How can West African banks stay resilient?

A recent survey conducted by KPMG West Africa has shed light on the perceived quality of customer experience delivery by banks in Nigeria and Ghana. The survey highlighted how heightened inflation in Nigeria and persistent currency instability have fueled the demand for reliable digital banking solutions, while in Ghana, macroeconomic pressures have led to a focus on savings and investment. Wale Abioye, a Partner at KPMG, discussed the findings and provided valuable insights into the economic situation impacting the banking sector in both countries. According to Abioye, the survey gathered feedback from 33,000 customers in Nigeria and Ghana, including 5,000 SMEs and 700 corporates. One of the key findings was the significant impact of the macroeconomic environment on both countries. In Nigeria, inflation levels have reached historic highs, resulting in decreased purchasing power for individuals and corporates. This has prompted customers to seek out cheaper alternatives and make adjustments to their spending habits, including pulling back on savings. Similarly, in Ghana, the constrained real income and spending patterns have led to an increased focus on savings and investment. When evaluating customer experience, KPMG used a framework consisting of six pillars: integrity, resolution, expectations, time and effort, personalization, and empathy. These pillars helped assess customer interactions with banks across various touchpoints, including onboarding, transactions, product purchases, and complaints management. The survey revealed insights into customer behaviors and experiences, allowing for a comprehensive analysis of the banking sector in both countries. In terms of digital adoption, both Nigeria and Ghana have seen a surge in the use of mobile technologies. In Ghana, mobile money usage is prevalent, with 7 in 10 customers using it weekly. On the other hand, Nigeria has witnessed a higher adoption of app-based mobile banking, with 6 in 10 customers utilizing these services. While AI implementation is still in its early stages, banks in the region are exploring its potential in enhancing customer resolutions, personalization, fraud management, and cybersecurity. As more customers embrace AI in their daily lives, banks are expected to leverage this technology to meet evolving customer needs and expectations. The future outlook for the banking industry in West Africa appears promising, with the continued integration of digital solutions and AI-driven innovations. By prioritizing customer experience and leveraging technology to address challenges posed by the economic landscape, banks in Nigeria and Ghana can enhance their resilience and foster long-term growth and sustainability. As West African banks navigate the complexities of the current economic environment, the push towards digital transformation and AI adoption is set to redefine the banking landscape, offering customers a seamless and personalized banking experience.