E-Financial
KPMG Decries Poor Digital Capabilities of Nigerian Banks
A recent study on the digital capabilities of the Nigeria banking industry carried out by KPMG Nigeria has revealed that most of the banks in the country lacked the ability to onboard a customer with end-to-end digital services.
The study, which covered 17 banks, discovered that, “85 per cent of them were unable to onboard customers digitally end-to-end.”
The 17 banks were Access Bank, Ecobank Nigeria, Fidelity Bank, First Bank of Nigeriam, First City Monument Bank, Guaranty Trust Bank, Heritage Bank, Keystone Bank, Polaris Bank, Stanbic IBTC Bank, Standard Chartered Nigeria, Sterling Bank, Union Bank of Nigeria, United Bank for Africa, Unity Bank, Wema Bank and Zenith Bank.
It described ‘digital onboarding’ as a customer banking journey experience that spanned across account opening and customer profile creation on any channel of choice like mobile banking, digital lending, self-service and customer care services without requiring the customer to visit any branch to complete the process.
The report, which was unveiled during an online media briefing by the Partner and Lead, Digital Transformation, KPMG, Mr. Boye Ademola, stated that banks need to improve their digital capabilities in order to deliver products and services via digital channels.
“From an industry perspective, we note that banks need to build capacity to transform user journeys by embracing design thinking principles, onboard customers digitally, articulate a pragmatic self-service agenda that will further reduce traffic at branches, reduce cost-to-serve and operational risks, embrace digital lending and digitize contact centres to cope with scale.
“The availability of products and services on some channels while absent on others portends a need to re-architect backend systems with a focus on APIs. Front-end systems (channels) should generally call services through APIs provisioned at the backend,” Ademola said.
He noted that it was in this light that KPMG performed a Digital Channels Scorecard (DCS) for retail banks in Nigeria, which provided an industry perspective of how effective banks are in delivering products and services to customers via digital channels.
It measured the quality of UX (user experience) as customers traverse a range of journeys to access products and services on four distinct digital channels, namely mobile banking, internet banking, USSD, and Chatbot.
The KPMG categorised the banks’ digital capabilities into four clusters of leaders, challengers, followers and late starters. It stated that leaders are banks that could onboard customers digitally end-to-end without the need to visit branches or agents and deliver innovative products to enrich payment and transfer offerings as well as embarked, “on an aggressive play to accelerate their self-service agenda for customers and are able to engage and resolve customer complaints on the channels.”
The challengers, according to the KPMG’s report, are banks that performed well on the user digital journey but lacked some of the key ingredients that should place them in the leaders’ tier. While they are able to offer effective user journeys on their channels, they fall behind the leaders on the array of capabilities and quality of user experience.
“The followers are unable to onboard customers digitally without requiring them to visit the branch, have several disjointed user journeys, limited self-service offerings and struggle with responding to and resolving customer complaints in a timely manner while the late starters either do not have several important user journeys or offer several broken journeys.”
The report showed that no bank emerged leader in digital lending, USSD, and internet banking. It noted that Wema Bank emerged the leader in mobile banking and customer care scorecard while Fidelity bank was the leader in the chatbot scorecard.
Ademola said: “Digital lending is an area where banks are really nascent in terms of evolution. There is opportunity and the time may be right with the global standing instruction, the proliferation of data and the emergence of AI. It can boost retail lending as witnessed in Kenya.
“On the average 75 percent of the banks that we assessed do not have sufficiently robust self-service futures. It is an area where there is a lot of opportunity to digitise for the banks to transfer clients to the channels away from branches.
“Customer care services showed that banks have different levels of maturity but the key challenges is around responsiveness. The introduction of chatbot and virtual assistance are things bank have opportunity to look at in this area.
E-Financial
Kekere-Ekun, CJN Blames Reliance on Telecom Services for Online Banking Glitches
Kudirat Kekere-Ekun, chief Justice of Nigeria and chairman of the Board of Governors, National Judicial Institute Justice has blamed telecommunications companies for the glitches experienced in the country’s banking sector.
Kekere-Ekun said this in her keynote address at the 2024 National Workshop for Justice and Judges on Legal Issues in Telecommunications with the theme, ‘The Role of the Judiciary in Accelerating Digital Transformation in Nigeria.’
The blame on telcos comes in the wake of multiple glitches in online services. On August 14, 2024, customers reported that the Guaranty Trust Bank (GTBank) website was down, leading to speculation that it had been cloned and customer data intercepted.
The CJN said, “I will like to quickly bring our attention to two issues which I consider to be pivotal and which revolve around cyber security and the attendant challenges of exploring the digital space.
“The first is the increased risk of the personal data of consumers being misused or compromised by unscrupulous persons, thus necessitating the need for improved strategies and innovation for consumer protection in the telecommunications sector.
“Also, worth noting are deficiencies in the Banking Sector and which are attributable to reliance on digital services provided by the Telecommunications Sector. There is for instance the major challenge posed by electronically backed transactions which is commonplace in the Banking Sector.”
The CJN said these glitches have led to several issues including hacking of online banking platforms as well as banks being compromised.
“Concerns in this regard include the spate of customers whose online banking platforms have been hacked, as well as banks being compromised due to technological glitches not factored into their day-to-day operations. Consequently, these and several other challenges have resulted in a number of disputes which frequently require adjudication,” she said.
Kekere-Ekun said the deployment of technology in telecommunications plays a pivotal role in the advancement economic system of any country.
She, however, said there is a need to proffer solutions to legal issues arising from digital services provided by the telecommunications sector.
“It is also my expectation that the forum will equip Judicial Officers with the technical skills required for adjudicating disputes arising from the sector and keep them abreast with global standards and best practices,” she added.
E-Financial
Ecobank Serves Customers Notice of Planned Service Disruption
Ecobank Nigeria has alerted its customers to an upcoming brief service disruption due to scheduled system maintenance on its card services.
The maintenance is set to occur from 11:00 p.m. on Thursday, November 7, 2024, until 1:00 a.m. on Friday, November 8, 2024.
In a notification to customers, the bank explained that during the maintenance window, cardholders might experience intermittent issues when using Ecobank cards on other banks’ channels.
However, the bank said all its specific channels, including ATMs and POS terminals, will remain operational.
Additionally, other digital platforms—such as the Ecobank Mobile App, USSD *326#, Ecobank Online, Omni Lite, and Omni Plus—will be fully accessible throughout the maintenance period.
The bank expressed apologies for any inconvenience, reaffirming its commitment to providing seamless banking experiences across Africa.
E-Financial
Zenith Bank Commends Customers After Successfully Unveiling Upgraded Enhanced Tech infrastructure
Zenith Bank Plc has announced that it now boasts the best technology infrastructure in the banking industry, positioning itself to provide an exceptional customer experience and superior service delivery moving forward. This upgrade follows a recent comprehensive technology enhancement.
The bank expressed its heartfelt gratitude to customers for their support and patience throughout the upgrade process, while also extending apologies for any inconveniences experienced during this time.
This announcement was made in a social media post on Wednesday, signed by Dame Dr. Adaora Umeoji, OON, the Group Managing Director/CEO.
In her message, the GMD/CEO emphasized the bank’s commitment to delivering an unparalleled service experience, stating, “We undertook this upgrade to ensure we can offer our customers the best possible service.”
Umeoji pledged that Zenith Bank will continue to innovate, ensuring that customer needs are met swiftly, safely, and conveniently.
The post read in part: “On behalf of the Board, Management, and Staff of Zenith Bank PLC, I would like to thank you for your patience and support during our IT infrastructure migration to a new and more robust operating system.
“We are truly grateful for the trust and confidence you have placed in us. The primary reason for undertaking this extensive endeavor was to better position Zenith Bank PLC for improved service delivery to all our valued customers and to create memorable banking experiences at all our touchpoints.
“While I regret the inconveniences and challenges you faced during and immediately after our migration, I am pleased to inform you that Zenith Bank PLC now has the best technology infrastructure in the industry. We are committed to ensuring you experience superior service delivery going forward.
“Rest assured, you remain our top priority, and Zenith Bank will continue to innovate and offer value-added products and services to meet all your banking needs quickly, safely, and conveniently.”
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