Marketing of Banking Services in Nigeria
Chapter One
OBJECTIVES OF THE STUDY
The aim of this research work is to analyze the marketing of banking services and the means in which the services are rendered by the banks.
- To ascertain the method of marketing services used by banking sector such as E-banking, Core – Banking, corporate banking, Mobile banking. Plastic money. NRI banking etc,
- To investigate into the use of Marketing mix of banking sector in marketing services which involve the analysis of the Banks Products, Price, Pricing, Place, Promotion, Process, Physical evidence.
- To examine the level of market service delivery in First Bank Plc Owerri in relation to Information Technology (IT) innovations
- To examine the employees’ perception of the effects of IT innovations on market service delivery in First Bank Plc Owerri
CHAPTER TWO
LITERATURE REVIEW
STRATEGY AND OPERATIONS OF FIRST BANK OF NIGERIA PLC
First Bank has been appointed by the Debt Management Office as one of the 15 primary dealers in Federal Government Bonds. The primary dealers include 10 banks and the 5 discount houses.
First Bank is also one of the 10 banks approved as a settlement bank by CBN. In addition, the bank is a leading member of the ATM Consortium (an off-site independent ATM service provider), as well as a member of Interswitch Limited, (an electronic transaction switching and payment processing company). First Bank is also a major player in Western Union Money Transfer Services.
Operationally, First Bank has two strategic business units (SBU’s”), namely: Corporate Banking and Retail Banking. The corporate banking unit provides banking services to the top end of the market, comprising large corporate organizations and government parastatals, while the retail banking unit offers an array of retail and commercial banking services. The retail banking unit, which also encompasses branch operations. is further subdivided into three directorates, namely: Lagos & West, North and South. Support services are provided by two strategic resource functions: Operations and Services directorate and Risk and Management Control directorate. The bank has 9 subsidiaries, an associate company, and 4 affiliates providing mortgage banking, capital market operations, fund management, insurance broking, trusteeship, registration and pension administration.
I.T INNOVATIVE METHOD OF MARKETING SERVICES USED BY FIRST BANK OF NIGERIA PLC
E- BANKING- (ONLINE MARKETING)
Enables people to carry out most of their banking transaction using a safe website which is operated by their respected bank. Banking transactions conducted through computerized systems. as electronic funds transfer by automated-teller machines, intended to speed operations, reduce costs, etc. Electronic banking, also known as electronic funds transfer (EFT)is simply the use of electronic means to transfer funds directly from one account to another rather than by cheque or cash. Owens, John and Anna Bantug-Herrera (2006)
Basics
- Banking online has many advantages. Besides managing your account from anywhere there is an Internet connection, the transactions often take less time to complete. Thus, if a bill due on Thursday has a mailing address in Alaska, you can go online a few days earlier and submit your payment from Florida. The key is to be aware of your bank’s normal processing times.
Types
- There is a spectrum of e-banking services, from unlimited to heavily restricted. To avoid penalties, understand the e-banking rules. For example, some banks only allow three transactions online, but there is no minimum account deposit.
Considerations
- Although safety precautions should be taken by your bank, no website is 100% secure. Avoid identify theft by avoiding disclosing your account information, especially to unknown companies or individuals. Also, conduct your ebanking from your personal computer. rather than public computers like at work or a library.
Features
- Several ebanking account options exist, besides simple checking accounts. For example, you can set up savings, retirement, or investing accounts from multiple sources. Federal and state entities also can conduct online transactions, such as transmitting Social Security benefits to your personal account.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine a marketing of banking services in Nigeria. First bank, Owerri form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain marketing of banking services in Nigeria. First bank, Owerri. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing an marketing of banking services in Nigeria.
Summary
The aim objective of this research work is to evaluate in details the marketing of banking services. In the bid to reach this objective, the research work was subdivided into five chapters. The first chapter by way of introduction captures the concept marketing in the banking sector. It also enumerated the problem of the study stating the hypothesis and defining the terms and key concepts used in the research work. The second chapter evaluated literatures and article written by scholars unveiling the I.T innovative method of marketing services used by first bank of Nigeria plc, strategy and operations of first bank of Nigeria plc, bank marketing and
marketing approach in first banks on Nigeria plc. The third chapter lighted the methodology used in the research work while the fourth chapter deals with the presentation and interpretation of data collected. The final chapter commented on the findings, summary, recommendation and conclusion.
CONCLUSIONS
This study offered insight into the perceptions of marketing of banking services by bank customers regarding the effect of technological innovations on marketing of banking services in first Bank PLC Owerri. The study focused on customers with first bank PLC Owerri Imo State of Nigeria. It has been revealed by that the Bank has two electronic banking technologies that customers have used ATMs and instruct banking. The data for the study was mainly obtained from field survey through questionnaire administration and interviews. Out of an initial sample of 130, 120 questionnaires were received representing a responses rate of 92.3%. bank IT employees were also interviewed to ascertain the type of electronic delivery channels utilized by the first bank, PLC Owerri and its impact on the marketing of banking service delivery. The new delivery channels included ATMs and internet banking. It was founded that ATM is the most popular electronic delivery channel for first bank PLC Owerri. This is followed by internet banking particularly first bank PLC Owerri on line and B- Web.
With respect to the type of IT innovations used by customers, ATMs is the most highly used electronic delivery tool indicating 83.3% of the total respondents. This is followed by internet banking representing 16.7%. Electronic funds transfer point of sales and phone banking are not used in first bank plc Owerri at least among the customers interviewed. It was also found that most first bank Plc Owerri customers still visit their bank branches regularly and find interaction with human tellers very important. The results of the study generally indicate that, these new delivery channels have contributed positively to the provision of banking services and on service delivery in general.
RECOMMENDATIONS
Given the increasing competition in the retail banking industry and rapid technological evolution, the question of whether banks should innovate is no longer necessary given the benefits of innovations. This study has demonstrated that there is positive impact of IT innovation on service delivery. Therefore, for banks to remain competitive there is considerable need to be innovative by adopting and diffusing various IT innovations. For example, elsewhere, banks through the collaboration of hardware, software, telecommunications and other companies, have introduced new ways for consumers to access their account balances, transfer funds, pay bills, and buy goods and services without using cash mailing a cheque, or leaving home. These include the proprietary Bank Dial-up services. A home banking service, in combination with a PC and modem, lets the bank become an electronic gateway to customers accounts enabling them to transfer funds or pay bills directly to creditors accounts; off – the – sheff Home finance software.
This category is an essential player in cementing and helping banks gain new customers; online services – based – this category allows banks to setup up retail branches on subscriber-based Online services (e.g., prodigy, CompuServe, and America online) and world wide web-based. This category allows banks to bypass subscriber based online services and reach the customer’s browser directly through the world wide web.
The fact that this POC banking technologies are not first bank PLC Owerri and other commercial banks in Nigeria, this study recommends increased investment in IT innovations.
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