondents
Commercial/ Corporate Respondents
Employment Status Gender
Age
Income (Monthly)
Number of Employees
AnnualTurnover Sector
Number of Employees
AnnualTurnover Sector
Male
Under 30
Less than 10
Less than 300
Below N1m
Less than N250m
Below N20,000
Public
41-55
51 - 100
500 – 1,000
500 – 1,000
Greater than N10bn
N5m - N50m
N1bn - N5bn
N101,000 - N250,000
Self-Employed
Greater than N500,000
Retired
Above 55
101 - 250
1,000 – 2,000
N50m - N250m
N5bn - N10bn
N251,000 - N500,000
Student
Others
31 - 40
10 - 50
300 – 500
N1m - N5m
N250m - N1bn
N20,000 - N100,000
Private Female
46% 41% 59%
4%
1%
14%
5%
20%
54%
19%
21%
21%
24%
24%
31%
60%
23%
6%
6%
16% 7%
21%
40%
18%
28%
23%
9%
11%
28%
23%
3%
3%
2%
2%
35%
Manufacturing
Oil & Gas
Commerce & Trade 34%
13%
12%
8%
7%
6%
5%
5%
3%
2%
2%
2%
2%
20%
10%
10%
10%
9%
7%
5%
5%
5%
4%
4%
3%
3%
3%
2%
2%
1%
Food Beverage & Tobacco
Services
Services
Manufacturing
Oil & Gas
Non-Bank Financial Services
Agriculture
Others
Hospitality
Transport & Logistics
Healthcare
Educational Institutions
Transport and Logistics
Food, Beverage & Tobacco
Healthcare
Hospitality
Aviation
Conglomerates
Education
Agriculture
Maritime
ICT
ICT
n = 1,705
n = 405
n = 10,577

Lagos
Ibadan
Ilorin
Kano
Kaduna
Abuja
Port Harcourt
Aba
Onitsha
Benin
Survey Locations
Acknowledgements
We would like to thank the following people for their invaluable contribution to this
survey:
All survey respondents, Communications and Marketing Research Group (CMRG),
Marty Carroll (KPMG in the UK), KPMG Nigeria partners and staff.
The KPMG project team: Wale Abioye, Atinuke Esan, Valerie Nwandu and Oyindamola
Jaiyesimi.
Majority of the surveys were conducted in person
across ten major cities in Nigeria, targeting a mini-
mum number of respondents for a representative
sampling across the 24 banks. Recently merged
banks were measured as separate entities.

For further information about this publication and our services, please contact:
kpmg.com/ng
The views and opinions expressed herein are those of the survey respondents and do not necessarily represent the views and opinions of KPMG.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is
received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a
thorough examination of the particular situation.
© 2012 KPMG Advisory Services, a Nigerian partnership, member firm of the KPMG network of independent firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any
member firm. All rights reserved.
Any trademarks or service marks identified in this document are the property of their respective owner(s).
The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
Designed in Nigeria. Publication name: Banking Industry Customer Satisfaction Survey Issue number: 6 Publication date: May 2012
Contact us
Bisi Lamikanra
Partner and Head
T: +234 704 527 6005
E: bisi.lamikanra@ng.kpmg.com
Ngozi Chidozie
T: +234 704 527 6024
E: ngozi.chidozie@ng.kpmg.com
Bode Abifarin
T: +234 704 527 6485
E: bode.abifarin@ng.kpmg.com
Marie-Therese Phido
Marketing, Knowledge & Communications
T: +234 704 527 6012
E: marie-therese.phido@ng.kpmg.com

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