CEM REPORT, FINANCE | The banking industry landscape has continued to evolve along the blazing path of technology with every stage of it throwing up varying inconveniences for the banking and financial services consumers. Against the earliest presumption that the advent of technology would eliminate the challenges that came with armed chair banking, banking customers have continued to experience unprecedented dissatisfaction with banking services.
The Association of Corporate Affairs Managers of Banks, ACAMB took the initiative to put these experiences before Stakeholders at the 3rd edition of the annual Stakeholders Conference held Thursday at the Bankers house, Adeola Hopewell, Lagos.
Like the past two editions, ACAMB, in this edition themed; “Building Bridges: Collaborative Solutions for a Trusted Banking and Financial Services Experience”, once again registered their mission and mandate in the Nigerian banking and finance industry. The President of ACAMB Rasheed Bolarinwa stated this clearly in his welcome speech when he said; “In a world where the financial landscape is continually evolving, our mission in ACAMB and the larger banking and financial sector remains clear: to foster transparency, prioritize consumer welfare, and champion industry excellence.”
As representatives of the banking and financial services sector, ACAMB is dedicated to cultivating positive perceptions within Nigeria, sub-Saharan Africa, and beyond so as to reinforce the reputation of the industry.
Trust; the new currency in banking
A term that became so prominent and recurring on the discussion platform being critical for the attainment of the aforementioned, is ‘Trust’. Wale Abioye, quoting Marc Benioff, CEO of Salesforce, correctly described Trust as the “new currency in the digital world, and it’s built through transparency, authenticity, and integrity.“
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How important is ‘trust’ to the banking industry? President and Chairman of Council of the Chartered Institute of Bankers of Nigeria, Prof. Pius Deji Olanrewaju, Ph.D, FCIB described it as culture upon which the stability of the industry rests after describing the theme of the conference not only timely but also essential.
He said; “Indeed, a closely knit collaboration between bankers and the distinguished professionals represented in this room has the potential to significantly shape the banking industry, by deepening the culture of trust, upon which customer loyalty, investor confidence, and the overall stability of our financial system rests”.
Wale Abioye, Partner, Strategy & Customer Solutions at KPMG, opened up deep seated concerns about customers dissatisfaction with banking services. One of them is the increasing rate of customers complaints as discovered by the firm in their annual banking sector survey. In 2021, 4.5 million customer complaints were received. This figure went up to 6.9 million 2022 and then hit a whooping 11 million in 2023.
Hon. Justice Benedict Bakwaph Kanyip, President of National Industrial Court of Nigeria presenting his keynote address touched some of the complaints from consumers of banking services in Nigeria. They include charges for sms and account maintenance being borne by customers of banks
These complains centered around Lack of engagement, Poor communication, Low personalization, Unmet expectations and Breakdown in trust.
According to CIBN President, trust is not a given; it is earned through consistent, transparent, and ethical practices. This statement becomes a precursor to the four pillars of trust as declared by Wale Abioye which are Transparency, Authenticity, Credibility and Responsiveness.
While issues of trust and others are critical areas beckoning for attention, the resilience of the Nigerian banking industry underscores the assurance of continuous improvement in the offering of banking and financial services to consumers.
“You would all agree with us in ACAMB that Nigeria’s banking and financial services sector, which is marked by resilience, adaptability, and innovation, stands as a beacon of stability amid economic fluctuations. The regulatory framework established by the CBN ensures the sector’s integrity, while collaboration with DMBs and auxiliary institutions like NAICOM, PENCOM, and NIBSS underscores the interconnectedness necessary for a robust ecosystem.
As we move forward, consumer protection agencies will continue to play a crucial role in safeguarding public interests, ensuring fair practices, and nurturing a culture of transparency”. “…. It is a testament to our collective responsibility to address consumer concerns and cultivate an inclusive, resilient, and consumer-centric banking and financial services landscape in Nigeria”; Bolarinwa said.
