ABSTRACT
This research work titled "The Effect or Marketing Financial Services in Deregulated Nigerian Banking Industry" was carried out in Lagos state, Nigeria because of its peculiarity and consideration as the seat of banks in Nigeria.
A theoretical background and literate review focusing on marketing in
general, banking industry in Nigeria, financial services marketing in
perspectives regulated deregulated economy and host of other relevant
theories concerning the Nigerian banking industry was x-rayed.
A total of 150 respondents who were mainly customers of UBA from 5
different branches were sampled through well-administered and structured
questionnaires with a view to finding the effect of marketing strategy
on the bank in this era of deregulation.
Data were also collected from primary and secondary sources and based
on the findings, recommendations were made to the affected quarters on
ways to carry out marketing of financial services under a deregulated
system in order to sustain its market share and enhance growth in the
industry.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The financial institution particularly banks, are economic decision
units established to provide financial services to its target markets
with a primary objective of making adequate returns on the funds
invested without neglecting other social objectives to the society.
Nigeria banks in the face of increasing competition are currently facing
enormous challenges, which have made survival increasingly difficult.
For overall corporation objectives and continue life of business, banks
need to consciously structure their services in a way that caters for
the financial needs of not only their present customers, but also the
prospective ones.
Thus, the above stated makes marketing increasingly important and
necessary in today's financial competitive environment. Also paying
great attention to relevant marketing techniques cannot be over
emphasized.
Traditionally, the need for marketing in banking was not recognized
because for a very long time, banking was a seller's market while most
customers had the impression that they were privileged to enjoy the
service the services of a bank. In recent times, customers have
increasingly become so enlightened and aware of their important that
ignoring them in the search for competitive advantage can be suicidal
for the banks. Banks must therefore brace up the challenge of marketing
in a bid to provide effective customer service. It should be noted that
the lateness in the application of marketing techniques to banking is
not peculiar to Nigeria. In their article ”The myth of marketing in
Banking" Richard Brien James Stefford observed that Marketing has
traditional been neglected.
It perhaps necessary to emphasize here that, for a bank to survive
and be successful provider of financial services, it is imperative that
the present environment goes with a management order that will see the
customer as a king whose needs .and expectations should form a
centerpiece of banks activities. It is the adequate provision of these
needs that will guaranteecustomers’ satisfaction and business
performance. The end product is a competitive advantage for individual
bank concerned.
1.2 STATEMENT OF PROBLEM
The meteoric rise in the number of banks in Nigeria born out of the
deregulation of Industry has made survival increasingly difficult. At
this junction, one will be compelled to appreciate the saying that
'there is no use asking a river to stop flowing, rather one should learn
to swim in the direction; of its flow'. In the same vein, since this
trend has continued unabated, efforts should be made by banks to fashion
out a panacea that gives a competitive edge in the face of
extreme competition. Hence the question of marketing which gives the
customers the sense of fulfillment more especially now that they are
getting more sophisticated and also increasingly aware of their
importance on the scheme of things in the market place and recognizing
their pride of place of place in the marketing arena.
Are there any empirical relationship between marketing of financial services and successful performance of Nigeria banks?
And if the answer to the above is in the affirmation, then what are
there marketing tools and how can they be effectively applied?
1.3 OBJECTIVES OF STUDY
(1) To ascertain this research work there is need to carried out
in order to analyzes the effort of marketing financial services in
deregulated Nigerian banking industry using United Bank of Africa (UBA)
as contact point.
(2) To verify the research work been carried out to direct the effort of marketing financial services in Nigerian banks.
(3) To examine the importance of the application
of appropriate marketing tools in the survival and success of Nigerian
banks in the face of competition.
1.4 SIGNIFICANCE OF THE STUDY
The purpose of this study is to rotate the obvious that the Nigeria
banking industry has witnessed a lot of changes in its mode
of operations since 1986 when the structural Adjustment Program (SAP)
was introduced. This might not be unconnected with the passive talk in
the banking industry that management and staff of various banks in the
countries are increasing concerned about how to Market their services.
It is against this background that the topic is been chosen in our current.
The outcome of this research work will be useful to individual and group of company willing to bank with UBA.
Economic milieu vis'a vis' the application of marketing strategies in the overall achievement of corporate objective of banks.
1.5 SCOPE AND LIMITATION
This study encompasses a brief review of the Nigeria banking industry
with particular attention paid to UBA Bank, at Abule Egba to the
imperative of marketing in the survival and success of banks in the
present deregulated economy which entails the liberalization of banking
license as well the universal banking scheme.
The study embraces an examination of the factors that customer's
choice of banks and strategic modifications involved by banks in
adapting to marketing changes in Nigerian banking industry.
Although this study has succeeded in demonstrating the relationships
between customer's attitudes and some variables, the significance of
such relationships have not been ascertained. Knowing the extent which
consumer criteria for choice of bank relates to their ages and not banks
specialization, and also knowing the extent to which product quality
relates to consumers choice criteria, could have provided a greater
insight into consumer's images and choices of banks and then permit
greater generalization, which may not be ideal in this case. The choice
of only one banks for analysis in this study also imposes some
limitations on the generalize ability of the findings.
Deregulated economy and host of other relevant theories concerning the Nigerian banking industry.
Chapter 3 discusses the research methodology, under which the sources
of data are highlight, method of investigation and questionnaire
adopted.
The data are presented and analyzed in chapter 4, while a summary of findings.
The outcome of this research work will be useful to individual and group of company willing to bank with UBA.
1.6 Operational Definition of Terms
A. Meteoric - Rapid and often only lasting for a short time.
B. Deregulation - Remove regulations or controls from.
C. Liberalization - Make less strict.
D. Fraudulent - Criminal deception to gain money goods.
E. Distortions - To make or become twisted out of shape.
F. Treasury bill - The funds or revenue of a state, society etc.
G. Mobilization - Organize troops for active.