A professional and advisory services company,
The international auditing firm disclosed this in its
It said the banking industry is made up of over 20 banks with nearly 6,000 branches, most of which are concentrated in the urban areas.
The survey stated that the sector has recently experienced a number of regulatory changes including a repeal of universal banking licences and the promulgation of more stringent regulations by the Central Bank of
"However, with the establishment of the
This development made the leading rating agency Standard
The report posted on the firm's website said with Automated Teller Machines (ATMs) becoming almost ubiquitous in the cities, it is not surprising that it has been the fastest growing channel in recent years. "Almost eight in 10 customers surveyed use the ATM and nearly two thirds of these people visit an ATM on a weekly basis with cash withdrawal and balance enquiry among the most common transactions customers perform via the ATM," it said.
However, despite the proliferation of new channels in recent years, findings showed that adoption of other alternate channels is still comparatively low with very few respondents saying they use internet banking (7 per cent), point of sale (6 per cent), telephone banking (5 per cent) and mobile payments (2 per cent). Of the respondents that had used internet banking, a third were private sector employees and 15 per cent were students.
However, while customers said they would like to use some of these alternative channels for transactions such as bill payments and getting financial advice, uptake is still low with many consumers oblivious to the value proposition that these channels provide.
"That being said, the significant and rapid adoption of the ATM suggests that – once internet banking and mobile payments take root – great potential could be realised," it said.
According to the firm,
It explains further: "Customer awareness has increased, leading customers to demand higher levels of personalised services. Interestingly, while most customers expressed a willingness to continue with their banks, about half of those who would like to change their banks said they were remaining primarily because of their perception of the bank's stability.
This means that as customer confidence in the banking industry begins to rise, there is likely to be an increase in customer switching rates and the associated costs of acquiring and retaining customers."
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