NAIROBI, Kenya- In a digital twist to traditional banking, a new survey by KPMG reveals that a significant number of Kenyan bank customers are choosing mobile applications for their daily transactions.
The 2024 Kenya Banking Industry Customer Experience Survey, conducted across Nairobi, Mombasa, and Kisumu, highlights a major shift towards mobile banking.
According to the survey, 42pc of respondents interact with their primary bank through mobile apps, overshadowing the 24pc who still prefer visiting physical branches.
Other modes of interaction include using agents (14pc) and Automated Teller Machines (ATMs) (11pc). This shift is driven by high internet penetration and widespread smartphone usage among the 39 million bank customers in Kenya.
“Our research indicates that the majority of the banked population are between 26-35 years of age,” the report states.
“The main services they access include savings accounts, mobile banking, current accounts, cash deposits/withdrawals from branch tellers, and cash deposits/withdrawals from bank agents.”
The Communications Authority reported that as of March this year, there were 51.3 million mobile data subscriptions, with 72.6pc on mobile broadband.
Additionally, the number of smartphones connected to mobile networks increased to 34.5 million, further facilitating the use of mobile banking apps.
The survey reveals that withdrawals are the leading transaction type, conducted by 52pc of bank customers, followed by deposits at 50pc, and savings at 29pc. Funds transfers and requests for bank statements lag behind at 5pc and 3pc, respectively.
Moreover, the survey highlights a significant finding regarding customer priorities. A substantial 47pc of respondents prioritize excellent customer experience over the cost of banking services, which only concerns 6pc of the participants.
This suggests that Kenyan bank customers value quality service more than the expenses incurred through different banking channels.
“This implies that customers’ sensitivity to charges and costs is low, and they rank customer experience above the cost of accessing services via a given channel,” the survey states. “Banks in Kenya need a well-articulated customer experience strategy to offer quality service.”
