MARKETING OF BANKING SERVICES IN NIGERIA (A CASE STUDY OF SAVANNAH BANK OF NIGERIA PLC)
MARKETING OF BANKING SERVICES IN NIGERIA (A CASE STUDY OF SAVANNAH BANK OF NIGERIA PLC)
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Date
2002-11
Authors
EPHRAIM, MISHKOM DAYER DOKSHIN
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Abstract
This Research work is carried out to show and analyse the various
types of services rendered by banks in Nigeria with special reference to
commercial banks and Savannah Bank of Nigeria Pic. in particular and to
Indicate whether or not such bank services are seen by beneficiaries or
Customers to be adequately carried out. Further more, the study attempt to
investigate the remote causes of lack of public confidence in 'banking
services. Again availability of the various services is and the bases for thin
study and therefore the research to bo conducted is aimed at verifying and
ascertaining how authentic is general opinion usually hold by this public
(bank's Customers) that the existence among others of adequate services
and even personal relationship (in some cases) are the major objectives.
Usually considered by bankers while carrying out their service functions.
In Nigeria, the banking system can be divided or categorized into two
major groups i.e. the apex bank (Central Bank) and the other banks,
(development and non development banks) These other banks are made up
of Commercial banks, Merchant banks, Development banks /Federal
Savings Banks, Agricultural and Co-operative banks and Nigeria :>ank for
Commerce and Industry, Federal Mortgage bank and Nigeria Industrial
development bank. The functions of these banks are overlapping. In most
cases, the Commercial banks tend to be more involve in all classes of
banking activities than the others whose operations dominates tire
Nigerian economy, as a result, attempt will be made in this research or
study to focus attention on this sub-sector (Commercial Banking) in this
thesis/Research Work.
Although almost all commercial banks perform and operate the same
or similar functions, more emphasis is being focus particularly on
Savannah Bank of Nigeria Plc. (Personal Service Bank), and one of the
leading commercial banks in the country with 08 branches nation wide. A
sample size of 4 branches (Urban and Rural Brandies) was chosen.
Based on the above, questionaires were administered on the
selected bank branches and responses in some branches agreed,,
disagreed or undecided or graded poor, good and excellent. A total of 40
Customers were administered in both Urban and Rural branches
respectively. This was also based on random sampling and the
beneficiaries' Customers included among other are families, traders.,
Companies, Civil Servants, Foreigners working in Nigeria, students,
teachers etc. Believe me 50 per-cent responded. Oral Interview were
conducted among the various categories of the bank's and branches and
Customers responded to drive more information.
The result of the data using the simple percentage showed that firstly
banking services are below standard in Nigeria. Secondly, there is the
need for improvement of marketing strategies in the banking system and
lastly, financial Institutions in Nigeria has not fully realised the [importance
of marketing to them thus:-
(a) Banking services (emphasis on Savannah Bank of Nigeria Plc.)
are generally rendered poorly and therefore not satisfied.
(b) Public confidence in the banking Industry/System especially
as to the availability of various services rendered (acceptance
of deposits, standing orders inquiries lending cashing facilities
transfers etc) among aothers is dwindling.
(c) Banking services are still not being enjoyed by a large
proportion of the Nigerian Populace as a result of
concentration of Banks mostly in the Urban areas.
The Hypothesis were tested based on percentage distribution of the
responses to the test indicated as follows:-
(!) banking services are considered by Customers to be poor
especially in relation to time factor i.e. time spent by
Customers while waiting to be served. For instance while
trying to cash cheques, most of the bank's branches involved
claimed that their services are in order, while at the same
time they want to introduce new ideas tor improvement i)f
services. This is contradictory.
(ii) Banking services in relation to granting of credit facilities
among the one thousand and oneservices are to some
extend personified and rigid thereby discouraging a good
numbers of both existing and prospective customers (Loan
Constraint). Bank staff in this regard have been accused of
various malpractices or (Unerthnical behaviours in the
performance of these services).
(iii) Emphasis arc usually placed on collateral/securities such as
certificate of occupancy on landed properties (restricted to
state C of O). Cash backed and other tangible securities.
Indeed most Nigerian especially rural dwellers own land on
family and or hereditary basis and therefore do not possess
any ownership or certificate to cover them.
Based on the above study, vital recommendations, which are/is
believed would enhance efficiency and improve banking services therefore
restore public confidence in banks, were made at the end of the study.
Among the recommendations made are:-
(a) Banks should adopt new methods by which customer?; will
spend less time while waiting to be served especially when
trying to cash cheques and acceptance of large deposits. In
this light, suggestions were made such as outiight payment of
cheques presented to the teller (cashier) at the counter up to a
certain amount.
(b) Bank's staff should accept and adopt better attitude, approach
and method while rendering services Ho customers.
(c) Less emphasis should he placed on personal knowledge,
Know how or relationship as a yard stick for rendering good
services. This is better achieve when staffers are not deploy
to their state or place of origin.
(d) A new system of banking should be introduced in the rural
areas which will be result oriented in order to aid as well as
develop the rural economy.
(f) The staff should be given better training in order to better their
performance on the job by interacting with others (other
bankers and similar institutions) other than the reference bank
provides greater oppoi Utility for exchange of ideas, knowledge
achievement and improve relationship.
(g) Job routine and redeployment.
These recommendations focused largely on the need to
improve services rendered to customers by doing so, more
customers, come in to utilise the bank's services. This is one of the
main strategies in marketing.
On the whole, the banks should improve their marketing
strategies in order to satisfy their customers and to withstand the
increasing competition in the Nigerian banking system today as a
result of the proliferation of banks.
Description
BEING A THESIS/PROJECT SUBMITTED TO THE POSTGRADUATE
SCHOOL OF A HMADU BELLO UNIVERSITY (ABU) ZARIA IN
PARTIALFULFIMENT OF THE REQUIREMENTS FOR THE AWARD
OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA)
IN THE DEPARTMENT OF BUSINESS ADMINISTRATION.
Keywords
MARKETING,, BANKING SERVICES,, NIGERIA, SAVANNAH BANK