FACTORS INFLUENCING CUSTOMER LOYALTY IN THE NIGERIA BANKING INDUSTRY
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
FACTORS INFLUENCING CUSTOMER LOYALTY IN THE NIGERIA BANKING INDUSTRY
INTRODUCTION TO CHAPTER ONE OF THE FACTORS INFLUENCING CUSTOMER LOYALTY IN THE NIGERIA BANKING INDUSTRY
1.1 BACKGROUND OF THE STUDY
Nigerian banks are currently facing huge hurdles as a result of increased competition, making survival increasingly difficult. To survive and thrive as a provider of financial services, it is critical that the current environment adopt a new management structure that will enhance customer pleasure while also improving business performance.
Customers have clearly become so knowledgeable and aware of their importance that disregarding them in search of a competitive advantage can be deadly for banks today. As a result, banks must ready themselves for the obstacles in order to deliver good client care.
African Banking Corporation launched its first bank in Lagos in 1892 to fund the shipping company of Elder Dumpster and Company, who operated steamship lines between Liverpool and the West African coast.
In 1893, the Bank of British West Africa (now First Bank of Nigeria Plc) took over the business of the African Banking Corporation. Barclays Bank (now Union Bank of Nigeria Plc) was founded in 1917.
Many more banks were established in the following year, including the British and French Bank (now United Bank for Africa Plc) founded in 1949, the Industrial and Commercial Bank founded in 1929,
the National Bank of Nigeria Plc founded in 1933, the Agbonmagbe Ban (now Wema Bank) founded in 1945, the Nigeria Penny Bank founded in 1940, the Nigeria Farmer and Co-operative Bank Plc founded in 1947, and so on (Okoh, S. E. and Unugbro, A. O.
Bank failures occurred in the 1930s and 1940s, prompting the establishment of the Patron’s Commission in 1948, which served as the foundation for the Banking Ordinance of 1952. Commercial banks have continued to dominate the financial system and comprise the largest group in the financial industry.
When the country gained independence in 1960, there were twelve (12) banks with a total of 160 branches. In the 1970s, there was tremendous expansion, and by 1977, there were 19 banks with 492 branches. By 1987, there were 48 commercial banks in operation, with 1714 branches. (1991, Nwankwo).
Since independence, the banking industry has expanded dramatically and now services a larger share of the general public. The liberalisation of bank licences in 1980 promoted a more competitive atmosphere and efficiency in the financial industry.
The federal government budget of 1986, which introduced economic recovery and was later articulated into the Structural Adjustment Programme (SAP), was a purposeful response to distortions in the Nigerian economy since the “oil boom” of the 1970s.
This program’s reform process resulted in the implementation of measures and mechanisms to deregulate banking practise. This led in the introduction and adoption of new banking procedures and a wider range of goods to improve economic efficiency and effective resource allocation introduced through service-driven competition.
In light of the foregoing trend, each banks must carve out a niche for themselves, determining the type of consumer, pricing their products/services appropriately, and promoting such services in various ways so that the target is aware of what is on offer. Since the era of armchair banking is over, this concept of customer service must be prioritised (Anyafo, 1998).
1.2 OBJECTIVES OF THE STUDY
In carrying out the study on the elements impacting customer loyalty in the banking industry, the researcher hopes to achieve the following goals.
i. Discover and investigate the factors that influence client loyalty in the banking industry.
ii. To identify the different categories of customers who use banks.
iii. Determine the location of a bank branch in Benin.
iv. To ascertain how the locations effect client patronage.
v. To identify the various goods and services provided by Nigerian banks.
1.3 STATEMENT OF THE PROBLEM
The importance of the client in any company organisation cannot be overstated, given that the customer is the lifeblood of any business’s survival. The researcher aims to investigate the following issues:
i. The issue of effective customer service in the banking industry.
ii. The difficulty encountered by bankers in determining a customer’s needs and desires.
iii. The issue of banks’ approaches for serving the particular demands of their consumers.
1.4 SCOPE OF THE STUDY
The research was conducted in the Benin banking environment, with a focus on Union Bank Plc, First Bank Plc, Guaranty Trust Bank Plc, and Oceanic Bank Plc. In the banking industry, the aforementioned banks represent two old generation banks and two new generation banks.
1.5 LIMITATIONS OF THE STUDY
It is important to remember that the quality of the project work is dependent on the knowledge distributed via textbooks, journals, and other printed resources used throughout the research time.
Any shortcomings in this study endeavour are due to factors outside of the researcher’s control, such as the researcher’s limited time and the amount to which the information is gathered.
1.6 SIGNIFICANCE OF THE STUDY
The following are the study’s implications:
i. To provide efficient customer service to the banking public.
ii. To improve economic efficiency and resource allocation in the Nigerian banking system.
iii. Increasing the effects of positive client loyalty in the banking industry.
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL