KPMG and DataEQ collaborate to create first-ever index to understand consumer sentiment in the GCC’s banking sector

KPMG has collaborated with DataEQ on the region’s first-ever GCC banking sentiment index, designed to quantify the experiences and sentiments of consumers within the Gulf Cooperation Council (GCC) banking sector. The report analyzes consumer sentiment towards 20 banks in the GCC by tracking an extensive dataset comprising 3,965,821 X (formerly known as Twitter) posts from 1 May 2022 to 30 April 2023.  

Bhavesh Gandhi, Partner and Head of Financial Services, KPMG in Kuwait, said: 
“The GCC region’s banking sector is on a steady rise, driven by infrastructure projects, economic diversification, and a strong demand for newer, better, and more versatile banking services. For banks in the region to stay on this growth trajectory, it is critical they continue to take a consumer-oriented approach and look deeper into the complexities of consumer experiences and sentiments.”

He added: “Banks in Kuwait had the lowest ratio of negative mentions in the region, which is a positive sign for those leaning toward embedding customer-centricity into their strategies. Banks should continue to build on this positivity, maximize engagement, address turnaround times for priority conversations and create a positive reputational sentiment to continue thriving in the longer term."
Omar Mahmood, Head of Financial Services, KPMG Middle East, South Asia and Caspian (MESAC) region, and Partner, KPMG in Qatar, said: “In the digital era, banking consumer sentiment analysis is pivotal for shaping customer insights, product development, and brand reputation in the sector. Analyzing social media feedback provides valuable insights, driving informed decisions and aligning products with market trends." 
Mahmood further noted how "Qatar lead results with a positive Net Sentiment score of 7.8%, which was 14.9% above the GCC average, and driven by a digital drive, innovative services, and collaborations for cross-border payments.”

Melanie Malherbe, Chief Commercial Officer at DataEQ, said: “Social data offers organizations an unfiltered view of what consumers really think about them and their competitors. With the rise of social media usage as a servicing channel, specifically in the banking landscape, these platforms house an untapped data pool that can be structured and analyzed in real-time, providing valuable insights into customer experience, product, pricing, and conduct feedback.

Saudi Arabia dominated the conversation within the GCC’s banking sector with an overwhelming 83.3% of total online conversation, demonstrating that Saudi consumers are far more active than their neighbors and more vocal about the banking industry as a whole. Qatar was a distant second in this regard (7.9%), followed closely by Kuwait (4.6%) which came in third.

Net Sentiment is a composite metric gauging customer satisfaction, derived by subtracting negative sentiment from positive sentiment and adjusting for the total volume of conversation.
The survey was not short of negative complaints by consumers online from all countries, with comparisons between two or more banks visible in consumer-shared experiences. Major areas of complaint for consumers overall included service issues, app downtime, and long wait times.

While the UAE led with the highest proportion of positive mentions, garnering praise that accounted for 21.1% of its conversation, this was 0.9 percentage points higher than Qatar, the next country in line. Praise was driven by successful partnerships, strong financial performance, Corporate Social Investment (CSI) initiatives and customer service.

When it came to Net Sentiment, Qatar had the highest positive Net Sentiment score of 7.8%, ahead of Bahrain (2.3%), Kuwait (-1.4%), the KSA (-7.9%), the UAE (-8.9%), and Oman (-12.9%). A variety of factors contributed to this, including favorable financial performance and the introduction of much-anticipated remittance services. One key driver was the implementation of UPI (Unified Payment Interface) remittance for instant fund transfers to India, a feature highly appealing to expats in the country. Collaborations with third parties to enhance cross-border payments also contributed to Qatar’s high Net Sentiment score.

The GCC banking sector has experienced steady growth due to infrastructure projects, economic diversification efforts, and a young, affluent population driving demand for various banking services. Cross-border banking activities are common within the GCC, facilitated by economic integration agreements. Additionally, regulatory bodies in each country closely supervise the banking sector to maintain stability and ensure compliance with international standards. Overall, the industry is characterized by innovation, strong regulation, and a focus on adapting to global financial trends.

Read more from the report here: https://kpmg.com/kw/en/home/insights/2024/03/gcc-banking-sentiment-inde…