Mobile banking continues to reign supreme – Survey

By Victor MUJIDU

More than a half of bank customers maintained more than one bank account in 2023, in a trend that highlights a growing desire for customized convenience in services and products among bank customers.

According to the Banking Industry Customer Satisfaction Survey (2023) released Tuesday by Kenya Bankers Association (KBA), the level of bank clients with two bank accounts stood at 53 percent with the proportion of holders of 2 to 3 and 4 to 5 bank accounts representing 8.2 percent and 1.2 percent respectively.

The preference of digital and mobile banking channels to bank branch visits also continued to grow during the period under review, with preference for mobile banking rising to 69.9 percent from 67. 8 percent in 2022.

Kenya Bankers Association Chief Executive Officer Dr. Habil Olaka said the growing trend in multi-banking underscored increasing competition among players in the banking sector in product offerings as well as in customer experience.

“Considering the elevated level of flexibility at the banking public’s disposal, banks that prioritize the needs of customers will continue to have a significant competitive edge over the rest,’’ said Dr. Olaka.

The combination of mobile technology, innovative mobile banking platforms like M-Pesa, and a conducive regulatory environment has made mobile banking a central pillar of Kenya financial ecosystem, driving financial inclusion and economic growth.

The digital channel has become increasingly important in the banking industry, with mobile banking being the most preferred channel among customers,” reads part of the report.

Olaka emphasized that physical branches remain essential in the banking sector, particularly for human-assisted services such as customer support.

Further, the survey findings place the access rate to banking services by Persons with Disabilities (PWDs) at 88 percent.

However, 6.5 percent of PWDs still require a third party to access services, denying the banking population an opportunity to manage their finances independently and equally participate in the economy.

Olaka noted that the efforts are underway to address the challenge under the banking industry Persons with Disability Accessibility project. Coordinated by KBA, the project seeks to enable banks to put measures in place that will ensure full and independent access to banking services.

The survey respondents ranked Cooperative Bank as the best overall bank in customer experience, followed by NCBA Bank and Family Bank respectively.

In the Tier I category, Cooperative Bank maintained the top position, followed by NCBA Bank and KCB Bank in position three.

Meanwhile, Family Bank emerged best in the Tier II category with National Bank and Prime Bank taking the second and third positions respectively. ABC Bank topped in the Tier III category while Sidian and HFC Bank took the second and third positions respectively.

While Kenya leads the way in embracing mobile banking in East Africa, other countries in the region, such as Tanzania, Uganda, and Rwanda, are also making strides in this field.

However, Kenya’s success with M-Pesa has set a benchmark for mobile banking innovation and adoption in the region.