A recent survey by KPMG has revealed that SME banking customer service in Nigeria and Ghana has shown significant improvements, with 10 banks in both countries standing out for their exceptional service. The 2024 West Africa Banking Industry Customer Experience Survey, which surveyed over 33,000 retail customers, 5,000 SMEs, and 700 commercial organizations, highlights the progress made by banks in the region in providing better services to their SME clients.

Historically, limited access to finance has been the main challenge for African SMEs, but the survey reveals that restricted market access is now a greater hurdle. Other issues like regulatory differences, tariffs, and complex taxes also hinder cross-border expansion. SMEs represent 90% of businesses, over 50% of global employment, and up to 40% of GDP in emerging economies, making their growth and development crucial for the economy.

The survey, which is based on the Six Pillars of experience excellence, including Empathy, Integrity, Personalization, Resolution, Time and Effect, and Expectations, identified 'Personalization' as the weakest experience pillar for the third consecutive year. Lending to SMEs is challenging due to lengthy KYC, credit assessments, limited data, and weak governance. Despite these challenges, some banks focus on SMEs due to their crucial role in economic growth, job creation, and as a large, underserved market with long-term growth potential.

In Nigeria, the banking industry saw modest improvements in customer experience across key segments, with the SME sector experiencing the highest growth, rising by more than two percentage points compared to the previous year. The corporate segment stood out, surpassing the 80-point mark in overall customer experience ratings, reflecting the high standards of service delivery in this area.

In Ghana, the SME segment also led in customer ratings, surpassing the Corporate segment, which topped last year. SMEs saw a significant improvement of about five percentage points, while the Corporate segment grew by just one. This shift reflects a stronger focus on meeting the needs of SME customers, crucial to economic growth.

The top five banks in Nigeria and Ghana with the best customer service in SME banking were identified as Stanbic IBTC, WEMA Bank, UBA Bank, First Bank, and Keystone Bank in Nigeria, and Prudential Bank, GTB, Calbank, Access Bank, and ABSA in Ghana. These banks have demonstrated a commitment to providing exceptional service to their SME clients, which is essential for the growth and development of the sector.

The survey's findings have significant implications for the banking industry in Nigeria and Ghana, highlighting the need for banks to prioritize SMEs and provide them with tailored services that meet their specific needs. As SMEs continue to play a crucial role in economic growth and development, banks that focus on providing exceptional service to this segment are likely to reap long-term benefits.

The improvement in SME banking customer service in Nigeria and Ghana is a positive step towards addressing the challenges faced by SMEs in the region. As the sector continues to evolve, it is essential for banks to maintain their focus on providing exceptional service to SMEs, which will be crucial for driving economic growth and development in the region.