Trust and Data Security Concerns Slow Transition to Full Digital Banking in Ghana
Despite the steady rise in digital banking adoption, many Ghanaians remain hesitant to embrace a fully digital banking model with no physical branches, according to the 2024 KPMG West Africa Banking Industry Customer Experience Survey.
The report highlights that while internet penetration in Ghana reached 70% and mobile connectivity stood at 113% in early 2024, driving growth in e-commerce and digital banking, a significant portion of customers still value physical banking interactions.
Trust and Security Concerns Hinder Full Digital Migration
When asked about the possibility of using a bank that operates entirely online, 23% of respondents expressed distrust in banks without physical locations. This skepticism underscores the enduring importance of face-to-face interactions in fostering customer confidence.
Although digital banking is known for its convenience and efficiency, many customers still prefer physical branches for handling complex financial issues and personalized support. Additionally, 62% of respondents emphasized that security and data privacy are critical concerns, reinforcing the need for banks to strengthen their cybersecurity measures.
Bridging the Trust Gap in Digital Banking
For banks aiming to accelerate the adoption of fully digital services, building trust and addressing security concerns will be essential. The report suggests that financial institutions can encourage wider adoption by:
- Enhancing cybersecurity measures to reassure customers about data protection.
- Providing robust customer support, including AI-driven chatbots and 24/7 assistance.
- Developing user-friendly digital banking platforms to improve customer experience.
- Implementing a hybrid banking model, combining digital services with selective physical touchpoints, to ease the transition.
As Ghana’s financial sector continues to evolve, banks that successfully balance digital innovation with customer trust will be better positioned to drive long-term adoption of fully digital banking solutions.
