This year’s report indicates that approximately 30 percent of Equity Bank customers are considering to move to Cooperative Bank of Kenya.
The consumer insights of 2023 report highlights that 29 percent of Equity Bank customers would entertain the idea of switching banks in search for banks with better quality.
Consumer Insight emphasized, “But Equity has the lowest loyalty (29% of their customers would consider switching), and the majority would switch to Co-op. Critically, service quality is the reason to consider switching, not low bank charges – which was Equity’s forte.”
The report suggested that the reputation Equity Bank had built as a cost-effective banking option, which attracted a broad customer base, is now facing uncertainty due to shifting customer attitudes and powerful competitors.
The survey, entitled “Banks That Connect with Kenyans: A Banks Brand Equity Study,” was conducted in April 2023.
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The study reveals that customers who lean toward Cooperative Bank perceive Kenya Commercial Bank (KCB) as a better alternative. The report states, “The customer journey that starts in Equity ends at KCB; it appears. Also, KCB and Co-op brands are associated with youthful attributes (unlike Equity), giving them an edge over their peer.”
Kenya’s three major lenders being KCB, Equity Bank, and Co-operative Bank, they dominate more than half of the country’s banking sector.
Co-operative Bank and KCB have the task of converting the aspiration to switch into a surge of new accounts, all while retaining their existing customer base. Whereas, Equity Bank faces the pressing challenge of remaining relevant in the face of these shifting dynamics.
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