CHAPTER ONE

1.0   INTRODUCTION

Forms 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.

This 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.

The 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. 

Unfortunately 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.

1.1   BACKGROUND TO THE STUDY

Banking 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.

Customers service is any activity that is aimed at pleasing or satisfying a client or customers to encourage more and more patronage.

Banks are not left out of these, this is because the existence is dependent on how much satisfaction they were able to give their customers.

However 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.

They 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 wrong.

Also, the area of maintaining absolute secrecy concerning all issues relating to customer’s account and other transaction affairs is also lacking in banks.

This 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.

In 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.

1.2   STATEMENT OF THE PROBLEMS

Banking 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.

c.     Unqualified 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.

1.3   OBJECTIVE OF THE STUDY

The 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 customers

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.

1.4   RESEARCH HYPOTHESIS

Generally 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.

Since 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

This 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 banking sector.

This 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.

At the 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 THE STUDY

The case study of this research work is registered to first Bank of Nigeria Plc, Yakubu Gowon Way, Kaduna.

The 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 customers.

c.     To analyzes ways in which urgent attention is needed to improve in order to provide quality services to their customer.

1.7   HISTORICAL BACKGROUND OF FIRST BANK OF NIGERIA PLC

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.

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