Goodbye, lunch-break trips to bank branches.
Recently, I received a message from my American bank, informing me that my debit card was about to expire and that a replacement card had been sent to my address. While waiting for the expiry notice, I was surprised that the card was delivered to the door of a mere mass-market customer like me. This contrasts with the card replacement process I experienced in Mozambique, as a mass-market customer, where I would have had to go to the bank during my lunch break, queue to request a new card, and come back later to collect it. Although both my debit cards, the American one and the Mozambican one, have the same contactless technology, the way they are accessed sets the two experiences apart.
In the paragraphs that follow, I delve into the nuances of customer experiences in the two countries. I focus on the need for branch visits in Mozambique, in contrast with a “self-service” offering from my American bank. I argue that raising the standard of the banking customer experience in Mozambique requires a collaborative effort involving the entire banking ecosystem.

Lunch-break branch visits: Mozambique vs. the US
Like many people, I go to the bank during my lunch breaks, a task I vehemently detest. In the US, I went only a few times in almost five years and, besides me, there were only five elderly people being served at the branch. So the visits were short and pleasant. In Mozambique, I usually go to the branch about five to eight times a year, and always have to stand in long queues.

I believe the low levels of footfall at branches in America are due to the high rates of digital banking adoption. According to the Forbes Advisor Digital Banking Survey 2022, 78% of American adults prefer digital channels, compared with 14% who prefer traditional branches. I do not have directly comparable data for Mozambique, but a 2023 report from 360º Moçambique indicated that 30% of the population has access to a bank account, and 75% to a mobile wallet.

Technology is the great equaliser
My first impression on arriving in the US five years ago was that Mozambique was quite advanced in terms of the digital banking channels available. Technology acts as the great equaliser, giving customers in Mozambique access to digital banking channels comparable to those in the US. Commercial banks, regulators and the Government deserve praise for bridging this gap.

However, American banking customers depend less on branches. Based on my own analysis, two key factors drive the difference in customer behaviour: 1. literacy levels, and 2. alternative options. With a literacy rate of 79% in the US, compared with 63% in Mozambique, Americans are better positioned for “self-service”, because the instructions on the channels are written in a language they can read and understand. Relatively fewer Mozambicans can read Portuguese, so the language of the channels is "foreign" to them. In addition, Americans benefit from alternative options, such as a more comprehensive list of digital banking transactions, access to virtual assistants, and well-trained customer service agents, supported by affordable mobile plans that allow them to deal fully with questions and complaints remotely.

Bridging the customer experience gap
Achieving parity in the customer experience between the two countries requires collaboration between the various players in the banking ecosystem. Commercial banks should focus on improving platform stability, empowering support teams to serve customers fully, educating customers about digital channels and making them more appealing. Public utility providers can contribute by providing stable and affordable essential services, such as internet and electricity, which are vital for digital platforms to run without problems. Regulators should advocate for regulation that favours digital banking, aligned with technological advances in the industry. The government should prioritise improvements to infrastructure, especially the public postal system, to create efficiency in delivering mail to customers, in an environment largely dominated by private providers.

Finally, as a customer, the greatest power in the ecosystem lies with you, so it is up to you to say goodbye to lunch-break branch visits. I encourage you to embrace the digital channels available and to use free lines to call your bank and find out about “self-service” options. In this way, you will help pave the way for a digital future for our country.