Nigeria Outperforms Ghana in Digital Banking Adoption, Survey Reveals

Nigeria has surpassed Ghana in the use of digital channels for banking transactions, according to a new survey by KPMG West Africa.

The survey, which covered customer behaviors and preferences in the banking industry of both countries, found that 70% of Nigerian customers use their mobile banking app at least once a week, compared to 53% of Ghanaian customers.

Similarly, 43% of Nigerian customers use Automated Teller Machines (ATMs) weekly, as against 32% of Ghanaian customers. In terms of Unstructured Supplementary Service Data (USSD), 40% of Nigerian customers use it to transact banking through that medium, compared with 28% of Ghanaians.

The survey also revealed that Nigerian customers value the ease of use and variety of features of their bank’s online platform more than Ghanaian customers. For instance, 78% of corporates and 52% of Small and Medium Enterprises (SMEs) in Nigeria said these factors are very important to them, as opposed to 61% of corporates and 44% of SMEs in Ghana.

The findings reflect the evolving digital landscape in West Africa, which is transforming the financial sector and providing more access and inclusion to previously unbanked people. According to the Global System for Mobile Communications Association (GSMA), mobile connectivity has soared in the region, exceeding 100% in Ghana and Nigeria. This has spurred a shift in the payments sector, with mobile money becoming a popular and convenient way of transferring funds.

However, the survey also highlighted some challenges and gaps that need to be addressed by the banking industry to enhance customer satisfaction and loyalty. These include improving customer service, ensuring data privacy and security, offering competitive pricing and fees, and providing tailored products and services.

The survey, which is the first combined customer research by KPMG West Africa, was based on the responses of over 1,000 retail, SME, and corporate customers in Ghana and Nigeria. It aimed to provide insights into the diverse value-seeking behaviors across customer segments and the implications for banks in the region.

The banking sector in West Africa is facing increased competition from fintechs, telcos, and other non-traditional players, as well as regulatory changes and economic uncertainties. To survive and thrive in this dynamic environment, banks need to adopt a customer-centric approach and leverage digital technologies to deliver value and convenience to their customers.

As the survey report stated, “The future of banking is digital, and the future of digital is now. Banks that can successfully navigate this new reality will be well-positioned to create a lasting competitive advantage and drive sustainable growth.”

Source: MyJoyOnline