KPMG and DataEQ have joined forces to create the first-ever GCC banking sentiment index in the region. The index aims to measure the experiences and sentiments of consumers in the Gulf Cooperation Council (GCC) banking sector. In order to accomplish this, the report examines consumer sentiment towards 20 banks in the GCC by analyzing a vast dataset consisting of 3,965,821 X posts from May 1, 2022, to April 30, 2023. The UAE garnered the highest proportion of positive mentions, accounting for 21.1 percent of the conversation. Qatar, the next country in line (20.2 percent). Positive mentions were driven by successful partnerships, strong financial performance, Corporate Social Investment (CSI) initiatives, and customer service.
The survey uncovered numerous negative complaints from consumers across all countries, with consumers sharing their experiences and making comparisons between two or more banks. Common areas of complaint included service issues, app downtime, and long wait times.
Net sentiment: Measuring customer satisfaction
The net sentiment metric is used to gauge customer satisfaction, which is calculated by subtracting negative sentiment from positive sentiment and adjusting for the overall volume of conversation.
In terms of net sentiment, Qatar emerged as the clear leader with a positive net sentiment score of 7.8 percent. This can be attributed to several factors, including favorable financial performance and the introduction of highly anticipated remittance services. One significant driver was the implementation of UPI (Unified Payment Interface) remittance for instant fund transfers to India, which greatly appealed to expats in the country. Collaborations with third parties to enhance cross-border payments also contributed to Qatar’s high net sentiment score.
The findings also revealed that Saudi Arabia dominates the conversation within the GCC’s banking sector, accounting for an overwhelming 83.3 percent of the total online discussion. This indicates that Saudi consumers are more active and vocal about the banking industry compared to their counterparts in neighboring countries.
Steady growth and economic diversification
The GCC banking sector has witnessed steady growth due to infrastructure projects, efforts to diversify the economy, and a young, affluent population that demands various banking services. Cross-border banking activities are common within the GCC, facilitated by economic integration agreements. Furthermore, regulatory bodies in each country closely oversee the banking sector to ensure stability and compliance with international standards. Overall, the industry is characterized by innovation, robust regulation, and a focus on adapting to global financial trends.
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