The 2024 Kenya Banking Sentiment Index, conducted by DataEQ, provides a comprehensive analysis of the online sentiment towards Kenya's leading banks. By tracking over 502,000 public online posts, the index captures the voices of customers for Absa, Co-operative Bank, Diamond Trust Bank, Equity Bank, I&M Bank, Kenya Commercial Bank (KCB), NCBA Bank, Stanbic, and Standard Chartered. The index offers valuable insights into customer experience and general sentiment, splitting data into operational and reputational Net Sentiment.
Operational performance
While the industry saw a significant improvement in overall Net Sentiment, operational Net Sentiment remained a concern, falling from -24.3% to -31%, with eight of the nine banks receiving a negative score.
I&M Bank the best performer
I&M Bank stood out as the only bank with a positive operational Net Sentiment of 37.3%. The bank's strong performance could be attributed to its competitive pricing and fee policies, particularly the zero-cost transactions to M-PESA, which garnered significant positive sentiment from customers.
Worst performer
Equity Bank had the most negative operational Net Sentiment at -50.2%. Customers frequently reported technical issues such as being unable to log into the mobile app, transactions not going through, and M-PESA payments not reflecting within the expected timeframe.
Key operational drivers
Customer service
Customer service was a major driver of negative sentiment across the industry. Customers frequently reported issues such as long turnaround times, no response received, staff competency, staff conduct, and feedback given by staff. These service failures contributed significantly to the overall negative operational Net Sentiment.
Pricing
Pricing and fees generated the highest positive sentiment across the industry, with an overall Net Sentiment of 73.9%. This positivity was driven largely by I&M Bank, which was praised for offering zero costs on transactions to M-PESA. Influential authors highlighted this benefit, making I&M Bank a firm favourite among customers.
Product
Product performance was a dominant conversational theme across the industry, making up over a third of operational conversation. Sentiment was largely positive, with influential authors promoting various banks and encouraging consumers to sign up for products due to benefits such as low pricing or fees.
Loans and credit solutions
Within the broader product category, loans and credit solutions were particularly prominent, driving significant positive engagement. Loans attracted the most consumer interest, contributing to large portion of product-related conversation.
Digital experience
As customers embrace digital technology, mobile banking services are becoming increasingly important. However, despite some positivity, the general experience was poor, with issues like app downtime and login problems frequently cited.
Service channel experience drives negativity
Service channels play a pivotal role in shaping customer sentiment. Mobile app was the most spoken-about service channel, making up over a third of all service channel conversation towards Kenyan banks. It also experienced high levels of negativity, with a Net Sentiment score of -69%.
Call centres, the third most spoken-about channel, experienced the highest levels of customer discontent, with issues related to long wait times, unresponsive agents, and unresolved issues frequently coming up in conversation.
Physical branch visits also generated high levels of negative sentiment, with long wait times and poor handling of customer queries frequently being referenced..
Other digital channels, including online banking and SMS/WhatsApp services, also recorded negative sentiment, primarily driven by usability and security concerns.
The 2024 Kenya Banking Sentiment Index. provides a detailed look at the operational performance of Kenya's banking industry, highlighting both the strengths and areas needing improvement. Mobile banking is a critical service channel that is expected to become more prominent and therefore needs significant enhancements and investment to address technical issues.
Call centres, identified as the worst-performing service channel, require immediate attention to improve responsiveness and efficiency. This provides an opportunity to move conversations away from traditional service channels to digital ones.
By addressing these operational challenges and leveraging positive aspects like competitive pricing and products, Kenyan banks can enhance overall customer satisfaction, improving both their overall and operational Net Sentiment.
For a deep dive into the detailed findings and insights, download the full report.