Kenyan mobile phone loan borrowers are on the increase amidst the economic challenges bombarding them as the country’s economy slows down.
Like bargain hunters, the borrowers are not just seeking loans from all lenders but they are conscious of the costs that come with the loans.
Due to this, KCB has become a darling of Kenyan mobile phone loan borrowers with the lender emerging the most preferred in the highly competitive fintech lending sector.
KCB M-Pesa beats the Uhuru Kenyatta family-owned NCBA’s M-Shwari offering by over 50 per cent. KCB tops the list in terms of leveraging technology to deliver on their Customer Experience programmes.
In a report released by Ajua, an Integrated Customer Experience Company, the biggest bank by asset in Kenya scored significantly high on the Net Promoter Scores.
Interest rates
KCB topped the Banking sector in Q2 2019 with an NPS of 34 with customers citing lower interest rates on loans compared to other banks as the reason they preferred the lender.
Also, KCB M-Pesa led in the industry with an NPS of 41 owing to lower interest rates.
The Kenya Demographic Household survey 2018 notes that mobile loans are the third most important for Kenyans after SACCOS and Commercial Banks.
Customers in this industry were particularly keen on competitive interest rates, friendly payment periods as well as speed and efficiency in service delivery, notes Ajua.
Unlike in other industries, the first experience determines whether a customer will promote a brand or not since customers care more about interest rates and speed than customer service.
The Benchmark report is Ajua’s second quarterly Customer Loyalty Industry for 2019 and it covered 8 industry sectors.
Mobile Money Lenders and Food and Beverage were the two new entries included in this issue.
Customer Experience improved significantly within the Banking, and Insurance industries, with Healthcare being the most improved in Quarter 2 of 2019, an indicator that customer-centric measures have been adopted by businesses in these industries.
Accessing Healthcare Services
Public healthcare facilities in Kenya have long struggled with poor customer experience.
The disparity between Customer Experience in public and private hospitals persists however, public healthcare facilities made the biggest recorded improvement in Customer Experience in Quarter 2 2019 rising from an industry NPS of -5 to in the previous quarter to 19.
The progress was primarily driven by Kenyatta National Hospital’s (KNH) improved score which customers attributed to the change in management at the Hospital.
Customers commended KNH for their high-quality service, specialized facilities, highly skilled doctors, friendly staff, accurate diagnosis and improved customer care.
Digitised Banking Halls
Banks that leveraged technology in their Customer Experience programs scored significantly higher Net Promoter Scores.
This has led to increased uptake of digital queueing systems, mobile banking and internet banking.
In addition to this, some banks have adopted digital methods to get accurate and real-time customer feedback.
KCB emerged top in the Banking sector in Q2 2019 with an NPS of 34 with customers citing lower interest rates on loans compared to other banks.
Also, the KCB M-Pesa service led in the Mobile Money Lenders industry with an NPS of 41 owing to lower interest rates. According to the Kenya Demographic Household survey 2018, mobile loans are the third most important loans after SACCOS and Commercial Banks.
Customers in this industry were recorded to be particularly keen on competitive interest rates, friendly payment periods as well as speed and efficiency in service delivery.
In the Insurance industry, providing excellent customer experience is paramount because unlike other industries, interaction with customers is less frequent resulting in fewer chances to build trust and loyalty.
Insurance sector
Britam led the pack in Quarter 2 2019 with customers citing faster compensation compared to other insurance companies, full compensation and great customer service.
NHIF followed closely with an NPS of 21, their customers scored them highly for their affordability, wide coverage and reliability.
Ajua’s Benchmark is based on the Net Promoter Score (NPS), a globally recognised Customer Experience Metric used by Fortune 500 companies globally.
The report seeks to establish NPS benchmarks for various industries and compare their performance over time. It also helps businesses to identify the best-performing companies within those industries each quarter and learn the key drivers behind good Customer Experience.
