Customers in a banking hall. Financial institutions should educate their customers and engage with them to resolve complaints. PHOTO/MICHAEL KAKUMIRIZI
A man says he walked into his bank and raised a complaint. He was not satisfactorily attended to and raised the same issue with banking regulators. For 10 years, he never got redress.
A company paymaster says he went to withdraw money to pay employees on December 24, 2024. But he was told the account was blocked. For hours, he had to seek clarification from the bank’s headquarters. Customers at Automated Teller Machine (ATM) points line up, only to learn that there is no money in the machine, but no explanation why.
These are examples of frustrations customers grapple with in their interactions with banks in Uganda. There is usually no urgency in responding to issues raised, or nobody is mandated to handle them, and customers end up being tossed from officer to officer until they either give up or change banks.
Despite being a top priority for many financial institutions, customer service in Uganda's banking sector still falls short, Daily Monitor has established.
During Daily Monitor’s investigations, it became clear that many customers are beholden to the bank. Six out of 10 customers feel they owe the bank staff some level of gratitude in return for help or service.
“I don't like to be beholden to somebody. But I am compelled to do so each time I need some services that may require an explanation or some form of help,” one of the customers told Daily Monitor.
Daily Monitor also observed in several situations where help was rendered only after desperately seeking it. Long and tedious queues in the banking halls and even at some ATM points were observed.
Some customers struggle with technology, often relying on third parties, including security guards, for assistance. Meanwhile, bank staff frequently seem too busy or fatigued to offer support to those in need of help. If they give you an ear, it looks like a favour to you – the customer.
Some bank staffers are aggressive in interacting with customers. Some will push for a product down your throat. Another customer was shouted at in a bank when he appeared to inquire whether it was his turn to be attended to. Despite appearing friendly and professional, some financial institutions have no time to listen to complaints, especially those that are not in their favour.
Late last year, a video quickly made rounds depicting the desperate cries of a woman who had lost close to Shs113 million from her account. It didn’t have to get this far—becoming a public concern if her case was swiftly addressed.
Nothing is being done to calm the intimidating feeling in most bank halls, affecting what should, otherwise, be a good banking environment for building client relationships.
Some banks forget that customers are much more likely to shun banking activities when they receive unsatisfactory support. This partly explains why the majority of the population do not have an account with banks unlinke Fintech-enabled financial service providers and telecom companies.
Although industry players say customer service is an integral part of a bank's relationship with its customers, they need to help customers with inquiries, resolve issues, and provide information about banking services. The intention is to create a positive experience that cements loyalty and trust.
Industry experts say the benefits of good customer service include not only attracting new customers, but also retaining existing ones. Building trust and reputation, and free recommendation to potential customers is also part of the bargain – good customer care and service.
Regulator’s position
If banks knew that they were treading on slippery grounds with poor customer service, they would enforce their customer care policy because the Bank of Uganda (BoU), the sector regulator, is watching.
When asked if the BoU’s responsibility included protecting customers from being subjected to poor customer services, Dr Adam Mugume, the director of research and Policy at BoU, responded in the affirmative.
He said: “Monetary policy is implemented through financial institutions.
If banks are not responsive to customer needs, this has the potential to weaken monetary policy effectiveness.
Therefore, BoU follows how banks deal with customers and indeed where customers have brought to the attention of BoU anomalies with particular banks, the Central bank has taken action.
He continued: “Monthly meetings between the BoU and banks are meant to iron out any issues that could affect the industry.”
Banking fraternity speaks out
According to Uganda Bankers Association (UBA) head of communications and corporate affairs, Ms Patricia Amito, there is no proof of declining customer service in banking despite challenges surrounding customer care.
She said: “While I acknowledge that customer care is challenging, I would not say it is declining.”
Ms Amito believes that banking thrives on relationships – ensuring customers are satisfied with the service, feel comfortable using it, and do not encounter any issues. However, she admits that there are challenges beyond “our institutions, even though our primary focus is to ensure that customers receive the support they need and that institutions continuously invest in creating a positive experience for their customers.
A customer holds money in a bank. Customer complaints about banks have been rising. PHOTO/ FILE
She continues: "I wouldn't say customer service is declining because enhancing a good experience is an ongoing process. There are stages for all that, beginning with addressing customer complaints accordingly. As an umbrella organisation, our role is to support these institutions – banks, provide them with opportunities to explore best practices, and ensure they adhere to guidelines and processes within their timelines.”
Make formal complaints
Part of the challenges being encountered is that most complaints are not being formally filed yet, according to Ms Amito, points of redress are available before taking to the media – traditional or social media.
“Media should not be the first method of addressing an issue unless they have already exhausted support from the respective institution,” she told Daily Monitor, adding: “ Structured complaint processes should be emphasized, customers should be educated and encouraged to follow established steps before escalating the issue to the regulator.”
She said: "We have agreed to start by educating customers on where to turn when they have a challenge or complaint.
"As customers, we all have a responsibility to be aware of the operations regarding our accounts," she suggests.
"If you have a bank account, you should monitor it regularly—whether daily, weekly, or monthly—whichever works best for you."
She notes that financial institutions should educate their customers and engage with them to resolve complaints.
Corporate governance
In another interview with the chief executive officer, Institute of Corporate Governance of Uganda (ICGU), Mr Dison Okumu, It became clear that customer service is essential for effective corporate governance.
This is because, according to Mr Okumu, customers are key stakeholders of any given company. Therefore, non-compliance with corporate governance regulations and codes of conduct will negatively impact customer service.
“Once companies do not honour their promises enshrined in the client charters and management and boards do not take customer complaints seriously, that means that businesses are potentially being done in unethical ways. This means the stakeholders, including customers, are the victims,” Mr Okumu told Daily Monitor.
Despite several frameworks and guidelines being established to enhance corporate governance to contribute to a more transparent, accountable, and well-governed corporate environment in Uganda, the state of corporate governance which includes proper and efficient customer service, remains a subject of concern.
Personal testimony
Mr Okumu also narrates an experience he encountered while banking.
“I have experienced poor treatment from a bank's customer care team,” he says when asked.
He cited two examples. First, when applying for credit facilities, the bank staff treated him like a king, offering assistance and encouragement all through the application process. He says: "They were very customer-centric.”
Secondly, once that happens – default in repayment even for a few months—no matter the situation, the credit recovery department will pounce on you like a hungry lion.
“They do not want to hear your side of the story. All they do is treat you as a thief. They look at you as someone who is deliberately trying to defraud the bank,” he reveals.
Daily Monitor contacted multiple leading banks in the country for this article. However, they did not to respond to our enquiries while others used the opportunity to discuss their customer service policies and engagement. This, in many ways, gives away industry players' lack of urgency in handling customer care/service matters.
