A new survey by KPMG has found that the quality of digital services is now the top factor influencing the choice of bank for 25% of retail banking customers in West Africa.
The 2024 West Africa Banking Industry Survey revealed that beyond digital services, 22% of customers prioritize overall service experience, while 16% make their choice based on a bank’s image and reputation.
“The increasing reliance on technology for personal and professional activities is reflected in banking preferences, with digital service quality emerging as the most significant factor for retail customers this year,” the report noted.
Interestingly, traditional considerations such as solvency, corporate governance, and financial strength did not rank as major decision-making factors.
KPMG emphasized that digital platforms are now critical in delivering seamless, efficient, and accessible financial solutions that align with evolving customer expectations.
Regional Differences in Banking Preferences
While digital services have become a top priority across West Africa, customer preferences vary by country. In Ghana and Nigeria, mobile banking apps and seamless online transactions are critical factors, while in francophone West Africa, the availability of multi-currency digital services plays a key role.
Banks such as Ecobank, Access Bank, and GTBank have been investing heavily in AI-powered customer service, real-time transaction processing, and fintech collaborations to stay ahead of the competition.
Challenges in Digital Banking
Despite growing demand, banks still face challenges in delivering top-tier digital experiences. Cybersecurity threats, network downtime, and limited financial literacy in rural areas continue to hinder full adoption.
“One major challenge is ensuring system reliability,” said Kwame Osei, a digital banking expert. “Customers want 24/7 access, and any downtime can cause frustration and loss of trust.”
The Future of Digital Banking in West Africa
As competition intensifies, experts predict more banks will integrate AI-driven financial services, blockchain-based transactions, and improved fraud detection systems. Fintech partnerships will also play a key role in expanding digital offerings, making banking even more accessible and efficient.
With digital convenience now the leading factor in customer decisions, banks that fail to innovate may struggle to retain their market share in an increasingly tech-driven landscape.
