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2018 Agusto & Co. Consumer Digital BankingSatisfaction IndexThe 2018 Agusto & Co. Consumer Digital Banking Satisfaction Index, comprising a survey and a scorecard, examines customers’preferences and attitude towards digital banking platforms hosted by their respective Banks.A focus group of respondents were drawn from the formal and informal sector segments of the economy. Respondents were sampledfrom various geopolitical regions within Nigeria including the South-West, South-East, South-South, North-Central and North-Westregions. Respondents were also a combination of students, self-employed and employed customers of various commercial banks inNigeria. The data collection technique used was a questionnaire designed to gain insight into the behavioural pattern of the samplepopulation. The survey focused on issues around service quality and ease of carrying out transactions.The questionnaire comprised of multiple choice, closed and open ended questions. The questionnaire was administered bothelectronically and physically, thus encouraging a wider pool of respondents across the country.
Table of ContentsSection One: Profile of Respondents . 3Section Two: Comparative Findings. 5Primary platforms used . 5Ease of navigating through the primarily platform used . 6Perceived security when initiating transactions . 7Resolution of IT issues encountered . 8Phishing Activity . 9Transaction success rates . 10Conclusion . 12Table of FiguresFigure 1: Gender distribution of respondents . 3Figure 2: Age distribution of respondents . 3Figure 3: Distribution of Respondents . 3Figure 4: Digital Banking awareness responses . 4Figure 5: Primary Platforms used per Bank . 5Figure 6: Excellent rating on navigation . 6Figure 7: Good rating on navigation . 6Figure 8: Average rating on navigation . 6Figure 9: Subpar rating on navigation . 6Figure 10: Poor rating on navigation . 6Figure 11: Excellent rating on perceived security . 7Figure 12: Good rating on perceived security . 7Figure 13: Average rating on perceived security . 7Figure 14: Subpar rating on perceived security . 7Figure 15: Poor rating on perceived security . 7Figure 16: Excellent rating on issue resolution . 8Figure 17: Good rating on issue resolution . 8Figure 18: Average rating on issue resolution . 8Figure 19: Subpar rating on issue resolution . 8Figure 20: Poor rating on issue resolution . 8Figure 21: Very Frequent Phishing Activity Noted . 9Figure 22: Frequent Phishing Activity Noted . 9Figure 23: Occasional Phishing Activity Noted . 9Figure 24: Rare Phishing Activity Noted. 9Figure 25: No Phishing Activity Noted. 9Figure 26: Transaction Success Rates per Bank.10Figure 27: Agusto & Co. Digitalisation & User Experience Score Parameters .11Figure 28: Index Performance –Top 10 Largest Banks .12
Section One: Profile of RespondentsQuestion 1: Please state your genderQuestion 2: Please select age categoryFigure 1: Gender distribution of respondentsFigure 2: Age distribution of respondents51.6%52.0%Above %26-4051.1%47.0%46.0%FemaleMaleSource: Agusto & Co.The age distribution of respondents, is consistent with Nigeria’s demography, which has over 70% of its population below theage of 40, which represents the youthful and active group of individuals. An increasing proportion of millennials are also capturedwithin the 18-25 and 26-40 age brackets.Question 3: Who do you Bank with? (Select one)Figure 3: Distribution of %Access BankDiamondBankEcobankFidelity Bank First BankGTBankStanbic IBTC1.4%UBAUnion Bank Zenith BankSource: Agusto & Co.Deductions: The survey respondents cut across 19 Banks, out of a total of 22 commercial banks operating in Nigeria. We howeverprimarily focused on the top ten banks (by total assets) for the maiden edition of the index. Merchant banks have also beenexcluded in this survey on account of their wholesale banking nature. We however recognize that these banks are increasinglyinvesting in technology to facilitate transactions for both High Net Worth customers and corporates. Customers of the top 5largest commercial banks Zenith Bank Plc, First Bank of Nigeria Limited, United Bank for Africa Plc, Access Bank Plc, and GuarantyTrust Bank Plc, dominated 64.3% of survey respondents.
Question 3: What online/digital banking platforms are you aware of for your Bank?Figure 4: Digital Banking awareness responsesOther (please specify)USSD Banking8.2%49.3%Mobile & App BankingInternet Banking76.3%54.0%Source: Agusto & Co. ResearchOverall findings for the exercise indicate that over 50% of respondents are aware of the three major banking platforms - mobile& App, internet and Unstructured Supplementary Service Data (USSD) platforms provided by banks. Furthermore, customers arealso aware of other digital banking platforms particularly the new wave of Chat banking (Leo by UBA, Tamara by Access Bank,Ada by Diamond Bank, etc). Services such as EmailMoni, PayWithCapture, ALAT digital bank by WEMA Bank and GAPS, all hostedby various banks have also been identified by respondents.
Section Two: Comparative FindingsWe consider the top 10 largest banks by total assets and analyze the survey results according to responses from customers whouse the respective digital banking platforms.Primary platforms usedFigure 5: Primary Platforms used per Bank0.00%8.93%Zenith Bank28.57%48.21%14.29%0.00%20.00%Union %15.38%Stanbic 58.94%19.21%0.00%First Bank7.61%29.35%51.09%11.96%0.00%8.70%Fidelity Bank32.61%17.39%0.00%12.20%EcobankDiamond 11.36%0.00%Access Bank5.05%20.20%60.61%14.14%Other (please specify)Mobile &App Bankingthepreferredchoiceamongrespondentsacross banksNone of the above (If you don't use any)USSD bankingMobile & App bankingInternet bankingSource: Agusto & Co. ResearchA significant number of respondents use mobile app platforms most frequently, across all banks, followed by USSD banking.
Ease of navigating through the primarily platform usedFigure 6: Excellent rating on navigationZenith BankZenith Bank20.8%Union BankUnion Bank25.0%UBA31.9%Stanbic IBTC30.7%First Bank20.2%Fidelity Bank11.6%31.9%14.5%28.6%First BankUnion Bank32.5%27.7%32.6%Stanbic IBTC0.0%5.8%0.0%GTBank5.0%First Bank8.3%Fidelity BankEcobank7.0%Access Bank41.7%55.8%Ecobank50.0%Diamond Bank44.6%Access BankZenith BankEase of navigationremains an essentialfactor cutting acrossvarying age bracketsand literacy levels23.2%Union BankUBAStanbic IBTCGTBankFirst Bank1.9%0.0%1.5%0.0%2.9%1.2%Fidelity Bank9.3%Ecobank5.0%Diamond Bank32.9%Figure 10: Poor rating on navigation7.6%UBA38.5%Fidelity Bank16.3%Figure 9: Subpar rating on navigationZenith Bank29.0%Stanbic IBTCFirst BankAccess Bank50.0%UBAGTBankDiamond Bank36.8%38.5%54.7%Union Bank28.6%EcobankAccess Bank25.0%GTBankFidelity Bank2.5%Diamond BankUBAFigure 8: Average rating on navigationZenith Bank15.1%Stanbic IBTC23.1%GTBankEcobankFigure 7: Good rating on navigation7.2%5.3%10.0%Diamond BankAccess Bank6.0%2.1%Source: Agusto & Co. ResearchSome highlights include: Access Bank and UBA respondents largely felt ease of navigation was excellent 8.3% of First Bank respondents gave 2/5 for subpar ease of navigation compared to 7.6% of Zenith Bank respondents. However, while other Banks respondents gave a poor rating for ease of navigation, no respondent of Union Bank and StanbicIBTC affirmed such.
Perceived security when initiating transactionsRespondents were asked to rate how secure they felt when initiating transactions on their respective Banks’ platforms.Figure 11: Excellent rating on perceivedsecurityZenith BankZenith Bank17.0%Union Bank25.0%UBA37.7%Stanbic IBTC30.8%GTBank25.7%First Bank17.9%Fidelity BankFigure 12: Good rating on perceived securityUnion Bank32.1%Stanbic IBTCGTBankFirst Bank14.0%Fidelity amond Bank12.1%Diamond Bank37.4%Access Bank39.0%Access Bank29.5%27.5%Figure 14: Subpar rating on perceivedsecurityZenith BankUBAStanbic IBTC0.0%GTBankFirst Bank9.3%6.0%23.2%Stanbic IBTC30.8%GTBank26.4%First Bank35.7%Fidelity Bank34.9%Ecobank47.5%Diamond Bank34.9%Access BankUnion BankAbility to ensure usersfeel secure is key toattracting and retainingdigital banking customersUBAStanbic IBTC25.3%First Bank0.0%1.5%0.0%3.6%0.0%Fidelity Bank7.0%Ecobank7.5%EcobankDiamond Bank7.2%Diamond Bank3.2%1.9%GTBankFidelity BankAccess Bank37.5%UBAZenith Bank25.0%4.4%41.5%Figure 15: Poor rating on perceived security7.6%Union BankZenith BankUnion Bank12.5%UBAFigure 13: Average rating on perceivedsecurityAccess Bank7.0%5.0%8.4%3.2%Source: Agusto & Co. ResearchSome highlights include: 37.7% of respondents who bank with UBA as well as 30.8% of Stanbic IBTC gave an excellent rating on perceived securitywhen initiating transactions, much higher than ratings of peers. 25% of Union Bank respondents did not feel secure giving an indication of subpar perceived security compared alongside3.2% of Access Bank respondents. 8.4% of Diamond Bank, 7% of Fidelity Bank and 3.6% of GTBank respondents, feel very unsecure using the Banks’ digitalbanking platform according to responses.
Resolution of IT issues encounteredIn terms of troubleshooting, respondents had a range of responses on how effective and timely technical issues have beenresolved.Figure 16: Excellent rating on issue resolutionZenith Bank17.0%Union Bank15.9%Stanbic IBTC7.7%15.0%11.9%Fidelity BankGTBankFirst Bank4.7%EcobankUBAStanbic IBTCGTBankFirst BankZenith BankUnion Bank12.5%UBAFigure 17: Good rating on issue resolutionFidelity Bank7.5%EcobankDiamond Bank18.1%Access Bank19.0%Zenith Bank24.5%15.1%Union Bank12.5%UBAStanbic IBTC8.7%0.0%GTBankFirst BankFidelity BankEcobankDiamond BankAccess Bank13.6%11.9%9.3%17.5%15.7%12.6%39.6%Union 7%Stanbic IBTC53.9%GTBank32.9%First Bank27.4%Fidelity Bank46.5%EcobankDiamond Bank37.4%Diamond BankAccess Bank35.8%Access BankFigure 19: Subpar rating on issue resolutionZenith BankFigure 18: Average rating on issueresolution42.5%24.1%28.4%Figure 20: Poor rating on issue resolutionIn addition toavailability of servicepersonnel to addressissues encountered ondigital platforms, timelyand efficient resolutionof issues must betracked and continuallyimproved on.Zenith BankUnion BankUBAStanbic IBTC3.8%0.0%1.5%0.0%GTBankFirst Bank7.9%6.0%Fidelity Bank9.3%Ecobank5.0%Diamond Bank4.8%Access Bank4.2%Source: Agusto & Co. ResearchSome highlights include: 19% of Access Bank, 18.1% of Diamond Bank and 17% of Zenith Bank respondents felt issue resolution stood excellent fortheir respective bank platforms. 9.3% of Fidelity Bank respondents however indicated complete dissatisfied with resolution of issues encountered whileusing the Bank’s digital platform giving a poor rating alongside 7.9% of GTBank respondents, 6% of First Bank and 5% ofEcobank respondents.
Phishing ActivityFigure 21: Very Frequent Phishing ActivityNotedZenith BankUnion BankUBAFigure 22: Frequent Phishing ActivityNotedZenith Bank7.6%2.9%Stanbic IBTC23.1%Stanbic IBTC7.7%Stanbic IBTC30.8%GTBank30.7%First Bank6.0%First BankDiamond BankAccess BankFidelity BankEcobank7.5%16.4%Access Bank4.2%16.3%Union BankUBAStanbic IBTCGTBankFirst BankFidelity BankEcobankDiamond BankAccess 2.1%46.4%Fidelity Bank32.6%Ecobank10.0%24.1%9.5%Figure 24: Rare Phishing Activity NotedZenith Bank34.8%First Bank8.3%Diamond Bank1.2%25.0%UBAGTBankEcobankUnion Bank7.3%5.7%4.7%25.0%28.3%UBAGTBankFidelity BankZenith Bank13.2%Union Bank0.0%Figure 23: Occasional Phishing ActivityNoted40.0%Diamond Bank33.7%Access Bank27.4%Figure 25: No Phishing Activity NotedBogus emails and otherphishing activity hasbeen noted as aninevitable global trendon the back oftechnological strides.Filters and multiplelayers of firewalls aresome of the mitigantstypically adopted.Zenith BankUnion Bank25.0%UBAStanbic IBTC21.7%7.7%GTBankFirst Bank20.0%4.8%Fidelity BankEcobankDiamond BankAccess Bank16.3%17.5%19.3%16.8%Source: Agusto & Co. ResearchSome highlights include: The bulk of responses lay in occasional and rare phishing activity noted via emails and text messages. A significant 23.1% of Stanbic IBTC respondents as well as 7.6% and 7.5% of Zenith and Ecobank respondents respectivelyreceive such very frequently. Commendably, 25% of Union Bank 20% of GTBank have not noted any phishing activity higher than peers.
Transaction success ratesRespondents gave an indication of the average success rates of transactions initiated on their respective Banks’ digital platforms.Figure 26: Transaction Success Rates per Bank3.8%3.77%Zenith Bank34.0%18.9%0.0%Union 3%23.2%Stanbic .9%18.6%1.2%First Bank4.76%27.4%56.0%10.7%2.3%11.63%Fidelity .8%6.02%Diamond Bank27.7%48.2%13.3%Access Bank3.2%6.32%Transaction successrates have beenlinked to the levelof investments insystems andprocesses limiting'downtime"recorded whentransacting ondigital platforms17.9%50.5%22.1%Below 40%40%60%80%100%Source: Agusto & Co. ResearchSome highlights include: The highest transaction success rates (100%) were noted by Stanbic IBTC, UBA and Access Bank respondents. 7.5% of Ecobank respondents disclosed low success rates of about 40% and below for transactions initiated alongside 4.8%of Diamond Bank respondents, 4.3% of GTBank’s respondents and 3.8% of Zenith Bank’s respondents.
Consumer Digital Banking Satisfaction IndexAgusto & Co.’s 2018 Consumer Digital Banking Satisfaction Index for Nigerian banks takes into account a number of factors.These include ease of navigation, range of services customers are aware of, range of platforms known by customers, perceivedsecurity strength and transaction success rates, aggregated using various weightings. These factors were embedded in the surveyquestions administered, and then aggregated, with responses benchmarked to expected performance indicators developed byAgusto & Co. score categories are thus defined as follows:Figure 27: Agusto & Co. Digitalisation & User Experience Score ParametersRange of ServicesAware Of andActively UsedTransactionSuccessRatesRange ofPlatformsKnown100Ease ng& IT SupportParameterRange of Platforms KnownScore(out of 100)80-100Star RatingUserExperienceExcellent70-79Very good60-69Good50-59Modest40-49Sup-par 30WeakDefinitionTo serve the Nigerian market and its diverse set of users, banks must offer a variety ofelectronic banking platforms and alternate banking channels to maximize customerexperience, acquisition and retention. This parameter examines the depth of awareness ofplatforms offered.Range of Services Aware Ofand Actively UsedHere, awareness of various features available to users and how closely their electronicbanking service needs are met in real-time are measured.Perceived Security StrengthThis parameter looks at how secure transactions carried out are and how sensitive data ispreserved/protected from fraud and other cyber-attacks. This parameter also takes intoconsideration security concerns that result in customers not using certain functions.Troubleshooting & ITSupportInternet and Mobile banking platforms are scored on immediate and effective IT supportbased on user experiences.Ease of NavigationThis parameter focuses on the functionality of platforms, and to what extent users are ableto understand key features and use comfortably.Transaction Success RatesAn estimated rate of successful online transactions is compared to failed ones as indicatedby users.
Figure 28: Index Performance –Top 10 Largest BanksRange ofPlatformsKnownRange ofServicesAware Of ing& IT SupportEase ofNavigationTransactionSuccessRatesBANKOverall UserExperienceScore*(100)Access Bank Plc5.5/1012.8/1517/209.3/1519/2019/20Diamond Bank Plc4.8/1012.5/1512.5/208.4/1515.9/2014.6/20Ecobank Nigeria Plc4.1/1012.5/1510.3/204.6/1513/2010.6/20Fidelity Bank Plc4.9/1012.5/1513.1/205.5/1510.2/2010.3/20First Bank of Nigeria Ltd5.9/1012.5/1516.4/209.3/1518.5/2018/20Guaranty Trust Bank Plc5.9/1011.5/1516/206.6/1519/2017/20Stanbic IBTC Bank Limited6.8/1012.5/1519/208.7/1520/2019/20United Bank for Africa Plc6.2/1014/1517/208.8/1519/2019/20Union Bank of Nigeria Plc5.9/1012.5/159.5/203.7/1520/2014.9/20Zenith Bank 655.056.480.676.086.084.066.466.0*Marginal variances may be noted in the summation of parameter scores vis a vis the total score assigned. These variances areattributable to rounding up of components of the scorecard.ConclusionAgusto & Co.’s premiere Consumer Digital Banking Satisfaction Index has provided key insights of Bank customers acrosskey markets in Nigeria. The results of the survey administered affirm various customer satisfaction levels as rated on anumber of subject matters. We note that commercial banks must pragmatically address customer concerns as highlightedin the survey, particularly in view of the pace of evolution of digital banking. These include security concerns, customer serviceand timely transaction success rates. Furthermore, as revealed by the survey, a significant portion of respondents receive
phishing/bogus emails portraying to be their Banks. In our opinion, Nigerian Banks must further augment customer awarenesscampaigns on identifying phishing emails/SMS and how to avert being victims of same. Marked strides in deepening customers’use of digital platforms is critically contingent on improved perceived security, and indeed actual safety when performingtransactions.UBA PlcDiamond Bank PlcFidelity Bank PlcGTBank Plc Improve on the user interface and and makethe enrollment procedure less cumbersome An improvement in the speed of processingtransactions Improve customer service or make resolution ofissues easier via a more interactive platform Enhance notification process particularly forreceiving alerts ontime Reduce the cumbersome processes of transactions Reduce the rate/level of system down time Improve Encryption and firewall Improve customer serviceUnion Bank Plc Integrate a transaction failure complaintoption An improvement in inter-bank transfer services Improved security against scams. More reliable transactions. Reduction in service charges. More user friendly Improve efficiency and security Voice recognition option for security Improve user interface The bank should give more instructions onmobile banking Improve the speed of processing transactions Train their support staff to bridge the ITknowledge gapZenith Bank PlcAccess Bank PlcEcobank Nig Ltd More security measures Mobile app should be easier to use Improve speed of transactions.Stanbic IBTC USSD Banking should have better security andbe made more reliable Improve reversals and resolving refunds onincomplete transactions Providing user guidesFirst Bank of NigLtdThe following form a cross –section of customer responses on desired improvements to user experience, per bank. Reduction in service charges An effective or improved customer service. Speed of transactions.
also aware of other digital banking platforms particularly the new wave of Chat banking (Leo by UBA, Tamara by Access Bank, Ada by Diamond Bank, etc). Services such as EmailMoni, PayWithCapture, ALAT digital bank by WEMA Bank and GAPS, all hosted by various banks have also been identified by respondents. Figure 4: Digital Banking awareness .
