Agusto & Co Digital Banking Index 2020
Agusto & Co in its third edition of the consumer banking satisfaction index has dissected the level of customer satisfaction towards digital banking channels in Nigeria with Guaranty Trust Bank (GTBank) scoring the highest user experience score.
According to Agusto & Co, mobile banking applications remain the most popular platform for digital banking. The increasing use of mobile banking has also been backed by the growing base of mobile phone users, which has grown by a five-year compound annual growth rate of 6% to 184.4 million as the end of 2019. Approximately 82% of the survey respondents are aware of their respective bank’s mobile banking service while internet banking recorded 57% awareness. The respondents are least aware of WhatsApp and other virtual banking platforms (such as the chatbot service and telephone banking), with only 6% of the respondents indicating their knowledge of these services
The consumer banking satisfaction index reveals customers’ preferences towards digital banking channels on some selected banks in Nigeria. The index which contains a survey and a scorecard, is now available online on https://www.agusto.com/2020-consumer-digital-banking-satisfaction-index-report/ and showcases that the crux of customers’ complaints is customer service delivery.
As revealed by the report, Guaranty Trust Bank (GTBank) Emerges the Best Digital Bank in Nigeria with a user experience score of 74.2. Zenith Bank was the highest-ranked bank in the 2019 edition, with a score of 74.2 but dropped to the 4th position this year (a score of 70.9) due to lower ratings in transaction success rates and troubleshooting & IT support. First Bank of Nigeria ranked second, while Access Bank ranked third. GTBank’s top position was underpinned by comparably higher transaction success rates, which is most crucial in the current ‘COVID-era’. The Bank’s position was also upheld by the significant level of awareness of its digital banking services compared to the other banks in the survey sample.
Agusto & Co also observed that the COVID-19 pandemic has driven an increase in the use of digital channels and created an opportunity to grow transaction income across the various platforms. In addition to benefits to commercial banks, the pandemic has also provided digital banks (also known as FinTechs) with an avenue for growth. The survey also indicates that only 46% of the survey respondents are aware of digital banks.
In addition to the vast digital service offerings provided by banks, Agusto & Co found that there are still several key desired services. These include a chat option with a relationship officer, which was chosen by 67% of the survey respondents. Approximately 39% of the survey respondents would like to have a further breakdown of their bank statements to reflect their spending habits while 31% yearn for a branch/ATM finder option on their bank’s digital platform. Other desired services include additional account opening option, credit card requests and investment advisory.
Senior Analyst, Financial Institutions Ratings at Agusto &Co, Mariam Dabiri says; “As a research and credit rating agency, we seek to provide banks with credible information on how best services can be improved for customers. We believe findings from this Index will provide good insights and suggestions to enhance customer experience. Generally, we believe that there is a need for more dedicated investments in customer service and relationship management to support growing traffic across digital banking channels.”
The 2020 Consumer Digital Banking Satisfaction Survey targeted a focus group of respondents drawn from the formal and informal sectors of the economy. The coverage banks indicated in the survey are the top 10 commercial banks based on the value of total assets and contingents as at 31 December 2019.
To read the full report please click the link below:
About Agusto & Co
Agusto & Co. is an indigenous African credit rating agency and a leading provider of industry research and knowledge in Nigeria with offices in Kenya and Rwanda. The scope of its over 2,000 ratings covers banks, corporate bonds, corporates, finance & leasing companies, funds & investment managers, insurance companies, microfinance banks, mortgage institutions, municipal bonds, securities & investment firms, supranational bonds, and sovereigns.