titled “Evaluation of Customer Services
in Banking Industry” (A case study of First bank of Nigeria plc). It is
aimed at evaluating the level of customer services in the banking industry. It
has been a wondering issue that majority of the banks in Nigeria do not recognize the
importance of customers. They keep them than the necessary on the queue and
give them embarrassment unnecessary. This project is designed to find out
whether the customer are satisfied with all these situations. To carry out this
work, the cross section of the bank employed used for these study is in known
and the cross section of bank customer and survey research design in carrying
out this work. This instrument used comprises of questionnaires, interviews,
observation an documentary investigation. After collecting the data, it was
tabulated and analyzed according to the theoretical manners. In this work, the
researcher analyzed the relationship between the customer and the bankers with
examining and highlighting the responsibilities and the rights of bankers to
their customers. Different categories of customers were also examined and the right
of each of them. The study makes the researcher to find out that the customer
are not duly satisfied and that the cashier are the major contributors of the
inefficient services rendered by the banks. Management also has its portion in
contributing to inefficient services rendered in terms of control, direction
and supervision. Finally, the
inefficient service rendered by the bank cannot keep the customer satisfied.
TABLE OF CONTENTS
Title page i
Approval page ii
of content iv
Background to the problem 2
Statement of the problem 5
Objective of the study 7
Research hypothesis 8
Significance of the study 9
Scope of the study 10
Historical background of First Bank of
Nigeria Plc 11
Definitions of terms 14
Literature review and theoretical
Bank and customer relationship 19
Banker’s duties and responsibilities 25
Types of customer 28
Duties owed by customer to his banker 31
Bank and customers legal relationship 32
Services offered by banks to their
Customers complaints as regards to banking services offered 38
3.1 Introduction 41
and sample size 42
of method of data collection 45
of data analysis 47
for the choice 47
4.0 Data Presentation, Analysis and
4.1 Introduction 49
analysis and interpretation 57
of hypothesis 62
of finding 66
Conclusion and Recommendation 68
5.1 Summary 69
of the study 71
5.4 Recommendations 72
of banking have been in existence about 500 BC. The early bankers (the jews)
lombandy in Italy
transacted their business in the benches in the market place. The word.” Bank”
It self is derived from Italian word “BANCO” which means “Bench” when a banker
failed them this bench was broken up by the angry people (i.e depositors) hence
the word “BANKRUPTCY” was derived from the “BANKCORRUPTION” which means broken bench.
types of banking into not begin until the sixteenth century. Italian goldsmiths
working in London
began to expand their business activities to include safe keeping of valuables
and money, when such valuables are represented and thus began to change hand in
place of many and valuables. And become our present day bank notes.
goldsmith with an age for profit were quick to realize that some of the money
deposited with than could safely be bend out and realize interest. The practice
was to be rewarding and many establishment tried to take advantages of this way
to make easy profit.
due to bad management there were unconditional leading which led to the
collapse of the business. In an attempt to alleviate. This undesirable
situation the British government established the bank of England in 1694 and gave it the
sole right to issue banknote. Being the first bank of England it soon brought
about either the closure of the main banking system contained throughout the
centuries, until when there are only major banks in England and all able to trace
their origin back to the 16th and 17th centuries.
TO THE STUDY
business all over the world is all about providing various services to
customers. These services range from accepting deposits from customers, payment
of cheques on their behalf, issuing of advances and loans to them. All these
are aimed at customers patronage where there is effective and efficient
services provided by the bank.
service is any activity that is aimed at pleasing or satisfying a client or
customers to encourage more and more patronage.
are not left out of these, this is because the existence is dependent on how
much satisfaction they were able to give their customers.
customers service in the banking industry for sometime now has been at a high
deteriorating level. Bankers no longer recognize the importance of customers
satisfaction to the growth of their business.
keep them than necessary on the grave, give them embarrassment by treating them
harshly and even in some cases, there is unusually harassment from the banks
security men. The security men are in the habit of harassing their customers in
the area of parking of cars, perhaps, because some of them are illiterates,
they do not know that a customer is considered a king and a king can do no
the area of maintaining absolute secrecy concerning all issues relating to
customer’s account and other transaction affairs is also lacking in banks.
is making customers to lose confidence in their bank. A bank that enjoys large
patronage of customers is likely to have a higher profit compared to the one
with lower patronage.
this research work, the researcher shall examine those areas that the banks are
lacking in terms of providing efficient and effective services to customer the
relationship between customer and the bankers, their right as customers and
provide recommendation on how banks especially First Bank of Nigeria Plc can
improve on it’s customers services relationship.
OF THE PROBLEMS
business is able about providing various services to customer. These services
range from acceptance of deposited, payment of cheques. And soon on behalf of
the customers, issuing of advice and loan to customers but this services have
not be an effective due to the following reasons:-
a. Insufficient manpower:- This
problem of lack of competent employee has led to the slow performance of their
services to customers.
b. Lack of proper incentives
from banks to their employee: Incentives have a long way to go in motivating
the employee for put in more of their best in performing their duties. The move
on individual is encourage the better he can per. In carrying out his
responsibility. But most of our banking sectors today find it very difficult to
respond to this aspect of their employer which has course a lot of setback in
their services to customers.
officer/employees:- One of the major challenges we are facing in our banking
industries today is the problem of unqualified employee that are not competent
in discharging their duties that has lead to serious delay when attending to
customers in their day to day activities in the banking sectors. Which make
customer querying unnecessary before being attended to.
d. Lack of infrastructural
facility e.g power which has led to network failure most a times, this problem
have of course fluctuation in the services rendered by banks to their customer
over the years, unstable power supply is one of the major challenges that have
hamper the effective services banks could have provided to their customers.
e. High interest charges:- Most
customers find it very difficult to request for loans from our banks because of
the level of interest they may be charged which has led to slow saving and investment
which to some extent has affected the growth of the economy of our nation Nigeria.
OF THE STUDY
objectives of this study could be summarized as follows:
a. To ascertain the quality of
the service rendered by banks to their customers.
b. to evaluate the inability of
the banks employee to provide effective and efficient customers services.
c. In order to know the
customers Responses as regards whether
they are satisfied with the services rendered to them or not.
d. to also know possible areas
in which banks can improved the quality of their services to customers.
e. To also evaluate areas in
which they have not been able to deliver satisfactory services to their
f. Analyzing the customers
needs and want from the marketing point of view as seeing the customers as
kings and the reason for their existence as banks.
speaking , lot and lots of problems have been encountered daily by customers.
It has been found that there are always long queue, rudeness and aggressive
noise in the banking hall indicating the state of satisfactory services
rendered by bank.
study/observations, generally, this statement being tentative stands the chance
of being accepted out rightly or rejected. For the purpose of achieving the
objectives of this research work, the following hypothesis will be tested.
Hypothesis is a tentative statement about problem.
Ho: Effective customer relationship does not enhance
the performance of banks.
Hi: Effective customers relationship enhances the
performance of banks.
1.5 SIGNIFICANCE OF THE STUDY
study is tailored towards evaluating customer services in our banking sectors
which over the years has not be efficient enough as expected from customers.
Since patterned towards enhancing the effectiveness of customers services in
study will be of immense benefit to undergraduate and other shareholders in
banking industry who are eager to know how customers services can be performed
effectively without any unnecessary delay or waste of time in the bank. It is
also conducted to look for possible means or ways in which banks can give their
customer full confidence to go into business with the bank without any fear in
poor services delivering which has been the experience of the past.
end of the study we intend to probe out problems in the past, causes of those
problems and also to provide recommendation that will be of great help to our
banking industry in rendering services to their customers.
1.6 SCOPE OF
case study of this research work is registered to first Bank of Nigeria Plc, Yakubu Gowon Way, Kaduna.
purpose of this work is to evaluate customers services in the banking industry
over the years which has not yet been able to meet the demands and satisfaction
of customers over the years.
a. To find out reasons for
banks failure in customers satisfaction.
b. to evaluate areas or
differences in banking sectors that has contributed to poor service delivery to
c. To analyzes ways in which
urgent attention is needed to improve in order to provide quality services to
1.7 HISTORICAL BACKGROUND OF FIRST BANK OF
First Bank of Nigeria Plc, for over a century has
distinguished itself, a leading banking institution and a major contributor to
the economic advancement and development of Nigeria economy.
in 1894 by a shipping magnet from Liverpool sir Alre jones the bank commenced
as a small operation in the office of elder Dumpster and co in Lagos. It was incorporate
as a limited company in march 1984, with the head office in Liverpool.
It started business under the corporate name of Bank for British West Africa
(BBWA) with a paid up share capital of 12000 pound starting after absorbing. It
predecessors, the Africa Banking corporation.
early of its operations, the bank recorded an impressive growth and worked
closely with the colonial government in performing the traditional function of
a central Bank to justify it’s West African coverage a branch was opened in
Accra Gold coast (now Ghana) in 1896 another in freedom, sierra Leone in 1898
that marked the genesis of the bank international banking operation. The branch
of the bank was opened in old Calabar in 1900 and two years later services were
extended to northern Nigeria.
To satisfy the needs of its customers, first bank has diversified into a wide
range of banking strategies which includes corporate and retal banking
relationship. Trusteeship and insurance brokerage. To reposition and to take
advantage of opportunities in the changing environment, the bank embarked on
several restructuring initiatives in 1957 it changed it’s name from Bank of
British West Africa in 1969, the bank was incorporated locally as stand Bank of
Nigeria limited in line with the companies Degree of 1968 changes in the name
of bank occurred in 1979 and 1991 to First Bank of Nigeria Plc respectively. In
1985, the Bank introduced a decentralized structure with fire regional
administrations. This was reconfigured in 1992 to enhance the banks operational
efficiency. In 1996, the bank introduced the FBN century 11 project to
revolutionize it’s operation in line with the dynamics of the environment. In
addition as a part of its strategy of progressive internationalization in
November 2002, the bank become the first financial institution in Nigeria to established a subsidiary bank in the United Kingdom.
demonstrate it’s commitment to it’s customers and the development of Nigerian
economy. The bank has since broadened it’s loan and credit portfolios to
various sectors of the economy. The bank has improved tremendously judging from
a number of a parameters including number of branches, growth and deposit base
assertive and size of loans and advances reliability. Sound banking practices
has continually placed the bank in its leadership position. In line with its
mission statement to remain true to its name providing the best financial
services possible”. The bank will consistently transform itself as it forges
ahead in its second century of qualitative banking services to the customers
and nation in entirely.
1.8 DEFINITION OF TERMS
in a bank form which the customer can drawn money whenever he wants with the
use of cheques book or ATM card. It does not attract interest rather customer
pay commission on turnover. Savings account.
is to encourage lower income earner to inculcate the savings habit. It is now
withdrawal by third party. It attracts interest passbook is used for
person in an important position in the bank. He is a financial doctor that stand
as intermediary between the deficit and surplus sector of the economy.
person or corporate body that has some sort of account wit the bank be it
current, saving or deposit.
(bank) who received property with the bank for a period of time.
(customers) who keeps property with the bank for a period of time
who has been declare by a court not to be capable of paying his debt and who’s
his affairs is in the hand.
is a means of checking the accuracy of item entered in various account by
calling from the voucher to the entry by two person other them the ledger
process of collecting proceeds of cheques by presenting to the drawee banker
branch of cheques drawn on them which are received by the bank clearing the
days business this presentation is normally in the clearing house at the
A banker who received cheques drawn on other
banks or branches and collects the proceeds for credit of the customer account.
is overdrafts of loan granted to customer the department dealing with the
lending of money is called the advance department.
These are assets, good and property of all kinds of an individual given as a
seeming for a loan to be given.
person in possession of a bill of cheques payable to him.
are two parallel trans verse lines across the face of a cheques to ensure safe
transmission of the money from sender to received
a person who signs a cheques or bill of exchanges.
This is a bank on which a cheques is drawn on
the person to whom a bill of exchange is addressed.
account that has not been operated for
some time normally a year.
a safe or strong room where cash and valuable of a bank are kept.
is a record kept daily of all transaction passed over any account and also
means of checking the accuracy of figures.