1.1 BACKGROUD OF THE STUDY
The reason for banks striving
to improve their profitability are obvious and varied. In this era of
competitions, there is need for organizations, banks business
enterprises churches, clubs etc. to evolve procedures to improve their
performance to the benefits of their consumers and kowing fully well
that times have change and also the creams of cutomers.
For bamks the need as more pronounced
especially when they are faced with what we call institution and inter
bank competition, which a times head to the declining profit margin of
many banks consequent upon some factors as inflation and tight money
supply measures of the permanent. The needs for competitions among banks
and other public relations programs geared towards building good
corporate image for their respective banks. Nigeria banks have
recognized that effective public relations has become the integrating
force which interprets their environment to the bank management, defines
objective and building good will through good deeds. In furtherance of
these objectives, many banks in Nigeria have introduced extra incentive
such as credit cards, weekend banking organization all in attempt to
provide exceptional services for their customers and to retain old
customers, attract potential depositors and win public understanding.
These banks adopting to change trends by creating effective public
relations department as a tool to boost cooperate image are currently
1.2 HISTORICAL ROLES OF BANKING IN THE NIGERIAN ECONOMY
Banks can be defined as an institution
in which individuals keeps, exchange and transact money. Banking as an
industry is impossible in a non-monitored economy. The growth of banks
in the former British west Africa (Nigeria inclusive) did not start
until the introduction of the British coinage and currency system in
late 19th century.
Banking business was first
introduced in Nigeria in 1892. the first bank in Nigeria was the African
Banking Corporation from 1892 banking activities started striving with
life competition between rival banks. This was free banking era. It was
characterized by non existence of banking legislation. Any body could
set up bank provided he is registered under the provision of companies
ordinance. The ordinance prohibited formation of a banking company
unless it was registered as a company.
This period witnessed the
establishment of the banks of British west Africa (BBWA), Barday Bank,
Dominion Colonial and oversea bank, British and French banks, National
bank of Nigeria and African continental bank limited.
In 1894, the BBWA was
established in Lagos it took over the service of African Banking
corporation. It remained the only bank in the country until it was
joined by barday in 1912. another expatriate bank of this free banking
period was British and French banks limited established in 1949 and
presently called United Bank for Africa (UBA). The National Bank of
Nigeria established by government of the western Nigeria on 11th
February 1933 has distinatioon of the first successful indigenous banks
was the Africa Continental bank limited. Three other indigenous banks
were the Nigeria pioneer and commercial banks limited, Agbonagbe bank
limited and the Merchant bank, there were seven banks which survived the
free banking era. However, the banks failed were industrial and
commercial banks. Nigeria mercantile bank and the Nigeria perry banks by
1988, all mushroom bank had collapse except Agbonmagbe bank, merchant
bank, National bank of Nigeria and three expatriates banks. They
survived the banking boom of the late 1940s and early 1990s. these banks
were established primarily to make profit. This explains the
dissemination in heading in the early periods of their development. The
main purpose of banks in the economy was to help business increase their
output by providing the essential service of liquidating flow and
expert advice investment.
According to the preposition
of financial system review committed of 1976 sack of five objectives are
expected for the banks. The bank should actively facilitate the
transformation of the normal environment by promoting and rapid
expansion of banking facilities, services and banking habits in minimal
commodities, most importantly, they will sere as vehicles for the
creation of credit in the rural areas, in the form of equity and loans
for small scale farmers and entrepreneurs
Secondly, banks should remain
consistent with the banking prudence, increasingly undertaking more
medium and long term investment planning for the application of the
Thirdly, they should confirm
with the national objectives and identify fall with Nigeria inspirations
by taking more active part in the financing of the economy programme of
national priority, consequently their sensitive position in the
financial system necessitates that they should be brought under Nigeria
control with the ownership and management.
Fourthly, decision making in
the main commercial banking sector must be localized. This would have
the possibility of our major banking institution being manipulated to
the disadvantages of the Nigeria economy.
Finally, the bank should use a
significant part their profit to improve the quality of services being
offered to the above national object expected of the banks.
1.3 THE PLACE OF THE PUBLIC RELATION IN NIGERIA
Public Relations practices in
Nigeria can be grouped into two categories which are pre-colonial and
independence period in the pre-colonial era public Relation outlet
originated from the inscriptions on the walls of ideologies on mind of
people who came to grace ceremonial occasions. During this period, oral
media such as town criers, messengers and palace dancers were used to
the advantages and good image making of the clients Oba’s and Emirs.
The institutionalization of
the public relations as the concept of management characterized the
colonial phase of public relations as can attested to the establishment
of the ministry of information, which was solely charged with the
propagation of the white man’s cause in Lagos.
Public relations as a modern
practice started with civil service at Lagos, Enugu Kaduna and Ibandan.
These offices served as persuasion out of points. The Lagos office of
the ministry of information (Public Relations) was at 20 camp ell street
Lagos. In 1932, radio was used to propagate information by colonial
government, but s at 1944, the name of the office was changed to public
Relations office which was reverted to ministry of information in later
years. Commercial public relations started by UAC, Leventis UTC and
other multi-National which helped a lot in the development of media
public relation in Nigeria publications and circulation of newspapers,
magazine and printing of photographs were the initial activities of
public relations event.
UAC published the “Devine” in
two Nigeria languages (Igbo and Yoruba) as well as in English. A
publications called “the Nigerian children own” was published and
circulated by ministry of information.
The modern public relations
was named up with the Emergency of Nigeria institution of public
relations. The affiliation of this union to Institute of Public
Relations Association. (IPRA) and Federation of Advertising and public
Relation Association (FAPRA) makes Nigeria public Relation practitioners
members of such international bodies.
Apparently public relations in
Nigeria was still developing when United Bank for Africa (UBA) was
established in 1974. the incorporation of public relation activities in
the bank look off proper in 1993
1.4 UNITED BANK FOR AFRICA
United bank for Africa Nigeria
PLC was incorporated as public liability company with an automation
capital share which was subsequently increased by #120 million. The
20,000,000 ordinary share of #1.00 each has been issued and fully paid.
The bank was issued a license to carry on with the banking business on
June 12, 1978. it commercial business on June 29, 1982 United Bank for
Africa PLC (UBA) is ninety owned by the state government and private
Nigerian investors. The share holding structure are as follows. Enugu
and Anambra state government 35% Nigerian private investors 65% the
united bank head office is located in Enugu, the state capital and other
Accordingly, the bank is
committed to the expansion of its branch network with a view of making
its services available throughout the country. For now, the bank has
branches in Enugu, Onitsha, Lagos Kano here also Imo and other states.
The bank here also embarked on a computerization programme in order to
enhance the effective of its services.
1.5 STATEMENT OF RESEARCH PROBLEMS.
Research is carried out to identify and
solve a problem hence the identification of these problems gives
direction to the research work. In this case, the problems centers on
how public relations unit functions effectively in the banking sector of
the economic and further discuss how public relation unit have helped
to improve banks profitability with special emphasis on the united bank
for Africa (UBA) Enugu.
1.6 OBJECTIVE OF THE STUDY
- The study is to properly ascertain how public relations which is an
innovation in the banking sector improves bank profitability.
- To find out how public relations in banks can be used in improving
contact with this associate institute of bankers, trade unions business
community government policies and employees.
- To find out how United Bank for Africa (UBA) Public relations department function effectively.
- To make recommendations on public relations activities in commercial
banks based on research finding in United bank for Africa (UBA) and
public relation Department.
1.7 SIGNIFICANCE OF THE STUDY
work is aimed at offering an insight into the impact of public
relations in commercial banking so as to reveal its pitfalls and
success. The insight question can be used to make useful inference on
the performance of public relations programmes in commercial bank,
merchant bank and public bank (CBN)
Investigating the operation
problems of the public relations in banks will sensitize policy, made to
work out remedies for improving the efficiency and effectiveness of the
bank image making department.
1.8 RESEARCH QUESTION
- Is the public relations department of the UBA able to improve effectively in its profitability.
- Is the public relation department of the UBA been able to promote their services to the development of the nations economy.
- Are you satisfied with the services of the public relations department of the UBA
- Is the public relation department of the UBA portraying the good image of the bank.
1.9 RESEARCH HYPOTHESIS
H1: The public relations department of the UBA has a very high profitability output.
Ho: The public relations department of UBA has not a very high profitability output.
H2: The public relations department of the UBA portrays good corporate image of the bank.
Ho: The public relations department of UBA does not portray good corporate image of the bank.
H3: The public relations department of the UBA has effectively contributed to the development of the nations economy.
Ho: The public relation department of the UBA has not effectively contributed to the development of the nation’s economy.
H4: The public relations department of UBA do not posses high quality customers services.
Ho: The public relation department of the UBA does not posses high quality customer services.
1.10 DEFINITION AND OPERATIONAL DEFINITION OF TERMS
CONCEPTIONNAL PUBLIC RELATIONS:- This public conduct of the affairs of an organization with regards to its reputation and standing in public opinion.
OPERATIONAL PUBLIC RELATIONS:- The activities and techniques reputations among its public
CONCEPTIONAL ACTIVITIES:- Any form of
techniques employed by UBA bank in influencing customers and promoting
good will and favorably reputation among its public.
CONCEPTIONAL PROFITABILITY:- An extra
incentive or motivation strategy employed by UBA in order to make more
CONCEPTIONAL TWO:- Ways communication act of communication between two persons and groups etc. in which with participating equality
OPERATIONAL TWO WAY COMMUNICATION:- A strategy used by UBA bank to pass information between the management, staff and its customers (vice versa)
CONCEPTIONAL INFORMATION FLOW:- Message or knowledge passed freely between people
OPERATIONAL INFORMATION FLOW:- The free movement of message passed between the staff, customers and management of UBA
CONCEPTIONAL STAFISFCATION:- This is the gratification or conduct customers derive from banking with UBA
It is assumed that the
respondents to the questionnaires are informed enough to understand the
questionnaire since attempts were made to frame questions to be as
simply as possible.
It was also assumed in this
study that single of the population will be a representative one, since
the organization under study is a commercial bank. The result got from
the sample will be used to generate the entire commercial bank in the