PROBLEMS FACING THE ESTABLISHMENT OF BANKS IN RURAL AREAS
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PROBLEMS FACING THE ESTABLISHMENT OF BANKS IN RURAL AREAS
Chapter one
INTRODUCTION
Background of the study
Banking transactions in select local governments in Enugu, including as Udi and Ezeagu Udoji, are not new to us; we have been using this system for more than thirty years after independence.
However, in light of this, two operational methods were used in various banks to improve the efficacy and efficiency of product management.
Previously, we had a traditional banking method in which the banker would sit and relax while waiting for consumers to bring business. This type of banker is perceived as having strict notions regarding bankable projects,
which disrupts the smooth flow of banking operations. Another form of banking process that is considered normal is the unorthodox system, in which the banker has progressed in his search for consumers.
Because banks strive to maximise profits, they apply all feasible marketing and promotional tactics in order to thrive, resulting in competition and the development of innovation and commercial acumen. Knight, Lester B. (1970: 7).
Status of banking marketing. According to the American Bankers Association in Washington, D.C., banks, particularly commercial banks, participate in the collection, payment, and depository operations, as well as credit management.
According to Kotler (1980: 4), the longevity of every bank is dependent on how it functions, and hence it must rely on the market for profitability and the economic settings in which it operates.
It is worth noting that every business’s capacity to serve and keep consumers is primarily determined by the quality and effectiveness of the product management services it provides.
The ability of any business to offer the desired satisfaction to its customers is a better indicator of its service quality. In this regard, reliability, standardisation, availability,
and other desired service traits combine to determine the efficiency of product management in selling bank services in the three local government areas.Martins (1979: 12) acknowledged that the image of a commercial bank is significant since it influences customer loyalty to the bank.
According to Advertisers Watchdog (1983: 7), the awareness generation strategy has been limited to advertisements that do little more than notify customers about the services they provide and the address of their location.
All claims about efficient, courteous, and rapid services are fake, and advertising in the banking industry can only become a reality when the services provided by bankers are equated to the claims made in the advertisement.
According to Azikiwe (1943: 16), he expressed anger and disgust with the treatment he received from a bank employee in Lagos. Even after the days of the white men,
the story remains consistent. Loans are still issued to clients, and if they are, it is claimed that the managers demand personal cuts, long lines, man-to-man, and so on.
Banking habit among the people is still very low in spite of the huge profits recorded by banks annually, according to Engu and Warsaw (1979: 10) indicated that there is a ray of hope and that the government rural banking programme,
if well planned, coordinated, and pursued vigorously, will help to increase the banking habit of our populace, increase the efficiency and effectiveness of its product management.”
There will be increased rivalry among banks for clients. As of the end of March 1985, there were thirty-two commercial banks operating the Udi, Ezeagu, and Udoji brand networks,
totaling one thousand one hundred and fifty-nine (1,159). Commercial banks dominate in terms of share volume, with a total capitalization of N16,340.50 million as of December 1980.
The competition among banks would focus on non-price lines because the Central Bank controls the interest, the aggregate amount to be lent to certain categories of customers, the sector in which more funds should be allocated, what should be accepted as collateral for loans, and, most importantly
the type of business that banks should engage in. It is up to banks to decide how they recruit, service, and keep their customers. All of these, including deposits, loans, and advances, contribute to good product management.
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