qualify of customer services plays a crucial role in the context of sustaining
business growth. The relationship between a bank and its customers must be a
permanent and enduring one, which needs to be maintained with good banking
services. In this project, an attempt has been made to ascertained the level of
satisfaction .of customers as regards banking services in Nigeria. It highlights the banks
marketing strategies. The satisfaction level of the customers has been measured
and the varieties of new services which influence the satisfaction level of the customers have been analyzed, the level of customer services and
satisfaction has been determined with the varieties of services provided by the
banks in Nigeria.
TABLE OF CONTENTS
Title page i
Table of content
1.0 Introduction 1
1.1 Background of the study 1
1.2 Justification of the study 2
1.3 Statement of the problem 2
1.4 Research Question 3
1.5 Objective of the study 3
1.6 Research Methodology 4
1.7 Customers satisfaction research
1.8 The scope of the study 8
1.9 Limitation of the study 8
2.0 Literature review 9
2.1 Customer satisfaction 9
2.2 Banking services 11
2.3 Differences between goods and services 11
2.4 Quality Management planning 11
3.0 Research methodology 13
3.1 Research design 13
3.2 Questionnaire design 14
3.3 Type of data used 14
3.4 Procedure for collection of data 14
3.5 Instrument used in data collection 14
3.6 Method of data analysis 15
4.0 Date presentation and analysis 16
4.1 Interpretation and Analysis of data 16
4.2 Testing of hypothesis 20
4.3 Summary of findings 20
5.0 Summary, Conclusion and Recommendation 21
5.1 Summary 21
5.2 Conclusion 21
5.3 Recommendations 22
5.4 Suggestion for further research
1.1 BACKGROUND OF THE
The objective of this research work shows how the banking services increases
customer satisfaction and also boost their patronage with particular reference
to FIRST BANK OF NIGERIA PLC.
However, it is used to measured the level of customer satisfaction and
services rendered in the banking industry in Nigeria. As a matter of fact, many
banks subscribed to the high customer satisfaction will leads to greater
customer loyalty which in turn, leads to both present and future revenue. For
that purpose, many organizations that resulted by having superior service
quality have been found to be market leaders in terms of turnover and long term
customer loyalty and retention.
Some of the banks that have given their customers banking services have
recorded tremendous success and has boosted their profitability and the number
of customers who patronize them.
In the face of this, evolving bend confidence reformation and restoration
efforts by individual banks has improved the banking services in order to
satisfy the potential customers and entice others, bank customers have become
cautions discriminating chooser and to a large sophisticated.
Banking operations are becoming increasingly, customer dictated. The
demand for “banking super malls” offering one stop integrated financial
services is well on the rise. The ability of banks to offer clients access to
several market for different classes of financial instruments has become a
valuable competitive edge. Convergence in the industry to cater for the changes
of demographic expectations is now more than evident. Bank assurance and other
forms of cross selling and strategic alliance will soon alter the business
dynamics of banks and fuel the process of consolidation for increased scope of business
and revenue. The thrust on farm sector, health sector, and services offers
several and investment linkages. In short the domestic economy is an increasing
pie which offers extensive economic of scale that only, large banks will be in
a position to tap. With the phenomenal increase in the country’s population and
the increased demand for banking services, speed and customers satisfaction are
going to be key differentiators for each bank to get useful feedback on their
actual response time and customer service aspect of retail banking, which in
turn will help them take positive steps in maintaining a competitive edge. This
exercise in the context of the banking industry will give us an insight into
the parameters of customer satisfaction and their measurement. This vital
information will help us to build satisfaction amongst the customer’s and
customer loyalty in the long run which is an integral part of any business.
OF THE STUDY
Some of the main problems faced by customers when it comes to banking
hour which are too rigid and not flexible. Usually, most banks operating hours
are from Monday to Friday and begins operation from 8.30 am – 4:30pm; or as the
case may be prior to this period, Nigeria banks use to commence their services
beginning from 10:am in the morning while closing is at 4:00pm from Monday to
Friday, but due to consumers demand, the trends changed, when the banks begins
their services and some hours earlier.
Despite the practice of beginning services half an hour earlier, some
banks that are positioned in shopping malls and departmental stores open up for
business. Besides the banking hours, other issue customers are facing is
queuing up in Nigeria
banks. Standing in line for a long time at the banks is non-productive and is
also waste of time. As such, most banks now have development a way to address
customers problem. A suggestion box placed at the foyer or entrance another one
is opinion meter in some banks or a well – conducted survey is a good start to
learn about customer’s needs. For the purpose of this research work, feedback
from the survey revealed the reasons that led to customers satisfaction. It was
demonstrated that in order to maintain the grip on customer, many banks have
now set up suggestion and complaint avenues as hotline, 24 hours call services
and online services, customer cares services department. At glance, the issues
in relative to banking customer’s have seen various rapid changes in the past
OF THE PROBLEM
The problem being carried out can be clearly seen as the effect of
quality customer satisfaction on banking services in Nigeria. The problem will look into
the area in which the banks in Nigeria,
make use of relevant approaches that have been used for the measurement of
customer satisfaction. It also discuss different views that have been developed
in relation to the transferability of satisfaction measures across industries
and outlines the research questions addressed in this investigation. One of the
main problems faced by customers when it comes to banking is issue of banking
hours, they are too rigid. But with the establishment of new generation banks
and the regulation
demanded by the
Central Bank of Nigeria (CBN) which transformed some banks in Nigeria from arm chair banking
which are very rampant for many years back.
This area focused on questionnaire and procedure for data collection of
this research work. Questionnaire can be defined as a means of obtaining,
information on a number of issues such as the distributions of a group of
people in terms of such factors as gender state, qualification, age, social
economic status etc. It could serve to provide information for assessing
certain situations such as the extent of availability of banking services and
maximum satisfaction to customers by banks. It has two major types namely the
fixed responses questionnaire and open end questionnaire, the most one type
suitable for this research work is open end questionnaire. Open-end
questionnaire is the one that asks questions which are pertinent to the topical
issue and which will not give any response option for the respondents.
Hypothesis is a declarative statement subject to inferential testing. It
is a proposition which states what we are looking for in other words, it is a
conjectural statement of relationship between variables. It is sub divided into
two: alternative hypothesis represented (Hi) and null hypothesis represented as
1. Ho: There is no significant
relationship between customer satisfaction and banking services in Nigeria
Hi: There is significant
relationship between customer satisfaction and banking services in Nigerian
2. Ho: The customer satisfaction does not
enhance the profitability of banks in Nigeria
Hi: The customer satisfaction enhance
the profitability of banks in Nigeria
3. Ho: Banking services does not play
vital roles on customer satisfaction in Nigeria
Hi: Banking services play vital roles
on customer satisfaction in Nigeria
OF THE STUDY
The objective of the study is to examine the impact of customer
satisfaction on banking services.
The methodology employed in this research work is questionnaire which is
the commonest means of obtaining data and by far the most frequently used
instrument by most researchers.
Banker and customer relationship: Thus
the relationship that exists between a banker and a customer is essentially a
contractual one and it is an implied and unwritten contract. The relationship
is sub-divided into two namely general and principal relationship. General
relationship is basically between a banker and customer is that of debtor and
creditor respectively, while principal relationship entails the banker’s rights.
Bank customer: This is a person or
group of people who open account either current or time deposit and savings account
with the bank. There are two types of bank namely personal or non corporate
customers and corporate customers.
The right of
banker to customers or how does the bank services influence the customers
satisfaction are as follows:
By paying cheques drawn by the customers properly, on
the branch of the bank where such account is kept or any of their branch at all
times, in as much sufficient funds are provided in the account. Even though
automation has improved this service.
To maintain secrecy in respect of their customers
To collect proceed of cheques and orders paid to the
credit of the account
The bank must give reasonable notice to the customer
before closing the account or terminating their relationship
The bank must provide the customer with the statement
of account regularly.
However, the right of customer to banker is as follows:
The customer must give written instructions to the
bank, if he/she seeks to withdraw his money, i.e. withdrawn of cheques.
The customer must inform the bank, without delay, of
any suspicious dealings on his account as may come to his knowledge through alert
e.g. loss of cheque leave.
The customer must drawn his cheque with care and
diligence and in a manner that will not facilitate fraud, forgery etc
The customer must repay overdraft on demand, loan and
other facilities as agreed by parties involved.
The customer must pay reasonable commission and
interest on borrowed funds as agreed.
Why some people choose a particular bank. The people prefer or choose a
particular bank due to the following reasons:
Waiting time for transaction: This entails that when
customers want to make savings and withdrawals with other transactions less
time-consuming by reducing the waiting time, in first bank of Nigeria the
maximum waiting time is five (5) minutes for savings and withdrawals of money.
Handling customer complaints: Banks handle this with
courtesy and care, and investigate impartially any complaint or grievance of a
customer, concerning his relations with the bank without any delay.
Attitudes: This refers to the opinion of people on the
bank staff towards customers, in its day to day business transactions. How they
relate with the people whom it transacts business with
Customer demand: This is a situation when bank ensure
adequate liquidity so that cash withdrawal is met consistently.
Interest rate: Some people choose a particular bank,
because of little increase of interest rate on savings and deposits, in line
with the Central Bank of Nigeria’s
credit and monetary guidelines.
What are the banker’s expectations from the customers? The banker’s
expectations from the customers are as follows:
This refer to a state of being sincere and truthful, customer should comply
with agreements reached with the customer on interest charges on loans and
is the ability to keep promise or agreement at all times, even when the
unexpected happens. Customers exhibit this by investing credit facility
collected on the purpose of requesting the loan for and the repayment must be
Integrity: This is the ability to be
committed to principles, moral toughness, trustworthiness, honesty and
fairness, the customers must be people of their word and has good track records
with the bank.
is the act of embracing the ideas, mission of the bank by all customers with
the aim to help the bank in achieving its objectives.
entails that, the customer must responsible and possess credit worthiness, also
respect his/her name and words or statements.
The model formulation of customer satisfaction
CS = Customer satisfaction = Y
BS = Banking Services = X
Y = X,
Y = Independent variable
X = Dependent variables
X= Opening of account+ safe custody items + Business
advice + foreign exchange + Executorship + credit facilities + status of
enquiry + agent + statement of account + international services
X = βxy + βxy + βxy + βxy + βxy + βxy
+ βxy + βxy + βxy + βxy
various banking services are briefly discussed below:
account: There are three basic types of accounts usually opened by the
customers with the bank namely: savings account, time or fixed deposit and
current account, in addition to the type of account are domiciliary account, Hi-fi
account, Holiday account, pilgrimage account current account plus. This is the
origin of customers relationship which banks recognize as contractual
agreement. Bank should satisfy itself of the basic considerations such as customers
occupation, residential address, age, authority letter from his/her employer,
National identity card or driver’s license recent passport etc.
items: This is a subsidiary or
special contractual relationship emanating from the popular banker/customer
relationship. Specifically it is the Bailee /Bailor type of relationship where
banker who receives the property is the bailee and the give of such property
(customer) is known as the bailor. This types of service is carried out by the
bank due to the safety and reasonable care normally employed by bank to
safeguard customers assets or properties.
This refers to advices to advice services rendered by banker to his
business in the areas of proper keeping of accounting record, financing,
marketing production and management. this services is usually provided for
small business customers that cannot avoid the service of a qualified
Exchange: This can be described as the activity of the bank which enable
buyer and seller under two different currencies pass and receives payments for
goods bought or sold are services rendered. It involves sale and purchase of
foreign currencies, transfer of funds, plus settlement of debts and obligations
on behalf of customers.
Enquiry or Bankers’ opinion: This is an established practice all over the
world that bankers will exchange opinion among themselves on their customers
who have impliedly consented to this on opening of their accounts.
services: This is an arrangement of financing for exporters or importer
under a scheme whereby export credits Guarantee and Insurance Department in
Nigeria, travelers cheques personal home remittance etc
explained that banker must accept cash and other payment instruments like
cheques, poster, order and dividend warrants on their customers account.
Account: This simply means bankers responsibility to customers with current
account supplied with statement of account showing the replica of both credit
and debit entries in the ledger account of the customer. This is usually
delivered to the customer periodically, within a reasonable time or on demand
when the customer comes to the bank to ask for the balance on his account.
can be described as an intention of the testator appointing the bank to
carryout the expression contained in a
will for proper and un-interrupted of impartiality, security, secrecy and
experience etc in administering the deceased estate to the beneficiaries
facilities: This simply means the process by which banks granting loans and
overdraft to qualified customers with good track records. Banks usually assess
the character, integrity, reliability and ability of their customer to repay.
CUSTOMER SATISFACTORY RESEARCH SURVEY
The statistical tools to be adopted is questionnaire survey which result
help by improving satisfaction and also in operating more revenue, for
additional cost on research and development is minimized. By allotting
priorities as per this on research directions, organizations can maximize the
benefits of these survey. In my opinion
the highest priority should be given to basic factor fulfillment.
Customer satisfaction and competitive advantage which entails “what is
the role of customer satisfaction in gaining a competitive advantage”. Overall
satisfaction in customer satisfaction questionnaire design states that “should
we have a question capturing” “overall satisfaction in a survey form, apart
from individual services attribute rating? If required, what is the additional
Modeling bank customer satisfaction through mediation of attitudes
towards human and automated banking.
Introduces a model which position a crucial role for the evaluation of
bank customers’ attitudes towards both human tellers and automated banking ease
the factor or perceived satisfaction linkage.
The models explicit consideration of the effects of bank customer
attitudes provides additional explanatory power regarding how they perceived
trend ease of banking influences bank customer overall satisfaction, switching
and loyalty behaviour. A linear structural relations methodological approach is
used for the modeling process.
SCOPE OF THE STUDY
The study undergoes the examination into several forms and the most
common forms of quality customers satisfaction on banking services. The study
will be restricted to the commercial banks and particularly emphasize on the
FIRST BANK OF NIGERIA PLC and briefly touch the Central Bank of Nigeria.
The commercial bank being the place where the banker/customer
relationship is mostly open and clearly demonstrated the Central Bank a
representative of the government in the control and regulation of all
activities of commercial banks
OF THE STUDY
The major limitation encountered in this research work is the problem of
data collection, which hinders getting adequate information
Another limitation is non –accurate of data collection from the
questionnaire that was given out, for in arriving at constructive data