By Habibat Aliu
A new report by Agusto&Co Research has indicated that approximately 59 per cent of Deposit Money Banks (DMBs) stakeholders have fallen victim to bank fraud on the digital platforms of their respective banks.
The fifth yearly edition of the Agusto & Co Consumer Digital Banking Satisfaction Index which examines customers’ preferences towards digital banking platforms hosted by selected banks in Nigeria suggested t that more investments in cyber protection by banks are required to combat the growing exposure to cyber security risks on digital platforms.
The report stated that although, the COVID-19 crisis brought to the fore the importance of digital channels and further accelerated
investments in digital banking platforms by banks.
However, it noted that the increased onboarding on digital platforms has also elicited the need to further tighten security protocols and combat the growing level of fraud and breaches on digital channels.
Furthermore, the report also indicated the need for improved service delivery by ensuring timely and efficient resolution of issues in the banks.
It also pointed out that enhancing technology infrastructure to reduce time on digital platforms is also crucial to ensure customer
retention and satisfaction.
According to the report, approximately 30% of the respondents are willing to switch to another bank’s digital platform with 23% citing frequent application downtimes as one of the key reasons.
“We expect the increasing competition in the digital space from Fintechs and Neo-banks to further spur more innovation and expanded service offerings by banks.
“Also, given the macroeconomic headwinds which has reduced the appetite for lending to some extent, we expect more emphasis on non-interest income from electronic banking channels to sustain profitability. ”
The rating agency said the 2022 Consumer digital banking satisfaction index for Nigerian banks considered several factors including ease of navigation, range of services available on the platforms, the level of respondents’ awareness, perceived security strength, and transaction success rates.
It also stated that these factors were embedded in the survey questions administered, and then aggregated using various weightings, with responses benchmarked to expected performance indicators developed by Agusto & Co. Score categories.
Based on the digital banking satisfaction index’s parameters, Access Corporation Plc (Access Corp) recorded the highest user experience 94.6 underpinned by comparably higher estimated transaction success rates, ease of navigation, and awareness and active usage of services provided. United Bank for Africa Plc (UBA) scored the second highest (94.4) while Guaranty Trust Bank Limited (GTBank) was third with a user experience score of 91.4. Perceived security strength, range of platforms known, and ease of navigation on the platforms were strong ranking factors amongst respondents.
Access Bank recorded the highest usage of its USSD code *901# with 53% of the Bank’s respondents citing the platform as their most frequently used for digital banking transactions.
‘We believe the level
of usage recorded is supported by the Access Winfest Campaign launched in October which plans to reward customers up to ₦1 billion in cash and other items for carrying out transactions using the USSD code or accessories ap
Zenith Bank Plc recorded the highest percentage of respondents who perceive their bank’s respective digital platforms to be secure.
