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2020 BankingIndustry CustomerExperience Survey:Ghana RetailBanking Insights“Heightened Customer Expectationsin the New Reality and Beyond”October 2020
Outline010203Foreword –Key Messagefrom the Bankof GhanaA look at thechangingcustomer050607Senior Partnerof KPMG inGhanaBest practices fortransforming andachieving CXexcellenceLooking Ahead:Actions forCEOsAbout the2020 survey04KPMG 2020 BankingIndustry CustomerExperience(CX) Insights
ForewordCustomers are the fuel that feed theengine of banks – from balance sheetstability to profitable growth and longterm sustainability. More than ever before,getting customer experience right createsan enduring competitive advantage notjust for banks but all service providerswhether in private or public sector. Forfinancial services providers, it is a criticalsuccess factor, especially in this newreality and going forward.COVID-19 has disrupted businesses and theiroperating models. However, customers’expectations regarding service experienceremains undisrupted. Banks must do more tomeet the heightened customer experienceexpectations. It is in this light that the KPMG2020 Retail Banking Customer ExperienceSurvey for Ghana was conducted to provideinsights for banks.The KPMG Six Pillars methodology forcustomer experience was used for thissurvey. The report highlights the surveyresults on Customer Experience surveyagainst the Six Pillars.KPMG’s Six Pillars of Customer Experience excellenceare a set of qualitative factors that organisationscombine intricately to craft an outstanding relationshipwith customers. Organisations that have mastered theuse of these Pillars obtain outstanding results in theircustomer experience.In this report, we demonstrate how retail banks inGhana have performed across all the Six Pillars. I amexcited to introduce to you the KPMG Six Pillars whichhave been developed after a decade of research andpractice. They are: Expectations, Integrity, Resolution,Time and Effort, Personalisation and Empathy.In the new reality of our world today, the Pillarsprovide an invaluable guide to navigating the changesrequired to achieving excellence in both customer andemployee experiences in your organisation. Weobserved from our survey that expectation pillar is thestrongest for increasing customer loyalty and scoredhighest (76.5%). Integrity pillar scored the least(65.9%) in our survey, an area of concern forcustomers that banks must improve on.Banks must focus on the customer by defining a clearcustomer strategy with the customer experience atthe heart of their corporate strategy. The starting pointis customer experience maturity assessmentunderpinned by insights from data and analytics.Furthermore, our survey reveals that, acceleratingdigital agenda is now a survival and businesssustainability issue. Customers demand conveniencethrough digital channels that are secure and safe interms of cyber security risks.Certainly, the digital customer has been activated andaccelerated by the COVID-19 pandemic. It isimperative that banks that already have digital serviceofferings take advantage of this opportunity bycontinuing to enhance the experiences of theircustomers while keeping them safe.For the digital laggards, the message is clear- digitiseor die. If you missed the digital boat, please get onto aspeed boat, but safety of your customers and yourbank is critical in the digital world. Don’t stand still isour advice on both customer strategy and digitalstrategy.Banks are implored to walk in the shoes of theircustomers, identify attributes(personas) of theircustomer segments and enhance customers’experiences across different touch points.I believe the insights from this report can inform yourcustomer strategy and digital transformation. KPMGstands ready to journey with you on this road.Thank you.Anthony SarpongSenior PartnerKPMG in Ghana 233302770454asarpong@kpmg.com3
REMARKS BY MRS. ELSIE ADDO AWADZI, SECOND DEPUTY GOVERNOR, BANK OF GHANA, AT THE LAUNCH OF KPMGBANKING INDUSTRY CUSTOMER EXPERIENCE SURVEY, ON 27TH OCTOBER 2020Senior Partner, Management and Staff ofKPMG Ghana, Distinguished Guests, Ladiesand Gentlemen. I am honoured to be theguest speaker for this event, the launch ofKPMG’s 2020 Banking Industry CustomerExperience Survey. I bring warm felicitationsfrom Governor Ernest Addison and the entireManagement team at the Bank of Ghana.Elsie Addo AwadziSecond DeputyGovernorBank of GhanaOver the last three years, the Bank of Ghanahas undertaken a number of key reforms topromote resilience and efficiency in thebanking sector. Due to these recent reforms,the banking sector is now well-capitalised,liquid, and resilient even in the midst of theCovid-19 pandemic with its unprecedentedeconomic impacts.The Bank of Ghana responded to thepandemic by taking unprecedented policyand regulatory measures including amonetary policy rate cut of 150 basis points,a reduction in the capital conservation bufferand cash reserve requirements for banks, feewaivers and an increase in transaction limitson some digital financial services. Thesemeasures have helped banks to provide reliefto their customers by reducing lending rates,restructuring loan repayments, and providingadditional loans, among other things.Banks are also increasinglyoffering their customers moredigital channels to transactbusiness safely, underpinnedby our regulatory approachand investments in criticalinfrastructure that haveenabled interoperability andeffective partnershipsbetween banks and paymentservice providers. All of thesemeasures are helping to speedup Ghana’s economic recoveryefforts ahead of what wasinitially projected at the onsetof the pandemic.accessible, agile, costeffective, reliable, timely, andsafe banking services, and willchoose a bank they can trustto deliver on these. Banks thatunderstand and are guided bythese demands will be able toretain their customers’confidence and loyalty. Isincerely hope that banks willleverage the insightscontained in this report tobetter serve the Ghanaianbanking public and continueto grow in significance andimpact.The KPMG report providesvery useful insights for thebanking industry as well as forthe Bank of Ghana as aregulator. The trends reportedin the survey report show thatcustomers are increasinglymore discerning, and aredemanding bankingrelationships and productsand services that areresponsive to their evolvingneeds. Customers requireMeanwhile, the Bank ofGhana has intensifiedsupervision of banks topromote transparency,integrity, and safety intransactions between banksand their customers, and theprovision of adequate andtimely redress for customergrievances. Our ConsumerRecourse MechanismGuidelines, Disclosure andProduct Transparency Rules,and our Cyber Security Directive,all provide clear requirementsthat banks must meet on anongoing basis to promoteoperational efficiency, resilience,consumer protection, andconfidence in the sector.I applaud KPMG’s thoughtleadership in the production ofthis survey, and I trust that it willserve as an invaluable guide forthe banking industry as theyseek to continually deliver valueto their customers.I hereby declare the surveyreport launched, and I thank youall for your kind attention.
The Age of the customer .that it is the age of the customer is stating theobvious. In the customer age, the most successfulenterprises will have to reinvent themselves tosystematically understand and serve increasinglypowerful customersKPMG, 2020
Insights from the KPMGBanking Industry CustomerExperience Survey
Major customer shifts happening .Insights from customer surveys Changing customer profiles,demographics and expectations2016- KPMG Banking IndustryCustomer Experience Survey2019-KPMG Banking On theFuture Millennials Insights2020: KPMG BankingCustomer Experience SurveyRetail BanksNearly 13years in Nigeria What isshifting?100Shifting channel usage in favour ofdigital, COVID-19 is an acceleratorChanges at the top: CX leaders todayare not leaders tomorrow 2020 KPMG, a partnership established under Ghanaian law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMGInternational”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).7
2020 KPMG Retail Banking Customer Experience (CX) in Ghana - Highlights76.5% Expectation score – driven by banks own investment indigital, COVID-19 responses from banks and regulatorydirectivesOverallCustomers’view65.9% Integrity score- as customers expressed disappointmentwith Banks not keeping to some of their promises, high fees,governance issues that came to light during the reforms71.7% Time and Effort score- Customers want to interactseamlessly with their banks with little effort as they becomeincreasingly time poor and digitally rich 2020 KPMG, a partnership establishedunder aGhanaianlaw establishedand a memberfirmof the KPMGnetworkof independentfirms affiliatedwith ��),a Swiss(“KPMGentity. All rights reserved. The KPMG name and logo are 2020 KPMG,partnershipunderGhanaianlaw anda memberfirm of the memberKPMG networkof independentmemberfirms affiliatedwith KPMGInternationalCooperativeregistered trademarks or trademarksof KPMG InternationalCooperative(KPMG International).International”),a Swiss entity.All rights reserved.The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).8
2020 KPMG Retail Banking Customer Experience (CX) in Ghana - Highlights25%of respondents sayservice experience istheir number one reasonfor choosing or changingtheir banks67%of respondents use mobileapps at least once a day,once a week or monthly forbanking transactions14%18%of respondents are verysatisfied with theirbank’s staff professionalattitude and willingnessto assist.of respondents are verydissatisfied with thelength of wait timeswhen making acomplaintof respondents arelikely to recommendtheir banks based oninnovative productsand services69%37%23%of respondents open bankaccounts using the branchbut almost all will preferdigital means to do soof respondents are verydissatisfied with theirbanks promptness to theirenquires/complaints63%of respondents expressedtheir satisfaction with theease and speed of settingthem up on onlineplatforms 2020 KPMG, a partnership established under Ghanaian law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMGInternational”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).9
Shifting Channel Usage(weekly) – 2016 vs 2020 KPMG insights14%43%2%19%31%7%Key nkingCallCentre Branch usage decreasing infavour of digital channelsmobile first ATM, Mobile and Internetbanking accelerated by COVID19?20162020 Call Centre usage declining ascomplaints go socialComplaints made viaFacebook, Instagram, Twitter“The Covid-19 pandemic has completely changed the banking terrain.Therefore, banks that quickly accelerate their digital offerings are likelyto experience growth. As Millennials have in 2020 shifted focussignificantly to digital experiences, so should banks do – Banks mustthink digital and act digital to remain relevant in the future of banking“John AwuahChief Executive OfficerGhana Association of Bankers 2020 KPMG, a partnership established under Ghanaian law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMGInternational”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).
Customers say their banks were responsive during COVID-19How responsive was your bank to your needs during the COVID-19? “Increase in ATMwithdrawal limit,frequentcommunication withregards to COVID-19and banking activities” “ExpiredATM cardsare renewedautomatically withoutgoing to the bank”“I have not receivedany communicationfrom my bank aboutcovid-19”“I havealternatives tobanking withoutgoing to thebranch” COVID-19 Response“My Bank sends dailyreminders about thenew working hours toprevent clients goingto the branch only tofind out the branch isclosed”90%of respondents wereaware of their bankssupport during to thepandemic .In terms of satisfaction,customers of CAL Bankwere most satisfied withmeasures put in placefollowed by ABSA andStanbic and StandardChartered in thirdposition“The Mobile and USSDbanking avenue whichare supposed to helpreduce the amount ofvisits to branches areNegative Feedbackusually not operatingefficiently (they do notwork 8 out of 10 times)”The impact of COVID-19 willundoubtedly be a challenge for ourbanking profession, but it is also anopportunity to demonstrate how ourtechnical and professional skills,creativity, empathy and judgement canbe deployed to support veryvulnerable customers and businessesin distress. An opportunity to showhow banking has a positive socialpurpose, and that we bankers careabout our customers’ financial health” Charles Ofori-AcquahCEO, Chartered Instituteof BankersPositive Feedback 2020 KPMG, a partnership established under Ghanaian law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMGInternational”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).11
Banking Industry Clean up and confidence in banksBanking customers are still confident in their banks post the regulatory clean upHow has the recent financial clean-up impacted yourconfidence in Banks?ConfidentNeutralNotConfident40%51 %Following the financial clean-up, where are youlikely/willing to invest (deposit) your money – Top 3?71%14%Banks6%10 % 2020 KPMG, a partnership established under Ghanaian law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMGInternational”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).Fund managementcompaniesAt home12
Beyond Regulation We join the many to congratulate the Bankof Ghana for winning the Central bank ofthe year award 2020 and Dr ErnestAddison, for winning the Governor of theyear award 2020 forSub-Saharan Africa.“The 5R approach (rebuilding capital, reforming regulation,restructuring banks, reducing systemic risks and restoringgovernance) in banks is important. We note the efforts beingmade by the Bank of Ghana, the Chartered Institute ofBankers (CIB), Ghana and others, to put ethics andprofessionalism back on the agenda of banks.Embedding ethics, professionalism and simplytreating customers fairly, are not “a nice to do”for banks. These are the fundamentals tobuilding a sustainable banking business model,excellence in customer experience and a safefinancial system.”“Excellence in customer experience createsenduring competitive advantage fororganisations. The customer experience,however, is a reflection of the employeeexperience, because both go hand-in-hand.Indeed, banking is a people business. Let’sre-professionalise banking together, with a laserfocus attention on the customer!”Robert DzatoLead, Financial Services StrategyKPMG In Ghana 2020 KPMG, a partnership established under Ghanaian law and a member firm of the KPMG network of independent member firms affiliated with KPMG International cooperative ("KPMG International") a Swiss entity. All rightsreserved. Printed in Ghana. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss entity.Document Classification: KPMG Confidential13
Customer ExperienceExcellence –state ofplay using KPMG’s SixPil ars of CustomerExcellence
KPMG Customer Experience Excellence MethodologyThe Six Pillars of Customer ExperienceExcellenceGuiding international bestpracticeOver a decade of researchAcross KPMG global networkOver 4 million consumerevaluationsPersonalisationResolutionUsing individualised attention todrive an emotional connection.Turning a poor experience into a great one.IntegrityExpectationsBeing trustworthy and engenderingtrust.Managing, meeting and exceeding customerexpectations.Time and EffortEmpathyMinimising customer effort andcreating frictionless processes.Achieving an understanding of the customer’scircumstances to drive deep rapport. 2020 KPMG, a partnership established under Ghanaian law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMGInternational”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).15
State of Play: Banking Customer Experience in Ghana across using our Six Pil arsBanking Customer Experience (Scores) in Ghana across KPMG’s SixPillars for Customer Experience Excellence - Integrity scored lowest76.5Insights on Performance – Retail Banks in Ghana Expectations - Banking customers suggest that theirbanks provide a consistent service every time they usethem Integrity - Customers want their banks to:75.771.7 Stand for something more than profit Keep to their brand promise65.9 71.074.5Banks should fully implement BoG Guidelines: The Consumer Recourse Mechanism Guidelines emphasise“Resolution” Disclosure and Product Transparency Rules emphasise“Integrity” in disclosure and application of charges to loanproductsSource:2020 KPMG Ghana Banking Industry Customer Experience e and EffortExpectation 2020 KPMG, a partnership established under Ghanaian law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMGInternational”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).16
2020 Customer Experience Leaders –Top 5 Retail Banks in GhanaFew Customer Experience Excellence Delighters :01 Regular messages recommending customised servicesand products78.0 No wait times at the branches Transact online without going to the branch0277.6 Clear messaging about fees & charges03 80% of the time staff are professional and willing toassist Interact with Bank staff via WhatsApp77.00475.40574.7 Instant issuance of debit cards Up-time of ATMs and availability of cash almost everytime Take regular feedback from customers Complaints shared via Twitter, redress within 30 minutes 2020 KPMG, a partnership established under Ghanaian law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMGInternational”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).17
Transforming yourcustomer experience message for bankCEOs
In transforming the customer experience(cx), remember Resolution is key indelivering integrityCustomer experienceis a journey Customers want tominimize Time & EffortThe digital shift& millennials power“What customers experience is a reflection ofemployee experience. Therefore, there should be analignment of the organisation’s culture and strategy. “Daniel S. AdoteyePartner, Deal Advisory & ManagementConsultingKPMG in Ghana 2020 KPMG, a partnership established under Ghanaian law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMGInternational”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).19
Looking Ahead
Future of Customer ExperienceInsight-ledHarness data to helpdevelop a real-time andmulti-dimensional viewof the customerInnovativeDevelop compellingcustomer valuepropositionsIntentionalDesign a seamless andpersonal customer,employee and partnerexperienceOutside in 2019 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG network of independent member firmsEmpoweredCreate a customer centricorganisation and cultureDigitally-enabledArchitect intelligentdigital technologies andplatforms for humansHuman First21affiliatedwith KPMG ”),All rightsreserved. 2020 KPMG, a partnershipestablishedGhanaianlaw anda memberfirm aofSwisstheentity.KPMGnetworkof independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo areregistered trademarks or trademarks of KPMG International Cooperative (KPMG International).
essentially, banks will need to understandthe data they have about their customers, thefocus should be beyond an investment in datamining tools; rather how the data drives dayto-day activities”(“Andrew AkotoPartner & Head of AdvisoryKPMG in Ghana
Imperatives for CX transformation1Customer Strategy2Digital Transformation3Data Analytics and Insights4Cyber Security5Employee Experience23 2020 KPMG, a partnership established under Ghanaian law 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. The KPMG name and logo areregistered trademarks or trademarks of KPMG International Cooperative (KPMG International).Document Classification: KPMG Confidential
About the 2020Survey24
2020 KPMG Banking Customer Highlights- Demographics across Ghana2%First Degree (HND/BSc)46%35%29%Other3%66%Postgraduate Degree (MSc/PhD)UpperWestNorth EastSecondary School Certificate(WASSCE)About1000FemaleMaleHighest Level of EducationRespondentsUpper EastNorthernBono73%Millennials10%Below GH 1,00016%GH 1,000 – GH 2,99911%20%Gen Z’s23GH 3,000 – GH 5,99926%37%CommercialBanksGH 6,000 – GH 8,999AshantWestern dents RegionGH 9,000 and aboveMonthly Income*19% of respondents did not indicate their genderGen Z’s refer to respondents from the ages of 5 to 25. For this year’s survey the respondents were 18 years and aboveMillennials refer to respondents from the ages of 26 to 40 2020 KPMG, a partnership established under Ghanaian law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMGInternational”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).25
Anthony SarpongSenior PartnerAndy AkotoPartner, Head of AdvisoryDaniel AdoteyePartner, AdvisoryTel: 233 (302) 770454, 770618Email: asarpong@kpmg.comwww.kpmg.comTel: 233 (302) 770454, 770618Email: aakoto@kpmg.comwww.kpmg.comTel: 233 (302) 770454, 770618Email: dadoteye@kpmg.comwww.kpmg.comRobert DzatoLead, Financial Services StrategyAkisi AckahLead, Sales & MarketsTel: 233 (302) 770454, 770618Email: rdzato@kpmg.comwww.kpmg.comTel: 233 (302) 770454, 770618Email: aKPMGMarlin House13 Yiyiwa DriveAbelenkpeP.O. Box GP 242Accra, Ghanakpmg.com/app 2020 KPMG, a partnership established under Ghanaian law and a member firm of the KPMG network of independent member firms affiliated withKPMG International Cooperative, a Swiss entity. All rights reserved.The KPMG name and logo are registered trademarks or trademarks of KPMG International.
observed from our survey that expectation pillar is the strongest for increasing customer loyalty and scored highest (76.5%). Integrity pillar scored the least (65.9%) in our survey, an area of concern for customers that banks must improve on. Banks must focus on the customer by defining a clear customer
