West Africa’s financial sector is undergoing major changes as core digital banking capabilities, once a competitive advantage, have become a minimum requirement for survival.
As digital trust becomes the baseline, the next stage of growth will be defined by trust and intelligence, and banks that fail to transition from transactional providers to strategic partners risk losing relevance with a generation that expects banks to be as smart as their smartphones.
According to the 2025 KPMG West Africa Banking Industry Customer Experience (CX) Study, banks in Nigeria and Ghana are now entering a high-stakes race to move beyond feature delivery and towards intuitive AI-driven experiences.
The report identifies artificial intelligence as the main catalyst for this new era. Even when AI is invisible to users, exposure to advanced technologies from other industries has redefined expectations for speed and insight.
Adoption is high, with 92% of Nigerians surveyed using artificial intelligence regularly, the second highest level in the world.
Related article: Traditional banks are falling behind as fintechs set new customer experience benchmarks
Based on feedback from more than 24,000 retail customers in Nigeria and 11,000 in Ghana, the study identified institutions that are currently winning the battle for customers.
In Nigeria (Retail), Starling Bank took the top spot with praise for its platform like “Lifestyle App”. Wema Bank came in second place due to its intuitive digital onboarding.
In Ghana (Retail), Standard Chartered Bank leads the ranking, closely followed by Zenith Bank and Prudential Bank.
The report also noted that about 79% of Nigerians have expressed their willingness to trust artificial intelligence in financial transactions and are willing to do so.
Six out of 10 respondents have already integrated AI into their personal lives, showing that the market is ready for “hyperpersonalized” banking that anticipates needs rather than just reacts to them.
Digital dominance and the cashless pivot exist as mobile banking fully matures from a transactional channel to a primary relationship interface.
Weekly mobile banking usage jumped from 58 percent in 2024 to 69 percent in 2025. This was primarily driven by Gen Z (73 percent) and Millennials (69 percent).
Investments are also being made in infrastructure, with major Nigerian banks spending over N150 billion in the first half of 2025 alone to upgrade core systems and strengthen cybersecurity.
The report noted that traditional channels are in decline, as weekly ATM usage has plummeted from 44% to 32% in one year. Agency banking also declined as customers became accustomed to direct digital payments.
The report reveals a new breed of customers, called “expectation literate” customers, who benchmark their banks against fintechs and global service leaders rather than against other banks.
Integrity remains the most valued pillar in Nigeria, demonstrating that while technology is essential, trust is the basic expectation.
While traditional banks are closing the gap, fintechs like OPay continue to set the benchmark for mobile uptime and real-time transparency.
